New Fortress Energy: A Turnaround Play on LNG’s Next Frontier

The market is pricing New Fortress Energy (NFE) as a shipwreck, but beneath the stormy headlines lies a once-in-a-decade opportunity to buy a global LNG infrastructure play at a deep discount. While the delayed Q1 10-Q filing and CFO resignation have spooked investors, this is a strategic pivot, not a death spiral. Let me break down why now—amid the noise—is the moment to bet on NFE’s FLNG (Floating LNG) revolution.

The Near-Term Storm: Jamaica Divestment & Debt Restructuring

The delayed Q1 earnings release—pushed to May 14 to coincide with closing the $1.055 billion Jamaica asset sale—is a strategic move, not a red flag. By exiting a non-core market, NFE is de-risking its balance sheet and focusing capital on higher-growth LNG terminals. The CFO’s departure? A common casualty in corporate restructuring, but the TSA (Transaction Support Agreement) already has a plan to slash debt and extend maturities.

Key Data Point: NFE’s debt-to-equity ratio is an eye-popping 5.06, but the TSA’s $2.6 billion in new notes extends maturities to 2029 and uses proceeds to retire $875 million in 2025 notes. The equity offering raised $400 million, with CEO Wes Edens personally investing $50 million—skin in the game you can trust.

The stock is down 73% over 12 months, but this is a valuation anomaly. The Jamaica sale alone gives NFE $1.055 billion in dry powder to pay down debt and fund its FLNG megaprojects.

The LNG Growth Engine: Mexico’s Proof of Concept, Louisiana’s Moonshot

NFE isn’t just surviving—it’s building the future of LNG. In Mexico’s Altamira, the FLNG facility has already loaded its first cargo to Europe—a major milestone proving the technology works at scale. This isn’t a “me too” project; FLNG allows NFE to tap stranded gas reserves without the multi-billion-dollar cost of onshore terminals.

Now, the Louisiana FLNG project—stuck in regulatory purgatory—could be the $2.8 billion/year cash machine that unlocks NFE’s potential. While permitting delays are frustrating, the project’s 16-nautical-mile offshore location avoids land-use conflicts, and NFE’s Brazilian operations (now collateral for the TSA) add another growth pillar.

Why Now is the Buy Zone: The Cramer Catalysts

1. Debt Restructuring Done Right: The TSA’s 12% notes due 2029 are priced for pain, but they buy NFE three extra years to execute its vision. With liquidity boosted by the Jamaica sale, default fears are overblown.
2. FLNG Scalability: Mexico’s success isn’t a fluke—it’s a template. Louisiana and Brazil could replicate this model, creating a global LNG logistics network.
3. Undervalued Equity: At current prices, NFE’s stock trades at a 50% discount to tangible book value. Even with a 73% annual decline, the market hasn’t priced in FLNG’s $50+/barrel oil-linked revenues.

The Risks? Yes, But They’re Priced In

• Louisiana Permitting: The project’s delays are a risk, but NFE’s track record in Mexico (and its deep-pocketed partner, Excelerate Energy, in Jamaica) suggests they’ll win approvals eventually.
• Debt Overhang: The 5.06 debt-to-equity ratio is scary, but the TSA’s covenants and equity infusion have already stabilized liquidity.

Buy Now—The LNG Tsunami is Coming

NFE is a binary bet: it either sinks under debt or soars as FLNG takes off. With the Jamaica sale’s cash infusion and Mexico’s proof of concept, I’m betting on the latter.

Action Plan:
- Buy the dips below $8.63 (the recent equity offering price).
- Watch for Louisiana’s “stop clock” to resume—a green light here could send shares +50%.
- Hold for the FLNG dividend: When Louisiana comes online, NFE’s cash flow will go parabolic.

This is the kind of turnaround play that makes you rich—buy the fear, sell the news. NFE is a Cramer Dream Stock for 2025.

Final Call: NFE isn’t a value trap—it’s a value rocket. The Jamaica sale, Mexico’s success, and Louisiana’s potential give this stock a 100%+ upside. Act now, before the LNG tide lifts all boats.