Edison Issues ADR Update on Liquefied Natural Gas (LNGLY US)

LONDON, UK / ACCESSWIRE / November 30, 2017 / The Magnolia development remains one of the most competitive LNG development projects (greenfield or brownfield) globally. The industry is starting to recognize that the current LNG oversupply will move towards undersupply within five years and there are few projects on track to fill the resulting gap. This should put Magnolia increasingly in the spotlight for buyers looking to fulfill demand in 2023 onwards. LNGL (OTC PINK: LNGLY) management has indicated it is in discussions with many companies across a diverse set of geographies and interests. We have adjusted our valuation to account for a delayed expectation of project FID, reducing it slightly to $A1.25/share (US$3.8/ADR).

We have adjusted our valuation to account for actual cash balances and move our expectations of the timing for project FID and construction outwards given how long it has taken to move towards binding off-take agreements and management’s current thoughts on when agreements will be signed. These changes result in a reduction in our risked valuation to US$3.8/ADR ($A1.25/share), well above current share/ADR prices, while longer-term valuations are materially above these.

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