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(Bloomberg) — New Fortress Energy’s stock and bonds surged on Monday on a report of a contract extension for LNG supply granted by Puerto Rico’s government.
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Its shares gained 25% at the market open, while its bonds due 2029 jumped nearly 8 cents on the dollar to 48 cents, according to Trace data. El Nuevo Dia first reported the contract extension. A portion of New Fortress Energy’s LNG supply contract was renewed, according to the report.
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New Fortress Energy and a representative of the Puerto Rican government’s energy office did not respond for requests for comment.
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The company supplies liquefied natural gas to import terminals in Puerto Rico and Brazil and operates a floating LNG export site off the coast of Mexico.
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Management laid out new plans to shore up liquidity when it released its delayed first-quarter update on Monday. The publication of its 10-Q form eased concerns about a potential delisting, although the company’s looming debt and limited cash flows continue to present risks.
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New Fortress Energy has $270 million coming due in September 2025 under a revolving credit facility, with the rest maturing in the coming two years, according to a Fitch Ratings report. It also has a $510 million note coming due in 2026.
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The management plan includes a senior debt facility inked in the first quarter, according to the Monday filing. The new debt would be used to repay part of the revolving credit facility, New Fortress Energy said. Other plans include reviewing existing cargo financing facilities and delaying certain payments.
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New Fortress Energy first flagged the going concern risk earlier this year. Its cash flows are expected to be negatively impacted after a business sale in Jamaica as well as increased interest expense and collateral requirements, the company said. Earlier this month, various creditor groups organized with legal counsel.
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The LNG company run by billionaire Wes Edens generated revenues of $2.4 billion and a net loss of $242 million at the end of 2024. At the time, it had total liabilities of $10.8 billion.
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The company in its filing said it is exploring asset sales, settlement of claims and other “strategic transactions.”
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—With assistance from Jim Wyss.
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English (US)