Natural Gas Market Investment Comparison: FLEX LNG vs Targa Resources
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Fool
- FLEX LNG Financial Overview: In FY 2025, FLEX LNG reported revenue of nearly $335.3 million, a decrease of about $17 million from the previous year, with a net income of approximately $74.8 million, reflecting a 36% decline, indicating the impact of market volatility on profitability, while its debt-to-equity ratio stands at 2.6, highlighting reliance on borrowed funds.
- Targa Resources Growth Potential: Targa Resources achieved nearly $17.1 billion in revenue for FY 2025, reflecting a year-over-year growth rate of approximately 3.1%, with net income close to $1.85 billion and a net margin of about 10.8%, showcasing its strong position and profitability in the U.S. natural gas market.
- Risk Comparison: FLEX LNG faces risks primarily from global shipping rate volatility and declining fleet utilization, while Targa Resources is sensitive to commodity price fluctuations and operational risks, particularly pipeline leaks and cybersecurity threats, which could adversely affect its financial health.
- Future Outlook: Targa Resources is expected to see an 18% revenue increase in FY 2026, exceeding $20 billion, with net income projected at $2.58 billion, benefiting from rising global energy prices due to the Middle East conflict, whereas FLEX LNG may encounter short-term challenges due to an oversupply of LNG vessels in the market.
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Analyst Views on FLNG
Wall Street analysts forecast FLNG stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 30.110
Low
26.70
Averages
26.70
High
26.70
Current: 30.110
Low
26.70
Averages
26.70
High
26.70
About FLNG
FLEX LNG Ltd. is an owner and commercial operator of fuel efficient, fifth generation liquefied natural gas (LNG) carriers. The Company’s business is focused on the operation of its long-term charters for its fleet. It owns and operates about nine M-type, Electronically Controlled, Gas Injection (MEGI) LNG carriers, of which four have partial re-liquefaction systems installed and three have full re-liquefaction systems installed, and four Generation X Dual Fuel (X-DF) LNG carriers. The Company’s operating vessels include Flex Endeavour, Flex Enterprise, Flex Ranger, Flex Rainbow, Flex Constellation, Flex Courageous, Flex Aurora, Flex Amber, Flex Artemis, Flex Resolute, Flex Freedom, Flex Volunteer, and Flex Vigilant. Its subsidiaries include Flex LNG Chartering Limited, Flex LNG Management AS, Flex LNG Bermuda Management Limited, Flex LNG Management Limited, Flex LNG Fleet Limited, Flex LNG Endeavour Limited, Flex LNG Enterprise Limited, Flex Vigilant Limited, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Natural Gas Market Investment Comparison: FLEX LNG vs Targa Resources
- FLEX LNG Financial Overview: In FY 2025, FLEX LNG reported revenue of nearly $335.3 million, a decrease of about $17 million from the previous year, with a net income of approximately $74.8 million, reflecting a 36% decline, indicating the impact of market volatility on profitability, while its debt-to-equity ratio stands at 2.6, highlighting reliance on borrowed funds.
- Targa Resources Growth Potential: Targa Resources achieved nearly $17.1 billion in revenue for FY 2025, reflecting a year-over-year growth rate of approximately 3.1%, with net income close to $1.85 billion and a net margin of about 10.8%, showcasing its strong position and profitability in the U.S. natural gas market.
- Risk Comparison: FLEX LNG faces risks primarily from global shipping rate volatility and declining fleet utilization, while Targa Resources is sensitive to commodity price fluctuations and operational risks, particularly pipeline leaks and cybersecurity threats, which could adversely affect its financial health.
- Future Outlook: Targa Resources is expected to see an 18% revenue increase in FY 2026, exceeding $20 billion, with net income projected at $2.58 billion, benefiting from rising global energy prices due to the Middle East conflict, whereas FLEX LNG may encounter short-term challenges due to an oversupply of LNG vessels in the market.
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Comparative Analysis of FLEX LNG and Targa Resources
- FLEX LNG Financial Overview: FLEX LNG reported nearly $335.3 million in revenue for FY 2025, a decrease of about $17 million from the previous year, with a net income of approximately $74.8 million, reflecting a 36% decline, indicating pressure in the global LNG transport market.
- Targa Resources Growth Potential: Targa Resources achieved nearly $17.1 billion in revenue for FY 2025, representing a year-over-year growth rate of approximately 3.1%, with net income close to $1.85 billion and a net margin of 10.8%, showcasing strong performance and stable profitability in the U.S. shale gas market.
- Debt and Liquidity Analysis: FLEX LNG's debt-to-equity ratio stands at 2.6x, indicating reliance on borrowed funds, while Targa's ratio is significantly higher at 5.7x, with a current ratio of 0.7, suggesting that short-term liabilities exceed current assets, potentially impacting financial flexibility.
- Market Risks and Outlook: FLEX LNG faces risks from global shipping rate volatility and disruptions in international trade routes, whereas Targa Resources is sensitive to commodity price fluctuations and operational hazards, making their future performance in changing market conditions a point of interest.
