Venture Global reports increased LNG exports in Q1 2025

Published 03/04/2025, 22:28
Venture Global reports increased LNG exports in Q1 2025

ARLINGTON, VA – Venture Global, Inc. (NYSE:VG), a $24.2 billion market cap energy company, disclosed today its key performance metrics for the first quarter ended March 31, 2025, reporting increased exports of liquefied natural gas (LNG) from its facilities. The company’s stock, currently trading near its 52-week low of $8.62, has experienced significant pressure with a 58% decline over the past year. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value. The natural gas distribution company, headquartered in Arlington, Virginia, revealed that it exported a total of 34 cargos from its Calcasieu Pass facility and 29 cargos from its Plaquemines LNG facility.

The company, which operates under the Energy & Transportation sector, achieved a weighted average fixed liquefaction fee of $8.80 per million British thermal units (MMBtu) at Calcasieu Pass and $7.26/MMBtu at Plaquemines LNG. These fees represent the revenue Venture Global earns for converting natural gas into LNG.

Revenue from LNG sales is recognized at the point of delivery to the customer, which is when the title and risks of ownership transfer. For cargos exported on a Free on Board (FOB) basis, revenue is typically recognized when the LNG vessel is loaded and departs from the facility. For cargos under Delivered Ex-Ship (DES) or similar terms, revenue is recognized upon the LNG’s arrival at the destination. The company noted that two DES cargos exported from the Plaquemines LNG facility will be accounted for in the subsequent quarter due to the travel and unloading time.

While the volume of LNG cargos exported and the liquefaction fees are important indicators of Venture Global’s operational performance, they do not fully represent the company’s financial results for the quarter. The complete financial performance, including net income and cash flow, will be announced when the company releases its first-quarter earnings.

The SEC filing also included forward-looking statements cautioning that actual results may differ due to various risks and uncertainties. Venture Global emphasized that these statements should not be relied upon as predictions of future events.

This report is based on a press release statement and contains no subjective assessment or speculative information. Venture Global’s full financial results for the first quarter of 2025 will provide a more comprehensive view of the company’s performance. Analysts maintain a moderate buy consensus with price targets ranging from $11 to $20 per share, suggesting potential upside. For deeper insights into Venture Global’s financial health and growth prospects, including 14 additional ProTips and detailed valuation metrics, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Venture Global has obtained approval from the U.S. Department of Energy to export liquefied natural gas (LNG) to non-free trade agreement countries for its CP2 LNG project in Louisiana. This marks a significant step for the company, which has already secured 20-year sales agreements with major energy companies. Additionally, Goldman Sachs has maintained its Buy rating on Venture Global, setting a price target of $20.00 and highlighting the company’s operational execution as a key area of focus. The firm raised its first-quarter EBITDA estimate to $1,415 million, although it remains below the FactSet consensus.

On the other hand, Citi has downgraded its price target for Venture Global from $18.00 to $11.00, citing anticipated declines in cash flow and adjustments to its EBITDA estimate for 2025. Mizuho (NYSE:MFG) Securities also adjusted its price target from $25 to $18 while maintaining an Outperform rating, emphasizing that the market reaction to recent financial updates may have been too severe. The CP2 project’s approval, expected to produce 20 million tons of LNG annually, represents a $28 billion investment and is seen as a boost for U.S. energy exports.

Despite challenges, Mizuho remains optimistic about Venture Global’s operational strengths and potential for future expansions. The developments reflect the company’s ongoing efforts to enhance its LNG export capabilities and navigate the complexities of the energy market.

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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