Magnolia will generate an estimated EBITDA of US$760 million and EBITDA to Debt ratio of 3.7 that places it within the most profitable members of its peer group carrying the highest EBITDA to Market Capitalisation ratios. These values range from 9.6- 18.9 and allow us to project a market valuation range for Magnolia of US$7.3 – US14.4 billion.
A 50% interest retained by Liquefied Natural Gas is then valued at US$3.7 – US$7.2 billion / A$4.6 – A$9 billion (at A$0.80), or $13.30 - $26.03 per share (on an undiluted basis).
LNG Price at posting:
30.5¢ Sentiment: Buy Disclosure: Held
