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GLNG - Jan 22

PostPosted: Fri Jan 22, 2021 12:36 pm
by dan_s
Golar LNG Limited (GLNG, $11.47, Buy; Target $19.00)
Life After Loss: What To Do With Golar Now - Benjamin J. Nolan at Stifel
- Golar is selling its stake in Hygo for $1 billion to New Fortress and effectively exiting the downstream LNG business. In addition to $50 million of cash and $950 million of NFE shares for Hygo, Golar will receive ~$80m of cash for its 30% stake in Golar Partners. With $130 million of cash coming in and associated GMLP liabilities gone, we believe the company should be well-positioned to refinance the convertible note that comes due in early 2022. While a major growth driver is gone, we believe this transaction simplifies and strengthens Golar just as momentum should be improving on incremental FLNG developments. By any account, the sum of the parts for GLNG shares should be well north of $20/share, but the challenge for the company with a propensity for stubbing their toe is to show a legitimate line of sight on growth potential. We believe that is coming.