Why This Small-Cap Energy Stock Plunged 78% in the First Half of 2025

Core Viewpoint - New Fortress Energy has experienced a significant decline in stock value, dropping 78% in the first half of 2025, raising questions about whether this is an overreaction or a serious issue for the company [1] Company Overview - New Fortress Energy is an energy infrastructure company focused on liquefied natural gas (LNG) and was positioned to benefit from the growing U.S. LNG export market, which is expected to see a 60% increase in global demand by 2040 according to Shell [2] Financial Troubles - The company has faced mounting debt issues, leading to a delayed dividend payment in September of the previous year and a going concern warning in November, indicating insufficient cash to meet 2025 debt obligations [4] - New Fortress Energy reported a 31% year-over-year revenue decline in the first quarter, with a net loss of $0.73 per share, significantly missing analysts' expectations [5] Regulatory and Operational Challenges - The company delayed its regulatory 10-Q filing, resulting in a delisting warning from Nasdaq, and reiterated its going concern warning in its SEC filing on June 30, indicating liquidity issues [6] - A recent setback occurred when Puerto Rico's finance regulator rejected a proposed $20 billion LNG supply contract, citing contract inconsistencies and concerns over potential monopoly, further straining relations with the Puerto Rican government [7]