Golar LNG Limited (NASDAQ: GLNG)
Golar LNG Limited (GLNG), a natural gas company on Friday announced that they have signed a memorandum of understanding with Schlumberger (SLB) to cooperatively develop greenfield, brownfield and stranded gas reserves. The memorandum states the companies will jointly market gas monetization solutions to owners investors and governments. The idea is that both companies will be able to reduce the cost of liquefied natural gas production from unprofitable gas reserves. The agreement helps reduce risk, increase financing and will help bring proven gas reserves into production faster.
GLNG Technical Analysis
GLNG gapped up in price Friday to $12.50, up from the prior day’s close of $11.94, which is a 5% increase in price. Taking a look at the daily chart, we can see the last time GLNG traded above this price level was on January 15th when it traded at $13.56. As of late afternoon on Friday GLNG is trading up over 42% at $17. Taking a further look down the daily chart we can see that GLNG has been on an overall decline dating back to June 24th when it traded at its 52 week high price of $51.89. With the 52 week high price so far away GLNG has a lot of room for growth for any sustained rally. GLNG has a float of 84.22 million shares and is trading almost 6 times the normal daily trading volume. For trading purposes, I would like to see the stock close above $16 and use that as a buy support level moving forward.
Company Profile
Golar LNG Limited (Golar), incorporated on May 10, 2001, is a midstream liquefied natural gas (LNG) company engaged primarily in the transportation, regasification, liquefaction and trading of LNG. The Company is engaged in the acquisition, ownership, operation and chartering of LNG carriers and Floating Storage Regasification Units (FSRUs) through its subsidiaries and affiliates and the development of LNG projects. The Company operates through three segments: vessel operations, LNG trading and floating liquefaction natural gas (FLNG). The Company owns and subsequently charter out LNG carriers and FSRUs on fixed terms to customers. The LNG Trading segment is engaged in providing physical and financial risk management in LNG and gas markets. The Company offers structured services to outside customers, arbitrage service, as well as trading. The FLNG segment is in the development stage. The Company owns and operates LNG carriers and FSRUs and provides these services under time charters under varying periods, trades in physical and future LNG contracts. As of April 24, 2015, together with the fleet held by Golar LNG Partner LP (Golar Partners or the Partnership), the Company owned and operated 25 vessels comprising of six FSRUs and 19 LNG carriers, including Abuja and a 60% interest in the vessel owning subsidiary that owns the Golar Mazo, which is owned through a joint venture arrangement between Golar Partners and the Chinese Petroleum Corporation, the Taiwanese state-owned oil and gas company. One LNG carrier, the Hilli, is undergoing conversion into a FLNGV. The remaining vessels, except for the Gimi and the Gandria, are either on fixed or spot charters, available for employment or under construction (i.e. the Golar Tundra). The Company competes with Hoegh LNG, Exmar, Excelerate Energy, BW Gas, MOL, Royal Dutch Shell, BP, BG, Malaysian International Shipping Company, National Gas Shipping Company and Qatar Gas Transport Company. Reuters
