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155 days

New Fortress Energy Amends Islandwide Gas Supply Contract

1. NFE's gas supply contract with PREPA extended to 100 days from one year. 2. A new RFP will determine future gas supply terms at the end of this period.

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FAQ

Why Neutral?

While the short extension may suggest uncertainty, NFE still retains contract value. Historical precedents indicate short-term contracts can maintain operational flexibility but might raise investor concerns.

How important is it?

The revised contract alters supply stability, impacting cash flow and strategy. Given the importance of energy contracts to NFE's operational model, maintaining flexibility can influence investor sentiment significantly.

Why Short Term?

Changes in the contract duration may lead to immediate price adjustments but depend on RFP outcomes. Previous scenarios with contract negotiations often show immediate price reactions lasting until outcomes clarify.

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PREPA
NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (NASDAQ: NFE) (“NFE”) announced that it has amended the extension of its 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority (“PREPA”) to a term of 100 days. Previously, we announced that the islandwide gas supply contract was to be extended for one year. The revised 100-day extension provides a bridge period to facilitate an open request for proposals (“RFP”) for updated terms and duration of the gas supply co.

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