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Cheniere Energy, Inc (LNG)

  • Dec. 18, 2014, 11:29 AM
    • Cheniere Energy (LNG, CQP) announces a new 20-year contract to supply natural gas to Portuguese utility EDP Energias (OTCPK:EDPFY) with 770K tons/year of liquefied natural gas once operations begin at the third train of the export facility being developed near Corpus Christi, Tex.; deliveries from the third train are expected to occur by 2019.
    • The agreement with EDP increases Cheniere's commitments for LNG to ~8.42M tons/year, or nearly two-thirds of the facility's planned production capacity of ~13.5M tons/year.
  • Nov. 13, 2014, 4:38 PM
    • Cheniere Energy Partners (NYSEMKT:CQH) -3.8% AH after announcing a public offering of 10.1M common shares.
    • CQH says it plans to use the proceeds to redeem from Cheniere Energy (NYSEMKT:LNG) a number of its shares held by LNG equal to the number of shares offered and sold in the offering; after the offering, LNG would hold 80.1% of CQH outstanding shares.
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  • Jul. 18, 2014, 3:27 PM
    • Antero Resources (AR +2.1%) moves higher after announcing after the close yesterday it produced 891M cfe/day during Q2, a 94% Y/Y and 13% Q/Q improvement, as it set a company record and passed the milestone of 1B cfe/day of net daily production.
    • AR's four-well Bee Lewis pad in the Marcellus had a combined 79M cfe/day peak five-day sales rate while producing 1265 Btu gas, while the three-well Carpenter pad in the Utica had a combined 65 Mcfe/day initial five-day sales rate while producing 1225 Btu gas.
    • AR also said it signed a supply pact with Cheniere Energy (NYSEMKT:LNG) for 200M Btu/day of liquified natural gas.
  • Jun. 30, 2014, 10:57 AM
    • Cheniere Energy (LNG +2.5%) hits a new all-time high after Australia’s Woodside Petroleum (WOPEF, WOPEY) agrees to buy 850K metric tons/year of liquefied natural gas from the second train of LNG's Corpus Christi export project.
    • The agreement has a 20-year term beginning at the date of first commercial delivery of the second train, with an extension option of up to 10 years; deliveries from Train 2 are expected to occur in 2019.
    • The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5M metric tons/year of LNG.
  • Jun. 16, 2014, 12:58 PM
    • Legal experts say Cheniere Energy (LNG +1.9%) executives could face a tough legal battle against shareholders who have taken action to try to force CEO Charif Souki to return more than $1.6B in compensation.
    • “It looks like a serious lawsuit,” says UofPenn corporate law professor William Bratton, adding that a legitimate challenge in the Delaware Court of Chancery will receive close scrutiny.
  • May. 30, 2014, 11:27 AM
    • Cheniere Energy (LNG +2.3%) is asking shareholders for permission to issue 30M shares to pay employees - including CEO Charif Souki, whose pay package last year totaled $142M - which is raising the ire of some institutional investors.
    • The stock would be valued at $1.9B based on yesterday's closing price, more than all the revenue LNG has generated since 2008; the new stock, plus 35M shares already reserved to pay executives since 2011, would be more than 25% of the company's public shares.
    • Advisory firm Glass Lewis says the proposed compensation plan could be excessive and dilute existing shareholders' stake by 12%; the company defends its plan as fair and necessary, noting that it has contracts to sell natural gas abroad that would bring in more than $2B/year for 20 years.
  • May. 30, 2014, 8:36 AM
    • Cheniere Energy (LNG) +2.7% premarket after agreeing to sell 400K metric tons/year of liquefied natural gas to Spanish power company Iberdrola (IBDRY, IBDSF) upon commencement of operations of Train 1 of the LNG export facility being developed near Corpus Christi, Tex., and increasing to 800K metric tons/year upon commencement of Train 2.
    • The agreement is for 20 years beyond the date of first commercial delivery of the second train, with an extension option of up to 10 years; deliveries from Train 2 are expected to occur in 2019.
    • The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5M metric tons/year of LNG.
    • Iberdrola says the deal is worth $5.6B and will allow it to fulfill its long-term fuel needs for gas generation plants in Spain and Britain, where it is also a major operator.
  • Apr. 7, 2014, 5:36 PM
    • Top gainers, as of 5:15 p.m.: ORI +7.1%. CNVR +4.2%. LNKD +3.8%. NVAX +3.4%. ZGNX +2.4%.
    • Top losers, as of 5:15 p.m.: GIMO -24.4%. MY -10.5%. NAT -8.8%. RNG -5.1%. LNG -2.8%.
