KBR Awarded FEED for Coastal Bend LNG Project

Rhea-AI Summary

KBR (NYSE: KBR) was awarded the front-end engineering design (FEED) contract for Coastal Bend LNG’s planned natural gas liquefaction and export facility on the Texas Gulf Coast on Jan. 12, 2026. The project will include multiple liquefaction trains, cogeneration, LNG storage tanks, and export facilities and will use ConocoPhillips’ Optimized Cascade® Process to support Coastal Bend LNG’s goal of reducing greenhouse gas emissions. KBR will lead the FEED for the entire inside battery limits (ISBL) scope covering liquefaction, nitrogen rejection, gas treatment, and heavy hydrocarbon removal, provide overall coordination among parties, and support Coastal Bend in FERC filings and permitting.

KBR emphasized its 50+ years of LNG experience and role in designing lower-carbon LNG infrastructure; Coastal Bend highlighted the collaboration with KBR and ConocoPhillips to maximize efficiency and reduce carbon intensity.

News Market Reaction

-0.16%

1 alert

-0.16% News Effect

On the day this news was published, KBR declined 0.16%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q3 2025 revenue: $1.931 billion Q3 operating income: $191 million Q3 diluted EPS: $0.90 vs $0.75 +5 more

8 metrics

Q3 2025 revenue $1.931 billion Quarterly revenue, essentially flat year over year

Q3 operating income $191 million Quarterly operating income, up versus prior year

Q3 diluted EPS $0.90 vs $0.75 Quarterly EPS compared to prior-year quarter

YTD 2025 revenue $5.901 billion Year-to-date revenue in latest 10-Q

Operating cash flow $506 million YTD cash flow from continuing operations

Remaining performance obligations $13.5 billion Backlog with specified timing distribution

Total debt $2.604 billion Debt level reported in latest 10-Q

Director share purchase 70 shares at $44.11 Dividend reinvestment on 10/15/2025 under deferred plan

Market Reality Check

Price: $44.02 Vol: Volume 1,142,341 is at 0....

normal vol

$44.02 Last Close

Volume Volume 1,142,341 is at 0.71x the 20-day average of 1,619,722, indicating subdued trading before this news. normal

Technical Shares at $44.36 were trading below the 200-day MA of $47.62, with the stock 27.25% under its 52-week high and 12.25% above its 52-week low.

Peers on Argus

Peers showed mixed moves: FLR -0.65%, DY -0.88%, while PRIM +2.67%, IESC +3.82%,...

Peers showed mixed moves: FLR -0.65%, DY -0.88%, while PRIM +2.67%, IESC +3.82%, ROAD +0.67%. With no peers in the momentum scanner, the setup pointed more to stock-specific factors than a broad sector move.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Defense contract seat	Positive	-1.7%	Seat on MDA’s SHIELD IDIQ with <b>$151B</b> ceiling across multiple domains.
Jan 05	USGS contract award	Positive	+6.7%	Award of <b>$350M</b> USGS technical support contract tied to Landsat Next.
Dec 18	Navy support contract	Positive	-0.2%	Seat on NAVSUP WEXMAC 2.1 TITUS IDIQ with up to <b>$20B</b> ceiling.
Dec 16	Biomethanol project	Positive	-1.1%	Award for PureMSM green methanol technology at Saudi biomethanol plant.
Dec 15	Green ammonia award	Positive	-0.9%	Technology and pre‑FEED for <b>200,000 tpa</b> green ammonia plant in Spain.

Pattern Detected

Recent contract and award announcements were generally positive in tone, but in 4 of 5 cases the immediate price reaction was negative or modestly down, with only one clear positive alignment.

Recent Company History

Over the past month, KBR reported multiple contract wins across defense, earth observation and energy transition. On Jan 5, 2026, a $350M USGS contract drove a 6.71% gain, contrasting with several defense and low‑carbon technology awards in December that saw mild declines of about 1% the next day. The current LNG FEED award continues this theme of technology‑ and infrastructure‑focused wins, adding to KBR’s LNG and decarbonization footprint highlighted in the recent green ammonia and biomethanol projects.

