Here's Why Venture Global Stock Soared 24.3% This Week
Key Points
Management raised earnings guidance and plans major capacity expansion by 2030.
New long-term LNG supply deals and Strait of Hormuz closure drive positive outlook.
- 10 stocks we like better than Venture Global ›
Shares of liquified natural gas (LNG) company Venture Global (NYSE: VG) soared by 24.3% this week. This week's move comes in response to an excellent set of first-quarter earnings released on Tuesday, and the announcement of separate five-year LNG supply deals with TotalEnergies and Vitol.
Venture Global and the closure of the Strait of Hormuz
According to the International Energy Agency (IEA), about 20% of global LNG trade passes through the Strait of Hormuz, and its closure is positively affecting companies that produce and transport LNG in the West, with Venture Global being a prime example.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company is benefiting from higher LNG prices in its uncontracted LNG streams due to the lack of supply through the Strait, and it's also able to sign long-term contracts because energy companies need to secure long-term LNG supplies.
The TotalEnergies deal is a new five-year agreement to provide 0.85 million tonnes per annum (mtpa), and the Vitol deal is for an increase to 1.7 mtpa from 1.5 mtpa over five years. For context, LNG flow through the Strait is usually about 80 mtpa to 86 mtpa.
Securing long-term revenue
Indeed, management outlined that it had increased its share of expected cargo on a contracted basis to 84% in the first quarter from 69% in March of last year. While the increase in contracted revenue tends to reduce its exposure to spot LNG pricing, it secures the company's long-term cash flows, allowing it to invest in capacity expansion with confidence.
Image source: Getty Images.
Where next for Venture Global
The positive trading environment for the company led management to raise its full-year earnings before interest, taxation, depreciation, and amortization (EBITDA) to $8.2 billion to $8.5 billion from $5.2 billion to $5.8 billion previously. In addition, the need to repair damaged LNG infrastructure in Qatar, plus an increased sense of risk around investing in the region, and Venture Global's plans to aggressively ramp capacity "to over 100 million tonnes of annual production by 2030," according to CEO Michael Sabel, positions the company to benefit in the coming years.
Should you buy stock in Venture Global right now?
Before you buy stock in Venture Global, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Venture Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $469,293!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,332!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 17, 2026.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
