Cheniere Energy, Inc. (NYSEMKT:LNG) announced that its wholly owned subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”) has entered into sales arrangements with Électricité de France, S.A. (“EDF”) for the delivery of liquefied natural gas (“LNG”) cargoes on an ex-ship basis (“DES”) from the Sabine Pass LNG terminal (“Sabine Pass”) to the Dunkerque LNG terminal in France. The sales arrangements cover the delivery of up to 26 cargoes, or up to approximately 100 million MMBtus, through 2018. The sales price for the LNG cargoes is linked to the Dutch Title Transfer index (TTF), a natural gas pricing index in continentalEurope.
Volumes will be sourced from Cheniere Marketing’s LNG supply portfolio, which includes rights under a sale and purchase agreement (“SPA”) with Sabine Pass Liquefaction, LLC to purchase any LNG produced from Sabine Pass in excess of that required for other customers. Cheniere Marketing has a similar SPA with Corpus Christi Liquefaction, LLC for LNG produced from Cheniere’s Corpus Christi liquefaction project (“CCL Project”). On a combined basis, Cheniere Marketing’s LNG portfolio is expected to have approximately 9 million tonnes per annum (“mtpa”) of LNG available from the nine liquefaction trains being developed at Sabine Pass and Corpus Christi.
In addition to the 26 cargoes under these EDF transactions, Cheniere Marketing has sold 42 cargoes to date with delivery expected from Sabine Pass in the 2016-2018 timeframe. The majority of these cargoes were sold to customers on a DES basis whereby Cheniere Marketing will use its chartered vessels to deliver the LNG to the requested terminal. The sales price for these 42 cargoes is based on an applicable Henry Hub index price plus a fixed fee. In total, Cheniere Marketing has executed agreements for the sale of up to 68 cargoes, or up to approximately 250 million MMBtus, to buyers in Europe andAsia through 2018.
Furthermore, Cheniere Marketing recently announced the sale of approximately 0.6 mtpa of LNG under a 20-year SPA with Central El Campesino, which is expected to be delivered from the CCL Project. The SPA is subject to the Central El Campesino power project reaching a final investment decision. LNG will be sold on a DES basis with the sales price based on an applicable Henry Hub index plus a fixed fee. (Original Source)
Shares of Cheniere Energy closed today at $69, down $1.65 or 2.34%. LNG has a 1-year high of $85 and a 1-year low of $58.10. The stock’s 50-day moving average is $67.61 and its 200-day moving average is $73.58.
On the ratings front, Cheniere Energy has been the subject of a number of recent research reports. In a report issued on August 7, BTIG analyst William Frohnhoefer reiterated a Buy rating on LNG, with a price target of $100, which represents a potential upside of 44.9% from where the stock is currently trading. Separately, on August 5, Credit Suisse’s Abhiram Rajendran assigned a Buy rating to the stock and has a price target of $86.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, William Frohnhoefer and Abhiram Rajendran have a total average return of 12.9% and 17.3% respectively. Frohnhoefer has a success rate of 50.0% and is ranked #764 out of 3729 analysts, while Rajendran has a success rate of 85.7% and is ranked #637.
Cheniere Energy Inc is engaged in LNG-related businesses. It owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P.