Does Beck Capital’s GLNG Trim Reveal More About Its Risk Posture Than Golar LNG’s Cash Flow Visibility?

• Austin-based Beck Capital Management disclosed that it cut its stake in Golar LNG during the third quarter, selling 117,966 shares, even as the company highlighted long-term FLNG contracts and maintained both dividends and a new US$150 million share buyback plan.
• The move reflects portfolio risk management within a tech-heavy fund, while Golar LNG’s roughly US$17 billion adjusted EBITDA backlog suggests management confidence in long-term cash flow visibility.
• Next, we’ll explore how Beck Capital’s portfolio rebalancing against Golar’s sizeable FLNG EBITDA backlog shapes the company’s investment narrative.

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Golar LNG Investment Narrative Recap

To own Golar LNG, you need to believe that floating LNG will remain a viable way to monetize gas resources and that its long-term FLNG contracts will translate into sustained cash flows. Beck Capital’s decision to trim its stake does not appear to materially alter the key near term catalyst, which is the execution and cash generation from Golar’s contracted FLNG backlog, nor the main risk around future FLNG demand and contract visibility.

The most relevant announcement here is Golar’s new US$150 million share buyback, which sits alongside its ongoing dividend. That capital return program, backed by roughly US$17 billion in adjusted EBITDA backlog from 20 year FLNG charters, underpins the current investment story while also amplifying the impact if FLNG market conditions or contract economics were to weaken.

Yet beneath the long term contracts, investors still need to watch the execution risk around expanding FLNG capacity and securing future charters...

Read the full narrative on Golar LNG (it's free!)

Golar LNG's narrative projects $434.8 million revenue and $205.2 million earnings by 2028.

Uncover how Golar LNG's forecasts yield a $51.10 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community value Golar LNG between US$3.72 and US$60.87, highlighting sharply different expectations for the stock. Set this against Golar’s concentration in a few long term FLNG contracts, and it becomes clear why thinking through different scenarios for contract security and future demand can be important for your own view.

Explore 5 other fair value estimates on Golar LNG - why the stock might be worth as much as 63% more than the current price!

Build Your Own Golar LNG Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Golar LNG research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Golar LNG research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Golar LNG's overall financial health at a glance.

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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.

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