Golar LNG Ltd. will acquire New Fortress Energy Inc.’s (NFE) entire interest in Hilli, a floating liquefaction facility offshore Kribi, Cameroon. (Source: Shutterstock)
Golar LNG Ltd. will acquire New Fortress Energy Inc.’s (NFE) entire interest in Hilli, a floating liquefaction facility offshore Kribi, Cameroon, for the return of 4.1 million NFE shares and $100 million in cash.
Announced in a Feb. 6 press release, the transaction is expected to close in first-quarter 2023.
“From a strategic perspective, [NFE’s transaction with Golar] will allow [New Fortress] 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,” said Wes Edens, NFE chairman and CEO.
The agreement reduces the number of outstanding New Fortress shares to 204.7 million and eliminates NFE’S $323 million debt obligations from operations in the Hilli.
For Golar, “the transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract until July 2026,” said Karl Fredrik Staubo, CEO of Golar.
NFE is a global energy infrastructure company.
Recommended Reading
U.S. Drillers Add Oil and Gas Rigs for Second Week in a Row: Baker Hughes
2023-03-24 - Even though gas rig counts are currently up, analysts say drillers have been cutting rigs in some shale basins, especially the Haynesville due to higher production costs.
By Hook, Crook and Bolt-on, E&Ps Scramble to Add Inventory
2023-03-24 - Operators are adding inventory, largely through M&A, as some E&Ps see well productivity plateauing.
Pemex Submits Zama Field Plan with Talos, Partners to Mexican Authorities
2023-03-24 - The shallow GoM discovery, made by Talos Energy, could produce 180,000 bbl/d for Pemex, about 10% of Mexico’s current oil output.
Pemex Eyes Slight Uptick in 2024 Production
2023-03-23 - State-owned Pemex expects liquids production to average 2 MMbbl/d and gas production to average 4.8 Bcf/d in 2024.
Marcellus, Permian Add Rigs Despite Commodity Price Volatility
2023-03-23 - Gas-directed rig activity in key U.S. plays, including the Marcellus Shale and Permian Basin, increased in a big way last week, but analysts expect cuts to the rig count later this year.