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Venture Global, Inc. Class A (VG)
NYSE:VG
RESEARCH TOOLSreports
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Venture Global, Inc. Class A
(NYSE:VG)
Rating:72Outperform
Price Target:
$16.00
▲(73.35%Upside)
Positive Factors
Operational Performance
Analyst maintains a Buy rating as operational performance and speed to market give Venture Global an advantage over competitors.
Profitability
VG's guided commissioning ramp at VGPL was better than most expected and should allow the company to generate substantial profits in FY25/26.
Strategic Growth
Venture Global's growth ambitions are expected to make it one of the largest LNG export companies globally, enhancing its negotiating flexibility.
Negative Factors
Commodity Price Sensitivity
Commodity prices are the primary near-term risk to estimates with VG guiding to a significant EBITDA sensitivity for every $1/mmbtu change in liquefaction fees.
Financial Guidance
The 2025 EBITDA guidance was lower than previous estimates, implying lower margin assumptions and sensitivity to global gas margins.
Market Reaction
The stock experienced a significant drop of 36% following a challenging first release post-IPO, attributed to a 4Q24 miss, soft 2025 guidance, and mixed messaging.
Venture Global, Inc. Class A (VG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.83B
Dividend YieldN/A
Average Volume (3M)6.60M
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength46
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.15
Shares Outstanding451,257,020
10 Day Avg. Volume8,274,822
30 Day Avg. Volume6,597,055
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)5.11
Price to Sales (P/S)0.00
P/FCF Ratio-2.35
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue5.71
Enterprise Value/Gross Profit19.22
Enterprise Value/Ebitda11.78
Forecast
1Y Price Target
$17.78Price Target Upside92.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Venture Global, Inc. Class A Business Overview & Revenue Model
Company DescriptionVenture Global, Inc. Class A (VG) is a leading company in the liquefied natural gas (LNG) sector. It specializes in the production, storage, and distribution of LNG to various international markets. The company operates state-of-the-art production facilities and is committed to providing reliable and efficient energy solutions to its customers around the globe.
How the Company Makes MoneyVenture Global, Inc. makes money primarily through the sale of liquefied natural gas. The company generates revenue by entering into long-term sales agreements with international buyers, including utility companies, industrial users, and other energy distributors. These contracts ensure a steady revenue stream based on negotiated pricing that typically includes fixed and variable components. Additionally, VG benefits from strategic partnerships with other energy firms and technology providers, which enhance its operational capabilities and market reach. The company's earnings are also supported by its ability to leverage economies of scale and optimize production processes at its facilities.
Venture Global, Inc. Class A Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -6.86%|
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Venture Global's strong financial performance and significant progress on LNG projects, with revenue and export records set. However, challenges such as declining net income, increased operational costs, and tariff concerns were noted.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Venture Global generated $2.9 billion in revenue, reflecting a 105% increase compared to the first quarter of 2024.
Record LNG Exports
The company exported 234 TBtu of LNG, a new record high, marking a 93% increase from the fourth quarter of 2024.
Plaquemines Facility Performance
Plaquemines exported 29 commissioning cargoes with all 18 liquefaction trains activated, demonstrating production levels of approximately 140% of nameplate capacity.
CP2 Project Progress
CP2 received a non-FTA export authorization and a $3 billion bank loan facility to fund capital expenditures, along with upsizing its 20-year SPA with New Fortress Energy.
Strong Safety Record
Achieved a TRIR of 0.10 at Calcasieu Pass and 0.21 at Plaquemines, far outperforming the national industry average of 1.9.
Negative Updates
Net Income Decline
Net income attributable to common stockholders decreased by $252 million to $396 million compared to Q1 2024, largely due to non-cash factors such as unfavorable changes in the fair value of interest rate swaps.
Cost Challenges
Higher operating costs and remediation expenses, including $146 million higher depreciation and $143 million higher operating costs, impacted the financial results.
Tariff Concerns
Exposure to U.S. and foreign tariffs could potentially impact raw materials and LNG import demand, although current exposure is estimated at around 1% of CP2's total budget.
