Core Viewpoint - New Fortress Energy's stock is experiencing a significant rally due to reports of a potential 15-year contract to supply liquefied natural gas (LNG) to power plants in Puerto Rico, with shares up 24.4% at one point [1][4]. Group 1: Contract Details - New Fortress is reportedly set to secure a 15-year contract to provide LNG to five power plants in San Juan and Palo Seco [4]. - The contract includes provisions for New Fortress to supply energy resources for eight peaking-power units being installed by one of its subsidiaries [4]. - The deal may also allow for future extensions, potentially providing a substantial new revenue source for the company [4]. Group 2: Stock Performance - Despite the recent rally, New Fortress's stock is down approximately 78% year-to-date [2]. - The stock had previously surged as much as 40% earlier in the trading session before stabilizing at a 24.4% increase [1]. Group 3: Financial Outlook - Securing the new contract could provide a much-needed capital injection for New Fortress, which has been struggling with high debt and liquidity issues [6]. - While the new deal may improve the company's outlook, it is not guaranteed to resolve all existing challenges, and there are risks associated with potential restructuring or share offerings [6][5].

Financial Transactions - The company completed the sale of its Jamaica business for cash consideration of approximately $1.06 billion, receiving net proceeds of about $678 million[157][158]. - The company completed the sale of the Jamaica Business for $1.055 billion in cash, resulting in net proceeds of approximately $678.48 million after debt repayment[211]. - The company is pursuing a $659 million request for equitable adjustment related to the early termination of a contract for emergency power services, indicating potential future cash inflow[163]. - A portion of the proceeds from the Brazil Financing Notes issuance, amounting to $208.7 million, was used to repay the Barcarena Debentures in full[286]. Revenue and Contracts - The company has secured long-term contracts with significant customers, including Jamaica Public Service Company Limited and Puerto Rico Electric Power Authority, enhancing its revenue stability[159]. - The company has developed a 10-year contract for the operation and maintenance of PREPA's thermal generation assets, which commenced on July 1, 2023, providing a stable revenue stream[164]. - The company has entered into a 10-year gas sales agreement with CFE to supply natural gas on a take-or-pay basis, enhancing its revenue predictability[166]. - The company has entered into a 25-year power purchase agreement (PPA) in Nicaragua, expecting to utilize approximately 57,000 MMBtu from LNG per day for the Puerto Sandino Power Plant[189]. Operational Efficiency and Projects - In 2023, the company commissioned 350MW of dual-fuel power generation in Puerto Rico in less than 180 days, demonstrating operational efficiency[161]. - The company is actively developing modular liquefaction facilities and other projects globally, indicating a strategic focus on expanding its LNG supply capabilities[178]. - The first Fast LNG unit has been deployed off the coast of Altamira, Mexico, with a capacity of 1.4 million tons per annum (MTPA) and was placed into service in Q4 2024[185]. - The company plans to deploy up to two additional 1.4 MTPA FLNG units onshore at the existing Altamira LNG import facility, utilizing feedgas from the Sur de Texas-Tuxpan Pipeline[186]. - The La Paz Power Plant in Mexico was placed into service in the third quarter of 2023, with a maximum capacity of up to 135MW, expanding the company's operational footprint[165]. Facilities and Capacity - The Santa Catarina Facility in Brazil has a processing capacity of approximately 500,000 MMBtu per day and is expected to serve a total addressable market of 15 million cubic meters per day of natural gas[168]. - The Barcarena Facility in Brazil can deliver almost 600,000 MMBtu from LNG per day and has a 15-year gas supply agreement with Norsk Hydro ASA[190]. - The Barcarena Power Plant, a 630 MW combined cycle natural gas-fired power plant, is expected to be completed in 2025 and is fully contracted under multiple 25-year power purchase agreements[191]. - The company has secured a capacity contract for a power plant in Ireland for approximately 353 MW of electricity generation, required to be operational by October 2026[194]. Financial Performance - Total revenue for the Terminals and Infrastructure Segment decreased by $97.0 million (approximately 18.4%) for the three months ended March 31, 2025, compared to the previous quarter, and decreased by $215.8 million (approximately 33.3%) compared to the same quarter in 2024[225]. - Segment Operating Margin for the Terminals and Infrastructure Segment was $74.6 million for the three months ended March 31, 2025, a decrease of $131.5 million (approximately 63.8%) from $206.1 million in the previous quarter and a decrease of $275.5 million (approximately 72.5%) from $350.1 million in the same quarter in 2024[224]. - Net income for the three months ended March 31, 2025, was a loss of $197.4 million, an improvement of $26.1 million compared to the loss of $223.5 million in the previous quarter[241]. - Cash flows from operating activities for Q1 2025 were $(31.7) million, a decrease of $101.8 million compared to $70.1 million in Q1 2024[274]. Costs and Expenses - Cost of sales increased by $14.0 million for the three months ended March 31, 2025, compared to the previous quarter[229]. - Operations and maintenance costs increased by $20.5 million for the three months ended March 31, 2025, compared to the previous quarter, primarily due to new facilities placed into service[234]. - The company incurred $103.8 million in cargo sales costs for the first quarter of 2025, compared to $53.9 million in the previous quarter[231]. - Selling, general and administrative expenses decreased by $2.5 million for the three months ended March 31, 2025, compared to the previous quarter, mainly due to share-based compensation reversals[243]. Debt and Financing - The total principal balance on outstanding facilities was $9.4 billion as of March 31, 2025, compared to $7.2 billion as of March 31, 2024[251]. - The company entered into an amendment to the Term Loan B Credit Agreement in March 2025, increasing the total outstanding principal to $1.272 billion, with proceeds primarily used for capital expenditures[281]. - The company issued up to $350 million aggregate principal amount of 15.0% Senior Secured Notes due 2029, with a purchase price of 97.75% of par[286]. - Interest expense increased by $114.2 million for the three months ended March 31, 2025, compared to the previous quarter, primarily due to lower capitalized interest[250]. Market and Risk Factors - A 100-basis point increase or decrease in market interest rates would decrease or increase the fair value of the company's fixed rate debt by approximately $110 million[292]. - A 100-basis point increase or decrease in market interest rates would also decrease or increase the company's annual interest expense by approximately $21 million[293]. - The company has limited exposure to fluctuations in foreign currency exchange rates outside of Brazil, primarily conducting operations in U.S. dollars[295]. - The company does not currently have any derivative instruments to mitigate fluctuations in LNG prices but may consider entering into such instruments in the future[291].

