Golar LNG Limited (GLNG): A Bull Case Theory

We came across a bullish thesis on Golar LNG Limited (GLNG) on Twitter by justfactstruth. In this article, we will summarize the bulls’ thesis on GLNG. Golar LNG Limited (GLNG)’s share was trading at $42.51 as of April 30^th. GLNG’s trailing and forward P/E were 88.55 and 21.60 respectively according to Yahoo Finance.

A deep sea tanker vessel laden with liquified natural gas, contrailing a majestic stream of white smoke.

Golar LNG ($GLNG) offers a compelling investment opportunity due to its unique position in the LNG sector, especially with its transition away from low-margin LNG carrier (LNGC) shipping. As of March 2025, there will be around 670-700 LNG carriers worldwide, which operate in a crowded market. Golar sold its LNGC assets to CoolCo in December 2021. The company also exited the Floating Storage Regasification Units (FSRU) market by selling all its FSRU assets to New Fortress Energy (NFE) in January 2021, with Golar LNG Partners (GMLP) now part of NFE. However, Golar’s focus is now on the highly specialized and profitable Floating Liquefied Natural Gas (FLNG) units, of which there are only 8 worldwide, with Golar operating two—Gimi and Hilli. These FLNGs are floating factories that combine gas processing and LNG storage, targeting high-reward opportunities in niche markets. Golar’s FLNG contracts, including long-term agreements with BP, PAE, and YPF, generate substantial EBITDA, with Gimi and Hilli contributing up to $642 million in combined EBITDA. The company is poised for significant free cash flow generation, with an expected $1.57B–$1.84B in EBITDA by 2029. Golar benefits from stable, long-term contracts with minimal capex needs, ensuring a high-quality, high-margin business with minimal tax liabilities and a free cash flow conversion rate exceeding 70%.

Golar LNG Limited (GLNG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held GLNG at the end of the fourth quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of GLNG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GLNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.