Direct Answer
48 SEC filers are classified under the Standard Industrial Classification codes that describe the liquefied natural gas industry, and their latest annual reports show $182.0 billion of combined revenue and a median operating margin of 10.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Liquefied natural gas companies cool gas to liquid, ship it in tankers and sell it into regions that cannot be reached by pipeline. Plants earn tolling fees or margins under long contracts, and exposure to spot prices varies by company. The first numbers to compare across companies here are export volume and capacity, contracted share and tenor and margin or tolling fee per unit.
Key Industry Metrics
- Export volume and capacity: Volume of LNG shipped compared with the plants' nameplate capacity. Output near capacity shows reliable operation; shortfalls reflect outages, feed gas limits or maintenance.
- Contracted share and tenor: Portion of capacity sold under long-term deals and how many years they run. Long contracts give steady fees; the uncontracted portion is exposed to spot price swings.
- Margin or tolling fee per unit: Income per million British thermal units after costs, or the fixed fee charged for liquefaction. Fixed fees are stable; margins linked to gas spreads vary more.
- Utilization: Share of liquefaction capacity running in a period. Planned maintenance and weather affect it, and high utilization spreads the large fixed cost of the plant.
- Construction cost per tonne of capacity: Capital cost per tonne per year of new liquefaction. Lower figures suggest efficient builds; overruns raise the fee needed for a return and can hurt future contracts.
Primary Macro Drivers
- Global gas demand and price spreads: Wide gaps between regional gas prices make exports profitable, supporting export volume, utilization and margin on uncontracted cargoes.
- Long-term supply contracts: Buyers commit to volumes for years, which sets contracted share and the tolling fee that underpins project financing.
- Shipping availability: Carrier supply affects delivery cost and timing, so tight shipping can lower netbacks for sellers and delay cargoes.
- Energy security policy: Countries seeking diversified supply sign long-term purchase agreements, supporting contracted volume and new project approvals.
Major Risks
- Contract renewal and counterparty risk: Expiring contracts or weak buyers reduce fees and utilization; watch contract tenor and the credit quality of offtakers.
- Construction overruns: Plants that cost more or arrive late raise construction cost per tonne of capacity and defer revenue; watch budget and schedule updates.
- Oversupply from new capacity: A wave of new plants can narrow price spreads and lower margins on uncontracted volume; watch global capacity additions.
- Regulatory and permitting delays: Slow approvals postpone final investment decisions and start-ups, tying up capital; watch permit milestones and policy statements.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Liquefied Natural Gas Filers in the SEC Record
48 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4922, 1311. Their latest fiscal years end between 2025 and 2026, and together they reported $182.0 billion of revenue. Median revenue growth over the prior year was 6.8%. Median operating margin was 10.7% and median net margin 10.6%. Median total liabilities were 42% of total assets, and 35 of 48 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Eog Resources Inc | $22.6 billion | -4.5% | 28.2% | 22.0% | FY 2025 |
| Occidental Petroleum Corp | $21.6 billion | -1.9% | n/a | 11.0% | FY 2025 |
| Devon Energy Corp | $17.2 billion | 7.8% | n/a | 15.4% | FY 2025 |
| Targa Resources Corp. | $17.0 billion | 3.9% | 19.6% | 11.3% | FY 2025 |
| Kinder Morgan, Inc. | $16.9 billion | 12.2% | 27.9% | 18.0% | FY 2025 |
| Diamondback Energy, Inc. | $15.0 billion | 35.8% | 8.4% | 10.3% | FY 2025 |
| Expand Energy Corp | $12.1 billion | 186.3% | 20.4% | 15.0% | FY 2025 |
| Williams Companies, Inc. | $11.9 billion | 13.8% | 35.1% | 21.9% | FY 2025 |
The 8 largest of 48 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Liquefied Natural Gas guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Liquefied Natural Gas industry?
Key performance indicators for the Liquefied Natural Gas industry include: Export volume and capacity, Contracted share and tenor, Margin or tolling fee per unit, Utilization, Construction cost per tonne of capacity. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Liquefied Natural Gas industry?
The Liquefied Natural Gas industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Liquefied Natural Gas industry?
The primary risks for Liquefied Natural Gas companies include: Contract renewal and counterparty risk, Construction overruns, Oversupply from new capacity, Regulatory and permitting delays. Investors should assess each company's exposure to these factors and its track record of navigating them.