|Bid||36.18 x 800|
|Ask||36.41 x 1400|
|Day's Range||35.90 - 36.96|
|52 Week Range||35.56 - 49.30|
|Beta (5Y Monthly)||0.96|
|PE Ratio (TTM)||16.85|
|Earnings Date||Feb 24, 2020|
|Forward Dividend & Yield||2.52 (6.87%)|
|Ex-Dividend Date||Feb 05, 2020|
|1y Target Est||42.28|
(Bloomberg) -- A buyer of liquefied natural gas has canceled two cargoes from Cheniere Energy Inc., the biggest U.S. exporter, as a global glut pummels prices for the fuel and threatens to shut a key outlet for shale production.Spanish utility owner Naturgy Energy Group SA has decided not to take delivery of two shipments from Cheniere, according to people with direct knowledge of the matter. The cargoes, one of which was scheduled for April delivery, were rejected by Naturgy’s clients Repsol SA and Endesa SA, who had originally purchased the volumes from Naturgy and will now pay a contractual fixed fee, the people said.Cancellations of U.S. cargoes were closely watched and highly anticipated amid a grim outlook on global prices. It could be an early sign that global oversupply is poised to hammer the U.S. gas market, which is already straining under the weight of a domestic glut. Prices in Europe and Asia collapsed as storage levels rose during a mild winter, making it tougher for LNG buyers to make a profit reselling U.S. cargoes abroad.The coronavirus outbreak in China is stifling LNG demand from the world’s fastest-growing importer. While the Asian nation hasn’t directly imported any U.S. cargoes in more than a year amid trade tensions, the virus has contributed to the global price rout.The virus has wreaked havoc on commodity markets from LNG to copper while disrupting global industrial production, travel and supply chains. As Chinese demand for the fuel declined, PetroChina Co. is said to have delayed discharge of multiple cargoes. Qatar and the world’s biggest LNG trader, Royal Dutch Shell Plc, said they’re working with customers to reschedule or reroute deliveries. While lower prices are opening up demand in places such as India and Turkey, they’re also testing Europe’s ability to absorb extra supply in a weak market.“We are seeing supply reduction before demand maximization in Northwest Europe,” said Verena Viskovic, an analyst at BloombergNEF. Even with European benchmark Title Transfer Facility prices crashing more than a fifth since the start of the year, those TTF levels still “are not low enough to fully maximize lignite-to-gas switching,” she said.At current forward prices of U.S. and European gas, the profit margins of delivering U.S. LNG to Europe and to Asia are thin, according to a BloombergNEF note this week. Exporters of U.S. LNG may be forced to keep gas at home during the next seven months despite the potential demand in the German power sector.At least two Japanese buyers are also considering canceling cargoes from the U.S. that they had expected to load before summer, according to traders with knowledge of the matter, adding that no final decisions have been made.LNG exports have been a relief valve for U.S. gas producers as output from shale basins soars to record highs. In the Permian Basin of West Texas and New Mexico, where gas is extracted as a byproduct of oil drilling, prices have slid below zero amid pipeline bottlenecks; that means producers are paying others to take their supply.More gas-fired power plants would have to be built in the U.S. and abroad to ease the current supply glut, said Campbell Faulkner, chief data analyst for commodities broker OTC Global Holdings.“Prices globally are converging and until there is a boatload of new generation built domestically and abroad, there is just simply not much room in the market” for more gas, he said. LNG, once vaunted as a savior for the U.S. gas market, “looks to be a damp squib,” he said.Cheniere, while declining to comment on specific commercial arrangements, said the flexibility its contracts provide is appreciated by customers and that the fixed-fee portion of the agreements ensures cash flow to the company even when a delivery is suspended. Naturgy and Repsol declined to comment.Endesa confirmed the cancellation of the cargo, which was scheduled for delivery in May. The measure is part of normal trading business and no fine would be required as the decision complied with the cancellation period in the contract, a spokesman said.Customers of the American exporter have to pay a fixed so-called tolling fee to reserve capacity, whether or not they take the LNG. Contracts give buyers an option not to lift cargoes, but they need to notify the exporter 45 to 60 days before the delivery date and pay their fee.The canceled cargoes were to be loaded from Cheniere’s Corpus Christi facility in Texas, the people said. Naturgy has 20-year contracts with both of the exporter’s plants, Corpus Christi and Sabine Pass in Louisiana. According to an earlier presentation by Cheniere, the fixed fee was set at $3.50 per MMBtu for the Corpus Christi contract and $2.49/MMBtu for the Sabine Pass deal.Naturgy has sold volumes from Cheniere to its own clients in advance, the people said.“The market seems to be overreacting to the perceived contract risk to established LNG companies like Cheniere, who signed very favorable contracts when the market was short gas in the early 2010s,” Katie Bays, co-founder of Washington-based Sandhill Strategy LLC, said in a message.(Updates with Endesa comment in 13th paragraph, Naturgy contract details in the 14th)\--With assistance from Stephen Stapczynski and Rodrigo Orihuela.To contact the reporters on this story: Anna Shiryaevskaya in London at email@example.com;Naureen S. Malik in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Jonathan Tirone, Andrew ReiersonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil prices fell again on Friday as the OPEC+ plans to deepen production cuts in order to counter bearish sentiment driven by Coronavirus demand fears hit a rut
