|Bid||26.71 x 1000|
|Ask||27.00 x 800|
|Day's Range||24.28 - 27.01|
|52 Week Range||17.75 - 49.30|
|Beta (5Y Monthly)||1.01|
|PE Ratio (TTM)||12.00|
|Earnings Date||May 06, 2020 - May 10, 2020|
|Forward Dividend & Yield||2.52 (10.42%)|
|Ex-Dividend Date||Feb 05, 2020|
|1y Target Est||36.22|
(Bloomberg) -- After two warmer-than-usual winters gutted demand for energy, natural gas is headed for an even more difficult summer because of the coronavirus.The price of the fuel used for everything from power generation to home heating is plumbing record lows in Amsterdam, one of the world’s deepest and most liquid market for the commodity. Higher temperatures in the northern hemisphere meant less need for energy during the coldest months, leaving the industry ill prepared for virus-related health scares now shutting big parts of the global economy.The result puts the gas industry on course for the biggest upheaval in its modern history, gutting profits of shippers from Gazprom PJSC in Russia to energy majors including Royal Dutch Shell Plc and paring back the cost of imports for big buyers led by China and Japan.“We are still going through the peak of this bearish cycle,” said Samantha Dart, head of natural gas research at Goldman Sachs Group Inc. in New York. “The virus outbreak has exacerbated the oversupply situation in the global gas market.”In Amsterdam, gas prices have plunged 58% since the heating season started in October and the worst quarter on record. U.S. futures had their biggest first-quarter drop since 2012. The outlook is worse still.Like the tulips now blooming across the Netherlands, gas is at a seasonal turning point, with both the plants and the industry are weeks ahead of normal because of warm weather. Most gas wells flow constantly, but demand for the fuel peaks in the winter and tapers off in the “shoulder season” before summer, when the industry schedules maintenance and diverts flows into storage.European Gas StorageThis winter, weak demand pushed more fuel into storage, leaving sites unusually full in Europe, the U.S. and parts of Asia. Those inventories from the start of April will only accumulate. That sets up the industry for a crunch in August and September when tanks will be brimming at or even beyond their capacity.“There’s a chance we will see a collapse in prices in the U.S.,” Francisco Blanch, head of global commodities and derivatives research at Bank of America, said in a telephone interview. “We are going to be weak on the demand destruction related to the virus, but the real issue is that we had a very warm winter and we are coming out with extreme high inventories.”The gas industry is starting to take extraordinary measures to balance supply and demand. Those include:Storage companies in France and Italy have begun shifting tanks to injecting flows of gas instead of withdrawing them. That’s happened four to six weeks earlier than usual. Across Europe, inventories have finished winter more than 50% full, a level more typical for the middle of June. U.S. sites are 17% more full than average. China National Petroleum Corp. started injecting gas into some storage sites in March.Russia has scaled back some flows, and Norway delayed maintenance work on fields and terminals that’s typically done later in the summer season. What’s clear is there’s more supply than needed arriving in Europe by pipeline.Measures in India and China to combat the virus dashed gas demand, forcing LNG importers to cancel or delay shipments. European buyers in Italy and Spain are considering following suit. Shell, the world’s biggest LNG trader, has had to reshuffle its cargoes when the outbreak hit China.U.S. LNG producers led by Cheniere Energy Inc. have signaled that low margins on delivering cargoes to the Europe and Asia may force them to slow output at least temporarily. That’s threatening to curtail exports of gas from the U.S., which has had a key role in globalizing gas prices since it made its first LNG shipments in 2016. Global LNG demand may fall by 4.7% in 2020, according to Jason Feer, head of business intelligence at Poten & Partners in Houston.Seventeen LNG vessels around the world were tagged as floating storage as of March 27, more than triple the number of the previous week, according to Rebecca Chia, an analyst at the tanker-tracking consultant Kpler.The entire industry is braced for a big slump in demand, leading to talk about which producers might be forced to cut back on flows. Analysts have yet to get a grasp of how long the interruptions will last or how wide the impact will be. BloombergNEF estimates that power generators will draw a third less gas than they usually do in Europe. Gazprom is optimistic about the third and fourth quarters despite declining markets in the first quarter, CEO Alexey Miller told Russian President Vladimir Putin on Friday.“All fundamentals point to a bearish market” in Europe, said Ahmed Hammoudan, senior gas trader at Eneco, a Dutch energy company. “We have unprecedented healthy storage levels, and pipeline suppliers have no reasons to reduce flows. I can’t really see any bullish sign.”The glut in the market is exacerbated by a crash in crude oil, which has affected some gas supply contracts that are linked to oil. The industry’s response to lower demand is reworking the delicate economics of the global gas and power industries, unsettling typical seasonal patterns.In ordinary times, gas prices peak in winter and ease during the spring and summer when storage absorbs much of the flow. This year, the pace of injections might support prices briefly in April and May before giving way to more weakness later in the summer, according to Julien Hoarau, gas market analyst at Engie EnergyScan. Storage sites are likely to be full well before October when the next heating season begins, making it likely that producers will have to choke back flows from their wells.“We expect storage stocks in Asia to be above normal levels heading into the summer,” said Jeff Moore, an analyst at S&P Global Platts. “This could put significant downward pressure on spot prices. It has the potential to cause deferments or cancellations of cargoes.”The unfolding coronavirus panic has potential to trigger “very significant demand drops almost all over Europe,” said Stefan Wieler, head of energy markets analysis at Axpo Holding AG. “With wide scale industrial shutdowns only starting right now, these demand destructions are likely to get even more significant in the coming days.”While the impact of the virus is roiling forecasts at the moment, longer term it’s the weather that’s likely to guide the outlook for gas. The decade beginning in 2010 was the hottest ever worldwide, and it’s the fourth in a row to set a new high. The five warmest years occurred since 2015.“The impact of the weather was already significant,” said Deepa Venkateswaran, an analyst at Sanford C Bernstein and Co. in London.“The coronavirus will take that to a much higher level.”For 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.