[Main Announcement & Q1 2025 Results Overview](index=1&type=section&id=Main%20Announcement%20%26%20Q1%202025%20Results%20Overview) [Sale of Jamaican Assets](index=1&type=section&id=Sale%20of%20Jamaican%20Assets) New Fortress Energy (NFE) has finalized the sale of its Jamaican assets and operations to Excelerate Energy for $1.055 billion, with proceeds primarily allocated to reducing corporate debt and aligning with the company's near-term focus on asset sales and deleveraging - NFE completed the sale of its Jamaican assets to Excelerate Energy, Inc. for **$1.055 billion**[1](index=1&type=chunk) - The assets sold include the LNG import terminal in Montego Bay, an offshore floating storage and regasification terminal in Old Harbour, and a 150 MW Combined Heat and Power Plant in Clarendon[2](index=2&type=chunk) - Proceeds will be used to pay down **$270 million** of the Revolving Credit Facility and **$55 million** of the Term Loan A facility, with the remainder added to cash on the balance sheet[7](index=7&type=chunk) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) For the first quarter of 2025, NFE reported an Adjusted EBITDA of $82 million, a net loss of $197 million, or $(0.73) per diluted share, and ended the quarter with a total cash balance of $827 million Q1 2025 Financial Metrics | Metric | Value | | :--- | :--- | | Adjusted EBITDA | $82 million | | Net loss | $197 million | | EPS (fully diluted) | $(0.73) | | Total cash balance | $827 million | | Unrestricted cash | $448 million | - The Q1 2025 Adjusted EBITDA of **$82 million** is considered to be entirely from core earnings, consisting of terminal and vessel operations, without one-time gains seen in prior periods[4](index=4&type=chunk) - Revenue from terminal operations has been largely unchanged since the termination of the temporary power contract in Q1 2024, as the emergency power plants were sold to the Puerto Rico Electric Power Authority in March 2024[4](index=4&type=chunk) [Business Outlook and Development Updates](index=1&type=section&id=Business%20Outlook%20and%20Development%20Updates) NFE expects future earnings to be boosted by one-time events and core earnings growth from development projects in Brazil and Nicaragua, along with expansions in Puerto Rico, with significant progress made on the CELBA power plant and Fast LNG asset optimization - Future earnings in 2025 are expected to be boosted by one-time events such as a FEMA claim, FSRU sub-charters, and a Genera incentive payment[5](index=5&type=chunk) - Development projects in Brazil are progressing on-time and on-budget, with the **624 MW CELBA plant** **~95% complete** and expected to start generating earnings in Q3 2025, while the adjacent PortoCem plant is over **50% complete**[5](index=5&type=chunk) - The company's Fast LNG asset has been fully commissioned and is undergoing optimization projects to increase its liquefaction capacity[5](index=5&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=2&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) In Q1 2025, NFE's total revenues decreased to $470.5 million from $690.3 million in Q1 2024, resulting in an operating loss of $18.5 million and a net loss of $197.4 million, or $(0.73) per diluted share, a significant shift from prior-year profitability Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in millions, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $690.3 | | Operating (Loss) Income | $(18.5) | $184.5 | | Net (Loss) Income | $(197.4) | $56.7 | | Diluted (Loss) Income per Share | $(0.73) | $0.26 | Consolidated Statements of Operations (Q1 2025 vs Q4 2024) | (in millions) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $679.0 | | Operating (Loss) Income | $(18.5) | $230.3 | | Net (Loss) | $(197.4) | $(223.5) | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, NFE's balance sheet reported total assets of $13.03 billion and total liabilities of $11.12 billion, with total stockholders' equity at $1.87 billion, reflecting slight increases in assets and liabilities compared to December 31, 2024, and including assets and liabilities held for sale related to the pending Jamaica transaction Consolidated Balance Sheets | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $447.9 | $492.9 | | Total current assets | $1,473.7 | $1,610.1 | | Total assets | $13,028.1 | $12,867.5 | | **Liabilities & Equity** | | | | Total current liabilities | $1,473.7 | $1,707.4 | | Long-term debt | $8,931.5 | $8,355.7 | | Total liabilities | $11,115.8 | $10,777.8 | | Total stockholders' equity | $1,871.5 | $1,999.1 | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) NFE's key non-GAAP metrics, Adjusted EBITDA and Total Segment Operating Margin, experienced significant year-over-year declines in Q1 2025, primarily driven by a decrease in the Terminals and Infrastructure segment's operating margin Adjusted EBITDA (in millions) | (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $82.3 | $313.5 | $340.1 | Segment Operating Margin (in millions) | Segment Operating Margin (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Terminals and Infrastructure | $74.6 | $206.1 | $350.1 | | Ships | $31.4 | $34.1 | $34.2 | | **Total Segment Operating Margin** | **$106.0** | **$240.2** | **$384.3** | - The company defines Adjusted EBITDA as net income adjusted for items including interest, taxes, depreciation, amortization, transaction costs, non-cash share-based compensation, and other non-recurring or non-operating expenses to provide a supplemental view of ongoing business performance[20](index=20&type=chunk)[21](index=21&type=chunk)

