Golar LNG Partners Preferred Units: Quarterly Distribution No Longer At Imminent Risk (Rating Upgrade)
Source: SeekingAlpha
2025-01-18 04:51:38 ET
Summary
- Following its acquisition by New Fortress Energy in 2021, Golar LNG Partners has been stripped of its assets and became an empty shell.
- However, the parent is effectively guaranteeing Preferred Unit distributions through an irrevocable letter of support.
- After New Fortress Energy successfully addressed mounting debt issues, the parent is likely to honor its support commitment for the time being.
- While the partnership's Preferred Units offer a juicy 20% yield, the total dependence on support from parent New Fortress Energy is keeping me sidelined.
- That said, with the distribution no longer at imminent risk, I am upgrading my rating on Golar LNG Partners' Preferred Units from "Sell" to "Hold".
Note:
I have covered Golar LNG Partners ( OTC:GMLPF ) previously, so investors should view this as an update to my earlier article on the company. ...
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Golar LNG Partners Preferred Units: Quarterly Distribution No Longer At Imminent Risk (Rating Upgrade)
Golar LNG Partners
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