On Thursday, Stifel reaffirmed its Buy rating on Golar LNG Ltd . (NASDAQ:GLNG), maintaining the $53.00 price target for the company's stock. The stock, currently trading at $42.05, has shown remarkable strength with an 82.8% gain year-to-date and is trading near its 52-week high. According to InvestingPro data, analysts maintain a strong bullish consensus on GLNG, with price targets ranging from $41 to $56.
The expansion of the Perito Francisco Pascasio Moreno gas pipeline, also known as the Presidente Néstor Kirchner gas pipeline, along the Tratayén-Litoral Argentino route, will increase its capacity from 21 million cubic meters per day (mcm/day) to 35 mcm/day.
According to Stifel's analysis, the pipeline expansion could provide enough gas to support up to 8.5 million tonnes per annum (mtpa) of additional LNG exports. This development is particularly significant for Golar LNG, which currently maintains a market capitalization of $4.39 billion and operates with moderate debt levels. The project aligns with the firm's involvement in an LNG project that has recently seen increased participation.
InvestingPro subscribers can access 14 additional key insights about GLNG's financial health and growth prospects through the platform's comprehensive Pro Research Report. Over the past two weeks, companies such as YPF, Pampa Energy, and Harbour Energy (LON:HBR) have joined Pan American and Golar in this endeavor.
In other recent news, Golar LNG had a strong showing in Q3 2024, reporting an adjusted EBITDA of $59 million on total revenues of $65 million. The company also announced a new order for a third Floating Liquefied Natural Gas (OTC:LNGLF) (FLNG (OL:FLNG)) unit, a Mark II, expected to increase Golar's capacity by 70% upon its delivery in Q4 2027. This FLNG is notably the first of its kind available for global charter, with contract finalization targeted for 2025.
Golar's existing FLNGs, Hilli and Gimi, are performing well, with Hilli preparing for a new 20-year charter in Argentina. The company's financial position remains robust, boasting an EBITDA backlog of approximately $11 billion and a projection of $1 billion EBITDA run rate by 2028. However, Golar reported a net loss of $35 million due to non-cash adjustments.
Among other recent developments, Golar aims to finalize a contract for the Mark II FLNG by 2025 and expects to double its EBITDA backlog to over $20 billion. Plans to refinance Gimi's debt and optimize capital structure for growth are also in the pipeline.
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