New Fortress Energy (NFE) has reached an agreement with Golar LNG for the sale of its ownership stake in FLNG Hilli in exchange for Golar’s remaining 4.1 million shares in NFE and $100 million in cash.
Pursuant to the transaction, Golar LNG will acquire NFE’s entire interest in the 2.4 mtpa floating liquefaction facility. Golar will also take over approximately $323 million in debt obligations linked to Hilli.
Following the transaction, which is expected to close in Q1 2023, subject to customary conditions, Golar will have no remaining shareholding in NFE.
Commenting on the transaction, Golar’s CEO Karl Fredrik Staubo said: “Today’s announced transaction increases Golar’s portion of cash flow generation from Hilli’s existing contract ending in July 2026 . Improved market fundamentals for liquefaction capacity and Hilli’s market-leading operational track record support the increased utilization and earnings potential of Hilli upon re-contracting. The transaction continues our company simplification, reducing our investments in listed securities whilst unifying the ownership of the FLNG 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% of as well as buy back NFE stock at an attractive valuation” , continued 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).