(Bloomberg) -- One of the world’s biggest liquefied natural gas exporters is signaling it may throttle back production.Cheniere Energy Inc. has tendered to buy six shipments for delivery to Europe later this year, a rare step for a company that’s fundamentally a seller of the fuel. The company could be testing the size of the current glut as it weighs output cuts, or even seeking cargoes for its customers that could be cheaper than producing and shipping its own from the U.S. Gulf Coast, according to a Bloomberg survey of traders.Four of the six cargoes were awarded at a discount of about 20 to 30 cents to the European benchmark Dutch Title Transfer Facility, according to traders with knowledge of the information. The benchmark contract for May traded at about $2.24 per million British thermal units on Tuesday on ICE.Traders are closely watching any indication that U.S. exporters will curb production as the coronavirus restrains demand and exacerbates an oversupply. Houston-based Cheniere declined to comment on the tender.The company “may be trying to figure out how long the market really is and to make a judgment on whether they should shut down some production,” said Jason Feer, global head of business intelligence at Poten & Partners Inc. in Houston.Shipping LNG from the U.S. to Europe or Asia this summer will be unprofitable, BloombergNEF said in a Feb. 27 note. Spot prices have since declined further, while vessel rates have jumped, in a further indication that it may be cheaper to buy cargoes already available in the market than produce and ship it.Gas flows to Cheniere’s export terminals dropped 13% this month from February’s average as output was partly reduced because of fog-related shipping delays and plant maintenance. The facilities in Sabine Pass, Louisiana, and Corpus Christi, Texas, are taking in 19% more gas than they were last March.With the coronavirus pandemic expected to exacerbate the seasonal lull for gas around the world, “it’s reasonable” to expect customers won’t lift some cargoes while still paying tolling fees under their contracts, Anatol Feygin, chief commercial officer for Cheniere, said last week during the Scotia Howard Weil investor webcast.The company also closed a separate deal last week offering to sell a prompt cargo from its Sabine Pass facility, which traders said was likely one of its first-ever tenders.Cheniere boosted capacity at each of its seven liquefaction units to about 5 million tons a year from their planned nameplate of 4.5 million thanks to operational efficiencies. The company has declined to comment on operations and whether any cargoes were canceled beyond two for April reported last month.Aside from a buyer with a 20-year contract opting to not lift a cargo, Cheniere had already cut the amount of cargoes that its marketing arm makes available, Feer said.“They had been producing additional cargoes for Cheniere Marketing, but they stopped that a while back,” he said.(Updates with tender results in third paragraph)For 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.
Asian spot liquefied natural gas (LNG) prices crashed below $3 per million British thermal units (mmbtu) reversing three weeks of gains, after Indian buyers cancelled or diverted cargoes as a lockdown caused gas demand to slump. The average LNG price for May delivery into northeast Asia was estimated at about $2.80 per million British thermal units (mmBtu), down 70 cents, or 20% from the previous week, traders said. Prices for cargoes delivered in April were estimated around $3.00/mmBtu, also down 70 cents from a week ago.
Cheniere Energy (LNG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy […]
Cheniere Energy (LNG) incurs higher year-over-year costs and expenses as operating and maintenance expenses significantly escalate to $330 million in Q4.
