Johnson Rice has started coverage on Venture Global (VG, Financial), assigning a Buy rating along with a price target of $20. This new analysis suggests optimism about the company's future performance, indicating potential growth and investment appeal.
VG Key Business Developments
Release Date: May 13, 2025
- Revenue: $2.9 billion, a 105% increase from Q1 2024.
- Income from Operations: $1.1 billion, a 75% increase from Q1 2024.
- Consolidated Adjusted EBITDA: $1.3 billion, a 94% increase from Q1 2024.
- Net Income: $396 million, a $252 million decrease from Q1 2024.
- LNG Export Volume: 234 TBtu, a 93% increase from Q4 2024.
- Calcasieu Pass Commissioning Cargoes: 34 exported in Q1 2025.
- Plaquemines Commissioning Cargoes: 29 exported in Q1 2025.
- 2025 Consolidated Adjusted EBITDA Guidance: $6.4 billion to $6.8 billion.
- Weighted Average Fixed Liquefaction Fee: $8.80 per MMBtu at Calcasieu Pass in Q1 2025.
- Safety Performance (TRIR): 0.10 at Calcasieu Pass and 0.21 at Plaquemines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Venture Global Inc (VG, Financial) reported a significant increase in revenue, reaching $2.9 billion for Q1 2025, a 105% increase compared to Q1 2024.
- The company achieved a new record high in LNG exports, with 234 TBtu exported, marking a 93% increase from the previous quarter.
- Calcasieu Pass achieved its commercial operation date on April 15, 2025, without any recordable safety incidents, showcasing operational excellence.
- Plaquemines project demonstrated strong performance, operating at approximately 140% of nameplate capacity, with all 18 local fraction trains activated.
- Venture Global Inc (VG) secured a $3 billion bank loan facility to fund CP2, demonstrating strong financial backing and progress in project development.
Negative Points
- The company's net income decreased by $252 million compared to Q1 2024, primarily due to unfavorable changes in the fair value of interest rate swaps.
- Higher operating and maintenance costs were reported, reflecting the expenses associated with ramping up LNG production and completing rectification work.
- The spread between domestic and international gas prices has compressed, impacting the company's consolidated adjusted EBITDA guidance.
- The company faces potential exposure to tariffs, which could increase the cost of raw materials and affect demand for US-produced LNG.
- The construction and commissioning process at Plaquemines is recognized as challenging and highly variable, posing potential risks to project timelines.
