Golar LNG (NASDAQ: GLNG)
GLNG holds arguably the world’s most valuable Floating LNG (FLNG) technology. With one FLNG vessel in operation and another due to come online in 2023 under a 20-year deal with BP, GLNG has a proven technical and commercial model for developing offshore liquefaction facilities at a globally competitive cost. We believe the floating segment of the LNG market is in the early innings of a long-term growth stretch. And GLNG is uniquely positioned to benefit from macro tailwinds driving further LNG demand worldwide.
Teekay LNG Partners (NYSE: TGP)
TGP is a geographical diversification play, targeting the burgeoning LNG trade route from Russia to China. Undergoing a large buildout program similar to GLOG, TGP has signed charters for a majority of its vessels which last for essentially the entire economic life of the asset, assuring a steady cashflow for years to come.
The current buildout program will substantially increase cashflow and enable TGP to improve its balance sheet and, in due course, pay attractive distributions to shareholders.
Flex LNG Ltd (NYSE: FLNG)
Flex holds the most modern collection of LNG carriers worldwide and has opportunistically fixed several units onto long-term charter at attractive rates. Flex has initiated a strong dividend, currently yielding 10%, which appears to be amply covered by contracted cashflows going to at least 2024. Management has a history of shareholder-friendly behavior, including a share buyback program which remains active.