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Cheniere Energy Arm Initiates IPO

Zacks Equity Research

Cheniere Energy Inc. (LNG), a publicly traded energy firm, declared that Cheniere Energy Partners LP Holdings LLC has started initial public offering (IPO) of its common units. Cheniere Energy Partners, a fully owned affiliate of Cheniere Energy, will offer 30,000,000 units to the public for the first time.  

Cheniere Energy Partners added that the underwriters will have a 30-day option for buying extra 4,500,000 units. Moreover, the partnership intends to trade its common units under the New York Stock Exchange listed symbol of “CQH”.

Last month Cheniere Energy reported third-quarter 2013 adjusted loss of 31 cents per share, narrower than the Zacks Consensus Estimate loss of 50 cents a share primarily due to lower operating expenses.

Located in Houston, Texas, Cheniere Energy is mainly involved in operations related to liquefied natural gas. The company is the owner and operator of western Cameron Parish, LA-based Sabine Pass liquefied natural gas terminal. In addition, Cheniere Energy possesses and operates Louisiana-based Creole Trail Pipeline.  

Cheniere Energy is now expanding a liquefaction project which is situated adjacent to the Sabine Pass terminal. The project includes the development of roughly six LNG trains. The combined capacity of the trains is expected to be about 27 million tons per annum (mtpa).  

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 SM Energy Co. (SM). All the stocks sport a Zacks Rank #1 (Strong Buy).

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Read the Full Research Report on SM
Read the Full Research Report on HNR
Read the Full Research Report on AXAS

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