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In November, LFG announced that its subsidiary, Archaea Holdings, had entered a long-term RNG purchase and sale agreement with a subsidiary of NW Natural Holdings (NWN), Northwest Natural Gas Company. The deal marked its first contract with a U.S-based utility. The deal will commence in early 2022, under which NW Natural will purchase the environmental attributes generated by Archaea related to up to one million MMBtu of RNG annually for 21 years.
However, LFG’s weak bottom line is a concern. The company incurred a $21.34 million net loss in its last reported quarter, up 3,445% from its year-ago value. Furthermore, its cash flow from operations was negative for the nine months ended September 30. Shares of LFG have slumped 8.1% in price over the past month and 5.1% over the past five days. The stock has declined 6.8% intraday to close yesterday’s trading session at $19.06. It is trading below its 50-day moving average.
