Why New Fortress Energy Shares Are Rising During Tuesday's Session

New Fortress Energy Inc NFE shares are trading higher by 7.26% to $48.48 after the company announced it is targeting an annual cash dividend equal to approximately 40% of its annual Adjusted EBITDA.

The dividend declared today, on an annualized basis, equates to approximately 40% of NFE's Illustrative Adjusted EBITDA Goal of $2.5+ billion for FY2023. The Board will evaluate whether to declare a dividend every six months.

"Our business is now generating significant, stable, and growing cash, which we believe affords us the ability to both retain capital necessary to grow and return excess capital to shareholders in the form of meaningful dividends," said Wes Edens, Chairman and CEO of NFE.

What Else Is Going On With Energy Stocks?

Oil prices also saw strength during Monday's trading session. The surge in the price of oil is likely a ripple effect of the recent G7 price cap on Russian oil, as well as last week's Keystone pipeline oil spill.

Per a report by CNBC, the Keystone Pipline failure occurred last Wednesday nearby Washington, Kansas. Experts say an estimated 14,000 barrels of crude, or 588,000 gallons of a form of crude known as tar sands oil, into a nearby natural waterway.

NBC says the Biden administration has ordered the closure of the pipeline until the situation can be remedied.

See Also: Why Bitcoin- And Ethereum-Related Stock Coinbase Is Nosediving

According to data from Benzinga Pro, NFE has a 52-week high of $63.06 and a 52-week low of $19.17.