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. A grim situation for U.S. natural gas exporters has gotten even worse as the coronavirus outbreak sends global prices plunging on concern that China’s demand for the fuel will collapse.Suppliers of American liquefied natural gas were already under pressure from depressed prices arising from a global glut and an unusually mild domestic winter. Now, with the virus threatening to disrupt industrial production across China, Asian spot LNG prices have hit a record low.Faced with prospect of being unable to even cover their shipping costs, customers such as commodity trading houses may simply refuse to load U.S. cargoes. Those cancellations could force LNG export terminal operators to cap, or “shut in,” production of the fuel as their storage tanks fill up.“Forward prices for summer are now at levels where U.S. LNG shut-ins begin to seem viable,” said Edmund Siau, a Singapore-based analyst with energy consultant FGE. “There is usually a lead time before a cargo can be canceled, and we expect actual supply curtailments to start happening in summer.”Such an outcome would be a blow to the young and fast-expanding U.S. LNG industry. New export terminals from Maryland to Texas have sprung up to make the country one of the world’s top suppliers, while also providing a crucial outlet for soaring production from shale basins.China hasn’t directly imported LNG from the U.S. in a year amid trade tensions and tariffs on the fuel. But it’s the world’s fastest-growing buyer, and a slowdown or decline in demand there will have an effect that ripples right across the market. China’s big state-owned LNG importers are said to be considering force majeure declarations on contracted cargo deliveries, which would further burden an oversupplied market.Brimming global gas stockpiles are increasing the risk that cargoes will be curtailed, according to Nina Fahy, head of North American natural gas for Energy Aspects Ltd., and Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts.“The full impact of the coronavirus on global gas markets is yet to be felt as lower LNG demand expectations for the Lunar New Year were already built into most forecasts,” Jowdy wrote in an email.“The global LNG outlook is going from bad to worse for suppliers.”For Cheniere Energy Inc., the biggest U.S. exporter of the fuel, “the summer doesn’t look good” for the economics of American cargoes at the moment, Eric Bensaude, managing director of the company’s marketing arm in London, said in an interview.Any decisions by Cheniere’s buyers, which include Royal Dutch Shell Plc and Korea Gas Corp., are likely in March or April. That’s a period of seasonally lower demand when the company anticipates “people will be assessing the situation,” Bensaude said.Customers of U.S. LNG terminals can typically opt out of taking contracted supplies with 30 to 60 days’ notice. Cheniere’s buyers have to pay a fee to cancel a cargo, Bensaude said.If a customer decides not to load a cargo, Cheniere’s marketing arm won’t take the LNG back and resell it unless market conditions have changed, Bensaude said. Instead, the company would typically reduce LNG production at its terminals, he said.But U.S. LNG companies continue to sound an upbeat note on the longer-term outlook for the market. Charif Souki, co-founder of terminal developer Tellurian Inc, said the global glut of the fuel could be erased as soon as a year from now. Cheniere’s Bensaude said he also expects the oversupply to ease.“We are going to weather the storm this year as the market should absorb production from the extra capacity that comes online,” Bensaude said.(Updates with Cheniere comments in 10th paragraph. An earlier corrected the attribution in the seventh paragraph.)To contact the reporters on this story: Anna Shiryaevskaya in London at firstname.lastname@example.org;Stephen Stapczynski in Singapore at email@example.com;Naureen S. Malik in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Reed Landberg at email@example.com, ;Simon Casey at firstname.lastname@example.org, Christine Buurma, Joe CarrollFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(BX)’s marquee corporate private-equity funds lagged far behind the S&P 500 index during 2019, an indication that the large size of the firm’s portfolio and challenging investment conditions may be weighing on results. Blackstone’s (ticker: BX) corporate private-equity funds had gross returns of 9.3% in 2019, way behind the S&P 500’s total return of 31.5%, and down from 19.1% in 2018, when the funds handily topped the S&P’s negative 4.4% return. Blackstone, the industry leader, didn’t provide net returns after fees, which can run at around 2% annually plus 20% of profits industrywide.
