Natural gas (NGH25) stocks have always been a way for investors to gain exposure to global energy markets. The energy sector is highly volatile, influenced by policy changes, shifting market dynamics, and geopolitical trends. Recently, President Donald Trump’s renewed push for U.S. LNG exports has cast a spotlight on natural gas exporters, setting the stage for what could be a transformative era for the industry.
One company making headlines with its initial public offering (IPO) is Venture Global (VG), which recently debuted on the New York Stock Exchange with a valuation of $60 billion. Despite pricing its IPO at $25 per share, the stock fell 4% on its first trading day, closing at $24. The IPO enables the company to finance its ambitious liquefaction and export facilities near the Gulf of Mexico. However, challenges such as arbitration disputes and fluctuating investor sentiment add layers of complexity to the story.
For investors wondering whether to buy, sell, or hold VG stock, here’s an in-depth look at the company’s IPO, market potential, and the broader implications for its future.
Venture Global Overview
Founded in 2013, Venture Global (VG) specializes in liquefied natural gas production, transportation, and export. The company operates facilities such as Calcasieu Pass, which began production in January 2022, and Plaquemines LNG, which achieved its first production in December 2024. Venture Global is actively expanding its LNG capacity, with over 100 million tonnes per year (MTPA) currently under development. By focusing on low-cost, sustainable energy solutions, including carbon capture at all its LNG facilities, the company is positioning itself as a key provider of clean, affordable energy to global markets.
Venture Global Raises $1.75 Billion in IPO
Last Friday, Venture Global launched its highly anticipated IPO, pricing 70 million shares of Class A common stock at $25 per share, raising $1.75 billion. Initially seeking a $110 billion valuation, the company scaled back to $60 billion amid investor concerns about pricing and market conditions. The shares, trading under the ticker “VG” on the NYSE starting Jan. 24, 2025, briefly fell 4% below the listing price to $23.76 before recovering to $24.
The IPO proceeds will support Venture Global’s growth in the LNG industry, where its modular construction approach has reduced costs and delivery times. This innovation has helped the company expand with two LNG terminals on the U.S. Gulf Coast. However, ongoing arbitration claims from energy majors Shell (SHEL) and BP (BP) over alleged contract breaches pose challenges.
CEO Mike Sabel described the IPO as a “successful raise” and expressed optimism about the supportive regulatory environment under the Trump administration. Despite a lukewarm debut, Venture Global’s approach and market positioning make it a notable player in the LNG industry.
Trump Administration Lifts Moratorium on LNG Export Permits
The Trump administration’s recent policy changes could significantly impact the natural gas business. On Jan. 21, the president issued an order lifting the moratorium on issuing new LNG export permits, aiming to boost fossil fuel production and expand U.S. LNG exports.
For Venture Global, these policies present both opportunities and challenges. The expedited approval process for LNG export terminals could accelerate its expansion plans to meet growing global demand. However, increased competition from other LNG producers, along with potential environmental and legal risks, may affect the company’s market position and reputation.
Additionally, the administration’s trade policies, including tariffs on major LNG importers like China, could hinder market expansion. The company has acknowledged that these tariffs may adversely impact sales.
The Bottom Line on VG Stock
Venture Global’s IPO is undoubtedly a notable development in the energy sector, but it may not suit every investor. The company’s downsized valuation, first-day share price drop, and ongoing arbitration disputes introduce risks.
However, its innovative construction approach and strategic alignment with the pro-energy Trump administration could drive long-term growth. For risk-tolerant investors, Venture Global offers exposure to a promising LNG sector. Those seeking more stability may prefer alternative energy investments with less volatility and legal uncertainty.
