New Fortress Energy Inc. (NFE) shares surged Monday after the Financial Oversight and Management Board for Puerto Rico conditionally approved a seven-year liquefied natural gas supply deal worth approximately $3.2 billion. For a company hanging by a thread financially, this contract could be the lifeline it desperately needs.

The Puerto Rico Deal

The approval came last Friday, but there's a catch. Final approval hinges on the Puerto Rican government revising the current tolling term sheet and developing competitive open port access. So while this is undeniably good news for New Fortress, it's not quite a done deal yet.

Why This Matters

New Fortress Energy has been in rough shape. The company has issued going concern warnings in multiple financial filings over the past year, raising red flags about its ability to stay afloat. Most recently, the warning appeared in the company's Q3 2025 report filed around November 20, which also disclosed that New Fortress had missed an interest payment and was operating under a forbearance agreement with creditors.

The $3.2 billion contract represents a vital, long-term revenue stream for a company struggling under significant debt and financial pressures. It's the kind of deal that could stabilize the business if everything falls into place.

Stock Performance

New Fortress Energy stock has lost more than 90% of its value in 2025 and has a 52-week high of $16.66 per share. Monday's rally, which saw shares climb 12.7% to $1.38, is a welcome bounce but hardly erases the brutal decline.