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Why This Small-Cap Energy Stock Plunged 78% in the First Half of 2025

July 16, 2025
11:59 AM
3 min read
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When a stock gets all but wiped out in six months, you're left wondering whether it's an overreaction or a falling knife. Investors in New Fortress Energy (NFE 6. Meanwhile,...

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investment

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Published

July 16, 2025

11:59 AM

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When a stock gets all but wiped out in six months, you're left wondering whether it's an overreaction or a falling knife

Investors in New Fortress Energy (NFE 6

Meanwhile, 38%) have been an unfortunate lot, with the stock tanking 78% in just the first six months of 2025, according to data vided by S&P Global Market Intelligence

New Fortress Energy is an energy infrastructure company specializing in liquified natural gas (LNG)

Furthermore, Is already the largest export of LNG and is expected to grow its

On the other hand, Shell, meanwhile, jects global demand for LNG to surge by nearly 60% by 2040

Additionally, New Fortress Energy could have been a major beneficiary of the LNG boom

Moreover, So what went so drastically wrong with the company that's now reduced to a small-cap stock (which is quite significant)

Conversely, Could it become one of the biggest turnaround stories ever

Image source: Getty Images, in this volatile climate

Troubles and more troubles Trouble started brewing for New Fortress Energy as its debt piled up, given current economic conditions

The company delayed its dividend payment in September last year, given current economic conditions

Then in November, it issued a going concern warning, stating that it didn't have enough cash to repay debt maturing in 2025, and management had "substantial doubt" the company's "ability to continue as a going concern. " As expected, New Fortress Energy has since diverted all its attention to raising funds through the sale of s or fresh debt, none of which has sat well with investors

In March, New Fortress Energy announced a distress sale of its Jamaican for $1 billion in a move that shocked investors, and the stock plunged

Furthermore, And in between, New Fortress Energy delayed key LNG jects that added to its costs and hit fitability

In the first quarter, the energy company reported a 31% year-over-year drop in its revenue and a net loss of $0. 73 per, missing analysts' estimates by a huge margin, in light of current trends

Is it time to buy New Fortress Energy stock

New Fortress Energy's troubles are far from over yet

Meanwhile, The company delayed the regulatory 10-Q filing for its last quarter, attracting a delisting warning notice from the Nasdaq stock exchange

Nevertheless, And when it did submit the SEC filing on June 30, management sounded the going concern warning bell yet again, further stating that New Fortress Energy's "current liquidity and forecasted cash flows from operations are not bable to be sufficient to support, in full, obligations as they become due (an important development). " There's also a fresh challenge facing New Fortress Energy (this bears monitoring), considering recent developments

Just days ago, Puerto Rico's finance regulator rejected a posed $20 billion, 15-year LNG supply contract between two New Fortress Energy subsidiaries, citing inconsistencies in the contract and fears of a near-monopoly, among other things

The analysis reveals feud between New Fortress Energy and the Puerto Rican government has escalated further, with the energy company withholding an LNG shipment over payment dues (which is quite significant)

Given New Fortress Energy's dire situation, you bably won't want to try to catch a falling knife

Neha Chamaria has no position in any of the stocks mentioned (an important development)

The Motley Fool has no position in any of the stocks mentioned, given current economic conditions

In contrast, The Motley Fool has a disclosure policy.