Golar enters into swap arrangements for Q4 2022 and 2023 Dutch Title Transfer Facility exposure
September 02 2022 - 8:35AM
Golar LNG Limited (“Golar”) announces today that
it has entered into two swap arrangements for its Dutch Title
Transfer Facility (“TTF”) linked production on the FLNG Hilli:
- Q4 2022: Hedged approximately 50% of TTF
linked production at $70.0/MMBtu. Golar’s share of the TTF linked
Distributable Adjusted EBITDA for Q4 at $70.0/MMBtu is expected to
be $56 million, of which $28 million is hedged. We remain exposed
for the remaining 50% of our Q4 2022 TTF linked production. A TTF
price of $70.0/MMBtu is the energy equivalent to a Brent oil price
of approximately $412/bbl.
- Full year 2023: Hedged 50% of 2023 TTF linked
production at $50.5/MMBtu. As announced on our Q2 earnings results
on 11 August, we have previously hedged 50% of 2023 TTF linked
production at $49.5/MMBtu. Hence Golar is now fully hedged for its
2023 TTF price exposure at an average price of $50.0/MMBtu. We
expect to generate 2023 Distributable Adjusted EBITDA from TTF
linked production of $150 million. A TTF price of $50.0/MMBtu is
the energy equivalent to a Brent oil price of approximately
$294/bbl.
The hedging transaction secures cash flow
visibility at attractive historical levels for TTF gas prices and
will generate significant free cash flow to equity for Golar.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking
statements (as defined in Section 21E of the Securities Exchange
Act of 1934, as amended) which reflects management’s current
expectations, estimates and projections about its operations. All
statements, other than statements of historical facts, that address
activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as “may,”
“could,” “should,” “would,” “expect,” “plan,” “anticipate,”
“intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,”
“potential,” “continue,” or the negative of these terms and similar
expressions are intended to identify such forward-looking
statements.
These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. Golar LNG Limited undertakes no obligation
to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise, unless
required by applicable law.
Hamilton, Bermuda
September 2, 2022
Enquiries:
Golar Management Limited: + 44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements
pursuant to Section 5-12 the Norwegian Securities Trading Act
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