Michael Thompson's Presentation on Golar LNG: Capitalize For Kids Sohn Canada ~ market folly

Tuesday, October 28, 2014

Michael Thompson's Presentation on Golar LNG: Capitalize For Kids Sohn Canada

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Michael Thompson of BHR Capital who pitched Golar LNG (GLNG) as a long.


Michael Thompson's Sohn Canada Presentation

Pitched LONG Golar LNG (GLNG). Has an upstream, midstream and downstream business. Management used to run Seadrill and were real money makers. Thinks the base case for the Legacy Golar business is worth north of $30.

However, MLP (FLNG) is where the real upside potential exists; FLNG #1 $20, FLNG #2 $5, FLNG#3 $0 (to be conservative). Valuation is using current spot day rates, assumes no growth in the legacy business, no benefit from existing MLP, which he admitted is very unlikely to happen.

Overall, believes the business could be worth $90, if all 3 vessels were contracted out. Recently, Golar’s share price has suffered due to the selloff in commodities, allowing for the opportunity.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.


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