Golar LNG prepares to report earnings for the first quarter early Thursday, after Cheniere Energy boosted 2022 guidance, amid extreme conditions for liquefied natural gas in Europe. Golar LNG stock jumped near a buy point.
Demand for LNG has soared over the past year. European electricity prices skyrocketed late last year could go even higher. In 2021, Russia provided nearly half of the European Union's gas imports. The Feb. 24 Russian invasion of Ukraine is spurring European nations to slash their heavy reliance on Russian gas.
As demand from Europe grows, natural gas prices in the U.S. hit a 13-year high last week. The United States is the world's top natural gas producer.
Golar LNG runs marine vessels that process, store and carry liquefied natural gas, or LNG.
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Golar LNG Earnings
Estimates: Analysts polled by FactSet expect Golar LNG earnings to vault 992% to 23 cents per share. They see total revenues falling 11% to $112 million.
Results: Check back early Thursday.
Outlook from the Bermuda-based company will be key.
On May 4, Houston-based LNG play Cheniere Energy, an IBD Leaderboard stock, raised full-year 2022 EBITDA and cash flow guidance, after crushing Q1 revenue views. Cheniere cited increased volumes and higher LNG margins in part.
Golar LNG Stock
Shares of Golar LNG jumped 4.1% to 24.75 on the stock market today. GLNG stock popped 4.3% Monday, bouncing off the 50-day moving average.
Golar LNG stock is flirting with an early buy point above 25, marking the short-term high from May 17 and earlier in this month. A break above 25 would snap a downtrend begun in April, after the energy stock touched a multiyear high of 26.60.
Assuming GLNG stock stays in its current range, a cup base should form after this week.
The relative strength line for Golar LNG stock made a bullish new high Monday. The RS lines for both GLNG stock and Cheniere Energy bolted to multiyear highs in March after the Ukraine war. But they remain below all-time highs.
Bear in mind that uncertainty reigns in the current market. Plus, buying a stock ahead of earnings is risky, though IBD offers a way to limit risk around earnings.
Cheniere stock briefly topped a 149.52 buy point on May 4, then fell below the 50-day line. LNG stock climbed 4.6% to 136.54 on Wednesday, regaining the 21-day average.
High Gas Prices Lift GLNG Stock
On May 20, IBD named Golar LNG its Stock Of The Day as it tested support at the 50-day line.
Oil and gas stocks are outperforming in the current market. Several, including Chevron, can be found on IBD's proprietary watchlists, including the IBD 50 and the IBD Big Cap 20.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
