New Fortress Energy Inc. (“NFE” or the “Company”) announced that it has reached an agreement with Golar LNG Limited (“Golar”) for the sale of NFE’s ownership stake in the Hilli in exchange for the return of 4.1 million NFE shares and $100 million in cash.
Pursuant to the transaction, GLNG will acquire NFE’s entire interest in the 2.4 MTPA floating liquefaction facility Hilli. The acquisition by NFE of all NFE shares held by Golar reduces the number of NFE shares outstanding to approximately 204.7 million shares. As part of the agreement, NFE will also extinguish $323 million in debt obligations associated with its interest in the Hilli.
“With this transaction we will sell our minority interest in the Hilli in exchange for 4.1 million shares of NFE and $100 million in cash,” said Wes Edens, Chairman and CEO of New Fortress Energy. “We believe this is a fair economic result for both ourselves and Golar.”
“Furthermore, from a strategic perspective, it will allow us to focus solely on our own FLNG portfolio that we own 100 percent of as well as buy back NFE stock at an attractive valuation,” continued Mr. Edens. “Golar has been a meaningful partner for the past several years and we have appreciated the opportunities to collaborate with them as we continue to advance NFE’s mission to bring more affordable, reliable and cleaner energy to customers around the world.”
FLNG Hilli is currently located offshore Kribi, Cameroon. Its customers are oil and gas company Perenco and Cameroon’s national oil firm Société Nationale des Hydrocarbures (SNH).
“Today’s announced transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract until July 2026,” said Karl Fredrik Staubo, CEO of Golar. “We have enjoyed the collaborative relationship with NFE and look forward to observing their continued contribution to expanding the global LNG market.”
Subject to customary conditions, the transaction is expected to close in Q1 2023.