natural gas exporter Risk Global Shares fell 4% on the first day of trading as the company looked to test investor demand for energy stocks amid the Trump administration’s efforts to implement a detailed agenda aimed at boosting oil and gas production.
“The Trump administration has made it very clear that they support LNG exports,” Venture CEO Mike Sabel told CNBC in an interview on Friday.
Shares ended at $24, giving the company a market capitalization of approximately $58 billion. Venture is the second-largest U.S. LNG exporter Cheniere.
The company has priced it initial public offering The 70 million shares raised $1.75 billion at $25, valuing the company at about $60.5 billion in total. However, when trading began on the New York Stock Exchange on Friday afternoon, the stock was open 3.8% higher at $24.05.
Even before the opening deal, Venture had already slashed its IPO price steeply from its original target. The company has initial plan Offering 50 million shares between $40 and $46 would raise about $2.2 billion at the midpoint, giving a total valuation of $110 billion.
Still, Venture’s IPO is the largest by an oil and gas company in a decade and the fourth largest since 2000. With a valuation of approximately $60 billion, it would be the tenth largest publicly traded energy company.
Venture is in various stages of commissioning, building and developing five natural gas liquefaction and export facilities near the Louisiana Gulf of Mexico. The projects are expected to have a peak production capacity of 143.8 million tons, according to the company’s prospectus.
However, Venture locked into arbitration with customers, including shellthey accused the company of failing to deliver LNG cargoes from a long-term contract through its Calcasieu Pass facility in Louisiana.
At the same time, the president Donald Trump announced on monday national energy emergency and issued an executive order overturning the Biden administration’s pause on new LNG export projects, removing a potential impediment to venture capital growth.
Trump’s policies, coupled with cold winter weather and strong demand for A.I., are helping push natural gas prices and related stocks higher. For example, Cheniere’s stock has climbed more than 20% since Trump’s election. Natural gas prices rose 44% at the same time.
Correction: Venture Global’s CEO is Mike Sabel. An earlier version of this story misspelled his name.