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Golar LNG (GLNG) Just Gave Investors Something To Think About

Simply Wall St · 2d ago

Golar LNG (GLNG) has drawn fresh attention after pricing a US$500 million private offering of senior unsecured notes due 2031. The notes carry a 7.5% coupon and are issued at 99% of face value.

The bond issuance comes after a softer period for the equity, with the 7-day share price return down 4.9% and the 30-day share price return down 7.8%. Golar LNG still shows a 25.2% year-to-date share price gain and a 5-year total shareholder return of about 3x, which reflects longer-term momentum, while shorter-term sentiment has cooled around the new debt plans.

Compare how Golar LNG stacks up against other energy players taking on fresh debt or refinancing by reviewing our hand picked list of solid balance sheet and fundamentals (25 results).

Fresh debt on the balance sheet, a pullback after strong multi year returns, and a discounted valuation signal for Golar LNG now put you at a fork in the road: step in today or wait for a cleaner entry?

Most Popular Narrative: 4% Undervalued

Golar LNG’s most followed valuation storyline anchors fair value at about $49.71 versus the last close of $47.50. This puts the new bond issue and equity pullback against a backdrop of modest implied upside at a 7.24% discount rate.

The plan to order a fourth FLNG unit in 2026 and potentially move toward a larger multi-unit platform depends on continued access to attractive long-lead items, shipyard capacity and financing. Any cost inflation or delays in conversions and yard schedules could erode the targeted 5x to 6x CapEx to EBITDA economics and compress future margins and cash flows.

See why 0 investors see Golar LNG as 4% undervalued.

Result: Fair Value of $49.71 (UNDERVALUED)

Still, the long project timelines and concentration in a handful of FLNG assets mean execution setbacks or weaker LNG pricing could quickly blunt the Golar LNG upside story.

Find out about the key risks to this Golar LNG narrative.

Next Steps

Mixed signals around Golar LNG can feel messy, so consider acting promptly to weigh the trade off between cautious flags and upside potential by reviewing the 4 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.