It's been a busy start to the year for prospective LNG tolling and export facility owner, Liquefied Natural Gas Ltd (ASX: LNG), as the group approaches key milestones at its two projects in North America.
Despite the company being years away from first LNG production at its two key facilities, Magnolia LNG and Bear Head LNG, its share price is up a whopping 990% in the past 12 months.
With both projects moving towards critical pre-construction milestones in mid-2015, you'd think the company's management would have enough on their plate to keep them busy.
However, in an ASX announcement this morning, Liquefied Natural Gas Ltd said it has been approached by five investment banks to list its shares on a US stock exchange and will likely do so around the time of commencement of full construction at its Magnolia facility, located in Louisiana, USA.
The company, whose shareholder registry boasts some of the most prominent fund managers in the world, currently has American Depositary Receipts (ADRs) on the Over-The-Counter (OTC) International platform in the US under the symbol, LNGLY. In its media release this morning, Liquefied Natural Gas Ltd said, "A dual listing is the logical next step."
The company also said it, "will consider further options to unlock value for all LNGL shareholders at the North American asset or project level."
At 31 December 2014, around 48.4% of Liquefied Natural Gas Ltd's 7,466 shareholders were from North America.
Should you buy Liquefied Natural Gas Ltd shares?
Up 44% in 2015 alone and an incredible 1,000% since I originally recommended the company to readers in March 2014, Liquefied Natural Gas Ltd has provided its shareholders with fantastic paper gains. However the sustainability of its share price gains – and any future increases – come down to management's ability to deliver on their mid-2015 goals for both the Bear Head and Magnolia LNG projects.
If it doesn't go as smoothly as planned, investors are likely to sell down the stock. Conversely if management can execute on their strategy, the shares will likely appear cheap today – despite their huge rise in price.
