Aug. 19 at 3:32 PM
$VG if you are a longer term investor in VG you should consider this viewed as a tale of two stocks an LNG producer that has meaningful production capacity and is starting to generate considerable cash flow, and a construction company whose management is optimizing for long-term industrial dominance, not near-term balance-sheet cleanliness.
Basically, this means they will continue to spend like drunken sailors to front run production spike likely coming in 2030-2032. CP2 is starting to take shape nicely, but…they indicated they are going to pursue both bolt ons in 2027.
The cash-flow statement shows the tension. Through June, VG generated
$2.835 billion of operating cash flow and spent
$6.9B on capex. It covered that gap primarily through financing:
$11.63B of new debt/draws against
$4.08B of repayments.
Until they stop spending and start reaping the benefits of the facilities they’ve built and paying down debt, there will be tension in how to value the stock.
