New Fortress Energy Partners with Entergy on Hydrogen Plant

Introduction

New Fortress Energy Inc (Nasdaq: NFE) is an integrated gas-to-power company founded in 2014 by Wes Edens. Headquartered in New York, the firm owns and operates liquefied natural gas (LNG) infrastructure, floating storage units, terminals, and related logistics assets across North America, Latin America, and Europe. On June 30, 2025, NFE shares closed at $3.2012, reflecting a 28.05% increase from the previous trading session, on trading volume of 1,003,018 shares.

Corporate structure

According to its LinkedIn profile, New Fortress Energy employs between 201 and 500 people. The leadership team is led by Chairman and CEO Wes Edens, supported by a VP of Infrastructure and Security Operations, a Head of Maintenance & Planning for LNG facilities, and regional managers overseeing projects from Brazil to Ireland. On June 18, 2025, the company filed an 8-K (Item 5.07) disclosing a change in its certifying accountant, indicating an update in its financial reporting oversight.

Green hydrogen by Gustavo Quepóns

Developments and news

On June 25, 2025, New Fortress Energy and Entergy Texas executed a memorandum of understanding to collaborate on industrial-scale green hydrogen infrastructure near Beaumont, Texas. The planned facility will utilize proton exchange membrane electrolysis to produce over 50 tons per day of green hydrogen, with a potential for scalability to 500 megawatts of electrolyzer capacity. Entergy Texas will leverage existing transmission lines and construct a new substation to support the plant, with commercial operations anticipated as early as 2024.

On June 30, 2025, NFE filed its quarterly report on Form 10-Q for the period ended March 31, 2025, outlining its financial performance, balance sheet position, and management's discussion of market risks, including commodity-price volatility and regulatory uncertainties.

An analysis published by the Institute for Energy Economics and Financial Analysis in May 2024 indicated that NFE’s ability to maintain operations may depend on successful debt refinancing due to its significant leverage.

Financial and strategic analysis

As of June 30, 2025, New Fortress Energy’s trailing twelve-month revenue stood at $2.13 billion, with a net loss of $545 million and an EPS of –$2.24. Key ratios include a price-to-sales multiple of 0.24, price-to-book of 0.34, and a debt-to-equity ratio of 503.6%. Return on assets was 1.91%, while return on equity was –26.07%. The company’s enterprise value of $9.77 billion reflects its substantial infrastructure investments. A forward dividend yield of 18.6% is indicated, with a one-year target price of $8.83 according to analyst consensus.

Strategically, NFE's model spans gas procurement and liquefaction through final delivery and power generation. Recent initiatives in green hydrogen align with broader energy transition goals, diversifying its portfolio beyond LNG and gas-fired power plants.

Market position and industry context

New Fortress Energy operates multiple LNG terminals and power plants:

• Puerto Rico (San Juan LNG facility supplying on-island customers since April 2020)
• Shannon, Ireland (combined-cycle gas turbine plant and LNG terminal under development)
• Nicaragua (offshore LNG import and onshore power plant project)
• Mexico (Pichilingue LNG import terminal and adjacent merchant power plant, commissioned 2021)
• Brazil (Barcarena and Santa Catarina onshore terminals, both commissioned 2024)
• Altamira and Louisiana Fast LNG hubs for rapid liquefaction

The company competes in a market influenced by commodity price fluctuations, environmental regulations, and the transition to low-carbon fuels. Its partnership with Entergy Texas for green hydrogen development positions it alongside industry peers aiming to utilize existing gas infrastructure for hydrogen production.

tl;dr

NFE shares increased 28.05% on June 30, 2025, to $3.2012 following a June 25 memorandum of understanding with Entergy Texas to develop a green hydrogen facility near Beaumont, Texas, with an initial production target of 50 tons per day and the scalability to 500 MW. The June 30 10-Q filing highlighted ongoing debt-refinancing needs and exposure to natural gas price fluctuations. Commercial operations for the hydrogen plant are expected to commence by 2024, potentially diversifying the company's revenue streams.