NFE Stock Surges: What's Driving the Rally?

On Wednesday, April 3, 2025, New Fortress Energy Inc. (NFE) saw a significant surge in its stock price, leaving investors and analysts alike wondering what was driving the rally. The answer lies in a combination of strategic announcements and strong financial performance that have bolstered investor confidence in the company's future prospects.

One of the key drivers behind the stock price increase was the announcement of the sale of NFE's assets and operations in Jamaica to Excelerate Energy, Inc. for $1.055 billion. This transaction, expected to close in the second quarter of 2025, includes the sale of NFE’s LNG import terminal in Montego Bay, offshore floating storage and regasification terminal in Old Harbour, and a 150 MW Combined Heat and Power Plant in Clarendon, along with the associated infrastructure. The proceeds from this sale will be used to reduce NFE’s corporate debt and for general corporate purposes, enhancing the company's financial flexibility and liquidity.



Wes Edens, Chairman and CEO of New Fortress Energy, highlighted the strategic significance of this move, stating, "This transaction with Excelerate is a meaningful step as we continue to streamline our operations. We are proud of the contributions we have made to Jamaica’s energy transition. Our Jamaican assets and employees are world-class and have played a significant role in improving both the cost and reliability of energy on the island, and we are confident that Excelerate will continue to drive meaningful progress for Jamaica’s energy future."

Excelerate Energy, the acquiring company, is committed to connecting affordable LNG supply to downstream demand centers around the world. Steven Kobos, President and CEO of Excelerate Energy, expressed enthusiasm about the acquisition, saying, "Excelerate is committed to connecting affordable LNG supply to downstream demand centers around the world. We are pleased to have the opportunity to build on the success of NFE’s Jamaican assets. This acquisition will allow us to provide reliable, sustainable, and cost-effective energy solutions to the people of Jamaica for many years to come, while also expanding and diversifying Excelerate’s global market presence."

In addition to the Jamaica asset sale, NFE reported strong financial results for the fourth quarter and full year 2024. The company achieved Adjusted EBITDA of $313 million in the fourth quarter of 2024, surpassing its guidance of $200-$220 million. For the full year 2024, Adjusted EBITDA was $950 million, exceeding the guidance of $835-$855 million. These financial results were driven by the recognition of income from optimizing the current LNG portfolio and the completion of the Fast LNG asset, which was placed into service in December 2024. The liquefier has been operating smoothly and producing above nameplate capacity, further bolstering investor confidence.



Furthermore, NFE announced the extension of its 80 TBtu island-wide gas supply contract in Puerto Rico and an adjustment to its incentive structure on the Operation and Maintenance agreement between NFE subsidiary Genera & PREPA in exchange for an $110 million payment. These agreements provide significant opportunities to generate substantial cost savings and reduce emissions by converting existing plants from diesel to LNG, reinforcing NFE’s commitment to delivering reliable and clean power to Puerto Ricans at the lowest cost possible. This strategic move was well-received by investors, as it demonstrated NFE’s focus on sustainable energy solutions and cost efficiency.

In summary, the sale of Jamaica assets, strong financial performance, and strategic agreements in Puerto Rico were the key factors that contributed to the increase in NFE stock price on Wednesday, April 3, 2025. These announcements positively influenced investor sentiment by showcasing NFE’s financial strength, strategic initiatives, and commitment to sustainable energy solutions. As NFE continues to optimize its asset portfolio and enhance financial flexibility, investors can expect further growth and stability in the company's stock performance in the coming months.