Core Viewpoint - New Fortress Energy Inc. is under investigation for potential securities fraud and unlawful business practices following a significant decline in its financial performance in Q1 2025 [1][3]. Financial Performance - New Fortress reported total revenue of $470.5 million for Q1 2025, a decrease from $690.3 million in Q1 2024, indicating a year-over-year decline of approximately 31.8% [3]. - The company experienced a net loss of $197.4 million, or $0.73 per share, compared to a net income of $56.7 million, or $0.26 per share, in the same period of the previous year [3]. Stock Market Reaction - Following the release of the disappointing financial results, New Fortress's stock price fell by $4.27 per share, representing a decline of 62.98%, closing at $4.27 per share on May 15, 2025 [4].

Company Overview - New Fortress Energy, Inc. is an energy company that develops, finances, and operates liquefied natural gas (LNG) facilities and power plants globally [3] - The company operates through two segments: "Terminals and Infrastructure," focusing on LNG production and distribution, and "Ships," which provides LNG storage and transportation services [3] Allegations and Financial Performance - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving New Fortress due to allegations of providing misleading business information to investors [1] - On May 14, 2025, New Fortress announced its financial results for Q1 2025, reporting a total revenue decline of $219.8 million compared to Q1 2024, resulting in a net loss of $197.4 million, down from a net income of $56.7 million in the same quarter of the previous year [4] - Following the financial announcement, New Fortress' stock price fell by $4.27 per share, approximately 62.98%, closing at $4.27 on May 15, 2025 [5]

Core Viewpoint - New Fortress Energy's stock has significantly declined due to disqualification from a key government auction in Puerto Rico, alongside disappointing Q1 results and worsening credit issues [1][2][5][6] Group 1: Stock Performance - Shares of New Fortress Energy fell by 14.5% as of market close, coinciding with broader market declines in the S&P 500 and Nasdaq Composite [1] - The stock's decline is attributed to negative news regarding the company's exclusion from a government auction [1][2] Group 2: Auction Disqualification - New Fortress Energy has been disqualified from a Puerto Rican government auction aimed at securing temporary power generation, specifically for an 800-megawatt contract [2] - The company has reached out to Puerto Rico's Governor requesting reconsideration of the disqualification [3] Group 3: Financial Performance - The company recently announced Q1 results that did not meet Wall Street's expectations, contributing to negative market sentiment [5] - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay for $1 billion, which, while providing immediate cash, poses a risk to future revenue streams [5] Group 4: Credit Rating and Leverage - The company's credit rating has deteriorated further, exacerbating its ongoing financial challenges as it is heavily leveraged [6] - There are multiple issues facing New Fortress Energy, leading to a lack of a compelling turnaround case in the near future [6]