China has restarted talks with U.S. liquefied natural gas marketers to buy more LNG, several industry executives told Reuters, but they are worried that any purchases may come too late to keep natural gas prices from falling further due to a glut of global supply. China pledged this month to buy an additional $18.5 billion in U.S. energy products this year, but the U.S.-China trade agreement left tariffs in place, including a 25% levy on LNG imports that puts U.S. LNG at a disadvantage, producers said. "The U.S. doesn't have a margin that would allow any country to charge 25%" above global prices, said Michael Smith, chief executive of Freeport LNG, referring to the tariff.
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE American: CQP) today declared (i) a cash distribution per common and subordinated unit of $0.63 ($2.52 annualized) to unitholders of record as of February 7, 2020, and (ii) the related distribution to its general partner. All of these distributions are payable on February 14, 2020.
China's Sinopec, expected to be the next major Chinese buyer of U.S. liquefied natural gas (LNG), is planning to review terms of a potential $16 billion supply deal with Cheniere Energy Inc after a sharp drop in LNG prices, industry officials said. Sinopec, officially named China Petroleum & Chemical Corp, and Houston-based Cheniere had been expected to sign the 20-year deal once a trade truce was reached between Beijing and Washington.
The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]
Trafigura Group, the global commodity trader, increased its annual liquefied natural gas (LNG) trading volumes by 27%, driven by trade flows and the start of new contracts, the company said on Wednesday. Volumes rose to 12.6 million metric tonnes equivalent this year, which included the start of shipments under the company's 15-year agreement to lift supply from Cheniere Energy as well as several other mid-term contracts, Trafigura said in its annual report. "With weak demand in Asia redirecting trade flows, the European market absorbed the bulk of our Atlantic cargoes, often in conjunction with our natural gas desk, while we continued to build our position in the Far East with regionally sourced LNG," the company said.
Asian spot prices for liquefied natural gas (LNG) dropped for a second consecutive week as supply flooded the market, overshadowing demand subdued by a winter that has been milder than average. The average LNG price for January delivery into northeast Asia is estimated to be about $5.50 per million British thermal units (mmBtu), down 10 cents from the previous week, several industry sources said. Angola LNG offered a cargo for delivery over late January to mid-February in a tender that closes next week.
* Cheniere, the biggest U.S. LNG exporter, said in a filing earlier this week that its proposed process would prioritize work on one tank, known as S-101, and allow that tank to return to service in the near term. * The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) ordered Cheniere to shut two tanks at Sabine on Feb. 8, 2018, after plant workers on Jan. 22, 2018, discovered a 1- to 6-foot-long crack at one tank that leaked fuel into an outer layer.
Proposed projects to export liquefied natural gas (LNG) from North America face an uphill battle against Qatar, which announced plans to further ramp up production to hold onto its position as the world's leading LNG exporter. The United States is on track to overtake Qatar and Australia as the top LNG exporter by 2024, but now will only hold that title for a few years as Qatar announced this week it will boost production by 64% by 2027. Qatar's plans add another headwind for dozens of long-in-development projects already contending with the difficulty of finding customers due to the U.S.-China trade war and a glut of supply worldwide.
Asian and European LNG prices are falling through the floor as a result of mild winter weather and a new wave of supply from the US, Australia and Russia
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Sabine Pass Liquefaction LLC and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.