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1. Company Snapshot

1.a. Company Description

New Fortress Energy Inc.operates as an integrated gas-to-power infrastructure company that provides energy and development services to end-users worldwide.The company operates in two segments, Terminals and Infrastructure, and Ships.


The Terminals and Infrastructure segment engages in the natural gas procurement and liquefaction; and shipping, logistics, facilities and conversion, or development of natural gas-fired power generation.The Ships segment offers floating storage and regasification units, and liquefied natural gas (LNG) carriers which are leased to customers under long-term or spot arrangements.The company operates LNG storage and regasification facility at the Port of Montego Bay, Jamaica; marine LNG storage and regasification facility in Old Harbour, Jamaica; landed micro-fuel handling facility in San Juan, Puerto Rico; marine LNG storage and regasification facility in Sergipe, Brazil; and LNG receiving facility in La Paz, Mexico, as well as Miami facility.


New Fortress Energy Inc.was founded in 1998 and is based in New York, New York.

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1.b. Last Insights on NFE

Breaking News: New Fortress Energy Inc received a boost as key government officials from Puerto Rico expressed support for its supply contract. The contract was conditionally approved by the Financial Oversight and Management Board earlier in the week. This development has garnered significant attention. Some analysts have recently reiterated their buy recommendation on the stock citing positive outlook. The company has not released its most recent earnings report yet. Officials view the contract as a crucial step forward. Several factors are at play that could influence the stock. A few firms have issued a hold rating.

1.c. Company Highlights

2. NFE Delivers Mixed Q1 2025 Earnings Amid Strategic Progress

NFE reported core earnings of $116 million for the first quarter of 2025, aligning with expectations. Despite this stability, the company posted a significant net loss per share of $-731.44, far below the consensus estimate of $-0.04. This discrepancy underscores the challenges NFE faces in navigating its complex asset portfolio and debt restructuring efforts. Management emphasized the stability of core earnings, anticipating consistent performance in the first half of the year with acceleration expected in the second half as Brazilian assets come online.

Publication Date: May -15

📋 Highlights

Operational Highlights and Strategic Initiatives

NFE highlighted several key operational milestones, including the successful closing of the Jamaica sale for $1.055 billion, generating $778 million in net proceeds. This transaction exceeded expectations in both timing and price, providing a significant boost to liquidity. The company also made progress on its FEMA claim of $659 million and reported meaningful contributions from FSRU sub-charters and excess cargo sales. Management underscored its focus on asset sales, debt reduction, and deleveraging, with the Jamaica sale serving as a prime example of this strategy.

Brazilian Growth and Power Sector Opportunities

In Brazil, NFE's 624-megawatt combined cycle power plant remains on track for commercial operation in the second half of 2025, while the 1.6-gigawatt open cycle plant is expected to reach commercial operation by mid-2026. Despite challenges such as heavy rainfall, construction progress is ahead of schedule, with CELBA 2 at 95% completion and PortoCem at 54%. The upcoming capacity auction in Brazil, expected later this year, is a key growth catalyst, with NFE well-positioned to capitalize on the structural need for power in the region.

Valuation and Financial Position

NFE's valuation reflects the market's cautious optimism about its turnaround potential. The stock currently trades at an EV/EBITDA ratio of 93.56, a metric that highlights the premium investors are placing on its long-term growth prospects. The company's dividend yield of 7.97% also attracts income-focused investors, though the sustainability of this payout remains a topic of debate. With over $1.1 billion in liquidity and a focus on refinancing and securitization, NFE is taking steps to shore up its financial position and reduce leverage. However, the negative free cash flow yield of -295.63% and a ROE of -45.72% raise concerns about profitability and capital efficiency.

3. NewsRoom

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New Fortress Energy Receives Approval for Milestone Agreement for Long-Term Gas Supply with Puerto Rican Government

Dec -04

Source: businesswire.com

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New Fortress Energy Stock Soared 11.3% Today -- Here's Why

Dec -03

Source: fool.com

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Why Did New Fortress Energy Stock Soar 7.4% Today?

