QUOTE AND NEWS
TheStreet.com  Oct 17  Comment 
NEW YORK (TheStreet) -- Cheniere Energy , the first U.S. company to receive regulatory approval for export of liquefied natural gas to countries that do not have a free trade agreement with the U.S., is largely protected from tumbling oil...
TheStreet.com  Oct 14  Comment 
NEW YORK (TheStreet) --aShares of Cheniere Energy Inc.a are down 2.78% to $61.93 on Tuesdayaas falling oil prices weigh heavily onathe gas industry, according to Bloomberg. The liquid natural gas company fears that the dependency of gas on oil...
TheStreet.com  Oct 9  Comment 
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. aTheStreet Ratings quantitative algorithm...
Motley Fool  Sep 24  Comment 
With shares close to doubling in 2014, is there still room left to run for Cheniere Energy, or is the company in line for a hard crash?
Market Intelligence Center  Sep 11  Comment 
Cheniere Energy (LNG) was selected by MarketIntelligenceCenter.com’s trade-picking algorithms today after trading between $83.01 and $84.26 on Wednesday before closing at $83.83. A diagonal spread using a long position in the Jan. '16 $45.00...
Market Intelligence Center  Sep 3  Comment 
Tuesday’s trading in Cheniere Energy (LNG) gives options traders an opportunity for a 11.27% return. By selling the Dec. '14 $80.00 call and buying the Jan. '16 call at the $40.00 level for a net debit of $35.95, traders will book a profit as...
Benzinga  Aug 26  Comment 
Speaking on CNBC's Fast Money, Pete Najarian said that there was an unusually high call options activity in Citigroup (NYSE: C). Traders were buying the October 55 call options because they believe that the stock is finally going to catch up...
Market Intelligence Center  Aug 19  Comment 
After closing Monday at $74.89, Cheniere Energy (LNG) presents an attractive opportunity to get a 3.66% return in just 60 days, which is an annualized return of 22.27% (for comparison purposes only). To enter this trade, sell one Oct. '14 $72.50...
SeekingAlpha  Aug 7  Comment 
By David Boehler: Cheniere Energy, Inc. (NYSEMKT:LNG) announced disappointing quarterly results on July 31, with a loss of $201.9 million, or $0.9 per share, a miss of $0.57 per share; the consensus was a loss of $0.33 per share. This loss is...




 

Cheniere Energy (NYSE: LNG) is engaged primarily in the development of a liquified natural gas, or LNG, receiving terminal business and related LNG business opportunities centered on the U.S. Gulf Coast. The company is also engaged in oil and gas exploration, development and exploitation activities in the Gulf of Mexico. LNG is headquartered in Houston, Texas.

Industry Overview

The emergence of America as an LNG importer in the next few years will trigger fundamental changes in the LNG business. Several developments in the LNG trade over the past year are evidence that a pradigm shift is already underway, and will become even more pronounced as large new LNG projects start production.[1]

LNG is natural gas that, through a refrigeration process, has been reduced to a liquid state, which represents, approximately 1/1600th of its gaseous volume. The liquefication of natural gas into LNG allows it to be shipped to economically from areas of the world where natural gas is abundant and inexpensive to produce to other areas where natural gas demand and infrastructure exist to economically justify the use of LNG.[2]

Trends and Forces

Future looking bright for LNG

Cheniere Energy (LNG) has had a spotty record of expectations versus performance over the past few years. This liquefied natural gas terminal, exploration and transmission company operating primarily in the Deep South and Gulf of Mexico is ready to lurch higher, maybe even doubling it's stock price into 2010. This line of thought seems to be contrary to most analysts. In fact, the stock has performed poorly for months, down from $43.60 per share in July to a recent quote of $28.75.

However, Global liquefaction growth is poised for acceleration. Global liquefied natural gas supply growth over the next five years will likely reach 15% annually (to hopefully match demand) which is double the growth rate of the past five years. Environmental Greens love liquefied natural gas as an alternative energy source that can stand on its own without a subsidy.

Increasing ability to provide internationally

US imports of liquefied natural gas could triple by 2010 and LNG has a large and well-placed storage capacity to hold this commodity during seasonal price adjustments (more profit for Cheniere Energy). As liquefied natural gas demand is rising quickly internationally, the era of this gas product being cheap is over, based upon elementary supply and demand studies. Cheniere is poised to profit from this, as their large expenditure on infrastructure in all areas of receiving and transporting liquefied natural gas is close to completion. Asia and Europe have liquefied natural gas challenges that are not being addressed - Asia has little storage capacity when viewed on both an absolute basis and as a percentage of demand, and Europe's liquefied natural gas reservoir is depleted and poorly managed (Russia's output from Gazprom was actually down last year) and the EU market structure for the commodity is overly regulated, discouraging infrastructure and storage initiatives,thus Cheniere Energy will store the product and market it to the EU and Asia at a profit.

Seasonally, Cheniere has the ability to store the gas and sell it at high price points worldwide and in the US, generally in the first and fourth quarter, as the commodity is driven by heating needs (except in Japan, where it is steady year around). In effect, Cheniere acts as a sponge, absorbing seasonally high output during periods of low demand and then squeezing it out at peak.

In addition to developing, constructing owning and operating a network of three large liquefied natural gas receiving terminals, Cheniere Energy owns natural gas pipelines, a business to market liquefied natural gas company and is engaged in the Gulf of Mexico prospecting for oil and gas.[3]


Notes

  1. LNG
  2. LNG
  3. The long case for Cheniere Energy

References
1. 2006 Annual Report, p.8
2. 2006 Annual Report, p.23

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