Stonepeak increases its involvement

Stonepeak has committed to fund the full equity component of financing the Magnolia project, totalling US$1.5bn. The terms of the agreement have changed, and Stonepeak will be taking a preferred interest in the project, leaving LNGL with a 100% equity ownership. This is a vote of confidence for the project. The key remaining event for Magnolia will be the completion of binding tolling agreements covering enough volumes to enable project sanction. All necessary regulatory milestones have been reached, leaving the company entirely focused on negotiations with potential partners to enable sanction of the 8mtpa project. Within its peer group, Magnolia is well placed to be able to deliver LNG cargoes in the 2021-2022 period, in time with projected demand needs. We have adjusted our valuation, increasing it to A$1.37 /share (US$4.19/ADR).