Golar LNG Limited (GLNG): A Bull Case Theory
Is Cheniere Energy, Inc. (LNG) The Best WallStreetBets Stock To Buy According to Hedge Funds?
A deep sea tanker vessel laden with liquified natural gas, contrailing a majestic stream of white smoke.
Golar LNG ($GLNG) offers a compelling investment opportunity due to its unique position in the LNG sector, especially with its transition away from low-margin LNG carrier (LNGC) shipping. As of March 2025, there will be around 670-700 LNG carriers worldwide, which operate in a crowded market. Golar sold its LNGC assets to CoolCo in December 2021. The company also exited the Floating Storage Regasification Units (FSRU) market by selling all its FSRU assets to New Fortress Energy (NFE) in January 2021, with Golar LNG Partners (GMLP) now part of NFE. However, Golar's focus is now on the highly specialized and profitable Floating Liquefied Natural Gas (FLNG) units, of which there are only 8 worldwide, with Golar operating two—Gimi and Hilli. These FLNGs are floating factories that combine gas processing and LNG storage, targeting high-reward opportunities in niche markets. Golar's FLNG contracts, including long-term agreements with BP, PAE, and YPF, generate substantial EBITDA, with Gimi and Hilli contributing up to $642 million in combined EBITDA. The company is poised for significant free cash flow generation, with an expected $1.57B–$1.84B in EBITDA by 2029. Golar benefits from stable, long-term contracts with minimal capex needs, ensuring a high-quality, high-margin business with minimal tax liabilities and a free cash flow conversion rate exceeding 70%.
Golar LNG Limited (GLNG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held GLNG at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of GLNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GLNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 days ago
- Yahoo
Final Investment Decision for 20-year charter of MK II FLNG to Southern Energy in Argentina
Golar LNG Limited ('Golar') is pleased to announce today that Southern Energy S.A. ('SESA') has reached Final Investment Decision for the charter of Golar's 3.5MTPA MK II FLNG, as contemplated under the terms of the definitive agreements executed by SESA and Golar in May 2025. The key commercial terms for the 20-year charter agreement include net charter hire to Golar of US$ 400 million per year, plus a commodity linked tariff component of 25% of FOB prices in excess of US$ 8/mmbtu. The FLNG, currently under conversion in China, will sail to Argentina following her redelivery, with contract start-up expected during 2028. The MKII FLNG will be moored in the San Matías Gulf near the FLNG Hilli, which is expected to start its 20-year charter with SESA during 2027. Combined, the two units have a nameplate capacity of 5.95MTPA, and the project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area. SESA is a company formed to enable LNG exports from Argentina. SESA is owned by a consortium of leading Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%). The MKII FLNG project remains subject to regulatory conditions precedent and satisfaction of other customary closing conditions which are progressing according to schedule and expected within 2025. Golar's Chief Executive Officer, Karl Fredrik Staubo, commented: 'Today's FID marks another milestone for SESA in establishing Argentina as an attractive LNG exporter and building on Golar's position as the market leading FLNG service provider. FID solidifies $8 billion of net earnings visibility over 20 years to Golar, with attractive upside potential in the FLNG commodity tariff component and through our shareholding in SESA. We look forward to continuing to develop the SESA partnership into a leading LNG exporter in South America.' FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as 'may,' 'could,' 'should,' 'would,' 'expect,' 'plan,' 'anticipate,' 'intend,' 'forecast,' 'believe,' 'estimate,' 'predict,' 'propose,' 'potential,' 'continue,' 'subject to' or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Golar LNG Limited undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law. Hamilton, Bermuda August 6, 2025 Investor Questions: +44 207 063 7900Karl Fredrik Staubo - CEOEduardo Maranhão - CFOStuart Buchanan - Head of Investor Relations This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Yahoo
Technip Energies awarded major contract for Commonwealth LNG export facility in the United States
CommonwealthLNG Technip Energies (PARIS:TE) has been awarded a major(1) Engineering, Procurement, and Construction (EPC) contract by Commonwealth LNG for its 9.5 Mtpa(2) liquefied natural gas (LNG) facility located in Cameron Parish, Louisiana, USA. The contract covers the delivery of six identical liquefaction trains using Technip Energies' SnapLNG by modular and scalable solution. By leveraging a single design replicated across all six trains, SnapLNG by enables schedule acceleration and cost optimization, while offering greater predictability and certainty at scale. The award follows the successful completion of the front-end engineering and design (FEED) phase by Technip Energies. With this project, Technip Energies further strengthens its position as a global leader in LNG, having delivered over 20% of the world's