This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cheniere Energy Is Up More Than 100% and May Go Higher

Stocks in this article: COP LNG ETE

NEW YORK (TheStreet) -- Shares of Cheniere Energy (LNG), the only United States energy company with all the necessary approvals required for the export of LNG, have been up by more than 100% in 2013. In December the business announced three major contracts, which pushed its shares even higher as the company moved one step closer towards exporting fuel from the Sabine Pass and Corpus Christi Liquefaction facilities.

Other energy players in the industry are also looking to capitalize on the growing demand of LNG from the international markets, but Cheniere Energy is way ahead. The two new liquefaction plants, also called trains (5 and 6), will add to the company's earnings in the coming years.

Cheniere Energy was adding 1.4% to $43.65 in mid-day trading, extending its 2013 advance to 133%.

More importantly, the business will reap benefits of favorable market fundamentals in the next several years. Although Cheniere's investors might not witness a triple digit growth in their 2014 holdings, the shares will continue their rally.

Bechtel on Corpus Christi

On Dec. 9, Cheniere signed two contracts with Bechtel Corp., the U.S.'s leading construction company, to perform engineering, procurement and construction of Cheniere's LNG trains and other facilities in Corpus Christi, Texas. The deal is worth approximately $9.5 billion.

The Corpus Christi liquefaction project includes three LNG trains, each with an annual production capacity 4.5 million tons. Besides the trains, storage tanks and two berths will also be constructed.

Feeding Asia

Before the announcements of the Bechtel contract, Cheniere revealed that it has entered into a 20-year agreement with Indonesia's state-owned company, Pertamina Corp, under which, the latter will buy 0.8 million tons of LNG each year, once the Corpus Christi project comes online.

This, which is a first agreement for Corpus Christi, I believe, is a clear indication of the growing demand of LNG from the energy-hungry nations of Asia that will fuel Cheniere's growth for decades. The business has already entered into long-term agreements related to its Sabine Pass facility with several Asian buyers such as India's GAIL Ltd., and South Korea's Korea Gas Corp (KOGAS).

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs