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New Fortress (NFE) Sells Power Plants, Secures Supply Deal
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U.S.-based liquefied natural gas (“LNG”) firm New Fortress Energy (NFE - Free Report) has agreed to sell two operational power plants in Puerto Rico to the Puerto Rico Electric Power Authority (“PREPA”) for $373 million in cash. Developed in 2023 to stabilize the island's power grid, these plants have become pivotal assets in Puerto Rico's energy portfolio.
Highlighting the significance of the transactions, the company stressed on its commitment to bolster Puerto Rico's energy security and reduce costs. The sale includes a new gas supply contract with PREPA, more than doubling NFE's gas provision volumes and ensuring continued gas supply to the plants for up to four years.
The agreement is an important step for New Fortress Energy because it fits with the company's big goal to help fight energy shortage and make clean, reliable energy more available worldwide. This deal underscores NFE’s efforts to help Puerto Rico get the energy it urgently needs while helping the island reach its goals to grow economically and protect the environment.
By divesting these assets to PREPA and securing an expanded gas supply contract, NFE not only optimizes its asset portfolio but also strengthens its foothold in the Puerto Rican energy market. Moreover, the completion of these transactions is anticipated to initiate discussions for reaching an agreement concerning the early termination of contracts linked to the construction and operation of the sold plants.
Zacks Rank & Stock Picks
New Fortress Energy carries a Zacks Rank #5 (Strong Sell) at present.
Investors interested in the energy sector might look at operators like Murphy USA (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Helmerich & Payne (HP - Free Report) . MUSA and SUN have a Zacks Rank #1 (Strong Buy), while HP carries a Zacks Rank #2 (Buy).
Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 13.6%, on average.
Murphy USA is valued at around $8.6 billion. The company’s shares have surged 63.9% in a year.
Sunoco LP: The 2024 Zacks Consensus Estimate for SUN indicates 33.4% year-over-year earnings per unit growth.
Sunoco is valued at around $6.2 billion. SUN has seen its units rise 48.4% in a year.
Helmerich & Payne: Over the past 60 days, Helmerich & Payne saw the Zacks Consensus Estimate for fiscal 2024 move up 11.1%. HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, representing an average surprise of 20.2%.
Helmerich & Payne is valued at around $4 billion. HP’s shares have gained 16.9% in a year.
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New Fortress (NFE) Sells Power Plants, Secures Supply Deal
U.S.-based liquefied natural gas (“LNG”) firm New Fortress Energy (NFE - Free Report) has agreed to sell two operational power plants in Puerto Rico to the Puerto Rico Electric Power Authority (“PREPA”) for $373 million in cash. Developed in 2023 to stabilize the island's power grid, these plants have become pivotal assets in Puerto Rico's energy portfolio.
Highlighting the significance of the transactions, the company stressed on its commitment to bolster Puerto Rico's energy security and reduce costs. The sale includes a new gas supply contract with PREPA, more than doubling NFE's gas provision volumes and ensuring continued gas supply to the plants for up to four years.
The agreement is an important step for New Fortress Energy because it fits with the company's big goal to help fight energy shortage and make clean, reliable energy more available worldwide. This deal underscores NFE’s efforts to help Puerto Rico get the energy it urgently needs while helping the island reach its goals to grow economically and protect the environment.
By divesting these assets to PREPA and securing an expanded gas supply contract, NFE not only optimizes its asset portfolio but also strengthens its foothold in the Puerto Rican energy market. Moreover, the completion of these transactions is anticipated to initiate discussions for reaching an agreement concerning the early termination of contracts linked to the construction and operation of the sold plants.
Zacks Rank & Stock Picks
New Fortress Energy carries a Zacks Rank #5 (Strong Sell) at present.
Investors interested in the energy sector might look at operators like Murphy USA (MUSA - Free Report) , Sunoco LP (SUN - Free Report) and Helmerich & Payne (HP - Free Report) . MUSA and SUN have a Zacks Rank #1 (Strong Buy), while HP carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA: Murphy USA beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. It has a trailing four-quarter earnings surprise of 13.6%, on average.
Murphy USA is valued at around $8.6 billion. The company’s shares have surged 63.9% in a year.
Sunoco LP: The 2024 Zacks Consensus Estimate for SUN indicates 33.4% year-over-year earnings per unit growth.
Sunoco is valued at around $6.2 billion. SUN has seen its units rise 48.4% in a year.
Helmerich & Payne: Over the past 60 days, Helmerich & Payne saw the Zacks Consensus Estimate for fiscal 2024 move up 11.1%. HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, representing an average surprise of 20.2%.
Helmerich & Payne is valued at around $4 billion. HP’s shares have gained 16.9% in a year.