See More
Flex LNG Q1 2026 Earnings Report Analysis
- Earnings Performance: Flex LNG reported a Q1 non-GAAP EPS of $0.31, missing estimates by $0.03, indicating pressure on profitability; however, revenue of $80.5 million, down 8.9% year-over-year, exceeded expectations by $1.39 million, suggesting persistent market demand.
- Time Charter Rate Fluctuation: The average Time Charter Equivalent (TCE) rate for Q1 2026 was $65,729 per day, down from $70,119 per day in Q4 2025, reflecting volatility in market rental prices that may impact future revenue stability.
- Adjusted EBITDA Decline: The adjusted EBITDA for Q1 was $53.2 million, a decrease from $61.8 million in Q4 2025, highlighting rising operational costs that could affect the company's cash flow and reinvestment capacity.
- Upward Guidance Revision: The company raised its full-year 2026 revenue guidance to a range of $345–370 million, an increase of approximately 10% from previous estimates, while projecting fleet-wide TCE rates to rise to $73,000–78,000 per day, reflecting improved market conditions and a positive outlook for the future.
See More
Flex LNG Reports Q1 2026 Financial Results with Strategic Insights
- Revenue Performance: In Q1 2026, Flex LNG reported vessel operating revenues of $80.5 million, down from $87.5 million in Q4 2025, reflecting the seasonal low in the LNG shipping market that impacted overall revenue performance.
- Net Income Decline: The company recorded a net income of $19.5 million and basic earnings per share of $0.36 for Q1 2026, compared to $21.6 million and $0.40 in Q4 2025, indicating a decline in profitability primarily due to a soft market environment and increased voyage expenses.
- Market Opportunities: Despite challenges, Flex LNG capitalized on the market recovery by securing a two-year contract for Flex Aurora and short-term contracts for Flex Volunteer and Flex Artemis, demonstrating the company's agility in responding to tighter market conditions.
- Shareholder Returns: The company declared a quarterly dividend of $0.75 per share for Q1 2026, amounting to approximately $41 million in total distributions, marking the 19th consecutive quarterly dividend at this rate, reflecting its ongoing commitment to shareholders and stable cash flow.
See More
Flex LNG Q1 Earnings Preview and Market Analysis
- Earnings Announcement Date: Flex LNG is set to release its Q1 earnings on May 13 before market open, with a consensus EPS estimate of $0.34, reflecting a 37% year-over-year decline, which may dampen investor confidence.
- Revenue Decline Forecast: The expected revenue of $79.11 million represents a 10.5% year-over-year decrease, indicating challenges the company faces in the current market environment, potentially impacting future investment decisions.
- Historical Performance Review: Over the past two years, Flex LNG has beaten EPS and revenue estimates 75% of the time, demonstrating resilience amid market volatility, although recent downward revisions could affect investor expectations.
- Market Dynamics Analysis: The ongoing Iran conflict has led to soaring LNG freight rates, but it also introduces rising risks, necessitating Flex LNG to navigate market changes carefully while maintaining dividends.
See More
Analysis of NDIV ETF's Dual Income Strategy
- Dual Income Sources: The NDIV ETF targets over 10% annualized total income by combining high-dividend energy and natural resource stocks with covered call options, appealing to investors seeking commodity exposure without sacrificing yield.
- Distribution History Volatility: Monthly distributions ranged from $0.11 to $0.17 in 2024 and 2025, while February and March 2026 saw spikes to $0.27 and $0.30, reflecting income fluctuations directly tied to energy market volatility.
- Commodity Volatility Dependency: NDIV's income is contingent on market volatility; while the covered call strategy enhances income during high volatility, it also introduces uncertainty regarding dividends from holdings like Petrobras and LyondellBasell.
- Price Performance and Yield: NDIV shares have appreciated approximately 34% year-to-date and about 44% over the past year, indicating that investors have captured significant capital gains alongside income, with a current dividend yield near 5%.
See More
Natural Gas Market Investment Comparison: FLEX LNG vs Targa Resources
- FLEX LNG Financial Overview: In FY 2025, FLEX LNG reported revenue of nearly $335.3 million, a decrease of about $17 million from the previous year, with a net income of approximately $74.8 million, reflecting a 36% decline, indicating the impact of market volatility on profitability, while its debt-to-equity ratio stands at 2.6, highlighting reliance on borrowed funds.
- Targa Resources Growth Potential: Targa Resources achieved nearly $17.1 billion in revenue for FY 2025, reflecting a year-over-year growth rate of approximately 3.1%, with net income close to $1.85 billion and a net margin of about 10.8%, showcasing its strong position and profitability in the U.S. natural gas market.
- Risk Comparison: FLEX LNG faces risks primarily from global shipping rate volatility and declining fleet utilization, while Targa Resources is sensitive to commodity price fluctuations and operational risks, particularly pipeline leaks and cybersecurity threats, which could adversely affect its financial health.
- Future Outlook: Targa Resources is expected to see an 18% revenue increase in FY 2026, exceeding $20 billion, with net income projected at $2.58 billion, benefiting from rising global energy prices due to the Middle East conflict, whereas FLEX LNG may encounter short-term challenges due to an oversupply of LNG vessels in the market.
