2024-04-04 06:09:38 ET
Summary
- New Fortress Energy recently received a significant amount of cash from selling plants in Puerto Rico, which could enhance its valuation multiples.
- The company has a strong logistics structure and specializes in liquefied natural gas, with processing plants and distribution networks in various locations.
- New opportunities in Santa Catarina, Brazil, and new contracts may lead to significant net sales growth and further expansion of the company.
New Fortress Energy Inc. ( NFE ) recently received a significant amount of cash thanks to plants built in Puerto Rico in 2023 . Besides, management announced that there are new opportunities in Santa Catarina, Brazil, and recently signed new contracts, which may lead to 2028 adjusted EBITDA of about $1 billion. I also believe that successful refinancing of the current debt thanks to new notes could enhance the current valuation multiples. There are clear risks coming from the total amount of debt, changes in the environmental regulation, tariffs, and changes in the price of energy. With that, I think that NFE does trade a bit undervalued.
New Fortress Energy
New Fortress Energy Inc. is a company in the field of energy generation that has the particularity of having a logistics structure under its ownership that allows it to distribute its own products as well as provide services to other companies....
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New Fortress Energy's Recent Contracts Could Enhance The Stock Price