Stabilis Solutions Secures Long-Term Sales Contracts for up to 40% of its LNG Production Plant Capacity

Rhea-AI Summary

Stabilis Solutions has secured three long-term LNG sales contracts, covering up to 40% capacity of its Texas LNG production plant. This move is expected to push plant utilization towards 100% starting in 2021. The contracts serve customers in infrastructure and mining sectors, enhancing Stabilis' revenue and profitability opportunities. After a brief slowdown in 2020, the company reported record sales in Q4, indicating a strong recovery. Stabilis' partnerships across North America ensure a reliable LNG supply, positioning the company favorably in the market.

Positive

• Secured three long-term LNG sales contracts representing up to 40% of Texas LNG production plant capacity.
• Projected plant utilization expected to approach 100% starting in 2021.
• Reported record sales in Q4 2020, indicating recovery after a pandemic-driven slowdown.
• Strong partnerships with 25 LNG supply sources across North America for consistent supply.

Negative

• None.

Stabilis projects that LNG plant utilization will approach 100% in 2021 and beyond

HOUSTON, TX / ACCESSWIRE / March 17, 2021 / Stabilis Solutions, Inc. ("Stabilis" or the "Company") (OTCQX:SLNG), a leading provider of distributed liquified natural gas ("LNG") and hydrogen fuels, today announced that it has signed three long-term LNG sales contracts that in aggregate represent up to 40% of the capacity at its Texas LNG production plant. The contracts are with customers in the infrastructure and mining markets. When combined with existing contracted and uncontracted sales, Stabilis projects that plant utilization should approach 100% in 2021 and beyond.

"We are pleased to announce that we have signed three new contracts that bring us closer to operating at full capacity at our LNG production facility in Texas," said Jim Reddinger, Stabilis President and Chief Executive Officer. "After a brief pandemic driven slowdown in 2020, customer inquiries and sales have grown rapidly, culminating in record fourth quarter 2020 sales at Stabilis. We believe that these new orders will allow our LNG production facility to operate near full capacity for the foreseeable future."

The first customer added is a highway paving contractor operating throughout Texas. This customer uses LNG to create heat required to produce finished asphalt. This asphalt is used in numerous government-funded infrastructure projects to expand and improve Texas roadways. The second and third customers are Texas-based sand mines that sell to multiple industrial and energy end markets.

Reddinger continued, "Our LNG production facility is most efficient when operating at or near full capacity. Adding these additional contracts will significantly impact the Company's revenue growth and profitability in 2021 and beyond. Thanks to our partnerships with twenty-five other LNG supply sources located throughout North America, Stabilis will be able to continue to supply LNG to customers in all geographic markets despite this high-capacity utilization at our LNG production plant."

About Stabilis

Stabilis Solutions, Inc. is a vertically integrated energy transition company that provides clean energy solutions to our customers. Our solutions include small-scale liquefied natural gas ("LNG") production, distribution and fueling services to multiple end markets in North America. Stabilis also provides hydrogen fueling services to its customers. Stabilis has safely delivered over 250 million gallons of LNG through more than 25,000 truck deliveries during its 16-year operating history in the LNG industry, which we believe makes us one of the largest and most experienced small-scale LNG providers in North America. Stabilis' customers use LNG and hydrogen as a fuel sources in a variety of applications in the industrial, energy, mining, utilities and pipelines, commercial, and high horsepower transportation markets. Stabilis' customers use LNG and hydrogen as alternatives to traditional fuel sources, such as distillate fuel oil and propane, to lower fuel costs and reduce harmful environmental emissions. Stabilis' customers also use LNG as a "virtual pipeline" solution when natural gas pipelines are not available or volumes are curtailed. To learn more, visit www.stabilis-solutions.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21e of the Securities Exchange Act of 1934, as amended. Any actual results may differ from expectations, estimates and projections presented or implied and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "can", "believes," "expects," "could," "will," "plan," "may," "should," "predicts," "potential" and similar expressions are intended to identify such forward-looking statements.

Such forward-looking statements relate to future events or future performance, but reflect the parties' current beliefs, based on information currently available. Most of these factors are outside the parties' control and are difficult to predict. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. Factors that may cause such differences include, among other things: the future performance of Stabilis, future demand for and price of LNG, availability and price of natural gas, unexpected costs, and general economic conditions.

The foregoing list of factors is not exclusive. Additional information concerning these and other risk factors is contained in our quarterly reports on Form 10‐Q and annual reports on Form 10‐K, which are available on the SEC's website at www.sec.gov or on the Investors section of our website at www.stabilis-solutions.com. All subsequent written and oral forward-looking statements concerning Stabilis, or other matters attributable to Stabilis, or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made.

Stabilis does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Investor Contact:

Rich Cockrell
CG Capital
877.889.1972
investorrelations@cg.capital

Andrew Puhala
Chief Financial Officer
832-456-6500
ir@stabilis-solutions.com

SOURCE: Stabilis Solutions

View source version on accesswire.com:
https://www.accesswire.com/635797/Stabilis-Solutions-Secures-Long-Term-Sales-Contracts-for-up-to-40-of-its-LNG-Production-Plant-Capacity

FAQ

What are the new contracts signed by Stabilis Solutions related to SLNG?

Stabilis Solutions has signed three long-term LNG sales contracts that collectively represent up to 40% of the capacity at its Texas LNG production plant.

How will the new contracts impact Stabilis Solutions' future?

The new contracts are expected to significantly enhance Stabilis Solutions' revenue growth and profitability as they push the plant utilization towards 100%.

When is Stabilis Solutions projecting full capacity operation at its LNG plant?

Stabilis Solutions projects that their LNG plant utilization will approach full capacity in 2021 and beyond.

What industries are the new customers of Stabilis Solutions involved in?

The new customers include a highway paving contractor and Texas-based sand mines, serving the infrastructure and mining markets.

What was the sales performance of Stabilis Solutions in Q4 2020?

Stabilis Solutions reported record sales in Q4 2020, indicating a recovery from a brief slowdown due to the pandemic.