Stonepeak acquires 40% stake in Louisiana LNG

NEW YORK - Stonepeak, an alternative investment firm, has reached an agreement to buy a 40% interest in Louisiana LNG Infrastructure LLC, a liquefied natural gas (LNG) production and export terminal currently under development in Calcasieu Parish, Louisiana. The seller, Woodside Energy Group Ltd (ASX: WDS, NYSE: WDS), a $23.2 billion market cap energy company currently trading near its 52-week low, will continue to operate the facility after the transaction’s completion. According to InvestingPro data, Woodside maintains a strong financial health score and offers an attractive 8.77% dividend yield.

The terminal, situated within the Gulf Coast LNG corridor, boasts a total permitted capacity of 27.6 million tonnes annually and is approaching a final investment decision for its foundational development. Construction is already in progress, with Bechtel, a prominent infrastructure project delivery company, handling engineering, procurement, and construction duties. Woodside’s strong balance sheet, with a conservative debt-to-equity ratio of 0.33, positions it well for this major development project.

James Wyper, Senior Managing Director and Head of US Private Equity at Stonepeak, expressed confidence in the project’s future contribution to the US LNG export market. Woodside CEO Meg O’Neill welcomed Stonepeak’s investment, noting it as a testament to the project’s global appeal and a move that will significantly decrease Woodside’s capital expenditure for this initiative.

The transaction is anticipated to close in the second quarter of 2025, pending conditions precedent such as the final investment decision for the Louisiana LNG foundation development and necessary regulatory and customary approvals.

Financial advisory services for Stonepeak were provided by Mizuho Bank, Ltd, Greenhill & Co., LLC, and Santander US Capital Markets LLC. Simpson Thacher & Bartlett LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel. Woodside was advised by RBC Capital Markets and Evercore, with Norton Rose Fulbright as legal counsel.

Stonepeak, headquartered in New York, manages approximately $72 billion in assets, focusing on infrastructure and real assets. Woodside, with over 35 years in the LNG industry, is a global energy company committed to delivering reliable and affordable energy.

This deal reflects Stonepeak’s strategic investment in energy infrastructure, aligning with a partner experienced in LNG operations and project execution. Trading at a P/E ratio of 6.48 and currently undervalued according to InvestingPro Fair Value analysis, Woodside presents an interesting opportunity for investors. The company has maintained dividend payments for 34 consecutive years and shows strong profitability with a 43% gross margin. Get access to 7 more exclusive ProTips and a comprehensive analysis of Woodside’s financials with an InvestingPro subscription. The information in this article is based on a press release statement.

In other recent news, Woodside Energy Group Ltd has announced its upcoming Annual General Meeting (AGM), scheduled for April 2025. This key event will be held at the company’s executive offices in Perth, Western Australia, where shareholders will have the opportunity to discuss the company’s performance and future strategies. In a significant strategic move, Woodside Energy has decided to divest its Greater Angostura assets to Perenco, as part of its portfolio optimization strategy. The financial terms of this transaction have not been disclosed, but it aligns with Woodside’s focus on core assets.

Additionally, Woodside Energy has reported changes in executive shareholdings, as detailed in a recent SEC filing. These changes include modifications in the shares held by key management personnel, ensuring transparency and compliance with market regulations. The company has also released its 2025 sustainability briefing, outlining its commitment to reducing its carbon footprint and aligning with global sustainability targets. This briefing emphasizes Woodside’s dedication to environmental stewardship and corporate responsibility.

Investors and stakeholders will be closely monitoring these developments, particularly the impact of the asset sale on Woodside’s financials and operational strategy. The company’s recent activities reflect its ongoing efforts to streamline operations and improve efficiency.

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