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NFE divests 20% of Energos stake to Apollo-managed funds

EditorEmilio Ghigini
Published 2024-02-15, 08:36 a/m
© Reuters.
NFE
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NEW YORK - New Fortress Energy Inc. (NASDAQ: NASDAQ:NFE), a global energy infrastructure company, has completed the divestiture of a 20% equity interest in Energos Infrastructure to funds managed by Apollo (NYSE: APO). The transaction's proceeds are earmarked for debt repayment and investment in new downstream projects that promise higher returns.

Energos Infrastructure, a joint venture established by NFE and Apollo Funds in August 2022, specializes in LNG delivery, storage, and regasification services under long-term charters. The firm's fleet includes 13 LNG infrastructure vessels, comprising 9 Floating Storage and Regasification Units (FSRUs), 2 Floating Storage Units (FSUs), and 2 LNG carriers.

New Fortress Energy will continue its association with Energos by chartering six vessels, supporting its global operations. These charters are set to take effect once the current third-party charter agreements expire, with terms extending up to 20 years.

Wes Edens, Chairman and CEO of New Fortress Energy, expressed satisfaction with the establishment and growth of Energos as a leading LNG maritime infrastructure company. He stated that the sale to Apollo Funds aligns with the company's strategy to recycle capital into lucrative downstream projects and to reduce debt.

New Fortress Energy was founded with the aim of combating energy poverty and aiding the transition to sustainable energy. The company's portfolio includes natural gas and LNG infrastructure, as well as an integrated fleet of ships and logistics assets that provide comprehensive energy solutions worldwide.

Energos plays a pivotal role in the global energy landscape by offering LNG infrastructure services that help countries transition from oil and coal, enhancing energy security and reliability, and potentially reducing costs.

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The information for this article is based on a press release statement.

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