HOUSTON, Nov 5 (Reuters) - New Fortress Energy (NFE.O) , opens new tab shares rose 7.4% on Tuesday on the power and liquefied natural gas developer's plan to raise cash and improve its finances by taking on partners for one or more of its primary businesses.

In September, the company deferred a shareholder dividend to preserve cash while it worked out a deal with bondholders to push back maturities. That deal refinanced its most pressing debt maturities into 2029.

The company's shares traded at $8.91, down 48% over the last three months and off 76% year-to-date.

New York-based NFE said it would explore financing or other deals with partners "to enhance the company’s liquidity and financial flexibility," but warned there were no guarantees the effort would result in a transaction at attractive terms.

NFE was the first company to export LNG from Mexico and the only company to receive an non-Free Trade Agreement permit by the Biden administration since a January review pause.

The company's financial woes stem from its inability to secure LNG for its power-generation assets in Latin America on long-term agreements because its credit was not rated investment-grade and had to acquire the gas at higher prices.

Its investment in floating LNG production was an attempt to lower its power projects' fuel costs, analysts said.

"We like NFE monetizing its non-core and underutilized assets to boost its credit profile," said Morningstar (MORN.O) , opens new tab analysts who closely monitor the stock.

NFE had initially planned to develop at least five floating LNG projects but costs associated with commissioning and developing them ballooned, said Joshua Aguilar, an analyst with Morningstar.

"If NFE uses the cash generated by the new FLNG assets’ operations and other sales to pay down debt and become investment-grade, it will have a much better chance of securing significant third-party volumes," said Adam Baker, another Morningstar analyst.

NFE will report third-quarter results on Nov. 7.

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https://www.reuters.com/business/energy/new-fortress-energy-scouts-strategic-partners-one-or-more-its-businesses-2024-11-05/