Daring Duo: After IPO These LNG Entrepreneurs Are Worth $20 Billion, Each

Core Viewpoint - Venture Global, a liquefied natural gas exporter, raised $1.75 billion through a 3% equity sale, marking the first significant IPO of the Trump 2.0 era, although investor interest has been lukewarm and the stock has already dropped nearly 20% [1][2] Company Overview - Venture Global has achieved a market capitalization of $50 billion, with co-founders Robert Pender and Mike Sabel each holding $20 billion in company shares [2][4] - The company operates two LNG megaprojects in Louisiana, capable of exporting 30 million tons per year, positioning it as the second-largest U.S. LNG exporter after Cheniere Energy [3] Financial Performance - Venture Global reported net incomes of $1.9 billion in 2022, $2.7 billion in 2023, and $600 million for the first nine months of 2024, with 2023 revenue reaching $7.9 billion [5] - The company has generated $19 billion in revenue from commissioning cargoes, with $14 billion remaining after costs [10] Strategic Decisions - The company opted for a modular design approach, contracting Baker Hughes to build 18 smaller LNG processing trains, which has led to a longer commissioning process [6] - By withholding LNG cargoes from contracted buyers, Venture Global capitalized on high spot market prices, reportedly generating $6 billion in profits that were contested by its counterparties [8][9] Market Position and Competition - Venture Global's stock market capitalization is $48 billion, with total debt of $27 billion, resulting in an enterprise value of $75 billion, which is approximately 55 times its average net income [11] - The company is planning three additional Gulf Coast megaprojects, projected to cost over $100 billion, but faces tough competition from Cheniere Energy, which has a lower valuation and has not faced similar investor backlash [12][13]