Shares in Venture Global (VG) rallied by more than 6% in midday trading on Monday after the liquified natural gas (LNG) producer and exporter posted third quarter revenues and earnings per share that exploded over levels at the same time last year.
Venture Global reported revenues of $3.3 billion in the third quarter, beating analyst estimates and exceeding revenues from the same quarter last year by 260% as LNG export demand in the US has surged.
The company posted adjusted earnings per share of $1.50 for the quarter, soaring over analyst expectations of $0.23 and coming in more than 430% higher than levels in the third quarter of 2024.
“In my mind, the extraordinary list of accomplishments achieved in the past few months tells the story of Venture Global’s unwavering commitment to streamline high-impact execution in its growth to date,” founder and CEO Michael Sabel said on the third quarter earnings call.
In the US, which is already the world’s largest exporter of natural gas, capacity for liquefaction — the process of converting natural gas to an exportable liquid form — is expected to more than double by 2029, according to a forecast from the Energy Information Administration surveying planned projects from some of the country’s leading exporters.
North American exports of LNG overall are also expected to more than double over the same period, according to the EIA. Venture Global is the second-largest exporter of natural gas in the country, behind Cheniere Energy (LNG).
Demand for natural gas is quickly rising globally as the product takes up an increasing amount of the supply share for energy, traditionally dominated by oil. While the count of oil rigs in the US has fallen precipitously year-on-year, the count of natural gas rigs is up 18% over the same time last year, according to the American Gas Association.
While prices remain below historical highs in the 2000s, futures on natural gas (NG=F) are up more than 38% over the past month and expected to continue rising through 2026 and 2027, as demand grows over the same period.
