When we first took a look at Chart Industries, Inc. (NASDAQ:GTLS) in April, the stock was trading around $80.00 a share. The natural gas build-out is a very worthy investment theme going forward and equity market portfolios should have some exposure.
The oil and natural gas industry is a bright spot in today's economy, and there is genuine economic growth being generated from this sector. With North America gushing with natural gas, the infrastructure necessary to process, transport, and store it is vast and represents a good investment opportunity.
Chart Industries is a company that manufactures specialized storage solutions for liquefied natural gas (NYSEMKT:LNG), petrochemical and natural gas processing, medical use gases, and related storage equipment. It's a solid company with a good track record of managing its business.
Now that there is a push to move the glut of natural gas, there is growing demand for LNG processing plants. Chart Industries was recently awarded a contract to build a C100N liquefaction plant for Stabilis FHR Oilfield LNG LLC. The customer plans to use the processing plant to produce 100,000 gallons of LNG per day in the Eagle Ford Shale region in Texas.
Chart Industries said that Stabilis will likely order four additional LNG liquefaction plants, which can produce either 100,000 gallons or 250,000 gallons per day. Chart Industries has already reserved manufacturing time slots for these additional processing plants.
Back in July, the company won an additional order from Kunlun Energy Investment, which is a wholly owned subsidiary of PetroChina Company Limited's (NYSE:PTR) Kunlun Energy Limited for self-contained LNG station modules. The latest order was over $50.0 million, and that is on top of a $45.0-million order from the same customer in April. This is the third order over the last few quarters from PetroChina; the most recent was not included in the company's 2013 second-quarter order backlog.
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