New Fortress Energy Faces Critical Debt Deadline

The coming days are pivotal for New Fortress Energy Inc. as it races against a January 9 deadline to finalize a major financial restructuring. Failure to reach an agreement with creditors could trigger a severe credit event for the liquefied natural gas company. Investor sentiment has turned sharply negative, with the stock declining approximately 14.6% over the last ten trading sessions to close at $1.11 per share.

The pressure intensified in late December when S&P Global Ratings downgraded New Fortress Energy to 'SD' (Selective Default). This action followed the company's failure to make a scheduled $30.6 million interest payment on its Term Loan B and its announcement that it would not meet year-end principal payments. S&P assessed the firm's liquidity as "weak," noting that a significant portion of its reported $389 million in cash is reserved for projects in Brazil. This constraint severely limits operational flexibility during negotiations with holders of its senior secured notes due in 2029.

Quarterly Results Amplify Concerns

Recent operational performance has added to the challenges. Third-quarter results for fiscal 2025, released on November 21, revealed a net loss of $293.36 million. Revenue fell 42.3% year-over-year to $327.37 million, badly missing analyst expectations of over $700 million. The reported earnings per share of -$1.07 also fell well short of the -$0.67 consensus estimate. These disappointing figures, combined with the missed December payments, have sustained heavy selling pressure on the equity.

Key Data Points:
* Current Share Price: $1.11 (last closing price)
* Credit Rating: 'SD' (Selective Default) by S&P Global (December 23)
* Q3 2025 Revenue: $327.37 million
* Q3 2025 EPS: -$1.07
* Restructuring Deadline: January 9
* Puerto Rico Contract: 7-year term, ~75 TBtu, estimated value ~$3.2 billion over its lifetime

Should investors sell immediately? Or is it worth buying New Fortress Energy?

A Lone Bright Spot and the Path Forward

Amid the turmoil, a key long-term asset is a seven-year gas supply contract with Puerto Rico, approved in December. The agreement, covering approximately 75 TBtu of gas with an estimated total value of $3.2 billion, provides a foundation for future revenue. However, it does not address the immediate liquidity crisis.

All focus is now on the expiration of the extended forbearance agreement on January 9. If this period lapses without a finalized restructuring deal or a further extension, creditors could demand accelerated repayment of roughly $6.6 billion in debt. Such an outcome would likely force the company to seek court-supervised protection to attempt an orderly reorganization.

The next several days will determine whether New Fortress Energy can stabilize its capital structure or if a more severe credit incident becomes inevitable.