During its latest investor day, Argentine energy giant YPF unveiled ambitious plans to ramp up liquefied natural gas (LNG) production, with a particular focus on the prolific Vaca Muerta shale formation. Central to the strategy are three major projects involving the deployment of six floating liquefied natural gas (FLNG) units.
Two vessels have emerged as front-runners for the initiative: Golar’s Hilli, with a capacity of 2.5 million tonnes per annum (mtpa), and MK2 Fuji, with a 3.5 mtpa capacity. These vessels are currently the only ones that meet YPF’s project criteria and timeline, making them crucial to the company’s LNG rollout.
Following the presentation, analysts at Stifel expressed optimism, projecting that the LNG projects could generate $1.5 billion in EBITDA for YPF. They also reiterated confidence in Golar LNG (NASDAQ: GLNG), stating that successful execution could drive the stock price into the $50–$60 range—despite the potential for timeline delays.
Analyst Outlook on Golar LNG
According to eight analysts, the average 12-month price target for Golar LNG is $46.56, with a high of $56.00 and a low of $40.00—representing an implied 30.1% upside from the current price of $35.79.
Consensus ratings from nine brokerage firms assign Golar LNG an average recommendation of 1.8, indicating an “Outperform” status. The rating scale ranges from 1 (Strong Buy) to 5 (Sell).
GuruFocus estimates the GF Value for Golar LNG to be $37.05, suggesting a more conservative upside of 3.52%. The GF Value reflects a fair valuation based on historical trading multiples, past performance, and projected business growth.