TLDR
- New Fortress Energy stock climbed 20% in after-hours trading after securing a credit agreement extension to March 31, 2026
- The amended deal removes quarterly minimum liquidity requirements that previously constrained the company
- NFE pushed a November 17 interest payment to December 15 through a separate forbearance agreement with bondholders
- More than 32% of the float is shorted, driving retail speculation about a potential squeeze
- Shares have tumbled over 90% this year as the company battles debt issues and weak cash flow
New Fortress Energy shares soared more than 20% in extended trading Thursday after the liquefied natural gas company announced a credit facility extension with its lenders. The stock had already gained 25% during regular hours.
The company disclosed in an SEC filing that it reached an agreement with lenders on November 14 to extend a credit facility’s maturity date to March 31, 2026. This extension provides additional time for the struggling energy firm to complete its debt restructuring efforts.
The modified agreement eliminates a minimum liquidity requirement that New Fortress was required to maintain each quarter. Removing this constraint gives the company more flexibility as it navigates mounting financial pressures.
NFE shares have plunged more than 90% in 2025. The after-hours surge could push the stock toward its 50-day moving average of $1.78 if gains hold through Friday trading.
Forbearance Deal Delays Payment
New Fortress reached a separate forbearance agreement with holders of its 2029 senior secured notes earlier in the week. This deal postponed a November 17 interest payment to December 15.
The credit agreement prevents the company from making interest payments on other debts, including the November 17 obligation. Under the terms, lenders can demand immediate repayment of all outstanding amounts if New Fortress fails to maintain its forbearance arrangement with bondholders.
Bloomberg previously reported the company is considering a UK scheme of arrangement for debt restructuring. This alternative to U.S. Chapter 11 bankruptcy would be less expensive and disruptive while potentially preserving contract relationships and some shareholder value.
Traders Watch Short Interest
The stock’s sharp move caught attention across retail trading platforms. Stocktwits sentiment shifted from bearish to extremely bullish in one day.
Over 32% of New Fortress Energy’s float is currently shorted, per MarketWatch data. This substantial short interest has sparked discussion on Reddit and X about a possible short squeeze scenario.
“Big potential for short squeeze, but also for long-term investment as the company is turning around,” a Stocktwits trader commented.
Short squeezes occur when rapid price increases force short sellers to buy shares to cover positions, creating additional upward pressure on the stock.
Company Faces Cash Flow Challenges
New Fortress operates natural gas infrastructure across multiple countries, including the United Kingdom. The company’s financial stress stems from delayed projects that weakened cash flow and a poor credit rating that complicates securing LNG supplies for Latin American operations.
The extended credit maturity gives management until the end of March 2026 to finalize restructuring plans. New Fortress stated it will “work constructively with the company’s stakeholders” during this period.
The amended credit terms offer a temporary reprieve as the company works to stabilize its financial position before the March deadline.
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