(Bloomberg) -- Over the course of his colorful career, Charif Souki has been an investment banker, a restaurateur, a wildcatter and now a U.S. natural gas export pioneer. His latest business bet may be the costliest one yet.Tellurian Inc., the company Souki co-founded four years ago to build a $29 billion liquefied natural gas export plant in Louisiana, has been thrown into turmoil by a slump in the international market for the fuel and concern the project won’t secure the necessary backing. And now the fast-spreading coronavirus is stifling demand for LNG, making a massive global glut even worse.Souki’s career has been characterized by reinvention, a skill that may prove useful as Tellurian struggles to right itself. Born in Cairo in 1953 and raised in Beirut, he got his start as an investment banker focusing on the oil and gas industry. He later teamed up with his brother to open a chain of restaurants and bars, including Los Angeles’ Mezzaluna. The celebrity hotspot became notorious after the murders of employee Ron Goldman and Nicole Brown Simpson, who ate her last meal there. Souki closed the restaurant in 1997.In 1996, Souki founded Cheniere Energy Inc. to explore for oil in the Gulf of Mexico. When the company failed to hit a gusher, Souki transformed it into a developer of natural gas import terminals. At the time, gas prices were soaring to record highs amid dwindling domestic production. That all changed with the shale boom, which flooded the U.S. market with supply. Souki swiftly changed course again, converting Cheniere’s import terminal in Louisiana into an export facility and putting the company on track to become the first to ship gas from the lower 48 states.Cheniere became the biggest supplier of American gas to overseas buyers, vaulting the U.S. into the ranks of the world’s top LNG exporters. But Souki wasn’t around to see the company reach those heights: He was ousted in 2015 amid a push from billionaire investor Carl Icahn, months before Cheniere shipped its first cargo. Icahn accused Souki of overspending and said his aggressive expansion plans were putting the company in jeopardy.Souki had “all these -- I hate to say it -- harebrained ideas,” including buying oil companies, Icahn said in a 2016 interview. “I’ll tell you now what he knew -- he knew how to go almost bankrupt, because that’s what happened to him.”In an interview earlier this year, Souki responded to Icahn’s criticism, sounding an optimistic note on the outlook for Tellurian before its recent stock slump.“Carl decided to describe the venture I wanted to invest in as ‘harebrained’ and four years later it turns out maybe Tellurian isn’t so harebrained,” he said.Souki co-founded Tellurian just three months after his departure from Cheniere. In his role as chairman of the new company, he remained the consummate salesman, using his track record as an LNG trailblazer to help drum up interest from investors. Tellurian’s market capitalization soon soared above $4 billion.“This is easy compared to what we had at Cheniere,” Souki said in a 2016 interview. “I have money and we don’t have any debt.”At Tellurian, Souki’s ambitions to expand beyond LNG exports were undimmed. The company spent $85 million in 2017 to buy shale assets in Louisiana, becoming the first U.S. developer to secure gas for its export terminal by producing the fuel itself.Though Tellurian hasn’t reached a final investment decision on Driftwood, a project that wouldn’t start producing LNG until at least 2023, the company had operating expenses of about $9.4 million a month last year. By the end of December, it had 176 employees and office space in Houston, Washington, London and Singapore.Souki initially proposed a novel way to fund Driftwood: Avoid debt by asking investors to pay a total of $12 billion up front, in return for a stake in the project and the ability to buy fuel at cost. Total SA signed on last year.But larger market forces have gotten in the way of Souki’s plans. New export terminals from the U.S. to Australia inundated the global LNG market, sending prices for the fuel plunging and clouding the outlook for new projects. Cheniere said last week that two buyers had decided to cancel cargoes for April, a move that could be an ominous sign for an already oversupplied market.Trade tensions between the U.S. and China have so far prevented American export developers from signing new deals with the world’s second-largest economy. The coronavirus outbreak, meanwhile, has sent global markets spiraling lower, adding to Tellurian’s woes. The epidemic has hit China, South Korea and Japan, the world’s biggest LNG importers, particularly hard.The impact of the virus is unknown and “everybody’s panicked” and travel restrictions mean LNG won’t be finalized, Souki said by phone on Monday. “We get on video conference very often, but at the end of the day when you make a deal you have to make it in person,” Souki said. “For the time being everything has been delayed a few months.”India’s Petronet LNG Ltd., a potential major customer that Tellurian has courted, is seeking competing offers, people with knowledge of the matter told Bloomberg Feb. 27. The move by Petronet highlights the mounting pressure on sellers amid the worldwide glut, and adds to doubts that Tellurian will be able to secure a sizable anchor investment from Petronet for Driftwood.Tellurian plunged 72% last week, and Souki and co-founder Martin Houston were forced to sell some of their stakes in the company to satisfy loan requirements. The company said Monday it’s in talks to extend the maturity of a loan and will slash corporate overhead, and that it plans to sell as much as $200 million of stock. That will mean job cuts and Tellurian will also slow work with its contractors, Bechtel Corp. and Baker Hughes Co., Souki said. He expects projects to be finalized laster this year.“The relatively unsurprising delay to a potential deal with Petronet creates real access to capital concerns and liquidity concerns,” Katie Bays, co-founder of advisory firm Sandhill Strategy LLC, said Monday. “The market reaction posits the question, ‘If buyers don’t need contracted U.S. cargoes, why will they sign up for even more U.S. LNG?”To contact the reporters on this story: Christine Buurma in New York at firstname.lastname@example.org;Naureen S. Malik in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Christine Buurma, Anne ReifenbergFor 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.
Cheniere Energy (LNG) delivered earnings and revenue surprises of 31.48% and 13.18%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
(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.