Venture Global Gains From Strong LNG Demand and Contract Visibility

Venture Global, Inc. VG is one of the largest U.S.-based exporters of liquefied natural gas (LNG) and is currently operating and developing multiple LNG export projects in Louisiana. The company anticipates that the total production capacity across its projects – Calcasieu Pass, Plaquemines LNG and CP2 Phase I and Phase II – will reach approximately 68 million tons per annum (MTPA) upon completion. This estimate includes potential upside from optimization initiatives.

Venture Global’s Calcasieu Pass project declared the Commercial Operations Date ("COD") in April 2025. The Plaquemines LNG project is expected to declare COD in the fourth quarter of 2026. The Plaquemines facility is currently undergoing construction and commissioning, allowing the company to sell the LNG produced in the spot market.

Post COD, the facility will deliver cargoes under the contracted long-term sales and purchase agreements (SPAs). The company has reached a final investment decision for the second phase of the CP2 LNG project. With recent geopolitical developments, VG is well-positioned to benefit from the supply shortage. The shortage is caused by the disruptions in the Middle East due to the United States-Iran conflict and Qatar's declaration of force majeure on many of its long-term LNG agreements.

In its most recent earnings call, VG had mentioned that approximately 69% of its total expected cargoes in 2026 have already been contracted. This provides strong revenue visibility while leaving room for potential upside from selling in the spot market. In the long run, the company is set to benefit from the rise in LNG demand, driven by the expansion of data centers, replacement of coal and the global shift toward lower-emission fuels.

Energy Sector Players to Benefit From Rising Natural Gas Demand

The rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. ENB to capitalize on. Data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridge is expected to gain from the expansion of its natural gas storage facilities.

Baker Hughes BKR is well positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data center demand, the company is actively enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data center-related orders registered in 2025, the company is working toward achieving its $3 billion target over the next three years. The rise in power demand is expected to drive energy-infrastructure investments, which, in turn, will contribute to higher demand for Baker Hughes’ IET offerings.

VG’s Price Performance, Valuation & Estimates

Shares of VG have soared 103.8% over the past year compared with the 47.5% improvement of the composite stocks belonging to the industry.

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From a valuation standpoint, VG trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.96X. This is below the broader industry average of 12.03X.

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The Zacks Consensus Estimate for VG’s 2026 earnings has witnessed upward revisions over the past 30 days.

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VG, ENB and BKR carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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