NEW YORK - New Fortress Energy Inc. (NASDAQ: NASDAQ:NFE), a global energy infrastructure company, announced today that Andrew Dete has been appointed as the President of the company. Dete, who previously served as Managing Director, will join the senior management team alongside Chairman and CEO Wes Edens, General Counsel Cameron MacDougall, and Chief Financial Officer Chris Guinta.
Wes Edens, the company's CEO, commended Dete's contributions to the company's commercial growth and development, stating that his formal appointment to President is a testament to his integral role in the company's future.
New Fortress Energy specializes in owning and operating natural gas and liquefied natural gas (LNG) infrastructure. It also manages an integrated fleet of ships and logistics assets, providing turnkey energy solutions to global markets. The company's operations are designed to promote energy security, economic growth, environmental stewardship, and community transformation around the world.
The appointment of Andrew Dete to the role of President reflects the company's ongoing efforts to strengthen its leadership team as it continues to expand its reach in the energy sector. This announcement is based on a press release statement issued by New Fortress Energy.
In other recent news, New Fortress Energy has been in the spotlight with a series of financial and operational developments. The company has filed a prospectus supplement with the SEC for the potential resale of up to 10,804,718 shares of Class A common stock, a transaction from which the company will not receive any proceeds. Furthermore, the energy firm has been working on restructuring its debt and enhancing liquidity, with deals totaling approximately $3 billion.
This includes a plan to issue around $2.6 billion of senior secured notes due in 2029 and a public offering of its Class A common stock, raising $400 million. The CEO, Wes Edens, personally invested approximately $50 million in this offering.
In the midst of these developments, Morgan Stanley downgraded New Fortress Energy's stock from Overweight to Equalweight, citing financial challenges and project delays. Deutsche Bank also downgraded the stock from Hold to Sell, while BTIG maintained a Buy rating but reduced its price target.
In terms of earnings, the company reported a Q2 2024 EBITDA of $120 million, falling short of the targeted $275 million due to delays in deploying the FLNG (OL:FLNG) 1 asset. However, New Fortress Energy now expects this asset to generate $500 million in annual free cash flow. The company projects quarterly earnings of $275 million for the rest of the year and an annual EBITDA range between $1.4 billion and $1.5 billion. These are the recent developments for New Fortress Energy.
InvestingPro Insights
As New Fortress Energy Inc. (NASDAQ: NFE) appoints Andrew Dete as President, investors should consider some key financial metrics and insights from InvestingPro that provide context to the company's current position.
According to InvestingPro data, NFE's market capitalization stands at $2.09 billion, with a price-to-earnings (P/E) ratio of 7.08. This relatively low P/E ratio could suggest that the stock is undervalued compared to its earnings, which might be of interest to value investors considering the company's leadership changes and growth strategies.
However, it's important to note that NFE's stock has faced significant challenges recently. InvestingPro Tips reveal that the stock has taken a big hit over the last week, with a 1-week price total return of -8.87%. Moreover, the stock is trading near its 52-week low, with the current price at just 20.78% of its 52-week high. This downward trend is further emphasized by a staggering year-to-date price total return of -77.78%.
Despite these stock performance issues, NFE maintains a dividend yield of 4.81%, which could be attractive to income-focused investors. Additionally, an InvestingPro Tip indicates that the company has been profitable over the last twelve months, with a revenue of $2.36 billion for the same period.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for New Fortress Energy, providing a deeper understanding of the company's financial health and market position.
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