Golar LNG Taps Goldman Sachs for Potential Sale on March 25
Golar LNG's Board of Directors initiated a formal process on March 25, 2026, to evaluate strategic alternatives aimed at maximizing shareholder value. The company, which has transitioned into a pure-play Floating Liquefied Natural Gas (FLNG) operator, appointed Goldman Sachs International as its financial advisor for the review. Potential outcomes being explored include a sale of the company, a merger, asset divestitures, or other business combinations designed to accelerate its FLNG growth pipeline.
Review Follows Securing $17B Backlog in Tight LNG Market
The strategic evaluation comes from a position of strength, after Golar secured approximately $14 billion in new contracts in 2025, bringing its total adjusted EBITDA backlog to about $17 billion. This backlog is supported by two 20-year contracts in Argentina. The timing aligns with a favorable global energy market, where supply disruptions have tightened LNG availability and supported higher prices. Before the review was announced, Goldman Sachs already held a "Buy" rating on Golar LNG with a $60 price target, citing the company's potential as a beneficiary of a disrupted market.
$800M EBITDA Outlook Weighed Against 2026-27 Cash Lull
Once its fleet is fully deployed, Golar projects it can generate approximately $800 million in annual adjusted EBITDA and $500 million in free cash flow. However, management has guided for a period of limited cash flow in 2026 and 2027. This temporary financial gap is due to the FLNG Hilli vessel being taken offline for upgrades before its redeployment and the ongoing construction of the Mark II FLNG conversion. A potential sale could allow shareholders to realize value immediately, bypassing this interim period of constrained cash generation. The company ended 2025 with a balance sheet of approximately $1.2 billion in cash against $2.7 billion of gross debt.
Edgen Stock·Mar 25 2026, 22:24
