Methanex: New G3 Project, Natural Gas Supply Agreement Highlight Positive Outlook

News Snapshot:

Javier Ghersi/Moment via Getty Images Methanex Corporation (NASDAQ:MEOH) delivered EPS better than expected in the last quarter, and the expectations for 2024 increased significantly. I believe that the new capacity coming from the new G3 project, the new two-year supply agreement recently announced, and the repairs announced have all contributed to the recent optimism in the market. In addition, the total amount of cash in hand and the recent leverage decrease could bring EV/FCF enhancement. There are obvious risks related to the international regulation of methanol markets or the total amount of debt. With that, I believe that MEOH does...