Market Pulse Summary

This announcement adds another LNG and low‑carbon infrastructure mandate to KBR’s recent run of cont...

Analysis

This announcement adds another LNG and low‑carbon infrastructure mandate to KBR’s recent run of contract wins. It reinforces the company’s positioning in liquefaction, decarbonization technologies and long‑term project backlogs, which totaled $13.5B in remaining performance obligations. Investors may track how this FEED work converts into downstream revenue alongside Q3 figures of $1.931B revenue and $191M operating income, as well as execution on other defense and energy-transition awards disclosed in recent months.

Key Terms

front-end engineering design, FEED, cogeneration, LNG, +2 more

6 terms

front-end engineering design technical

"has been awarded the front-end engineering design (FEED) contract"

Front-end engineering design is the early, detailed planning phase of a capital project when engineers create the core blueprints, scope, and cost and schedule estimates that guide construction and procurement. For investors, it matters because a thorough front-end design reduces uncertainty about total costs, timing, and technical risks—similar to having a detailed house plan and budget before breaking ground—so it helps assess whether a project is likely to stay on time and on budget.

FEED technical

"has been awarded the front-end engineering design (FEED) contract"

A feed is a continuous stream of digital information—such as price updates, trading data, or news—pushed to users or systems in real time. Think of it like a faucet that delivers fresh data every second: the faster and more reliable the flow, the quicker investors and automated systems can react to market moves and new information. Feed quality affects trading decisions, risk management, and the timeliness of financial analysis.

cogeneration technical

"will feature multiple liquefaction trains, cogeneration, LNG storage tanks"

Cogeneration, also called combined heat and power (CHP), is a way to produce electricity and useful heat at the same time from a single fuel source. Like getting both a hot shower and a charged phone from one power outlet, it uses energy more efficiently than producing power and heat separately, cutting fuel costs, emissions, and reliance on external utilities—factors that can improve operating margins, cash flow stability, and regulatory incentives for investors.

LNG technical

"natural gas liquefaction and export facility on the Texas Gulf Coast. The Coastal Bend LNG project"

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it takes up far less space for transport and storage, like turning a bulky bundle into a compact package for shipping. Investors care because LNG enables gas trade across regions without pipelines, so changes in production, export capacity, shipping, or demand can quickly affect energy company revenues, infrastructure operators and commodity prices, amplifying both opportunity and risk.

inside battery limits technical

"including the entire inside battery limits (ISBL) scope–covering LNG liquefaction"

Inside battery limits (ISBL) denotes the core equipment and infrastructure located within the main fenced area of an industrial plant—think of the engines, reactors, boilers and the piping and controls directly serving the production units. Investors care because ISBL defines the primary capital cost, operational responsibility and technical risk of a project; knowing what is inside versus outside the boundary helps compare project scope, estimate budgets and understand who pays for construction, maintenance and regulatory compliance.

FERC regulatory

"support Coastal Bend in FERC filings and permitting."

The Federal Energy Regulatory Commission (FERC) is a U.S. government agency that oversees interstate electricity, natural gas and oil pipeline transmission and related market rules. Think of it as a referee and traffic controller for the energy grid and wholesale markets; its approvals, fines or rule changes can affect how much companies can charge, how projects are built and how profitable energy and utility firms are, making it important for investors watching regulatory risk and revenue drivers.

AI-generated analysis. Not financial advice.

01/12/2026 - 06:00 AM

HOUSTON, Jan. 12, 2026 (GLOBE NEWSWIRE) -- KBR (NYSE: KBR) has been awarded the front-end engineering design (FEED) contract for Coastal Bend’s planned natural gas liquefaction and export facility on the Texas Gulf Coast.

