New Fortress Energy Stock Rallies 20% After-Hours — Retail Smells Short Squeeze

• New Fortress revealed that on Nov. 14, the company and the lenders extended the maturity of a credit agreement to March 31, 2026, giving it more time to restructure its debt.
• The agreement also removed a minimum liquidity requirement that the liquefied natural gas firm needed to maintain each fiscal quarter.
• Retail traders on social media platforms, including Stocktwits, were hopeful of a short squeeze.

New Fortress Energy (NFE) stock jumped over 20% in extended trading on Thursday after the company revealed in a regulatory filing that it has struck an agreement with some of its lenders to extend the maturity of a credit facility.

The heavily shorted stock already jumped over 25% during the regular session, and if it can replicate the after-hours gains on Friday, it would move close to its 50-day simple moving average of $1.78.

Debt Relief

In a filing with the Securities and Exchange Commission, New Fortress revealed that on Nov. 14, the company and the lenders extended the maturity of a credit agreement to March 31, 2026, giving it more time to restructure its debt. The agreement also removed a minimum liquidity requirement that the liquefied natural gas firm needed to maintain each fiscal quarter.

The energy company, which operates across several countries, including the UK, has faced mounting financial strain amid delayed projects that have weakened cash flow and burdened its balance sheet. Much of the firm’s existing problems stem from its weak credit rating, which has hampered its ability to secure LNG for its assets in Latin America.

Race Against Time To Restructure Debt

Earlier this week, New Fortress inked a forbearance agreement with the holders of its new senior secured notes due 2029. Under this agreement, the due date for the Nov. 17, 2025, interest payment was extended to Dec. 15. “During the forbearance period, NFE expects to continue to work constructively with the company’s stakeholders,” the company stated.

The credit agreement revealed on Thursday prevented the company from making any interest payments on other debts, including the one due on Nov. 17. The agreement also states that if the company fails to maintain the forbearance deal it struck with bondholders, banks could demand all the money back at once.

The company is exploring a potential debt restructuring through a UK court process known as a scheme of arrangement, Bloomberg News reported earlier. The option is a less costly and disruptive alternative to a U.S. Chapter 11 bankruptcy, potentially allowing the company to preserve contract relationships and retain some shareholder value.

What Are Retail Trade Traders Thinking?

Retail sentiment on Stocktwits about New Fortress jumped to ‘extremely bullish’ territory from ‘bearish’ a day ago.

“Big potential for short squeeze, but also for long-term investment as the company is turning around,” a trader said.

Several users on X and equity markets-focused Reddit forums were also hopeful about a short squeeze, a phenomenon in which short sellers are forced to buy back shares to cover their positions and limit losses amid a rapid increase in share price. According to MarketWatch data, over 32% of the share float has been shorted as of the latest available data.

“With current demand for energy, this company is not going anywhere,” another Stocktwits user said.

New Fortress stock has fallen more than 90% this year.

Also See: Is Saylor’s Bitcoin Play Hitting A Wall? JPMorgan Warns Of Over $8B Stock Selloff Risk As MSTR Bleeds For 7 Straight Weeks

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

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