Excellent presentation by MB with LNG highlighting what an outstanding job it is doing to derisk Magnolia and meet its planned milestones.
Key take outs for me:
EV
* Board very aware of sp appreciation/ ASX200 elevation ... doing everything to maintain and increase shareholder value
* THIRD (NA my assumption) project with latest approach earlier today for a 4mtpa project).
* EBITDA uplift in multiple valuation
* Site visits to Magnolia & BH mid Oct (will likely see analyst valuation upgrades)
MAGNOLIA
* On track for 3 key milestones in period ahead, i.e. FERC DEIS (see below***) triggering EPC wrap & BTAs
* VERY experienced US management (& equally impressive SKEC expertise to also be used for BH), imminent Houston based NED appointment
* BTAs - 6th draft
* multiple approaches for final 1mpta (providing comfort against any non fulfilment by those negotiating
BTAs (previously my greatest concern)
BH
* 7 potential gas sources for BH
* Wright Hub-Dracut Hub bottleneck due to lack of demand (LNG confident can address)
* Pipeline capacity & reverse flow from Dracut Hub to Goldboro
***And if to illustrate the point further, FERC yesterday requested Magnolia provide responses to further environmental queries within 20 days (i.e. by 12 October) following Monday’s USCG & DOT approvals. Not long to go now …
Lastly, LNGLY ADRs trading post 1:10 split and now U$15.60 (+$0.48) or $4.41 so instos can actually buy cheaper here.