Golar LNG Ltd. (NASDAQ: GLNG) led the bulls in Friday’s trading on news of an agreement with Schlumberger Ltd. (NYSE: SLB). The company announced that it has signed a memorandum of understanding with Schlumberger to co-operate on the global development of greenfield, brownfield and stranded gas reserves. The main aim of the venture is to accelerate the time it takes to bring proven gas reserves into production.
According to the memorandum, Golar and Schlumberger have agreed to jointly market gas monetization solutions to owners, investors and governments. Golar will contribute the floating liquefied natural gas (LNG) assets and technology while Schlumberger, via its special project management division, will provide upstream development knowledge, resources and capital. The intention of this integrated offer is to gain access to a wide range of uneconomic gas reserves by delivering low-cost LNG production solutions.
Ultimately, this agreement that will provide resource holders with a completely integrated package both reducing risk and securing financing for gas projects.
Both parties have initiated their activities and already have made solid progress expecting to announce the first project within the next two months.
So far in 2016, Golar has underperformed the markets, with the stock down 24% year to date, and down nearly 60% in the past year. As for Schlumberger, its shares have been relatively in line with the markets in 2016 but down over 20% in the past 52 weeks.
Shares of Golar were trading up nearly 37% at $16.36 on Friday, with a consensus analyst price target of $48.59 and a 52-week trading range of $9.42 to $51.89.
Schlumberger was trading up 3% at $63.30, within a 52-week range of $59.60 to $95.13. The consensus price target is $85.75.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.