Core Viewpoint - New Fortress Energy Inc. is under investigation for potential securities fraud and unlawful business practices following a significant decline in its financial performance in Q1 2025 [1][2]. Financial Performance - New Fortress reported total revenue of $470.5 million for Q1 2025, a decrease from $690.3 million in Q1 2024, representing a decline of approximately 31.8% [2]. - The company experienced a net loss of $197.4 million, or $0.73 per share, compared to a net income of $56.7 million, or $0.26 per share, in the same period of the previous year [2]. Stock Market Reaction - Following the release of the disappointing financial results, New Fortress's stock price fell by $4.27 per share, or 62.98%, closing at $4.27 per share on May 15, 2025 [3].

Core Viewpoint - New Fortress Energy's stock experienced a significant decline of 62.7% following the release of disappointing Q1 2025 financial results, which revealed a substantial loss that exceeded Wall Street's expectations [1][2]. Financial Performance - The company reported a Q1 2025 loss of $0.73 per share, contrasting sharply with a net profit of $0.26 per share in the same quarter last year, indicating a severe downturn in financial performance [2]. Asset Management - New Fortress Energy sold its Jamaican LNG import terminal in Montego Bay and other assets to Excelerate Energy for approximately $1 billion, a move aimed at addressing its dire financial situation and high debt levels [3]. - The company plans to allocate around $325 million of the proceeds from the sale to reduce existing debt, highlighting its focus on improving its financial stability [3]. Credit and Market Position - The company's credit rating is below investment grade, which restricts its ability to secure long-term contracts for LNG assets in Latin America, forcing it to rely on short-term agreements that negatively impact profit margins [5]. - The current market conditions and the company's financial issues suggest a lack of compelling reasons for a turnaround in the near future, making it an unattractive investment [5].

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Financial Data and Key Metrics Changes - The core earnings for Q1 2025 were consistent with expectations, showing a stable trend from previous quarters [5] - EBITDA forecast for the year is now estimated to be between $1.25 billion and $1.5 billion, which is an increase from previous estimates [5][6] - The company reported a net loss of $200 million for GAAP, translating to a loss of $0.73 per share, with no material one-time items affecting adjusted EPS [53] Business Line Data and Key Metrics Changes - The Jamaica sale generated net proceeds of approximately $778 million, with a gain of $430 million, contributing positively to the financial outlook [7][50] - The company has taken back surplus FSRUs and relet them at higher rates, resulting in an estimated profit of $143 million [9][10] - Total segment operating margin for Q1 was $106 million, down from $240 million in Q4 2024 [52] Market Data and Key Metrics Changes - Brazil is expected to contract 10 to 15 gigawatts of capacity, with upcoming capacity auctions anticipated to take place in early 2025 [36][38] - The energy system in Puerto Rico is described as underinvested and in need of new generation, with significant opportunities for the company to provide temporary power and convert existing diesel plants to natural gas [40][42] Company Strategy and Development Direction - The company aims to simplify its balance sheet and lower debt costs by moving towards asset-level financing [16][17] - Focus on generating repeatable, long-duration cash flows from core assets, particularly in Brazil and Puerto Rico [23][24] - The strategy includes leveraging existing infrastructure and securing long-term contracts to enhance financial stability and growth prospects [22][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the resolution of the FEMA claim, which amounts to $659 million, and expects a positive outcome in the near term [8] - The company is well-positioned to capitalize on growth opportunities in Brazil and Puerto Rico, with strong regulatory support and rising demand for integrated LNG to power models [38][40] - Management emphasized the importance of controlling logistics and supply chains to maximize efficiency and profitability [22][23] Other Important Information - The company has a strong liquidity position, ending Q1 with $448 million in cash and $275 million available under its revolving credit facility [55] - The company is in advanced discussions for additional FSRU contracts, which could contribute significantly to future earnings [51] Q&A Session Summary Question: Can you elaborate on the restricted cash on the balance sheet? - The restricted cash is primarily related to capital expenditures in Brazil, specifically for the Selva and Porto Sim power plants [59] Question: Is the company considering open market repurchases of debt? - The company is evaluating opportunities to refinance its capital structure and may consider repurchasing debt at a discount if advantageous [60][64] Question: What is the strategy for bidding in the Puerto Rico power opportunity? - The bidding process requires a unitary cost of power, and the company is leveraging its existing infrastructure to provide competitive bids [69] Question: What is the status of the Nicaragua project? - The company is finalizing the restructuring of its PPA with the government and is close to completing the power plant and terminal [80][82]