See More
Comparative Analysis of FLEX LNG and Targa Resources
- FLEX LNG Financial Overview: FLEX LNG reported nearly $335.3 million in revenue for FY 2025, a decrease of about $17 million from the previous year, with a net income of approximately $74.8 million, reflecting a 36% decline, indicating pressure in the global LNG transport market.
- Targa Resources Growth Potential: Targa Resources achieved nearly $17.1 billion in revenue for FY 2025, representing a year-over-year growth rate of approximately 3.1%, with net income close to $1.85 billion and a net margin of 10.8%, showcasing strong performance and stable profitability in the U.S. shale gas market.
- Debt and Liquidity Analysis: FLEX LNG's debt-to-equity ratio stands at 2.6x, indicating reliance on borrowed funds, while Targa's ratio is significantly higher at 5.7x, with a current ratio of 0.7, suggesting that short-term liabilities exceed current assets, potentially impacting financial flexibility.
- Market Risks and Outlook: FLEX LNG faces risks from global shipping rate volatility and disruptions in international trade routes, whereas Targa Resources is sensitive to commodity price fluctuations and operational hazards, making their future performance in changing market conditions a point of interest.
See More
Flex LNG Q1 2026 Earnings Report Analysis
- Earnings Performance: Flex LNG reported a Q1 non-GAAP EPS of $0.31, missing estimates by $0.03, indicating pressure on profitability; however, revenue of $80.5 million, down 8.9% year-over-year, exceeded expectations by $1.39 million, suggesting persistent market demand.
- Time Charter Rate Fluctuation: The average Time Charter Equivalent (TCE) rate for Q1 2026 was $65,729 per day, down from $70,119 per day in Q4 2025, reflecting volatility in market rental prices that may impact future revenue stability.
- Adjusted EBITDA Decline: The adjusted EBITDA for Q1 was $53.2 million, a decrease from $61.8 million in Q4 2025, highlighting rising operational costs that could affect the company's cash flow and reinvestment capacity.
- Upward Guidance Revision: The company raised its full-year 2026 revenue guidance to a range of $345–370 million, an increase of approximately 10% from previous estimates, while projecting fleet-wide TCE rates to rise to $73,000–78,000 per day, reflecting improved market conditions and a positive outlook for the future.
See More
Flex LNG Reports Q1 2026 Financial Results with Strategic Insights
- Revenue Performance: In Q1 2026, Flex LNG reported vessel operating revenues of $80.5 million, down from $87.5 million in Q4 2025, reflecting the seasonal low in the LNG shipping market that impacted overall revenue performance.
- Net Income Decline: The company recorded a net income of $19.5 million and basic earnings per share of $0.36 for Q1 2026, compared to $21.6 million and $0.40 in Q4 2025, indicating a decline in profitability primarily due to a soft market environment and increased voyage expenses.
- Market Opportunities: Despite challenges, Flex LNG capitalized on the market recovery by securing a two-year contract for Flex Aurora and short-term contracts for Flex Volunteer and Flex Artemis, demonstrating the company's agility in responding to tighter market conditions.
- Shareholder Returns: The company declared a quarterly dividend of $0.75 per share for Q1 2026, amounting to approximately $41 million in total distributions, marking the 19th consecutive quarterly dividend at this rate, reflecting its ongoing commitment to shareholders and stable cash flow.
See More
Flex LNG Q1 Earnings Preview and Market Analysis
- Earnings Announcement Date: Flex LNG is set to release its Q1 earnings on May 13 before market open, with a consensus EPS estimate of $0.34, reflecting a 37% year-over-year decline, which may dampen investor confidence.
- Revenue Decline Forecast: The expected revenue of $79.11 million represents a 10.5% year-over-year decrease, indicating challenges the company faces in the current market environment, potentially impacting future investment decisions.
- Historical Performance Review: Over the past two years, Flex LNG has beaten EPS and revenue estimates 75% of the time, demonstrating resilience amid market volatility, although recent downward revisions could affect investor expectations.
- Market Dynamics Analysis: The ongoing Iran conflict has led to soaring LNG freight rates, but it also introduces rising risks, necessitating Flex LNG to navigate market changes carefully while maintaining dividends.
See More
Analysis of NDIV ETF's Dual Income Strategy
- Dual Income Sources: The NDIV ETF targets over 10% annualized total income by combining high-dividend energy and natural resource stocks with covered call options, appealing to investors seeking commodity exposure without sacrificing yield.
- Distribution History Volatility: Monthly distributions ranged from $0.11 to $0.17 in 2024 and 2025, while February and March 2026 saw spikes to $0.27 and $0.30, reflecting income fluctuations directly tied to energy market volatility.
- Commodity Volatility Dependency: NDIV's income is contingent on market volatility; while the covered call strategy enhances income during high volatility, it also introduces uncertainty regarding dividends from holdings like Petrobras and LyondellBasell.
- Price Performance and Yield: NDIV shares have appreciated approximately 34% year-to-date and about 44% over the past year, indicating that investors have captured significant capital gains alongside income, with a current dividend yield near 5%.
See More
