Excelerate Adds Strategic LNG Assets At 9x EBITDA In Latest $1.05B Acquisition

New Fortress Energy NFE fell in Thursday trading after announcing a $1.06 billion deal to sell its Jamaican assets to Excelerate Energy Inc EE.

The transaction includes NFE’s LNG terminals in Montego Bay and Old Harbour and the 150 MW combined heat and power plant in Clarendon. Excelerate will also assume all key operational contracts tied to the assets.

The acquisition gives Excelerate exclusive control of Jamaica’s LNG infrastructure—comprising the country’s two LNG terminals and sole CHP plant—solidifying its strategic foothold in the region. The assets are supported by long-term, mostly Take-or-Pay contracts with investment-grade customers, representing approximately $2.9 billion in direct margin through 2039.

Valued at roughly 9x the Jamaica business’s projected 2025 adjusted EBITDA, the deal will be financed through a mix of permanent funding and cash, backed by a $850 million fully committed bridge facility. Both companies’ boards have approved it, and subject to regulatory approvals, it is expected to close in Q2 2025.

Excelerate sees the deal as a key step in its downstream growth strategy. “This transaction represents an important milestone… positioning Excelerate as the key provider of essential LNG import infrastructure in a desirable and growing Atlantic basin natural gas market,” said Steven Kobos, president and CEO of Excelerate.

“These assets complement our operational expertise and long-term LNG supply agreements, while offering future growth potential,” he added. “We expect predictable, long-term cash flows with an average remaining contract duration of about 21 years.”

Wes Edens, chairman and CEO of New Fortress Energy, called the sale “a meaningful step as we continue to streamline our operations.”

As of Dec. 31, Excelerate reported $537.5 million in cash and cash equivalents.

Price Action: NFE shares are down 10.66% at $9.89 and EE up by 2.19% at $32.16 at the last check Thursday.

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