New Fortress Energy sells Jamaican assets for $1.055 billion

NEW YORK - New Fortress Energy Inc. (NASDAQ: NFE), a global energy infrastructure company, has finalized the sale of its Jamaican operations to Excelerate Energy, Inc. (NYSE: EE) for $1.055 billion. The deal, which includes the sale of NFE’s LNG import terminal and associated infrastructure, is set to close in the second quarter of 2025. Excelerate Energy, with a market capitalization of $3.33 billion, has shown remarkable performance with a 101% return over the past year. According to InvestingPro analysis, the company maintains a strong financial health score and is trading near its 52-week high.

The transaction comprises NFE’s 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. NFE’s move to offload its Jamaican assets is a strategic effort to optimize its asset portfolio and enhance its financial flexibility. Excelerate Energy appears well-positioned to handle this acquisition, with InvestingPro data showing a strong current ratio of 3.49 and moderate debt levels. The company’s solid financial foundation is further evidenced by its consistent dividend growth over the past three years.

Since its entry into Jamaica in 2016, NFE has invested in the country’s energy sector, contributing to Jamaica’s shift towards sustainable energy and reducing its reliance on oil-based fuels. The company’s operations have reportedly generated significant fuel savings and supported the growth of renewable energy in Jamaica.

Wes Edens, Chairman and CEO of New Fortress Energy, expressed pride in the company’s role in Jamaica’s energy transition and confidence in Excelerate’s ability to continue making meaningful progress in the country’s energy future.

Excelerate Energy, a U.S.-based LNG company, aims to provide reliable and sustainable energy solutions to Jamaica, building on NFE’s established groundwork. Steven Kobos, President and CEO of Excelerate, emphasized the company’s commitment to ensuring a seamless transition.

Proceeds from the sale will be directed towards reducing NFE’s corporate debt and supporting general corporate purposes. Intrepid Financial Partners and Vinson & Elkins LLP served as NFE’s financial advisor and legal counsel, respectively.

This press release contains forward-looking statements and is based on current information, with risks and uncertainties that could cause actual results to differ materially. The information is based on a press release statement.

In other recent news, Excelerate Energy reported strong financial results for the fourth quarter of 2024, exceeding market expectations. The company achieved an earnings per share (EPS) of $0.40, surpassing the forecasted $0.35, and reported revenue of $274.6 million, well above the projected $194.96 million. Excelerate Energy’s adjusted EBITDA for the year reached a record $348 million, highlighting its effective operational strategies and market positioning. In a strategic move, Excelerate Energy signed a Memorandum of Understanding with Petrovietnam Gas Joint Stock Corporation (PV Gas) to secure a stable LNG supply from the United States, potentially starting in 2026, to meet Vietnam’s growing energy demands.

Morgan Stanley recently revised its outlook on Excelerate Energy, lowering the stock’s price target to $28 from $29 while maintaining an Underweight rating. This adjustment came after Excelerate Energy’s fourth-quarter earnings report, where the company’s EBITDA exceeded consensus estimates by 10%. Despite positive earnings, Morgan Stanley’s revised price target reflects a slight increase in net debt and capital expenditures. Excelerate Energy continues to focus on expanding its fleet of floating storage regasification units (FSRUs) and exploring new projects in Vietnam and Alaska. These developments underscore the company’s commitment to growth and strategic investments in the competitive energy sector.

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