NEW YORK - New Fortress Energy Inc. (NASDAQ: NASDAQ:NFE), an integrated gas-to-power company, has reached an agreement to sell its liquefaction and storage facility in Miami, Florida to an undisclosed U.S. infrastructure fund. The deal, which involves the small-scale Miami Facility, is slated for completion in the third quarter of 2024, pending customary closing conditions.
The Miami Facility, which began operations on February 5, 2016, has a production capacity of 8,300 MMBtu per day and includes three storage tanks with a combined capacity of roughly 1,000 cubic meters. It also features two LNG transfer areas servicing both truck and rail and is authorized to export up to 60,000 tonnes of LNG annually to both Free Trade Agreement and Non-FTA countries over a 20-year term.
Wes Edens, Chairman and CEO of New Fortress Energy, remarked on the transaction as a reflection of the company's strategy to divest certain assets, aiming to decrease debt and reinvest in higher return downstream projects.
New Fortress Energy, founded with the mission to combat energy poverty and facilitate the global shift to sustainable energy, manages natural gas and LNG infrastructure as well as an integrated fleet of ships and logistics assets delivering energy solutions worldwide.
The company's forward-looking statements indicate that while the sale is expected to close as planned, it is subject to various risks and uncertainties including regulatory approvals and the satisfaction of other closing conditions.
This news is based on a press release statement from New Fortress Energy.
In other recent news, New Fortress Energy is on the brink of launching liquefied natural gas (LNG) production at its Fast LNG unit in Altamira, Mexico.
The company has completed all necessary preparations and anticipates producing LNG within the next 10 days, with plans to deliver its first cargo in July. This news follows New Fortress Energy's solid first quarter performance in 2024, where it reported $340 million in EBITDA, meeting market expectations and highlighting strategic expansions in Puerto Rico and Brazil.
In other developments, Florida's 27th congressional district representative, Maria Elvira Salazar, sold her Class A common stock in New Fortress Energy. Meanwhile, CapitalOne adjusted its outlook on the company, reducing the stock's price target from $34.00 to $32.00 due to revised projections based on the company's recent disclosures and assumptions about their project timelines and financials.
The second quarter is expected to witness a significant drop in EBITDA, but a substantial increase is predicted in the latter half of the year.
These are recent developments regarding New Fortress Energy and are based on factual information without any form of speculation or opinion.
InvestingPro Insights
In light of New Fortress Energy's (NASDAQ: NFE) strategic move to sell its Miami Facility, a closer look at the company's financial health and market performance is warranted. According to InvestingPro data, New Fortress Energy has a market capitalization of $4.51 billion, reflecting its size and market share within the industry. The company's P/E ratio stands at 9.95, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 8.6, suggesting that the stock may be undervalued relative to its earnings.
Despite a challenging environment, New Fortress Energy has managed to maintain a gross profit margin of nearly 59% over the last twelve months as of Q1 2024. This indicates a robust ability to control costs and generate earnings from its revenues, a crucial factor for investors considering the company's potential for profitability.
InvestingPro Tips highlight several areas of concern for New Fortress Energy, such as the company operating with a significant debt burden and quickly burning through cash. Moreover, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. Still, analysts predict that the company will be profitable this year, and it has been profitable over the last twelve months. These mixed indicators suggest that while there are challenges, there may also be opportunities for the company moving forward.
For investors seeking a more comprehensive analysis, there are 9 additional InvestingPro Tips available for New Fortress Energy at https://www.investing.com/pro/NFE. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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