FuelCell Energy Inc (NASDAQ: FCEL) is trading in the green this morning, up about 6% early on. The gains seem to be a delayed reaction to news that was released yesterday. Here’s what’s going on:
FCEL Stock Gains On Delayed Reaction To Update
In a press release issued yesterday, FuelCell Energy provided an update, consolidating recent announcements that largely change the game, both financially and operationally. In the release, the comapny announced that it had completed the restructuring phase of the company’s transformation.
Through the restructuring, Huron Consulting helped to guide the comapny int he right direction. As of November 5, 2019, due to the successful completion of the restructuring, the company concluded its engagement with the consulting firm.
Through the restructuring process, the company greatly improved its financial foundation with a new, 8-year $200 million strategic corporate loan facility with Orion Energy Partners.
FCEL also recently announced that it has greatly expanded its carbon-capture agreement with ExxonMobil. The expanded agreement is valued at up to $60 million and will focus on optimizing and enhancing the core carbonate fuel cell technology, process integration accelleration, and driving large-scale deployment of carbon capture solutions.
In a statement, Jason Few, President and CEO at FCEL, had the following to offer:
The last several months have been a defining time for FuelCell. While challenging, our organization pulled together and executed the restructuring phase of our strategy that will set us up to execute the next leg of our transformation. With the commitment and strategic investments from Orion Capital Partners and ExxonMobil, FuelCell’s opportunity is to accelerate our momentum now and build on our 50 year history leading the advancement of fuel cell technology.
While we still have work to do, I’m proud of the collective efforts of all FuelCell Energy team members. They never lost sight of the needs of our global client base and partners during this time. We have laid the foundation for profitable growth and are now on a path to restore this great Company to a position of industry leadership across all metrics. Our leadership team looks forward to unveiling our go-forward strategy in early 2020.
Why Investors Are Excited
At the end of the day, investors have had plenty of reason to be concerned about FCEL over the past several months. Struggling with financial blues that hindered its ability to tap into its large contractual background, investors were pretty concerned before the restructuring. However, today, things are looking far better. Here’s how I see it:
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