Stabilis Solutions extends credit facility maturity to 2028

Published 28/03/2025, 13:54
Stabilis Solutions extends credit facility maturity to 2028

Stabilis Solutions, Inc. (SLNG), a natural gas distribution company based in Houston, Texas, has announced the extension of its revolving credit facility’s maturity date. The modification agreement with Cadence Bank extends the $10 million credit line to June 9, 2028. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 1.5, indicating strong liquidity.

The agreement, entered into on Wednesday, also revises terms related to the Fixed Charge Coverage Ratio, specifically including provisions for excess cash. As of today, the company has not drawn any funds from the credit facility. InvestingPro analysis shows the company operates with a moderate debt level, with a total debt-to-capital ratio of just 0.09, suggesting prudent financial management.

This extension offers Stabilis Solutions additional flexibility in managing its finances over the coming years. The updated financial arrangement was detailed in a recent SEC filing, which also includes the full text of the agreement. With an EBITDA of $9.77 million in the last twelve months and a market capitalization of approximately $96 million, the company shows promising financial metrics. Subscribers to InvestingPro can access detailed financial health scores and additional ProTips about the company’s performance.

Stabilis Solutions operates under the ticker (NASDAQ:SLNG) and continues to maintain its principal executive offices in Houston, Texas. The company’s business involves the distribution of liquefied natural gas, catering to various sectors including energy and transportation. Based on InvestingPro’s Fair Value analysis, the stock currently appears fairly valued, with analysts setting price targets between $9 and $12.

Investors and stakeholders can refer to the SEC filing for a comprehensive understanding of the terms of the modification agreement. The extension of the credit facility’s maturity date is a significant financial move for Stabilis Solutions as it secures its capital requirements for the near future.

This financial maneuver is part of the company’s broader strategy to strengthen its financial position and ensure stability in its operations. The information reported is based on the latest SEC filing by Stabilis Solutions, Inc.

In other recent news, Stabilis Solutions reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.12, which was significantly higher than the expected $0.05. However, the company faced a revenue shortfall, bringing in $17.29 million compared to the anticipated $18.28 million, marking a 4% decrease from the previous year. Despite this, the company’s annual revenue saw a slight increase of 0.2% from 2023, reaching $73.3 million. Stabilis Solutions also reported a full-year adjusted EBITDA of $11.8 million, up from $6.8 million in 2023, indicating improved operational efficiency. The company has been focusing on expanding its LNG capabilities, particularly in marine bunkering and aerospace sectors, which have shown increased demand. Strategic investments in LNG infrastructure and growth platforms remain a priority, with plans to invest $20-$25 million in a new LNG train. Analysts from firms like Johnson and Rice have shown interest in these strategic moves, highlighting potential growth in the marine and aerospace markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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