Key Points
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New Fortress Energy has secured a $4 billion agreement to supply liquefied natural gas to Puerto Rico over the next seven years, with the option for a three-year extension.
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The agreement follows the rejection of a larger proposal earlier this year and still requires approval from Puerto Rico’s Financial Oversight and Management Board.
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New Fortress Energy’s stock rallied as news of the agreement broke, but the company still faces financial pressures and struggles to turn a profit.
New Fortress secures Puerto Rico lifeline
New Fortress Energy has successfully negotiated a $4 billion deal to provide liquefied natural gas to Puerto Rico for the next seven years, with a possibility of extending for an additional three years. This agreement comes after the rejection of a larger proposal earlier in the year and awaits approval from Puerto Rico’s Financial Oversight and Management Board.
New Fortress still has issues
Despite the positive news of the supply agreement, New Fortress Energy continues to grapple with financial challenges, including mounting debt and profitability issues. The company has been forced to sell revenue-producing assets to address its balance sheet concerns, impacting long-term cash flow prospects.
Should you invest $1,000 in New Fortress Energy right now?
Before considering an investment in New Fortress Energy, it’s essential to note the company’s ongoing financial struggles and uncertain outlook. While the stock experienced a surge following the Puerto Rico supply deal announcement, the company’s overall financial health remains a concern. Investors may want to explore other investment opportunities with greater potential for long-term returns.
