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Venture Global, one of the largest liquefied natural gas developers in the United States, has filed for an initial public offering, seeking to capitalize on investor excitement over a potential export boom under President-elect Donald Trump.
The company plans to build and operate five LNG terminals on the U.S. Gulf Coast and filed IPO documents with the U.S. Securities and Exchange Commission on Friday. The expected size of the New York Stock Exchange listing has not been disclosed.
The Financial Times previously reported that the company plans to raise between $3 billion and $4 billion, making it the largest energy listing in more than a decade and the largest in U.S. history. .
JPMorgan analysts estimate Venture Global’s enterprise value at $100 billion, including the significant debt raised to build the terminal.
Venture Global’s IPO plans come as the LNG developer is expected to be one of the main beneficiaries of President Trump’s return to the White House. The president-elect has vowed to break through bureaucracy and boost oil and gas production and exports in pursuit of a policy of “American energy dominance.”
Since its founding 11 years ago, Venture Global has raised about $54 billion to pay for the terminal’s construction and operating costs, according to IPO documents. During that time, it has generated nearly $20 billion in total revenue, with long-term contracts expected to generate $107 billion in revenue over the next few years.
Venture Global, founded by former banker Mike Sabel and lawyer Robert Pender, owns 84% of the company. In 2023, they were paid $33.5 million and $28.5 million, respectively.
However, the company has been surrounded by controversy. The company is embroiled in disputes with Shell, BP and several other major customers who claim the company breached long-term multibillion-dollar contracts when LNG prices skyrocketed following Russia’s full-scale invasion of Ukraine. I’m caught up in it.
Those customers are seeking arbitration claims worth at least $5 billion against the company, which IPO documents say could result in “significant” payouts and termination of certain long-term contracts, leading to higher debt levels. Warning that there is sex.
IPO documents also indicate that some former employees are suing Venture Global for $214 million in damages related to alleged violations of certain stock option agreements. shown.
Venture Global, which will debut under the ticker “VG,” has grown rapidly over the past decade, riding a wave of global demand for U.S. gas. The first terminal, Calcasieu Pass, opened in March 2022 as gasoline prices soared in the wake of Moscow’s invasion of Ukraine.
The second project, Plaquemines, began producing LNG this month. The company plans to build additional facilities and expand its total export capacity to 100 million tons per year. This is more than the entire LNG production of some countries.
But President Joe Biden’s administration has thwarted Venture Global’s rapid growth plans. The third project, CP2, is awaiting an export permit from the Department of Energy, a process delayed by a permit freeze enacted last January.
A ministry report released this week suggested that continued unchecked industry expansion could lead to higher domestic fuel prices and undermine global climate goals.
President Trump has vowed to end production suspensions and gradually increase production in the United States, which has a capacity of 11.4 billion cubic feet per day, making it already the world’s largest supplier. With five projects under construction, this number is expected to reach 24.4 billion cf/d by the end of 2028, according to the U.S. Energy Information Administration.