Cheniere Energy, IncNYSEMKT
Cheniere Energy: A Scary Midstream Stock To Avoid
Value Digger • 72 Comments
Value Digger • 72 Comments
Yesterday, 8:39 AM
- Cheniere Energy (NYSEMKT:LNG) terminates a proposal to acquire the 19.9% of Cheniere Energy Partners Holdings (NYSEMKT:CQH) it does not already own.
- LNG says that despite raising its offer to an exchange ratio of 0.54, it has determined that no acceptable agreement can be reached for now.
- LNG says it will continue to own 80.1% of CQH's issued and outstanding shares.
Tue, Dec. 6, 5:41 PM
- Junk-rated energy companies are rushing to the U.S. bond market at the fastest pace in nearly two years, Reuters reports, in a bid to refinance debt following a sharp rally in spreads over the past week.
- Parsley Energy (NYSE:PE) and Chesapeake Energy (NYSE:CHK) are pricing deals today (I, II) and follow a bond from Cheniere Energy (NYSEMKT:LNG) yesterday which was increased to $1.5B from $1B on strong demand; Rowan (NYSE:RDC) and Matador Resources (NYSE:MTDR) also are marketing deals (I, II).
- Since OPEC's Nov. 30 production cut announcement, junk-rated energy bond spreads have tightened by 71 bpa to 483 bpa over U.S. Treasurys as of Monday's close, marking the lowest level since October 2014.
- The five borrowers coming to market this week could sell $3.4B of junk-rated bonds, which would mark the highest weekly volume for the energy sector since March 2015.
Mon, Dec. 5, 8:14 PM
- Goldman reiterates Buy rating on Cheniere Energy (NYSEMKT:LNG). Price target $48.
- "We continue to like LNG’s strong free cash flow profile driven by long-term contracts with investment-grade counterparties and upside optionality from its marketing business.
- "For illustrative purposes, we conduct a scenario analysis on potential upside from three proposed growth projects: (1) El Campesino, the Chilean LNG-to-power project, (2) “MIDSHIP”, a natural gas pipeline from the MidContinent to the Gulf Coast, and (3) a midscale LNG facility.
- "In addition to its growth project portfolio, we continue to like LNG’s long-term contracted cash flows and potential upside from its marketing business."
Mon, Nov. 28, 10:45 AM
- The U.S. has become a net exporter of natural gas for the first time in nearly 60 years, exporting an average of 7.4B cf/day of gas in November, more than the 7B cf/day it had imported.
- The U.S. will export gas equal to as much as 20% of its annual consumption by 2020, and the Energy Department says it will be the world’s third-largest producer of liquefied natural gas for export by that year, trailing Australia and Qatar.
- Meanwhile, Cheniere Energy (LNG +0.4%) reportedly is gearing up to send its first supplies of liquefied natural gas from its Sabine Pass export terminal on the Gulf coast to Asian customers, as a rise in prices in the region have made such shipments profitable; the first LNG gas vessel from the lower 48 states left Sabine Pass for China earlier this year, collected by Royal Dutch Shell as part of its contracted offtake from the terminal.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG
Thu, Nov. 17, 12:58 PM
- The U.S. is on track to export a record number of cargoes of shale gas in November, as nine liquefied natural gas tankers have departed or are scheduled to leave Cheniere Energy’s (LNG +1.3%) Sabine Pass terminal this month, already the most for any month since exports began in February, Bloomberg reports.
- The U.S. is set to become a net exporter of natural gas next year, a stark turnaround from just a decade ago when it was facing a shortage.
- The Sabine Pass complex in Louisiana has exported 40 cargoes totaling ~6.5M cm of gas since February, says Pan Eurasian Enterprises president Zach Allen.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DCNG
Thu, Nov. 3, 8:19 AM
Wed, Nov. 2, 5:30 PM
- AAC, AAON, AAWW, ACIW, ACRE, ACTA, AFSI, AGIO, AGU, AKRX, AMAG, AMCX, AMRN, ANIP, ANSS, APA, ARCB, ARW, AVP, BCE, BDX, BLL, CCC, CCOI, CHD, CHK, CHTR, CI, CLDT, CNSL, COMM, CPK, CRIS, CRZO, CYBR, DDD, DNR, DW, ECA, EFOI, ENB, ENOC, EVA, FCPT, FI, FIG, FMSA, GEL, GEO, GIL, GLOG, GOGO, H, HAR, HFC, HHS, HII, HMHC, HRC, HSC, IBP, ICPT, INSY, IPCC, IQNT, IRWD, IT, KOP, LAMR, LBY, LDOS, LFUS, LINC, LNG, LXP, MFA, MGA, MITK, MITL, MPEL, MPG, MPW, MSGN, NERV, NGS, NNN, NXTM, OGE, ONCE, ONDK, PBH, PDCE, PGTI, PNW, PRFT, PWR, RDUS, RFP, RGEN, ROLL, RWLK, SFM, SGM, SHLX, SMG, SNSS, SPAR, SPGI, SQBG, STFC, STOR, TDY, TGI, THS, TICC, TIME, TK, TNK, TOO, TVPT, TWI, TX, UNT, USCR, VGR, VWR, WILN, WPC, WRLD, ZEUS
Mon, Oct. 17, 12:50 PM
- Appearing on CNBC following David Tepper ("pretty cautious, not downright bearish"), Carl Icahn says a lot of companies are "way overvalued."
