New Fortress Energy Stock Surges on Puerto Rico Gas Deal

New Fortress Energy shares rallied 8% after securing a $4 billion liquefied natural gas supply agreement with Puerto Rico. The seven-year contract, extendable by three years, follows the rejection of a larger $20 billion proposal earlier this year.

Despite the positive development, concerns persist about the company's financial health. New Fortress has struggled with profitability and mounting debt, recently selling revenue-generating assets to address balance sheet issues. The Puerto Rico deal provides temporary relief but exacerbates long-term cash FLOW challenges.

Market reaction contrasted with broader energy sector declines, as the S&P 500 energy index fell 0.4%. The stock's intraday peak of 42.5% gains before settling at 8% reflects lingering investor skepticism about the company's turnaround prospects.