Nevertheless, Goldman's list of 50 stocks which "matter most" to hedge funds has outperformed the S&P 500 on a quarterly basis 66% of the time since 2001. The stocks this quarter (posted in order of the number of funds in which a name is a top-10 holding):
A special call-out to Northstar Realty (NYSE:NRF), Visteon (NYSE:VC), SunEdison (NYSE:SUNE), Macquarie Infrastructure (NYSE:MIC), and Lamar Advertising (NASDAQ:LAMR) for making the list of hedge fund hotels despite their relatively tiny market caps.
Beginning immediately, the DoE will only issue final rulings on whether exports are in the public interest after the FERC has completed an environmental review of the project.
The benefits of the change extend unevenly to the dozens of companies now vying to export U.S. natural gas, and some in the industry say the new process will exacerbate permitting delays for most companies.
The biggest winner under the new approach is Cheniere Energy (NYSEMKT:LNG), which already had gained FERC approval but faced a nearly two-year wait for the required Energy Department review of its proposed Sabine Pass expansion; it now moves to the front of the line to get a permit from the DoE.
Another winner is Exxon's (NYSE:XOM) Golden Pass project in southeast Texas, which also was far down the Energy Department’s list, even though it was well into the FERC review.
The new policy will not affect companies that already have received conditional approvals, such as Dominion's (NYSE:D) Cove Point project, Sempra's (NYSE:SRE) Cameron LNG project and Leucadia National's (NYSE:LUK) Oregon LNG project.
Cheniere Energy (LNG +1%) is initiated with a Sector Perform rating and $79 price target at Howard Weil, based on a belief that a material amount of LNG's current valuation is tied to assumed profitability on sales volumes from Cheniere Marketing.
The firm says it wants to stay on the conservative side given the potential for market conditions to change considerably up to the time CCL is completed 4-5 years from now.
Weil also starts Cheniere Energy Partners (NYSEMKT:CQP) and Sector Outperform with a $19 price target and Cheniere Energy Partners LP (NYSEMKT:CQH) at Sector Perform and a $29 target.
The shareholders have told a Delaware judge that LNG didn’t meet the legal requirements to approve grants that made CEO Charif Souki last year's highest-paid CEO and put other top execs on a par with CEOs at companies such as American Express, Coca-Cola and Pfizer.
The company had argued earlier it followed NYSE rules in tallying shareholder votes from 2013 which nearly tripled executive and employee stock awards in its long-term compensation plan; the investors say exchange rules aren’t considered law and can’t be used to override Delaware law and LNG’s bylaws.
In SEC filings Friday, LNG said it would “reassess its strategy” for bonuses following shareholder backlash.
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.
Electricite de France (OTC:ECIFF) agrees to purchase 380K metric tons/year of LNG upon commencement of operations of Train 2 of the export facility and more than doubling to ~770K metric tons/year upon the start of operations of Train 3.
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.
Cheniere Energy (NYSEMKT:LNG) argues a stockholder vote approving a share grant to CEO Charif Souki was properly tabulated and isn’t subject to a legal challenge, the company’s lawyers said in a court filing in response to LNG stockholders who have sued that the balloting violated Delaware law governing the handling of abstentions.
The defense comes after LNG had said it would drop a bid to have investors approve the addition of 30M shares to its executive bonus pool; the move does not affect the $133M worth of shares granted to Souki last year as part of his $142M pay package.
Investors contend that if LNG had counted abstentions as no votes, as required by Delaware law, the 2013 addition to the bonus pool would not have received shareholder approval; LNG says it followed NYSE rules that disregard abstentions.
Cheniere Energy (LNG +2%) rallies to another day of all-time highs after signing an additional liquefied natural gas agreement with Pertamina, which will purchase ~760M metric tons/year of LNG upon the start of operations of Train 2 of the export facility currently being developed in Corpus Christi, Tex.
The agreement is in addition to an earlier deal for Pertamina to buy 760M metric tons/year of LNG, bringing the total quantity of gas sold to Pertamina under the two agreements to ~1.52M.
Yesterday, Woodside Petroleum agreed to buy 850K metric tons/year of gas from Cheniere's proposed Corpus Christi terminal with a view to selling it on at a higher price.
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.
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.
The plaintiff is an individual shareholder seeking class action status; he seeks to recover 25M shares of LNG stock which he says have been improperly awarded to employees and directors under an 2011 incentive plan even though the company did not count abstentions as “no” votes, in violation of Delaware law.
Cheniere Energy's (LNG +1.3%) 20-year gas supply deal with Gas Natural Fenosa is worth $13B, a source with knowledge of the deal tells Reuters; the companies did not disclose the value of the agreement when they made it public earlier today.
The deal foresees Gas Natural buying 1.5M metric tons/year of liquefied natural gas from LNG's proposed plant in Corpus Christi, Tex., starting in 2019.
The Spanish company last month said it would start receiving LNG from another Cheniere plant in Louisiana in Q2 2016, about a year ahead of schedule.
Cheniere Energy (LNG) and Gas Natural Fenosa sign a 20-year supply deal for ~1.5M metric tons/year of liquefied natural gas upon commencement of operations of Train 2 from the export facility being developed near Corpus Christi, Tex.
The Corpus Christi project is being designed and permitted for up to three trains, with aggregate design production capacity of 13.5M metric tons/year of LNG; deliveries from Train 2 are expected to occur in 2019
Fenosa is the largest integrated gas and electricity company in Spain and Latin America, and the leading marketer of natural gas on the Iberian Peninsula; last Friday, Spanish power company Iberdrola signed a 20-year deal for Train 1.
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.
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.