Cheniere Energy: Still A Buy Despite The Soar And Solid Long-Term LNG Play

Summary

• Cheniere Energy offers strong LNG exposure, with ambitious expansion plans aiming for a 33% production increase by 2028 and further growth by 2032.
• Despite recent stock gains and solid cash flows, the company carries quite a bit of debt, making it vulnerable in downturns, but management is focused on balance sheet improvement.
• Current buyback and dividend policies are aggressive but may not be sustainable in a cyclical commodity environment; future capital allocation could shift to acquisitions or further debt reduction.
• I rate Cheniere a Buy, as it remains potentially undervalued with long-term LNG demand tailwinds, but investors should be aware of political and economic risks.

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Introduction & Financials

Cheniere Energy (NYSE:LNG) is one of the largest exporters of LNG on the planet (#1 in the US, #2 globally), focusing exclusively on natural gas, making it a pure-play on that commodity. Simply put, they buy the

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.