I don't understand this - they said they unwound almost all of 2023-24 TFF exposure, but then say they maintain it - huh? Did they really just cash in on the "swap arrangements", which I assume were some sort of hedge with a 3rd party? Notice they're getting $25M for Jan-Feb 2023 but only $75M for the rest of the year - they're assuming prices will keep dropping?
Unwind of majority of TTF hedges of 2023
and 2024 Dutch Title Transfer Facility exposure, locking in
approximately $140 million of TTF linked EBITDA.
Golar LNG Limited
(“Golar”) announces today that it has unwound the majority of its swap
arrangements for its Dutch Title Transfer Facility (“TTF”) linked
production on the FLNG Hilli:
- March-December 2023, securing approximately $76 million of Distributable adj. EBITDA:
of TTF linked production unwound at $21.80/MMBtu leading to a net gain
of $28.2/MMBtu, equivalent to Distributable Adjusted EBITDA of $76
million to be received in ten equal monthly installments through the
period March-December 2023.
- Full year 2024, securing approximately $49 million of Distributable adj. EBITDA:
50% of TTF linked production unwound at $20.55/MMBtu leading to a net
gain of $30.65/MMBtu, equivalent to Distributable Adjusted EBITDA of $49
million to be received in twelve equal monthly installments through
only remaining TTF hedges are January and February 2023, with an
estimated Distributable Adjusted EBITDA of approximately $25 million,
which includes Golar’s share of TTF invoices for the same period
(approximately $12.5m generated from the hedged price and physical
production each). The total secured value from the TTF hedges entered
into in Q3 2022 amounts to approximately $140 million, or approximately
$1.3 in cash flow per share.
maintains exposure to its TTF linked tariff for the FLNG Hilli, where
2023 earnings sensitivity is $2.7 million for every $1/MMBtu change in
TTF, $3.2 million for every $1/MMBtu change in TTF for 2024-2025 and
$1.7 million for every $1/MMBtu change in TTF from Jan-July 2026. At the
current forward curve, this is equivalent to $47 million of
Distributable Adjusted EBITDA for 2023 and $56 million for 2024.
Golar’s share of Hilli Distributable Adjusted EBITDA is expected to be approximately:
- 2023: $282m
This includes locked in TTF curves of $101 million, TTF linked earnings
of $47 million based on 2023 TTF forward price of $20.8/MMBtu, and
current Brent linked earnings of $67 million based on 2023 forward price
at $84/bbl and base tariff of $67 million.
- 2024: $225m
This includes locked in TTF curves of $49 million, TTF linked earnings
of $56 million based on 2024 TTF forward price of $20.9/MMBtu, and
current Brent linked earnings of $53 million based on 2024 forward price
at $79/bbl and base tariff of $67 million.
Golar’s share of expected annual debt service for Hilli’s contractual
debt is approximately $50 million (debt amortization of approximately
$29 million and interest of approximately $21 million).