Shares in Value Logo
Product Review Img Vertical

Date : 25/10/2021

Origin Energy Share Price Surge On ASX Following A New Business Deal Announcement

Origin Energy (ASX: ORG) is an integrated energy company that engages in production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefied natural gas. Origin Energy operates through Energy Markets and Integrated Gas business segments.

The Energy Markets segment includes energy retailing, power generation and liquid petroleum gas operations. The Integrated Gas segment engages in growth assets business and management of LNG price risk through hedging and trading activities.

Why is the Origin Energy Share Price Surging On ASX ?

This morning, Origin Energy share price (ASX: ORG) surge following the new business deal announcement. The company announced the sale of 10% interest in Australia Pacific LNG for $2.12 billion. Origin will retain its existing seats on the Australia Pacific LNG board. EIG will have one board seat, with voting rights commensurate with its 10% shareholding. The divestment will not change Origin’s role as upstream operator, responsible for the upstream exploration, development, and production activities.

Based on an estimated completion timing of 31 December 2021, the net proceeds of the sale is expected to be approximately $2.0 billion after adjustments and transaction costs. Following the sale, Origin’s guidance for cash flow from Australia Pacific LNG for the 2022 financial year remains unchanged at greater than $1 billion. The bullish commodity price outlook for Origin Energy share price for the rest of the year will offset the 10% sale.

Origin (ASX: ORG) CEO Frank Calabria also commented on the announcement. He said “Divesting a 10% interest allows Origin to crystallize some of the significant value we have created in Australia Pacific LNG and retain upside to further value creation through a continuing substantial shareholding. Origin will continue our important role as upstream operator of the world class Australia Pacific LNG asset.

This announcement has resulted in Origin Energy share price (ASX: ORG) surging today by 3.86%. Origin Energy shares closed at $5.38 a share – a new 52 week high.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


Top 5 ASX Stocks
to Buy for Capital Growth in 2024

Shares In Value - Top 5 ASX Stocks to Buy - Cover 2024
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.
ASX insight Stocks Landing

Download Your Free Report

By downloading this report, you agree to our terms and conditions and privacy policy

Scroll to Top


By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Income Stocks - Blogs

Please fill in your details to download the free dividend shares report.

By downloading this report, you agree to our terms and conditions and privacy policy

Just 10 Seconds Away From Your Free Report!
Income Stocks - Popup Blog

Please fill in your details to download the free dividend shares report.

By clicking 'Download Report', I accept the Privacy Policy and Member Terms & Conditions.

We will send your report instantly. Please put your correct email address and phone number.