Stabilis Solutions Inc (NASDAQ:SLNG) surged during Thursday's session before pulling back in after-hours trading after the company disclosed the termination of a key LNG supply agreement.

SLNG closed the regular session up 4.29% at $4.62 but fell 11.66% after hours to $4.08.

Overview

Stabilis Solutions is a clean energy company focused on providing liquefied natural gas (LNG) solutions across North America. The stock has traded between a 52-week low of $3.21 and a high of $6.36.

Contract Termination

The company said it terminated a previously announced 10-year LNG supply agreement tied to its proposed Galveston liquefaction facility, according to a Form 8-K filed Thursday, for an event dated March 31.

The deal covered approximately 50 million gallons per year, representing a significant portion of the facility's planned capacity.

Financing Impact

Stabilis said the termination followed discussions with financing partners who requested modifications to the agreement. The counterparty declined, resulting in termination.

The company expects delays to the project's final investment decision, financing and development timeline, and is now exploring alternative customer arrangements.

Mixed Market Reaction

Despite gains during the regular session, shares declined after hours, suggesting investor concern over potential project delays and uncertainty around future agreements.

Trading Metrics

Stabilis Solutions has a market capitalization of approximately $85.9 million and is trading closer to its 52-week low than its high.

Benzinga Edge Rankings indicate the stock shows positive price trends in the medium and long term, while the short-term trend remains negative.

Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.

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