Why Is New Fortress Energy Stock Rising Today?

The stock gained 37% before the bell on Wednesday after Puerto Rico's Governor Jenniffer Gonzalez announced that the company has reached a new agreement valued at approximately $4 billion to supply LNG to Puerto Rico for a period of seven years.

New Fortress Energy’s (NFE) stock witnessed an 863% jump in retail chatter in the last 24 hours on Stocktwits following the announcement of the company’s deal to sell liquefied natural gas to Puerto Rico.

Shares of New Fortress were up 37% before the bell on Wednesday. Puerto Rico's Governor Jenniffer Gonzalez announced on Tuesday that the company has reached a new agreement valued at approximately $4 billion to supply LNG to Puerto Rico for a period of seven years.  

Retail sentiment on New Fortress improved to ‘extremely bullish’ from ‘bullish’ territory, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

The company said that the contract was currently under review for approval by the Financial Oversight and Management Board of Puerto Rico. New Fortress added that this long-term arrangement will support Puerto Rico’s efforts to replace expensive, higher-emission liquid fuels with cleaner natural gas.

A bullish user on Stocktwits noted that this news provided a good entry point, and the stock should soon be trading above $5.

New Fortress stated that this agreement establishes a secure supply of power in San Juan for the next seven years for power plants currently operating on LNG. This also allows for incremental LNG volumes to be delivered, enabling the conversion of additional gas-ready plants currently burning diesel, which helps Puerto Ricans save hundreds of millions of dollars in energy costs, it said.

Another user noted that the company should “bring back dividends.”

Shares of New Fortress have declined 87% this year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<