New Fortress Energy Faces Setback as Court Order Disrupts LNG Deliveries

Shares of New Fortress Energy (NFE) plunged 8% Wednesday after a U.S. District Judge temporarily blocked the company from using disputed LNG vessels in Puerto Rico. The ruling, opposed by NFE as "catastrophic" for the island's energy supply, exacerbates existing financial pressures on the struggling gas provider.

Puerto Rican officials condemned the standoff, with Governor Jenniffer González-Colón calling the situation an "outrage." The company's appeal argues its vessels meet safety standards, but the legal battle compounds investor concerns amid shrinking revenues and a Leveraged balance sheet.

While NFE's market capitalization sits far below book value—suggesting potential upside for risk-tolerant investors—the forced sale of Jamaican assets underscores liquidity challenges. The stock's decline contrasts with broader market gains, as both the S&P 500 and Nasdaq posted modest increases during the session.