Venture capitalist Victor Khosla disclosed a 14.7% stake in New Fortress Energy on Tuesday through a Schedule 13-D filing, formally declaring activist intent at the liquefied natural gas infrastructure company trading 68% below its 2022 highs. The position, acquired through secondary-market purchases over the past ninety days, values at approximately $187 million at current share prices and makes Khosla the second-largest outside shareholder behind only Fortress Investment Group, the company's original sponsor.
New Fortress Energy operates floating LNG terminals and fast-LNG production facilities across Latin America and the Caribbean, carrying $3.8 billion in project debt against a current enterprise value near $4.2 billion. The stock closed Monday at $8.73 per share, down from a $27 peak in February 2022, pressured by construction overruns at the company's Altamira facility in Mexico and weaker-than-modeled offtake economics in its Jamaica and Puerto Rico terminals. Fourth-quarter earnings showed adjusted EBITDA of $141 million against consensus estimates of $168 million, the third consecutive quarterly miss. Founder and CEO Wesley Edens controls roughly 19% of shares through affiliated entities, sufficient to complicate but not block activist proposals.
Khosla's 13-D filing cites "concerns regarding capital allocation and board composition" without specifying remedies, the standard opening position for activists seeking private engagement before public demands. New Fortress operates in a narrow window: the company committed $1.1 billion to complete the Altamira FLNG vessel by third-quarter 2025, but offtake contracts securing that investment remain unsigned with Pemex, the intended anchor customer. Mexico's state oil company has delayed final terms twice since November, creating refinancing risk on the project's $780 million credit facility maturing in April 2026. Activists typically target companies at inflection points where governance changes can unlock value without requiring operational miracles. Here, the value sits in forcing board-level transparency on Altamira contract terms and potentially restructuring the $620 million convertible note due in 2028, which trades at 74 cents on the dollar.
The filing arrives three weeks after New Fortress announced the departure of CFO Christopher Guinta, replaced on an interim basis by controller David Hausman. Executive turnover at cash-constrained infrastructure companies usually precedes either asset sales or balance-sheet restructuring. Worth noting: Khosla's prior activist campaigns targeted energy-adjacent companies with complex capital structures, including a 2019 push at SunEdison's bankruptcy estate that recovered $340 million for equity holders written off by most investors. His presence suggests recoverable value exists even if current operations disappoint.
Operators should track three near-term events. First, the Pemex offtake announcement, expected by the company before its May earnings call. Second, any 13-D amendments from Khosla within thirty days, which will clarify whether he seeks board seats or strategic alternatives. Third, the April 15 deadline for New Fortress to file its annual 10-K, which will detail covenant headroom on project debt and disclose any material customer contract modifications since year-end. The convertible note indenture requires maintaining a 1.25x debt-service coverage ratio; fourth-quarter metrics put the company at 1.31x, leaving minimal cushion.
Activist stakes in sub-$2 billion market-cap energy infrastructure rarely end in quiet resolutions. Khosla now owns enough stock to demand forensic answers on Altamira capital deployment and force board consideration of asset monetization if Pemex talks stall further. The next amendment to his 13-D will contain the actual terms.