Cheniere Energy is RevShark's Stock of the Week
Shark Investing's RevShark has named Cheniere Energy (NYSE: LNG) it's Stock of the Week.
According to the website, low natural gas prices have set the stage for some solid Cheniere exploration play.
RevShark said that, due to new shale drilling techniques, the U.S. is seeing record high natural gas production and, as a result, record low prices.
LNG, with it's technique of cooling natural gas to a liquid for shipping overseas, is now ideally situated but, says RevShark, “the infrastructure needed to exploit this potential market just hasn't existed.”
“[LNG] is the first company to obtain natural gas export approval in more than 40 years. The company is developing LNG terminals in Louisiana and Texas. The cost to develop these facilities is substantial, but on October 26 the company signed an $8 billion deal to supply 3.5 million tons of LNG to Britain's BG Group for 20 years. The company hopes that this deal will generate over $400 million a year in revenue.”
RevShark concedes that it will be several years before the necessary construction is completed, but says that the stock is set up nicely.
