New Fortress Energy Stock Is Rising Tuesday: What's Going On?

New Fortress Energy Inc NFE shares are trading higher, bouncing off of recent 52-week lows. The company on Tuesday announced a $400 million offering of common stock.

What To Know: New Fortress Energy announced that it priced its underwritten public offering of 46.35 million shares of its Class A common stock at a public offering price of $8.63 per share.

New Fortress chairman and CEO Wesley Edens has agreed to purchase 5,793,742 shares in this offering at the public offering price on the same terms as the other purchasers, which may be helping lift shares Tuesday.

The offering is expected to close on Oct. 2. The company expects to use any net proceeds for general corporate purposes.

The news comes after New Fortress Energy shares hit new 52-week lows on Monday after the company decided to delay the payment of its common stock dividend of 10 cents per share.

New Fortress said it expected to reach an agreement with noteholders in the near future and would reevaluate its dividend payment at that time.

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In a separate press release on Monday, New Fortress also provided an update on its initial Fast LNG asset located offshore Altamira, Mexico. The company said the asset achieved its first full cargo and sail away as it heads for Europe.

“This is a significant milestone for our Fast LNG installation. Natural gas and power supply are critical components of a sustainable, affordable, and cleaner energy system and we’re excited to be able to provide our own gas supply to the world markets and our customers,” Edens said.

New Fortress Energy also appears to be getting a lift Tuesday as energy stocks move higher amid heightening Middle East tensions. Iran reportedly launched an attack on Israel following the recent killing of Hezbollah leader Hassan Nasrallah. Bloomberg reported that Iran fired between 100 and 200 missiles towards Israel on Tuesday.

NFE Price Action: New Fortress Energy shares were up 16.9% at $10.63 at the time of publication, according to Benzinga Pro.

Photo: Csaba Nagy from Pixabay.