- "Uniquely undervalued," however, are Xerox (NYSE:XRX), Cheniere (NYSEMKT:LNG), and AIG, says Icahn.
- Herbalife (NYSE:HLF): "I don't understand why there's a 25M share short position ... Could be the mother of all short squeezes."
- Twitter (NYSE:TWTR)? "I haven't looked at Twitter. I'm not going to comment."
Wed, Oct. 12, 4:43 PM
- Cheniere Energy’s (NYSEMKT:LNG) second liquefaction plant at Sabine Pass, La., is cleared to export liquefied natural gas by the FERC.
- Cheniere shipped its first cargo in February, and the second plant began producing LNG on July 28 during the commissioning process; each plant has the capacity to produce ~650M cfe/day.
- By starting up two liquefaction plants, the company will be able to start taking in fixed payments for 20 years from customers whether or not they decide to actually take any LNG from Sabine Pass.
Wed, Oct. 12, 2:57 PM
- Cheniere Energy (LNG -0.6%) and Cheniere Energy Partners (CQP -0.7%) are resumed with Outperform ratings at Credit Suisse, which says current prices present an attractive entry point to a story with potential for step-up in distribution and dividend growth by Q1 2018.
- The firm notes Cheniere’s seven-train portfolio has secured ~$4.25B/year in 20-year take-or-pay fees, with upside from monetizing marketing capacity and potential upside from opportunistic investments in the global liquefied natural gas landscape, and believes investor confidence should improve as construction and export cargoes progress.
- Credit Suisse suggests the safer CQP for conservative yield-focused investors, albeit with limited upside and catalysts, while investors with a long-term bullish view on commodity fundamentals should choose LNG, which has exposure to most of the growth optionality.
Fri, Sep. 30, 8:14 AM
- Cheniere Energy (NYSEMKT:LNG) submits a proposal to buy Cheniere Energy Partners LP Holdings (NYSEMKT:CQH) in an all-stock deal valued at ~$5.1B; LNG already owns 80,1% of CQH.
- LNG says the bid values CQH at $21.90/share, or a ~3% premium over yesterday's closing price.
- Under terms of the deal, LNG would pay 0.5049 of its shares for each outstanding share of CQH.
Tue, Sep. 20, 10:27 AM
- Cheniere Energy (LNG -0.2%) has started a four-week shutdown of its Sabine Pass LNG export terminal in Louisiana to repair gas flares that have not functioned properly, Argus Media reports.
- The facility was scheduled to receive ~20.8M cf of gas yesterday after receiving the same amount the previous day, but the volumes are negligible compared with the average intake of 1.18B cf/day during the first half of September, indicating that production from trains 1-2 at Sabine Pass had stopped.
- Sabine Pass could continue to export during the shutdown, as the five LNG storage tanks at the terminal have combined capacity equivalent to ~17B cf of gas, while a typical LNG cargo is equivalent to 3B-3.5B cf of gas, so four or five exports are possible during the shutdown if the tanks are relatively full.
Mon, Sep. 19, 2:47 PM
- Cheniere Energy (LNG +0.6%) and CEO Jack Fusco, who was named CEO in May, names a new leadership team, including the promotion of Michael Wortley to become executive VP and CFO after serving as VP for strategy and risk.
- Seven other executives were named to executive and senior VP-level positions, after CEO and co-founder Charif Souki was ousted early this year and former executive VP Meg Gentle left last month to join Souki at his new company, Tellurian.
- The company does not say when the appointments will become effective.
Fri, Sep. 16, 8:12 AM
- Cheniere Energy (LNG, CQP, CQH) announces substantial completion of Train 2 at the Sabine Pass liquefaction project in Louisiana.
- Commissioning has been completed, and development partner Bechtel is turning over care, custody and control of Train 2 to Cheniere.
- Financial results of liquefied natural gas sales from Train 2 going forward will be reflected in the statements of CQP and its affiliates.
Wed, Aug. 31, 1:56 PM
- Tellurian Investments hires Meg Gentle, a key figure at Cheniere Energy (NYSEMKT:LNG), as its new President and CEO, reuniting her with Cheniere’s ousted CEO and founder Charif Souki at his latest venture.
- Gentle, who was executive VP of marketing at Cheniere, will remain CEO after Tellurian's merger with Magellan Petroleum (NASDAQ:MPET), a transaction that is expected to close in Q4; she also is making a $10M private investment in Tellurian.
- Souki will continue to serve as Tellurian’s non-executive chairman, with former BG Group COO Martin Houston as executive vice chairman.
Wed, Aug. 24, 10:28 AM
- The first-ever shipment of liquefied natural gas from the U.S. to China reportedly arrived this week through the recently expanded Panama Canal.
- Dow Jones reports tha the shipment was chartered by Royal Dutch Shell (RDS.A, RDS.B), and the cargo was shipped from Cheniere Energy's (NYSEMKT:LNG) Sabine Pass export facility in the U.S. Gulf of Mexico to the Yantian Port in southern China and purchased by Cnooc (NYSE:CEO) as part of a long-term contract.
- The Panama Canal's new locks, which opened in June and can accommodate larger ships, can cut the travel time from the U.S. to north Asia for ships that could not fit in the old locks by about one third - to 20 days - and lower transportation costs by $0.30-$1/MMBtu, according to research consultancy Energy Aspects.