Company Update (NYSE:LNG): Cheniere Energy, Inc. Marketing Signs Additional LNG Sales Agreement With EDF


Cheniere Energy, Inc. (NYSEMKT:LNG) announced that its wholly owned subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”) has entered into another sales arrangement 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 Liquefaction Project”). The sales arrangement covers the delivery of up to 24 cargoes, or up to approximately 89 million MMBtus total, from 2017 through 2018. As in the previously announced sales arrangements, the sales price for the LNG cargoes is linked to the Dutch Title Transf…

announced today that its wholly owned subsidiary, Cheniere Marketing International LLP (“Cheniere Marketing”) has entered into another sales arrangement 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 Liquefaction Project”). The sales arrangement covers the delivery of up to 24 cargoes, or up to approximately 89 million MMBtus total, from 2017 through 2018. As in the previously announced sales arrangements, the sales price for the LNG cargoes is linked to the Dutch Title Transfer index (TTF), a natural gas pricing index in continental Europe. With this latest agreement, Cheniere Marketing has executed agreements for the sale of up to a total of 92 cargoes, or up to approximately 340 million MMBtus, to buyers in Europe and Asia through 2018.

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 the Sabine Pass Liquefaction Project in excess of that required for other customers. Cheniere Marketing has a similar SPA with Corpus Christi Liquefaction, LLC for LNG produced from Cheniere’sCorpus 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 Trains 1 through 6 of the Sabine Pass Liquefaction Project and Trains 1 through 3 of the CCL Project. (Original Source)

Shares of Cheniere Energy Inc. closed last Friday at $53.71. LNG has a 1-year high of $84.99 and a 1-year low of $50.60. The stock’s 50-day moving average is $61.33 and its 200-day moving average is $70.64.

On the ratings front, Cheniere Energy has been the subject of a number of recent research reports. In a report issued on September 9, BTIG analyst William Frohnhoefer reiterated a Buy rating on LNG, with a price target of $100, which implies an upside of 86.2% from current levels. 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 -0.4% and 15.3% respectively. Frohnhoefer has a success rate of 26.8% and is ranked #2669 out of 3765 analysts, while Rajendran has a success rate of 72.7% and is ranked #654.

Overall, one research analyst has assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $79.00 which is 47.1% above where the stock closed last Friday.

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.