Excelerate Energy to Acquire New Fortress Energy's Jamaica Operations

Core Viewpoint - Excelerate Energy Inc. has agreed to acquire New Fortress Energy Inc.'s assets in Jamaica for $1.055 billion, with the transaction expected to close by the June quarter of 2025 [1] Group 1: New Fortress Energy's Debt Reduction Strategy - The divestment is part of New Fortress Energy's strategy to optimize its asset portfolio and reduce its $8.4 billion debt burden by the end of 2024 [2] - New Fortress Energy paused shareholder dividend payments and engaged with bondholders regarding short-term debt maturities amid financial difficulties [2] Group 2: Transaction Details - The transaction includes NFE's LNG import terminal in Montego Bay, the Old Harbour offshore floating storage and regasification terminal, and a 150 MW Combined Heat and Power Plant in Clarendon [3] - Proceeds from the sale will be utilized to pay off corporate debt and meet general corporate needs [3] Group 3: New Fortress Energy's Role in Jamaica - New Fortress Energy has been instrumental in transitioning Jamaica's energy landscape from oil-based fuels to cleaner energy resources since entering the market in 2016 [4] - The company has collaborated with the government and local communities to enhance access to reliable and cost-effective clean energy [4] Group 4: Excelerate Energy's Strategic Position - The acquired assets align with Excelerate Energy's operational capabilities and will support existing LNG supply agreements [5] - The 150 MW Clarendon power plant, which supplies nearly 65% of Jamaica's electricity, has potential for expansion [5] - Jamaica's strategic location enhances Excelerate Energy's position as LNG export facilities in the region are on the rise [5] Group 5: Deleveraging Trends in the Energy Sector - The divestment aligns with broader deleveraging trends in the energy sector, where companies like Phillips 66 are also focusing on asset dispositions to strengthen their balance sheets [6] - Phillips 66 has committed to achieving $3 billion in asset divestitures in 2023 and aims to reduce total debt to $17 billion by 2025 [7]