Cheniere Arm Prices and Upsizes IPO


Cheniere Energy Partners LP Holdings LLC – a subsidiary of the publicly traded energy firm Cheniere Energy Inc. (LNG) – began trading on the NYSE on Dec 13, under the symbol “CQH”. A day prior to that, Cheniere Energy had announced the increased offering of the initial public offering (IPO) from 30,000,000 shares to 36,000,000 shares. The company also revealed the pricing of the shares at $20.00 per share.

Moreover, Cheniere Energy added that the underwriters will have a 30-day option for buying 4,500,000 extra shares. The close of the offering is expected on Dec 18.

The funds generated from the IPO by the partnership will ultimately come to the pocket of LNG as repayment of the debt and distribution disbursement by the partnership. LNG plans to use the proceeds to support its future projects, develop existing assets and meet general corporate expenses.

Last week, Cheniere Energy announced that its subsidiary Corpus Christi Liquefaction, LLC and Bechtel Oil, Gas and Chemicals, Inc. signed two turnkey contracts for the engineering, procurement and construction of LNG trains and other related facilities for the Corpus Christi Liquefaction Project in Texas. The facility is expected to have up to three LNG trains, the first of which will commence operations in 2018.

Located in Houston, Texas, Cheniere Energy is mainly involved in operations related to liquefied natural gas. Cheniere Energy stock trades in a 52-week range of $17.17 to $46.39 per share. The shares closed at 40.93 per share on Dec 13, down 3.9% from the previous close.

Cheniere Energy holds a Zacks Rank #2(Buy), indicating that it is expected to outperform the broader U.S. equity market over the next one to three months.

Other better-ranked players in the oil and gas exploration and production sector include Abraxas Petroleum Corp. (AXAS), Harvest Natural Resources Inc. (HNR) and Clayton Williams Energy, Inc. (CWEI). All these stocks sport a Zacks Rank #1 (Strong Buy).

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Read the Full Research Report on AXAS
Read the Full Research Report on LNG

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