New Fortress Energy to sell Jamaica assets to Excelerate for $1.06 B
Liquefied natural gas (LNG) infrastructure provider New Fortress Energy will sell its assets and operations in Jamaica to Excelerate Energy for ~$1.06 B.
Shares of New Fortress rose over 4% to $11.53 in premarket trading.
Last year, New Fortress began exploring options that included bringing in strategic partners or selling assets, after it was forced to defer shareholder dividend payments while it held talks with bondholders to address near-term debt maturities.
The Excelerate deal "is a meaningful step as we continue to streamline our operations," said New Fortress CEO Wes Edens. The company plans to use the sale proceeds to reduce its debt pile, which stood at $8.4 B at the end of 2024.
The assets being sold include the Montego Bay onshore terminal, the Old Harbour floating terminal, and the Clarendon combined heat and power plant that supplies 65% of Jamaica's electricity.
The deal, expected to close in 2Q, would also boost Excelerate's existing global footprint, with its LNG infrastructure currently deployed in several countries including Bangladesh, Brazil, Finland and Pakistan.
Separately, Excelerate said it expects the acquisition to immediately add to its earnings per share, with assets that complement its "existing operational expertise and long-term LNG supply agreements."
Both companies provide floating LNG import terminals that allow countries to import natural gas without having to build large-scale facilities, which can cost tens of billions of dollars and take years to construct.
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