The focus for Liquefied Natural Gas (LNGL) remains the signature of long-term offtake contracts for Magnolia LNG, the company's flagship LNG export terminal in Lake Charles, Louisiana. In March 2019, authorisation was received from the US Department of Energy (DOE) for expansion of export capacity to 8.8Mtpa (from 8.0Mtpa) to free trade agreement (FTA) countries. Management expects FERC approval and non-FTA consent from the DOE to follow shortly. Edison's valuation has been updated to reflect higher Magnolia export capacity, offset by our assumption of lower contract pricing. The net impact is a decrease in valuation from A$1.01/share to A$0.70/share. Key valuation drivers include sale and purchase agreement (SPA) pricing, cost of funding, timing of first gas exports and the risking we apply to Magnolia and Bear Head projects proceeding.Den vollständigen Artikel lesen ...