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Cheniere Energy (LNG +4.4%) shares rise as the company reiterates it is on schedule to begin...

Cheniere Energy (LNG +4.4%) shares rise as the company reiterates it is on schedule to begin producing liquefied natural gas at its terminal in Sabine Pass, La., in late 2015. But as it makes headway in constructing its terminal, rising costs caused LNG and its Cheniere Energy Partners (CQP -0.4%) unit to post wider Q4 losses (I, II).
Comments (10)
  • Michael Bryant
    , contributor
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    Until the terminals come online, (LNG) will be losing money. So not surprised.
    22 Feb 2013, 03:46 PM Reply Like
  • jpmj4847
    , contributor
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    Yes Mike, not so much. Cheniere is a no brainier, every base is covered and loaded in hope for the grand slam. I'm long and will remain so: gas plants, pipelines, and new lucrative contracts in hand. All while others try the catch up game with no relief pictcher in the bullpen.jpmj4847
    22 Feb 2013, 09:14 PM Reply Like
  • kmi
    , contributor
    Comments (4236) | Send Message
     
    "All while others try the catch up game"

     

    2015 isn't all that close, although it isn't all that far either. I find it a bit of a gamble considering how many LNG terminals (non-US) are coming online within that timeframe, and don't think Cheniere has much upside or downside overall based on its agreements.

     

    I also think that the Tepco-Cameron deal scheduled for 2017 will likely be approved, and considering Japan is one of the biggies in LNG imports the Henry Hub linked price structure may actually be bearish for the global LNG price.

     

    So if Cheniere has any first mover advantage I sorta suspect it will be eclipsed by non-US projects inside its timeframe, and eliminated when other export facilities come online... I don't understand the strong bullishness on Cheniere....
    23 Feb 2013, 08:44 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5744) | Send Message
     
    The key of telling (LNG)'s profitability is the difference between the price it purchases the natural gas from US producers and the contract price.
    25 Feb 2013, 12:31 PM Reply Like
  • kmi
    , contributor
    Comments (4236) | Send Message
     
    Exports will drive that price up is the point, I expect that by 2015 global prices will have fallen and domestic prices will have risen. It's not that I don't think Cheniere will be profitable, but that I see Cheniere's profitability restricted: limited downside due to captive sales agreements, and limited upside based on market dynamics.
    26 Feb 2013, 07:45 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5744) | Send Message
     
    As long as we keep fracking, I don't see how domestic prices will reach anywhere near overseas prices. It is $4 here. LNG is $15 in Japan.
    26 Feb 2013, 08:45 AM Reply Like
  • kmi
    , contributor
    Comments (4236) | Send Message
     
    LNG recently hit $19 in Japan.

     

    But Japan has a bunch of varied initiatives in place to bring that way down, not least of which is the Tepco-Cameron deal, which I can't imagine won't get approved. Once Japan's NG gets linked to Henry Hub, look at below...
    26 Feb 2013, 10:36 AM Reply Like
  • CaptKorn
    , contributor
    Comments (154) | Send Message
     
    Well yea these things cost allot of money. The project is ahead of scheduled now which could save money in the end. You can wait to buy shares in a company like this or take the long view and get in now. I have owned shares for a long time now, over two years so am way in the money. So far so good. But who know by 3Q of 2015 the whole world could be in the dumpster. My guess is even then LNG will be needed. As a matter of fact I don't have a rosy opinion of my country's future. But I still need to be in the mkt. Of course if the crazy people in Washington mess with the MLP structure all bets are off.
    22 Feb 2013, 10:08 PM Reply Like
  • UProf
    , contributor
    Comments (2) | Send Message
     
    i agree with all the great observations of CQPs strength and success.,
    and potential. i have also done extremely well in the last 2 yrs. This co is for real!

     

    but there is something even more important that some may have missed.

     

    This Co seems to enjoy great govt support by a govrnment that just doesn't support American Energy Independence, and would rather pay huge sums to Arabs, Muslims, Brazil, etc and bankrupt us with hugely growing debt, deficit and growing negative balace of trade payments.

     

    Cheneire seems to have some "Great Connectness" to this Energy Hostile Gov't, But what ? it is open to speculation, but they seem to be "chosen" and or Favored for approvals,etc etc etc.

     

    This factor is so important when you look at the war against almost all energy except wind, solar and sewage waste(BioMass...making "stuff 'sound so hi- tech is so orwellian)
    23 Feb 2013, 07:10 AM Reply Like
  • jpmj4847
    , contributor
    Comments (533) | Send Message
     
    The down sides, that many have commenting on, are very real indeed. But, I think that Cheneire's managements are not setting on their fannies. Yes , government, negotiations abroad, and what about helping USA first. Their management's team , in my eye, is the key and way ahead on these matters. Not the cart before the horse, even ahead of their own construction. Does anyone know why we are not using more liquor nat. gas @ home now? jpmj4847
    23 Feb 2013, 01:54 PM Reply Like
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