  • Apr. 3, 2014, 12:37 PM
    • Cheniere Energy (LNG -1.7%) reportedly is close to securing its second large supply deal this week, as it nears a 20-year deal with Italian utility Enel (ENLAY) for 1B cubic meters/year of gas.
    • Earlier this week, LNG signed a 20-year supply deal with Spanish utility Endesa for gas from its proposed Corpus Christi plant in Texas.
    • LNG already has secured several sales deals from its Sabine Pass export plant in Louisiana and is now focusing on locking in customers for the Texas plant, even though U.S. regulators have not yet approved that site for exports.
    • Shares may be lower today because of a Credit Suisse downgrade to Neutral from Outperform, as LNG has climbed ~35% in two months and many of the company's near-term positives have been priced in.
  • Apr. 2, 2014, 8:20 AM
    • Cheniere Energy (LNG) +1.7% premarket on news that Spanish energy company Endesa (ELEZF) agrees to purchase ~1.5M tons/year of liquefied natural gas from the company's planned Corpus Christi export operations.
    • The agreement is for 20 years from the first commercial delivery, with an option for an extension of as many as 10 years; deliveries are expected to start as soon as 2018.
    • Endesa is the planned export operation's second foundation customer; the project is being designed with a total production capacity of 13.5M tons/year.
    • Deutsche Bank raises its price target on LNG shares to $67 from $57 on the news, noting the contract represents ~33% of the volume from the first liquefaction train expected to be built at Corpus Christi.
  • Jan. 7, 2014, 9:49 AM
    • At least two tier-1 firms are out with positive initiation calls at price target raises on Cheniere Energy (LNG +5.6%): Morgan Stanley starts with an Overweight rating and $60 price target with a $129 bull case, while Barclays lifts its target to $65.
    • Stanley sees LNG as a pure play exposure to liquefied natural gas infrastructure and development with a first-mover advantage, and Barclays expects various catalysts to drive continued momentum for LNG in 2014.
    • Credit Suisse is more cautious, initiating shares at Neutral and $48 as it thinks LNG is currently pricing in much of the Cheniere Energy Partners (CQP +4%) story, including strong likelihoods of the SPL expansion and the Corpus Christi project; however, the firm likes CQP's strong long-term return proposition and reinstates coverage at Outperform.
  • Dec. 9, 2013, 9:55 AM
    • Cheniere Energy (LNG +2.6%) agrees to two contracts worth a combined $9.5B with Bechtel to the engineering, procurement and construction of liquefied natural gas trains and facilities in Corpus Christi, Tex.
    • Starting next year, Bechtel will build three LNG trains, three LNG storage tanks, and two berths to accommodate vessels with a capacity of up to 267K cubic meters.
    • Besides the Corpus Christi project, Cheniere also is developing six LNG trains for the Sabine Pass Liquefaction project in Louisiana; Bechtel is a contractor on that project.
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  • Nov. 8, 2013, 2:55 PM
    • Cheniere Energy (LNG +2.6%) says it received a contract price for construction of its planned export terminal in Corpus Christi, a step which will allow it to begin negotiating contracts with overseas buyers of natural gas because it can now incorporate the project’s costs.
    • Bechtel, which provided the undisclosed price, is building liquefaction facilities at LNG's first terminal at Sabine Pass, La., the first facility to receive U.S. approval to ship natural gas to countries with which the U.S. doesn’t have free trade agreements. (Q3 earnings)
  • Oct. 16, 2013, 11:39 AM
    • Cheniere Energy's (LNG +2.9%) price target is raised to $47 from $39 at Deutsche Bank, which also maintains a Buy rating on the stock, based on higher EBITDA expected from the underlying Cheniere Energy Partners (CQP) MLP, the inclusion of Corpus Christi at a valuation of ~$470M ($2/share) and the inclusion of Trains 5 and 6 at ~$450M ($2/share).
    • At CQP, the firm says the inclusion of projected CMI EBITDA of $145M for Trains 1-4 continues to appear conservative based on its macro view of worldwide liquefied natural gas fundamentals and additional capacity at Sabine Pass and Corpus Christi will add to volume potential.
  • Sep. 5, 2013, 3:58 PM
    | 1 Comment
  • Jun. 26, 2013, 2:08 PM
    Cheniere Energy Partners (CQP +12.2%) shoots higher, apparently thanks to a plug from Jim Cramer, who sees the MLP as the preferred way to play the Sabine Pass liquefied natural gas terminal, believing CQP should be less risky than growth-oriented parent Cheniere Energy (LNG +4.1%). Cramer also likes Cabot Oil & Gas (COG +2%), which he says may have the most prolific acreage in the Marcellus shale.
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Company Description
Cheniere Energy Inc is engaged in LNG-related businesses. It owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P.