New Fortress Energy Closes $1.055 Billion Sale of Jamaican Assets to Excelerate; Reports $197 Million Q1 Loss Amid Strategic Debt Reduction Efforts

NEW YORK — New Fortress Energy Inc. (Nasdaq: NFE) has completed the $1.055 billion sale of its Jamaican assets and operations to Excelerate Energy (NYSE: EE), using proceeds to pay down corporate debt and reinforce its liquidity position. The deal, which was initially announced on March 27, 2025, includes the Montego Bay LNG terminal, the Old Harbour FSRU terminal, and the Clarendon 150 MW CHP plant.

Chairman and CEO Wes Edens stated that the transaction marks a “significant milestone” in the company’s ongoing effort to streamline operations and strengthen its balance sheet. From the proceeds, NFE used $270 million to reduce its Revolving Credit Facility, $55 million to reduce its Term Loan A facility, and retained the remaining cash on hand, increasing unrestricted cash to $448 million as of March 31, 2025.

Q1 2025 Financial Highlights:

Adjusted EBITDA totaled $82 million, comprised entirely of core terminal and vessel operations.

Net loss was $197 million, or $(0.73) per diluted share, compared to net income of $56.7 million in Q1 2024.

Total revenues fell to $470.5 million, down from $690.3 million in the same quarter last year.

Segment operating margin dropped to $106 million, compared to $384 million in Q1 2024.

Operating income swung to a loss of $18.5 million, pressured by increased interest expense ($213.7 million) and a $53 million depreciation charge. NFE's asset impairment and transaction costs also weighed on results, alongside a $467,000 debt extinguishment loss.

Looking ahead, the company expects short-term earnings boosts from FEMA claims, sub-charter revenues, and a Genera incentive payment. Long-term growth will be driven by new LNG and power plant projects in Brazil, Nicaragua, and Puerto Rico, notably the 624 MW CELBA power plant in Brazil, now 95% complete.

NFE’s management reaffirmed its plan to pursue asset-based financings and further debt simplification using its portfolio of LNG infrastructure and long-term contracts.

Summary:

New Fortress Energy Amends Credit Agreements Following Jamaican Asset Sale

New Fortress Energy has executed amendments to its credit facilities in connection with the sale of its Jamaican business to Excelerate Energy. The company modified its revolving credit facility (RCF), term loan agreement (TLA), and uncommitted letter of credit agreement (ULCA) to accommodate the transaction and provide greater financial flexibility.

Under the revised terms, New Fortress Energy is permitted to apply $270 million of the asset sale proceeds toward early repayment of the RCF before September 30, 2025, bypassing the typical requirement to allocate 75% of asset sale proceeds to debt reduction. The term loan amendment mandates $55 million of the proceeds to be used for prepayment and introduces a higher interest rate structure, with a SOFR margin of 6.70% and a base rate margin of 5.70%.

The amendments also update financial covenants. The first lien debt ratio and fixed charge coverage ratio will not be tested for the quarter ending June 30, 2025. Future leverage thresholds have been revised downward over time, while the fixed charge coverage ratio must be at least 1.00 to 1.00 beginning in the third quarter.

Additional provisions restrict the use of cash for repurchasing 2026 senior secured notes, except under specific conditions. The company intends to reinvest the remaining sale proceeds and reduce other debt obligations.

New Fortress Energy to Sell Jamaican Operations to Excelerate Energy for $1.055 Billion

On March 26, 2025, New Fortress Energy Inc. (NFE) and its affiliate Atlantic Energy Holdings LLC entered into a definitive equity and asset purchase agreement with Excelerate Energy Limited Partnership, a subsidiary of Excelerate Energy Inc. Under the terms of the agreement, Excelerate will acquire NFE’s Jamaican business for an initial purchase price of $1.055 billion in cash, subject to adjustments for working capital, transaction expenses, and fuel inventory.

The transaction includes the transfer of NFE’s energy operations and assets in Jamaica and is expected to close as early as the second quarter of 2025. Closing is subject to customary conditions including pre-closing restructuring, delivery of audited financial statements, receipt of required consents, and release of assets from existing debt obligations.

The agreement allows either party to terminate the deal if closing does not occur by July 24, 2025, extendable to August 25, 2025. In certain termination scenarios, NFE may be required to reimburse Excelerate for documented transaction-related expenses.

On March 27, NFE issued a press release announcing the agreement. The deal is expected to support NFE’s strategy to reduce debt and realign capital toward its remaining operations.

A copy of the agreement and press release were filed with the SEC as Exhibits 10.1 and 99.1, respectively.

New Fortress Energy Inc. has entered into a Second Amendment to its Credit Agreement, allowing the company to raise an additional $425 million in incremental term loans. The amendment also provides for the exchange of existing term loans for new loans of the same class, bringing the total commitments under the amended term loan to approximately $1.27 billion. The proceeds from the additional loans will primarily fund capital expenditures for the company’s FLNG2 assets and other corporate expenses.

The new term loans will bear interest at either a base rate plus 4.50% per annum or a Term SOFR rate plus 5.50% per annum. Certain prepayment penalties apply if the loans are repaid before the third anniversary of the closing date. The maturity date remains unchanged at October 30, 2028.

Additionally, New Fortress Energy has amended its existing credit agreements, including an uncommitted letter of credit and reimbursement agreement, allowing for additional incremental loans under its term loan facility. The company has also eliminated future borrowing potential under one of its credit facilities by reducing available commitments to zero. These amendments collectively provide greater flexibility in managing the company’s capital structure.

New Fortress Energy (NFE) reported its financial results for the fourth quarter and full year 2024. The company achieved adjusted EBITDA of $313 million in Q4 2024, surpassing its guidance of $200–$220 million, and totaled $950 million for the full year, exceeding its forecast of $835–$855 million. Despite this strong performance, NFE posted a net loss of $224 million in Q4 and $242 million for the year, primarily due to refinancing costs, including a $260 million loss on debt extinguishment in Q4. Adjusted net income was $29 million in Q4 and $101 million for the full year, with adjusted EPS of $0.13 and $0.46, respectively.

Operationally, the company completed and placed its Fast LNG asset into service in December 2024, with the liquefier producing above nameplate capacity. NFE also extended its island-wide gas supply contract in Puerto Rico and adjusted its incentive structure for a subsidiary’s agreement with PREPA in exchange for a $110 million payment. In Brazil, its 624 MW CELBA power plant is nearly 88% complete, and the company is positioning itself for Brazil’s upcoming power auctions in June 2025.

On the financial front, NFE successfully issued $2.7 billion in new senior secured notes to refinance its 2025 bonds and part of its 2026 and 2029 bonds, improving liquidity by $300 million. Additionally, it completed a $400 million equity offering in October 2024 and raised another $350 million in Brazil in February 2025. In March 2025, it upsized its Term Loan B by $425 million.

Looking ahead, NFE continues to focus on optimizing its LNG portfolio, completing ongoing infrastructure projects, and strengthening its financial position to support future growth. The company will host a conference call on March 3, 2025, to discuss these results further.