New Fortress Energy (NFE) has disclosed a new risk, in the Corporate Activity and Growth category.
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The recent sale of New Fortress Energy’s Jamaica Business to Excelerate Energy, Inc. for $1,055 billion is anticipated to have a significant negative impact on the company’s consolidated financial results and condition. Despite plans to use the proceeds to reduce corporate debt and reinvest in other projects, the loss of this revenue-generating asset may hinder the company’s ability to service and repay its debts. The company is banking on new ventures in Brazil, Nicaragua, and Puerto Rico to compensate for the lost revenue, but there is uncertainty surrounding the success and profitability of these projects. If these efforts fail to offset the revenue loss, New Fortress Energy’s business, liquidity, and financial health could face substantial challenges.
The average NFE stock price target is $8.67, implying 161.14% upside potential.
To learn more about New Fortress Energy’s risk factors, click here.