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HOUSTON - Stabilis Solutions, Inc. (NASDAQ:SLNG), a small-cap energy company with a market capitalization of $87.6 million and strong financial health according to InvestingPro metrics, has entered into a 10-year agreement to supply liquefied natural gas (LNG) for marine bunkering operations at the Port of Galveston, the company announced Thursday.
The contract with an unnamed "investment-grade global marine operator" calls for Stabilis to provide approximately 50 million gallons of LNG annually, representing about 40% of the planned capacity for a new LNG facility the company intends to build in Galveston. This significant contract could substantially impact the company’s revenue, which currently stands at $69.6 million for the last twelve months.
Deliveries under the agreement are expected to begin in the fourth quarter of 2027, contingent upon successful financing and construction of the new facility. According to the terms, Stabilis must finalize project financing by the first quarter of 2026 and complete construction by the second quarter of 2028.
The proposed Galveston LNG facility is expected to produce 350,000 gallons per day, which would increase Stabilis’ total liquefaction capacity from 130,000 to 480,000 gallons per day. The company also plans to commission a Jones Act-compliant LNG bunkering vessel to transport LNG directly to customer vessels.
"Our new 10-year bunkering agreement marks a transformational milestone for Stabilis, one that secures the commercial scale required to advance our investment in liquefaction capacity on the Gulf Coast," said Casey Crenshaw, Executive Chairman and Interim President & CEO, in the press release statement.
The company has identified a site for the facility and completed initial front-end engineering and design activities. Stabilis indicated it is in discussions with additional potential customers to contract the remaining capacity at the planned facility. With an EBITDA of $6 million and positive free cash flow yield, the company demonstrates operational efficiency that could support its expansion plans.
Evercore is serving as financial advisor to Stabilis for the financing and structuring of the transaction.
In other recent news, Stabilis Solutions Inc. announced its second-quarter 2025 financial results, which did not meet market expectations. The company reported an earnings per share (EPS) of -$0.03, missing the forecasted EPS of $0.03. Additionally, Stabilis Solutions generated $17.3 million in revenue, falling short of the anticipated $18.99 million. These figures indicate a notable shortfall in both earnings and revenue projections. The earnings miss reflects challenges faced by the company in meeting analyst estimates. There were no updates regarding mergers or acquisitions involving Stabilis Solutions. Analyst reactions and adjustments to stock ratings were not mentioned in the recent developments. The focus remains on the company’s financial performance as it continues to address these challenges.
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