Company Guidance
During the first quarter of 2025, Venture Global Inc. demonstrated strong performance, with revenue reaching $2.9 billion, a 105% increase compared to the first quarter of 2024. The company reported $1.1 billion in income from operations, a 75% rise year-over-year, and a consolidated adjusted EBITDA of $1.3 billion, up 94%. The company's LNG projects set a new record by exporting 234 TBtu of LNG, a 93% increase from the previous quarter. Looking forward, Venture Global revised its 2025 consolidated adjusted EBITDA guidance to a range of $6.4 billion to $6.8 billion, reflecting a fixed liquefaction fee range of $6 to $7 per MMBtu for available cargoes. The company aims to export 145-150 cargoes from Calcasieu Pass and 222-239 cargoes from Plaquemines by year-end, and has contracted about 60% of its potential production for the remainder of 2025. Despite potential influences from natural gas price changes, Venture Global remains confident in its ability to meet its updated guidance through disciplined execution and operational excellence.Venture Global, Inc. Class A Financial Statement Overview
Summary
Venture Global, Inc. Class A demonstrates strong revenue growth and operational efficiency, but faces challenges from high leverage and cash flow constraints. High debt levels could pose risks if not managed properly, while cash flow issues may limit liquidity and investment capacity. The company is positioned for growth but must address leverage and cash flow challenges to ensure long-term financial health.Income Statement
Venture Global, Inc. Class A has shown strong growth in the fossil fuels industry, with a consistent increase in total revenue from $1.19 billion in 2019 to $4.97 billion in 2024. The gross profit margin remains robust, indicative of efficient cost management. However, there was a decline in total revenue from 2023 to 2024, and net profit margins have shown volatility, reflecting some instability. The EBIT and EBITDA margins are strong, showcasing solid operational performance.75
Positive
Balance Sheet
The company's balance sheet reveals a high level of debt, with a debt-to-equity ratio reflecting significant leverage, which could pose financial risk. Stockholders' equity has grown substantially, indicating improved financial stability. The equity ratio has improved, suggesting better asset financing through equity. However, the high total liabilities relative to equity may constrain future financial flexibility.65
Positive
Cash Flow
Cash flows have been volatile, with substantial free cash flow deficits in recent years. The operating cash flow is positive, indicating good cash generation from operations, but high capital expenditures have led to negative free cash flow, suggesting aggressive investment strategies. The free cash flow to net income ratio is concerning, indicating potential cash flow issues that could impact liquidity.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.42B | 4.97B | 7.90B | 6.45B | 1.41B | 1.25B | Gross Profit |
| 2.67B | 3.30B | 6.21B | 4.20B | 714.51M | 694.41M | EBIT |
| 1.67B | 1.76B | 4.85B | 3.56B | -337.00M | -149.00K | EBITDA |
| 2.61B | 3.09B | 5.35B | 4.31B | -371.00M | 32.95M | Net Income Common Stockholders |
| 1.40B | 1.54B | 2.68B | 1.86B | -356.00M | -27.78M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.60B | 3.61B | 4.82B | 618.00M | 18.34M | 43.08M | Total Assets |
| 45.05B | 43.49B | 28.46B | 15.10B | 1.39B | 1.08B | Total Debt |
| 29.84B | 29.81B | 21.17B | 10.95B | 479.17M | 215.50M | Net Debt |
| 26.24B | 26.20B | 16.34B | 10.33B | 460.82M | 172.42M | Total Liabilities |
| 35.13B | 37.12B | 26.38B | 14.59B | 770.42M | 793.06M | Stockholders Equity |
| 4.88B | 2.90B | 1.51B | -186.00M | 617.72M | 602.77M |
| Cash Flow | Free Cash Flow | ||||
| -5.34B | -11.57B | -3.60B | -1.01B | -2.58B | 72.88M | Operating Cash Flow |
| 1.79B | 2.15B | 4.55B | 3.70B | 158.71M | 83.88M | Investing Cash Flow |
| -7.19B | -14.16B | -8.72B | -2.90B | -2.08B | -52.72M | Financing Cash Flow |
| 3.81B | 10.75B | 7.63B | 235.00M | -117.26M | -10.85M |
Venture Global, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $36.83B | ― | ― | ― | ― | ||
70 Outperform | $77.75M | 9.51 | 8.71% | ― | 18.03% | -39.52% | |
65 Neutral | $108.20M | 26.47 | -1.66% | ― | 8.19% | -110.61% | |
63 Neutral | $14.26M | 10.98 | 7.57% | ― | 2.12% | -30.63% | |
57 Neutral | $7.22B | 3.16 | -4.49% | 5.63% | 0.82% | -49.15% | |
53 Neutral | $85.17M | ― | -11.88% | ― | -14.52% | -204.65% | |
32 Underperform | $7.67M | ― | -335.00% | ― | ― | ― |
* Energy Sector Average
Performance Comparison
VG
Venture Global, Inc. Class A
15.22
-4.67
-23.48%
MXC
Mexco Energy
6.97
-4.54
-39.44%
GEOS
Geospace Technologies
6.65
-3.63
-35.31%
NCSM
Ncs Multistage Holdings
30.60
13.49
78.84%
DTI
Drilling Tools International
3.04
-3.02
-49.83%
BNRG
Brenmiller
0.69
-0.52
-42.98%
Venture Global, Inc. Class A Corporate Events
Executive/Board ChangesShareholder Meetings
Venture Global, Inc. Holds 2025 Shareholders Meeting
Neutral
May 21, 2025
Venture Global, Inc. held its 2025 Annual Meeting of Shareholders on May 21, 2025, where several proposals were voted on. Shareholders elected all seven director nominees to the Board of Directors, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, approved executive compensation on a non-binding advisory basis, and decided to hold future advisory votes on executive compensation every three years.
The most recent analyst rating on (VG) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Venture Global, Inc. Class A stock, see the VG Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.