The Coastal Bend LNG project will feature multiple liquefaction trains, cogeneration, LNG storage tanks, and export facilities. The project will utilize ConocoPhillips’ Optimized Cascade® Process (COP OCP) technology to help achieve Coastal Bend LNG’s goal of reducing greenhouse gas emissions. KBR will lead the FEED effort, including the entire inside battery limits (ISBL) scope–covering LNG liquefaction and nitrogen rejection (COP OCP technology), gas treatment, and heavy hydrocarbon removal (Honeywell UOP technologies). KBR will also provide overall coordination between the parties and support Coastal Bend in FERC filings and permitting.

“KBR is proud to collaborate with Coastal Bend LNG to help shape how LNG is produced and delivered to global markets from the Texas Gulf Coast,” said Jay Ibrahim, KBR President, Sustainable Technology Solutions. “This award underscores KBR’s leadership in designing energy infrastructure that is efficient and scalable, helping to meet global energy demands. With our deep roots in the Gulf Coast and over five decades of LNG expertise, we’re proud to assist Coastal Bend LNG’s goal of setting a new standard for low-carbon LNG energy production.”

“KBR brings impressive expertise in engineering and design across many process technologies, including LNG and industrial decarbonization, and shares our mission to provide low-carbon energy to the world,” said Nick Flores, CEO of Coastal Bend LNG. He added, “Our collaboration with KBR and ConocoPhillips, and their combined experience in this space, will enable us to maximize our facility’s efficiency and economic targets, while minimizing our carbon intensity.”

With over 50 years of LNG experience, KBR continues to lead the industry in developing and deploying technologies that reduce carbon intensity and improve energy efficiency across the LNG value chain.

About KBR
We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 37,000 people worldwide with customers in more than 80 countries and operations in over 29 countries. KBR is proud to work with its customers across the globe to provide technology, value-added services, and long-term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.

Visit www.kbr.com

Forward Looking Statements

The statements in this press release that are not historical statements, including statements regarding development and deployment of energy technologies and role in the Coastal Bend LNG Project, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks, uncertainties and assumptions, many of which are beyond the company’s control, that could cause actual results to differ materially from the results expressed or implied by the statements. These risks, uncertainties and assumptions include, but are not limited to, those set forth in the company’s most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks and other U.S. Securities and Exchange Commission filings, which discuss some of the important risks, uncertainties and assumptions that the company has identified that may affect its business, results of operations and financial condition. Due to such risks, uncertainties and assumptions, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

For further information, please contact:

Investors
Jamie DuBray
Vice President, Investor Relations
713-753-5082
Investors@kbr.com

Media
Philip Ivy
Vice President, Global Communications and Marketing
713-753-3800
MediaRelations@kbr.com

FAQ

What did KBR (KBR) announce on January 12, 2026 about Coastal Bend LNG?

KBR announced it was awarded the FEED contract for Coastal Bend LNG’s planned Texas Gulf Coast liquefaction and export facility.

What scope will KBR cover under the Coastal Bend LNG FEED contract (KBR)?

KBR will lead the ISBL FEED scope covering LNG liquefaction, nitrogen rejection using COP OCP, gas treatment, and heavy hydrocarbon removal, plus coordination and FERC/permitting support.

Which technology will Coastal Bend LNG use to reduce greenhouse gas emissions?

The project will utilize ConocoPhillips’ Optimized Cascade® Process (COP OCP) to help achieve Coastal Bend LNG’s emissions-reduction goals.

How does KBR describe its experience related to the Coastal Bend LNG award?

KBR cited over 50 years of LNG experience and said the award underscores its leadership in designing efficient, scalable energy infrastructure and lower-carbon LNG solutions.

Will KBR support Coastal Bend LNG with regulatory filings and permitting for the project?

Yes. KBR will provide support for FERC filings and permitting as part of its FEED and coordination role.