operating LNG capacity and pioneering modular and innovative project delivery models across the sector. Arnaud Pieton, CEO of Technip Energies, commented: "We are honored to be awarded the Commonwealth LNG project which is a testament to our world leading expertise in modularized LNG solutions. This project is pivotal in enhancing global energy security by ensuring a reliable and efficient supply of LNG. We are eager to leverage our world-class experience in LNG projects associated with our SnapLNG by innovative modular and productized approach to contribute to the success of this critical energy initiative." This award is pending Final Investment Decision (FID) by Commonwealth LNG and will therefore not be included in Technip Energies' backlog until FID or full notice to proceed is achieved. (1) A 'major' award for Technip Energies is a contract award representing above €1 billion of revenue. (2) Mtpa: million tons per annum. About Technip Energies Technip Energies is a global technology and engineering powerhouse. With leadership positions in LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management, we are contributing to the development of critical markets such as energy, energy derivatives, decarbonization, and circularity. Our complementary business segments, Technology, Products and Services (TPS) and Project Delivery, turn innovation into scalable and industrial reality. Through collaboration and excellence in execution, our 17,000+ employees across 34 countries are fully committed to bridging prosperity with sustainability for a world designed to last. Technip Energies generated revenues of €6.9 billion in 2024 and is listed on Euronext Paris. The Company also has American Depositary Receipts trading over the counter. For further information: About Commonwealth LNG Commonwealth LNG is developing a 9.5 mtpa liquefied natural gas (LNG) export terminal project located near Cameron, Louisiana. The project's leadership team is committed to building a world-class LNG facility while relentlessly focusing on safety, managing risk and achieving best in class environmental standards. Website: LinkedIn: Contacts Investor RelationsPhillip LindsayVice-President Investor RelationsTel: +44 207 585 5051Email: Phillip Lindsay Media RelationsJason HyonnePress Relations & Social Media ManagerTel: +33 1 47 78 22 89Email: Jason Hyonne Important Information for Investors and Securityholders Forward-Looking Statements This press release contains forward-looking statements that reflect Technip Energies' (the 'Company') intentions, beliefs or current expectations and projections about the Company's future results of operations, anticipated revenues, earnings, cashflows, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are often identified by the words 'believe', 'expect', 'anticipate', 'plan', 'intend', 'foresee', 'should', 'would', 'could', 'may', 'estimate', 'outlook', and similar expressions, including the negative thereof. The absence of these words, however, does not mean that the statements are not forward-looking. These forward-looking statements are based on the Company's current expectations, beliefs and assumptions concerning future developments and business conditions and their potential effect on the Company. While the Company believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the Company will be those that the Company anticipates. All of the Company's forward-looking statements involve risks and uncertainties, some of which are significant or beyond the Company's control, and assumptions that could cause actual results to differ materially from the Company's historical experience and the Company's present expectations or projections. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. For information regarding known material factors that could cause actual results to differ from projected results, please see the Company's risk factors set forth in the Company's 2024 Annual Financial Report filed on March 10, 2025, with the Dutch Autoriteit Financiële Markten (AFM) and the French Autorité des Marchés Financiers (AMF) and in the Company's 2025 Half-Year Report filed on July 31, 2025 with the AFM and the AMF, which include a discussion of factors that could affect the Company's future performance and the markets in which the Company operates. Forward-looking statements involve inherent risks and uncertainties and speak only as of the date they are made. The Company undertakes no duty to and will not necessarily update any of the forward-looking statements in light of new information or future events, except to the extent required by applicable law. Attachments CommonwealthLNG Technip Energies awarded major contract for Commonwealth LNG export facility in the United StatesSign in to access your portfolio
Bloomberg
23-07-2025
- Bloomberg
Puerto Rico Ends Talks With New Fortress on $20 Billion LNG Deal
Puerto Rico is ending attempts to negotiate a multi-billion dollar liquefied natural gas contract with New Fortress Energy after the company refused to accept the terms of an amended deal, one of the negotiators said. Osvaldo Carlo Linares, the president of Recoms Group, the island's third-party procurement office, said New Fortress was not willing to discuss changes to the contract and missed a key deadline.
