New Fortress Energy Inc. Series A Mandatorily Convertible Preferred Stock

What they do

New Fortress Energy builds and operates LNG and natural gas infrastructure, including import terminals, power plants, and Fast LNG floating liquefaction assets. Its operations span Brazil, the Caribbean, and other markets, where it supplies natural gas and power. The company is currently executing on a restructuring plan that will divest its Brazil business and focus on remaining facilities and development projects.

Revenue drivers

• Brazil operations — Includes Barcarena Facility, Barcarena Power Plant, Santa Catarina Facility, and PortoCem Power Plant; expected to be divested in the restructuring. Significant contributor to revenue and cash flows.
• LNG supply and trading — Sale of LNG volumes to customers under long-term and short-term contracts, leveraging sourcing and logistics capabilities.
• Fast LNG and FLNG assets — Floating LNG production facilities; these assets are being used as collateral for non-recourse term loans under the restructuring, indicating ongoing value.
• Terminals and infrastructure services — Regasification and storage services at various terminals; revenue from capacity and throughput fees.

Recent performance

Annual revenue declined from $2.06B in 2023 to $1.70B in 2024 and $1.18B in 2025. Net loss widened to $1.83B in 2025, with diluted EPS of -$6.63. Operating cash flow flipped from positive $602.2M in 2024 to negative $583.4M in 2025. Quarterly revenue in 2026 has been volatile, with Q2 2026 at $272.4M. At June 30, 2026, total assets were $10.73B, total liabilities $11.16B, and shareholder equity was negative $553.6M.

Strategy

Management's stated strategy is to consummate a Restructuring Support Agreement entered on March 17, 2026, with lenders and noteholders. The restructuring will separate NFE Brazil Holdings (Brazil business) and give its equity to holders of New 2029 Notes, R-2 Revolving Credit Facility and Term Loan A debt. Supporting creditors will receive a mix of new debt, preferred stock, common stock, and FLNG 2 preferred stock. The remaining company will focus on operational efficiency and cost-effective completion of in-process development projects, with a goal of returning to profitability.

Risks

• Going concern and liquidity — Events of default under debt agreements create substantial doubt about the company's ability to continue as a going concern; cash was only $161.2M as of June 30, 2026.
• Restructuring execution risk — The restructuring transaction may not close as planned; if it fails, the company may need in-court proceedings that could result in no recovery for stockholders.
• Material weaknesses in internal controls — The company has identified material weaknesses in its internal control over financial reporting, which could lead to errors in financial statements.
• Market and commodity risk — Revenue is tied to LNG and natural gas prices and demand, which are volatile and could reduce margins and cash flows.

Outlook

Management expects the Restructuring Transaction to close during the third quarter of 2026, subject to conditions and approvals. The divestiture of the Brazil business will significantly reduce debt and annual interest expense. The post-restructuring company will be smaller and focused on remaining assets. There is no assurance the restructuring will be completed as contemplated.