Dec -02

Source: fool.com

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NFE stock: why the Puerto Rico LNG deal isn't a strong enough reason to buy

Dec -01

Source: invezz.com

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New Fortress Energy Stock Gets A Billion Dollar Bounce

Dec -01

Source: benzinga.com

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Why New Fortress Energy Stock Plummeted 7.4% Today

Nov -25

Source: fool.com

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New Fortress Energy: Wipeout For Common Shareholders Increasingly Likely - Strong Sell

Nov -23

Source: seekingalpha.com

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New Fortress Energy Signs Forbearance Agreement

Nov -18

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.67%)

6. Segments

Terminals and Infrastructure

Expected Growth: 8.85%

New Fortress Energy's Terminals and Infrastructure segment growth is driven by increasing demand for LNG, strategic partnerships, and expansion into new markets. The company's focus on developing LNG terminals and infrastructure in underserved regions, such as the Caribbean and Latin America, is expected to drive growth. Additionally, the segment benefits from long-term contracts and a strong backlog of projects, supporting the 8.85% growth rate.

Ships

Expected Growth: 7.43%

New Fortress Energy Inc.'s 7.43% growth is driven by increasing demand for liquefied natural gas (LNG) and its strategic expansion into new markets. The company's focus on clean energy solutions, growing global energy demand, and its ability to capitalize on the energy transition trend are key growth drivers.

Consolidation and Other

Expected Growth: 7.88%

New Fortress Energy's 7.88% growth in Consolidation and Other segment is driven by increasing demand for liquefied natural gas (LNG) and growth in terminaling and logistics services. Additionally, the company's expansion into new markets, strategic partnerships, and investments in infrastructure development have contributed to this growth.

7. Detailed Products

LNG

Liquefied Natural Gas, a clean-burning fuel used for power generation, industrial processes, and transportation

CNG

Compressed Natural Gas, a clean-burning fuel used for transportation and industrial processes

LPG

Liquefied Petroleum Gas, a clean-burning fuel used for cooking, heating, and power generation

Power Generation

Electricity generation using natural gas, wind, and solar power

Infrastructure Development

Development of LNG terminals, pipelines, and other infrastructure for the transportation and storage of energy products

8. New Fortress Energy Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

New Fortress Energy Inc. operates in the liquefied natural gas (LNG) industry, which has a moderate threat of substitutes. While there are alternative energy sources, LNG is a cleaner-burning fuel that is in high demand, reducing the threat of substitutes.

Bargaining Power Of Customers

New Fortress Energy Inc. has a diverse customer base, including utilities, industrial companies, and transportation companies. The bargaining power of customers is low due to the lack of concentration in the customer base.

Bargaining Power Of Suppliers

New Fortress Energy Inc. relies on a few large suppliers for its LNG, which gives them some bargaining power. However, the company's scale and diversification efforts reduce the bargaining power of suppliers.

Threat Of New Entrants

The LNG industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants.

Intensity Of Rivalry

The LNG industry is highly competitive, with several established players competing for market share. New Fortress Energy Inc. faces intense competition from companies such as Cheniere Energy and Dominion Energy.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.95%
Debt Cost 4.56%
Equity Weight 19.05%
Equity Cost 11.60%
WACC 5.90%
Leverage 424.84%

11. Quality Control: New Fortress Energy Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Brookfield Infrastructure

A-Score: 6.7/10

Value: 8.9

Growth: 4.3

Quality: 5.8

Yield: 8.0

Momentum: 5.0

Volatility: 8.3

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New Jersey Resources

A-Score: 6.7/10

Value: 6.7

Growth: 4.3

Quality: 5.3

Yield: 8.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

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ONE Gas

A-Score: 6.3/10

Value: 5.9

Growth: 4.4

Quality: 4.7

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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UGI

A-Score: 6.2/10

Value: 5.6

Growth: 2.3

Quality: 4.1

Yield: 8.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Southwest Gas Holdings

A-Score: 5.9/10

Value: 4.2

Growth: 5.2

Quality: 3.5

Yield: 7.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
New Fortress Energy

A-Score: 3.7/10

Value: 9.8

Growth: 6.4

Quality: 2.5

Yield: 3.0

Momentum: 0.0

Volatility: 0.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.57$

Current Price

1.57$

Potential

-0.00%

Expected Cash-Flows