Liquefied Natural Gas Limited

Alliance with Bac Lieu Provincial Government: Liquefied Natural Gas Limited (ASX: LNG) is developing LNG export terminal projects in the United States and Canada having combined aggregate design production capacity of 20 mtpa. Its portfolio consists of 100% ownership in Magnolia LNG LLC, Bear Head LNG, Bear Paw Pipeline and LNG Technology Pty Ltd. It has a market capitalisation of ~A$141.12 million as on September 16, 2019. Recently, LNGL and Delta Offshore Energy (DeltaOE) has jointly announced an alliance with the Bac Lieu Provincial Government in Vietnam to deliver an LNG-to-power project for the province. The DeltaOE led power project includes the construction and operation of an LNG import terminal, 3,200-megawatt combined-cycle power plant and delivery of power generation to the Bac Lieu Province. The integrated project is expected to commence operations in 2023 pending finalization of anticipated government approvals.

Financial Performance: The company reported a loss from ordinary activities after tax of $33.5 million in FY19 as compared to a loss of $22.8 million in FY18. The 2019 fiscal loss includes project development cost of $16.9 million, $3.3 million of share-based payment expenses and $15 million in administration, corporate and compliance costs in the period. Revenue relates to interest income and has increased due to the higher average cash and short-term investments held by the company than in the corresponding financial year.


 
Financial Performance (Source: Company Reports)

The LNGL Group had an aggregate $21.8 million of liquidity consisting of $19.8 million cash and cash equivalents plus $2 million of other financial assets.

Stock Performance: On the stock performance front, it produced returns of -9.26% and -48.42% in three and six months, respectively. Currently, the stock is trading lower than the 52-week low high average range of $0.145-$0.750. The shares of the company entered a trading halt on ASX, in view of a further announcement setting out additional details regarding the term sheet with Delta Offshore Energy relating to a proposal for an LNG-to-power project in Vietnam. The trading halt was indicated to be until the earlier of the commencement of normal trading on 18 September 2019 or when the announcement is released to the market. LNG’s shares last traded at A$0.295 (up 20.408% as on 16 September 2019).
 

Sundance Energy Australia Limited

Re-Domiciliation and Listing in the US: Sundance Energy Australia Limited (ASX: SEA) is an independent energy exploration company focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. It has a market capitalisation of ~A$132.19 million as on September 16, 2019.

SEA has announced its decision to re-domicile from Australia to the United States via a proposed scheme of arrangement, which is subject to shareholder, judicial and regulatory approvals.If the scheme of arrangement is approved, the company will transfer its primary listing to Nasdaq, and will cease to trade on the ASX. As the part of re-domiciliation, Sundance has entered into a Scheme Implementation Agreement with a newly formed US corporation “Holdco”, which will become the ultimate parent company of the Sundance group of companies following the implementation of the scheme.

Half-yearly Performance: Sales volume increased by 1,073,670 Boe (Barrel of oil equivalent) to 2,371,909 Boe for the six months ended 30 June 2019 primarily due to the Company’s 2019 and 2018 drilling program, which was back-loaded in the second half of 2018.

Oil sales increased by $44 million (102.3%) to $86.9 million for the six months ended 30 June 2019. The increase in oil revenue was the result of improved product pricing ($2.4 million) and higher oil production ($41.6 million).
Natural Gas Sales: Natural gas sales increased by $1.6 million (30.2%) to $6.8 million for the six months ended 30 June 2019. The increase in natural gas revenues was the result of increased sales volumes ($2 million), partially offset by lower product pricing ($0.5 million). Natural gas sales volume increased by 39.2% to 2,960,551 Mcf for the six months ended 30 June 2019.

NGL Sales: NGL sales increased by $2.3 million (51.3%) to $6.9 million for the six months ended 30 June 2019.The increase in NGL revenues was the result of increased sales volumes ($4.9 million) partially offset by lower product pricing ($2.6 million). The following picture provides a broader overview of the key numbers:


 Segment-wise Performance (Source: Company Reports)

Stock Performance: The company produced returns of 5.56% and -19.15% in the time period of one month and three months, respectively, in terms of stock price. Currently, the stock is trading close to a 52-week low level of $0.145, and at a current market price of A$0.240 per share (up 26.316% on September 16, 2019).

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