LNG

Cheniere Energy Inc

Energy


Presented:04/27/2020
Price:$42.80
Cap:$10.79B
Current Price:$183.79
Cap:$41.59B

Presented

Date04/27/2020
Price$42.80
Market Cap$10.79B
Ent Value$49.02B
P/E Ratio21.48x
Book ValueN/A
Div Yield0%
Shares O/S252.08M
Ave Daily Vol3,405,588
Short Int2.59%

Current

Price$183.79
Market Cap$41.59B
Cheniere Energy, Inc. engages in liquefied natural gas (LNG) related businesses. It owns and operates LNG terminals, and develops, constructs, and operates liquefaction projects near Corpus Christi, Texas, and at the Sabine Pass LNG terminal. The company was founded by Charif Souki in 1983 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Blackstone Group Inc/The (BX), Cheniere Energy Inc (LNG)

Highlights

The presenter views Cheniere Energy’s (LNG) stock as attractive at its current low-$40 share price. He is confident that counterparties will honor the company’s contracts in the long run (i.e., there will be no breakage) and likes the risk/reward regardless of dislocations in the market or the potential for $5 natural gas in Asia longer term (a likely conservative assumption). Having already brought seven trains online, Cheniere is among the largest LNG suppliers and operators in the world, generating ~$4B of EBITDA annually. With two more trains coming online (Train 3 at Corpus Christi in 2021 and Train 6 at Sabine Pass in late 2022 or early 2023), the company can be expected to reach $4.6B - $5B of annual EBITDA, and upwards of $10/share of FCF, looking out 2 - 3 years. In that scenario, and taking the quality of the management team and potential long-term demand for LNG into consideration, he can envision the stock trending up toward $100 per share over the next couple of years.

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Idea Discussion

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