Guidance Raised on Improved Cash Flow Visibility While Geopolitics Is Keeping the Spot Market Tight

Research evidence excerpt

Guidance Raised on Improved Cash Flow Visibility While Geopolitics Is Keeping the Spot Market Tight

May 13, 2026 Flex LNG Ltd

(FLNG-US, Neutral)

Gregory Lewis, CFAMARITIME Guidance Raised on Improved Cash Flow Visibility While Geopolitics Is (212) 588-6543 glewis@btig.com

Keeping the Spot Market Tight Sherif Elmaghrabi

(332) 400-5177 selmaghrabi@btig.com

WHAT YOU SHOULD KNOW: FLNG reported Q1 earnings (BMO) with adjusted EPS Ben Sommers of $0.31 coming below the Street's $0.35 forecast and EBITDA of ~$53M ~9% aboveEQUITY (212) 738-6049 bsommers@btig.com consensus on higher than expected operating costs. FLNG declared a Q1 dividend of Company Data

$0.75, which points to the stock trading at a ~9% annualized yield and represents a

~120% distribution of operating cash flow. The average contract duration of FLNG's Closing Price $32.71

fleet stands at ~4 years after the company chartering one ship on a new two-year Price Target -

contract while two more vessels saw multiyear contract extensions. In March the Market Cap (M) $1,769.36

Aurora wrapped up work under an old agreement and almost immediately began Enterprise Value (M) $3,181.65RESEARCH trading under a new two-year contract, with three two year options that could keep the Shares Out (M) 54.09

vessel employed into 2304. Last month also saw ~2 year options exercised for Resolute Avg Daily Vol-3 Months (M) 0.63

and Courageous that will keep both vessels working until 1Q32. Against the backdrop

of a tight spot market, FLNG also fixed its two spot vessels on short-term charters Dividend / Yield $3.00 / 9.2%

redelivering in Q3 this year which points to ~91% fixed rate contract coverage through Revisions

year-end (2027 fixed coverage is ~73%), leading management to raise guidance (details Previous Current

below).