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4.3¢ liquefied natural gas limited

LNGL’s Current, Quarterly and Multi Year Statements, page-23

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jwhiteman

2,366 Posts.

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20/02/20

21:15

Post #: 43057416
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Originally posted by MoneyBags1348: ↑

Ricky, sorry about the late response, I get bored with speculation and ramping and find better things to do! You are right about natural gas prices going down being better than going up for buyers.

LNGL charges a tolling fee for liquefying the gas. Out of desperation they lowered this fee from $2.75 to $2.50 and now to $2.35 / mmbtu.

Opex is assumed to be $0.25 / mmbtu, which produces a lowered EBITDA margin of $2.10 / mmbtu

I’m not sure what the actual liquefaction cost is!! Perhaps Bortgm can answer that one

Interest alone on Stonepeak’s $4.35 Billion funding is $300+ Million / per annum

LNGL also pays a corporate tax rate of 25% and tax rate of 2% at Magnolia.

The end user pays 113% of Henry Hub prices for the gas

And the cost of shipping (transport) cost

The recent articles you have provided links to regarding the glut and milder Northern hemisphere winters also points to fact that the glut will continue leading to long term contracts being put off, and contrary to some recent speculation posted on these threads, you I and other LT holders know GV needs 20 year deals not 10 year deals. Someone out to ramp and trade this Company probably doesn’t have a clue about fundamentals.

Gas for delivery at the Dutch gas hub, a benchmark for LNG arriving to Europe, has been trading 45% below its price a year ago. In an oversupplied LNG market, traders typically ship cargoes to European gas storage, but facilities in Europe are full. “LNG cargoes in Europe are trading at deep discounts due to high storage, and limited slots available to receive these cargoes leads to traders cancelling or not lifting U.S. cargoes.

Asian spot prices are at record seasonal lows and US Henry Hub prices can’t compete, and don’t forget that US liquefaction fees still have to be paid even if a buyer cancels purchases.

GV has previously said he needs to get a higher price than what is being offered and when Asian buyers are already getting it for less, why would they pay more, especially in an ongoing glut, they are coming towards the end of the Northern Hemisphere winter and they have overflowing storage levels to the point they are having to sell their gas on to other countries at a discount.

You and I also know LNGL’s net Loss for FY2019 was $33.5 Million; Share holder value decreased 59% in FY2019; $3 Million in losses related to share-based payment expenses; Available cash at the end of the December 2019 Quarter was less than $8 Mil; Total accumulated losses at the end of 2019 were around $470 Million; And LNGL has stressed the urgency to raise liquidity immediately.

Not sure why insto’s would want to purchase shares now (as has also been suggested) with LNGL’s current cash and liquidity issues?!

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I don't see any future for this company at all. They won't make fid and therefore they're burning money for no possible result. It should be in va now.

LNG Price at posting: 13.5¢ Sentiment: None Disclosure: Not Held
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LNGL’s Current, Quarterly and Multi Year Statements, page-23

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