New Fortress Energy (NFE) Stock: Why Shares Soared 20% After-Hours
TLDR
- New Fortress Energy stock surged 20% after-hours following a credit agreement extension to March 31, 2026
- The company eliminated quarterly liquidity requirements in the amended deal with lenders
- A separate forbearance agreement pushed a November 17 interest payment to December 15
- Retail traders are speculating on a short squeeze with over 32% of shares currently shorted
- NFE shares have dropped more than 90% year-to-date as debt problems mount
New Fortress Energy shares rocketed over 20% in after-hours trading Thursday following news that the company secured an extension on a critical credit facility. The liquefied natural gas firm already posted a 25% gain during the regular session.
New Fortress Energy Inc., NFE
According to an SEC filing, New Fortress and its lenders agreed on November 14 to push the maturity date of a credit agreement to March 31, 2026. This gives the financially strained company more runway to restructure its debt obligations.
The amended deal also scrapped a minimum liquidity requirement that NFE previously had to meet every quarter. This removal provides breathing room as the company works through its balance sheet problems.
The stock has collapsed more than 90% in 2025. If Friday’s trading maintains the after-hours momentum, shares could reach the 50-day moving average of $1.78.
Debt Deadlines Extended
New Fortress also secured a forbearance agreement earlier this week with holders of its 2029 senior secured notes. That arrangement moved a November 17 interest payment deadline to December 15.
The credit agreement bars the company from making interest payments on other debts, including the November 17 obligation. If New Fortress breaks its forbearance deal with bondholders, lenders can demand immediate full repayment.
Bloomberg reported the company is exploring a UK court restructuring process known as a scheme of arrangement. This route would cost less than a U.S. Chapter 11 bankruptcy filing and might preserve shareholder value while protecting contract relationships.
Short Squeeze Speculation Heats Up
The dramatic price move has retail traders buzzing about a potential short squeeze. Stocktwits sentiment flipped from bearish to extremely bullish within a day.
More than 32% of NFE’s float is shorted, according to MarketWatch. This heavy short interest has Reddit and X users eyeing a squeeze scenario where short sellers scramble to cover positions.
Financial Pressures Mount
The company’s troubles trace back to delayed projects that hurt cash flow and a weak credit rating that makes securing LNG supplies difficult. Operations span multiple countries, including the UK.
The credit extension gives management until late March 2026 to finalize restructuring plans. The company stated it expects to “work constructively with the company’s stakeholders” during the forbearance period.
New Fortress operates natural gas infrastructure and logistics facilities focused on providing cleaner energy solutions globally. The amended credit terms represent a lifeline as the company races to stabilize its financial position before the extended deadline arrives.
The post New Fortress Energy (NFE) Stock: Why Shares Soared 20% After-Hours appeared first on Blockonomi.
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