This Day On The Street
Continue to site
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

Don't Sell Cheniere Energy at Its All-Time High, Just Wait for It

NEW YORK (TheStreet) -- Cheniere Energy (LNG - Get Report) is on fire. In the last 24 hours, the company has announced two major contracts for its planned Corpus Christi liquefied natural gas, or LNG, export terminal. And more deals could be on their way.

Yesterday, Cheniere said that it signed a 20-year agreement with Australia's Woodside Petroleum (WOPEY) to supply natural gas. Today, Cheniere said that it entered into another 20-year sale and purchase agreement with Indonesia's state-owned Pertamina to supply 760,000 tons per year of LNG.

So far, Cheniere has entered into agreements that cover more than 50% capacity of its second terminal at Corpus Christi. In a statement, Cheniere's CEO Charif Souki said that the company is eyeing additional deals in the coming months which will allow it to make "a final investment decision and begin construction by early 2015."

Cramer: The Best Ancillary Oil Plays

Cheniere Energy (LNG): Today's Pre-Market Leader Stock

It's a Great Time to Be a Consumer of Media and Technology

Cheniere announced four deals for Corpus Christi in less than five weeks which has renewed the prospects of its second major LNG export terminal. As a result, the company's shares have risen by 66.4% year to date, currently hovering at $72, close to its all-time high levels.

The company's shares could continue going higher as it gears up to open its flagship Sabine Pass facility, the first of its kind of LNG export terminal in the U.S, in 2015. Additional deals and a final investment decision for Corpus Christi can act as a catalyst for an upside in the near term.

The company's latest deal with Pertamina is in addition to the 760,000 tons per annum agreement which Cheniere already has in place with the Jakarta-based company.

Meanwhile, Woodside has said that it will buy 850,000 tons of LNG per annum once the second train, or liquefaction plant, at Cheniere's Corpus Christi project becomes operational. The deliveries from the second train are expected to begin in 2019.

Cheniere owns the Sabine Pass LNG receiving terminal. Through its subsidiary Cheniere Energy Partners (CQP), the company is developing two LNG export terminals at Sabine Pass in Louisiana and Corpus Christi in Texas to tap into the growing demand of LNG from Asia.

The company has planned to develop up to six LNG trains at Sabine Pass with combined capacity of 27 million tons per annum and three LNG trains at Corpus Christi with a total capacity of 13.5 million tons per annum.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LNG $35.85 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs