New Fortress Energy (NFE) Stock Surges 20% After-Hours on Extended Credit Agreement

TLDR

• New Fortress Energy stock jumped 20% after-hours on Thursday after extending its credit agreement maturity to March 31, 2026
• The company removed a minimum liquidity requirement it previously needed to maintain each quarter
• NFE secured a forbearance agreement with bondholders, pushing the November 17 interest payment deadline to December 15
• Over 32% of the stock’s float is shorted, sparking retail trader speculation about a potential short squeeze
• The stock has fallen more than 90% in 2025 as the company struggles with weak cash flow and mounting debt issues

New Fortress Energy stock rallied over 20% in extended trading Thursday after the liquefied natural gas company disclosed it reached an agreement with lenders to extend a key credit facility. The stock had already climbed 25% during regular trading hours.

New Fortress Energy Inc., NFE

The company filed documents with the Securities and Exchange Commission revealing that on November 14, NFE and its lenders extended the maturity of a credit agreement to March 31, 2026. This gives the struggling energy firm additional time to work through its debt restructuring plans.

The amended agreement also eliminates a minimum liquidity requirement that New Fortress previously needed to maintain each fiscal quarter. This change provides the company more breathing room as it navigates its financial challenges.

If the after-hours gains hold through Friday’s session, NFE stock would approach its 50-day simple moving average of $1.78. The shares have plummeted more than 90% in 2025.

Interest Payment Extension Buys Time

Earlier this week, New Fortress struck a separate forbearance agreement with holders of its senior secured notes due in 2029. Under that deal, the company pushed back a November 17 interest payment deadline to December 15.

The credit agreement disclosed Thursday prevents New Fortress from making interest payments on other debts, including the one originally due November 17. The terms also specify that if the company fails to maintain its forbearance deal with bondholders, banks could demand immediate repayment of all outstanding amounts.

Retail Traders Eye Short Squeeze Opportunity

The stock’s dramatic move caught the attention of retail traders across social media platforms. On Stocktwits, sentiment around NFE jumped from bearish to extremely bullish within 24 hours.

Over 32% of New Fortress Energy’s share float is currently shorted, according to MarketWatch data. This heavy short interest has sparked speculation about a potential short squeeze among traders on X and Reddit forums.

A short squeeze occurs when short sellers are forced to buy back shares to cover their positions during a rapid price increase, which can push the stock even higher.

Another Stocktwits user wrote, “With current demand for energy, this company is not going anywhere.”

Exploring Restructuring Options

Bloomberg News previously reported that New Fortress is considering a debt restructuring through a UK court process called a scheme of arrangement. This approach would be less expensive and disruptive than filing for Chapter 11 bankruptcy protection in the United States.

The UK process could allow the company to maintain its contract relationships and potentially preserve some shareholder value during the restructuring.

The company operates in multiple countries, including the United Kingdom. Its financial troubles stem partly from a weak credit rating that has made it difficult to secure LNG supplies for its Latin American assets.

Delayed projects have weakened the company’s cash flow and put pressure on its balance sheet. The extended credit agreement maturity now gives management until March 31, 2026 to complete its restructuring efforts.

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