Golar LNG Limited (“Golar”) announces that it has entered into swap arrangements to hedge approximately 50% of its exposure to Dutch Title Transfer Facility (“TTF”) linked production for 2024 at a TTF price of $51.20/MMBtu, says an article published on Globe News Wire.
Hedging transaction
A TTF price of $51.2/MMBtu is the energy equivalent to a Brent oil price of approximately $300/bbl.
The hedging transaction secures cash flow visibility for part of our 2024 Distributable Adjusted EBITDA at an attractive historic level, whilst retaining meaningful exposure to the possibility of higher prices.
Share of annual distributable
Based on TTF gas prices of $51.20/MMBtu, and current Brent forward prices for 2024 at $86/bbl, Golar’s share of annual distributable Hilli Adjusted EBITDA for 2024 is expected to be approximately $294 million (fixed tariff of $67 million, Brent oil linked earnings of $73 million, and TTF linked earnings of approximately $154 million).
Golar’s share of expected 2024 annual debt service for Hilli’s contractual debt is approximately $47 million (debt amortization of approximately $29 million and interest of approximately $18 million).
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Source: Globe News Wire
