Suphanat Khumsap/iStock via Getty Images “The U.S. economy is hard to hold back, even if you try,” says midstream fund manager Jay Hatfield in an interview May 15. The context in which we speak is assessing the fundamentals in oil, gas, and some transition dynamics as it relates to policy, the U.S. economy, and the…
SHansche The UP World LNG Shipping Index (UPI) lost 1.92 points or 1.24% last week, reaching a closing value of 152.38 points. This index monitors the stocks of companies that specialise in LNG shipping. In contrast, the S&P 500 (SPX) index, representing US stocks, gained 0.55%. The image below displays both indices. Week 19-2024: Chart…
SHansche Note: I previously covered FLEX LNG (NYSE:FLNG) in February. I extensively discussed the LNG market and LNG carrier propulsion systems (steamers vs. MEGA/MEGI and X-DF). I reviewed FLNG fleet specifications (age and propulsion), discussed the company’s financials, and estimated its value. FLNG has a top-notch fleet of ships fitted with last-generation engines, while keeping…
undefined Introduction As Dynagas LNG Partners (NYSE:DLNG) hasn’t paid a dividend on its common shares since 2019, I have been focusing on the preferred shares. One of the two series of preferred shares recently moved from a fixed rate to a floating rate preferred dividend. As the preferred dividends remain very well-covered and as the…
Suphanat Khumsap/iStock via Getty Images The disruption in liquefied natural gas, or LNG, markets in 2022 stemming from Russia’s invasion of Ukraine caused LNG shipping prices to increase. Higher rates allowed FLEX LNG Ltd. (NYSE:FLNG) to secure higher long-term charter rates for its vessels. Company Profile: Flex LNG Ltd. is an LNG shipping company with…
Felix Cesare/Moment via Getty Images Cheniere Energy (NYSE:LNG) has made significant strides in building operations into a cash-generating machine. With Stage 3 at their Corpus Christi Liquefaction location expected to produce its first LNG at the end of eFY24, Cheniere is expected to experience strong aEBITDA and DCF growth. In addition to operational excellence, management…
CHUNYIP WONG With the Biden administration putting a pause on LNG terminal permitting, let’s catch up on Cheniere Energy (NYSE:LNG). While on the surface the news sound like a negative, I actually think it’s a positive for Cheniere. In November, I lowered my rating on the stock to “Hold” as it closed in on my…
miroslav_1/iStock Editorial via Getty Images During the fourth quarter of last year, the LNG shipping sector, represented by the UP World LNG Shipping Index (UPI), strengthened and gained 4.20%. The S&P 500 (SPX) index gained 11.24% during the same period. The following picture compares both indices. In this report, I also provide data for the…
sefa ozel/iStock via Getty Images Introduction LNG sector’s journey in 2023 was quite a bumpy ride due to the persistent weakness in prices. That left many companies grappling with their performance. Cheniere Energy Partners (NYSE:CQP), the operator of the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, faced its fair share of challenges as its…
Michael Vi/iStock Editorial via Getty Images Shares of Sempra (NYSE:SRE) have been a poor performer over the last year, losing about 5% of their value. Higher interest rates have weighed on utilities and dividend-oriented stocks. While higher interest expense has had a negative impact on results, SRE has a strong growth position, which should enable…
Sean Gallup Introduction When Höegh LNG Partners was still trading, I decided against buying the common units, but instead initiated a long position in the preferred shares. Other authors here on Seeking Alpha provided excellent coverage of how the Höegh LNG delisting story. At the end of 2022, the new owners of Höegh LNG Partners…
SHansche I upgraded FLEX LNG Ltd. (NYSE:FLNG) back in September, noting that vessel values had increased and that it had solid visibility into earnings and cash flow given its contracts. With the company reporting its Q3 results last month, let’s catch up on the name. Company Profile As a reminder, FLNG owns and operates a…
JHVEPhoto/iStock Editorial via Getty Images Introduction The Houston-based ConocoPhillips (NYSE:COP) released its second-quarter 2023 results on August 3, 2022. COP is one of the world’s largest independent oil & gas producers, with 58.9% of oil equivalent production coming from the lower 48, especially three prolific basins: Permian, Eagle Ford, and Bakken. COP 2Q23 Production Oil…
Natallia Pershaj Investment Thesis Cool Company (NYSE:CLCO) is a global company that deals in supplying LNG worldwide. It has recently reported its strong quarterly results and I believe it can sustain this growth in the future as a result of positive industry demand and its recent acquisitions, which can even help it to maintain its…
Fahroni/iStock via Getty Images The Netherlands will start permanently shutting down its Groningen field, the largest natural gas field in Europe, in just over two weeks on October 1, 2023. Groningen produced 6.5 billion cubic meters of gas in 2021 and its shutdown comes as Germany, the continent’s largest economy, shuttered its final three nuclear…
Suphanat Khumsap/iStock via Getty Images Introduction In the realm of energy investments, few stories appear as compelling as that of Cheniere Energy (NYSE:LNG). Over the past few years, this liquefied natural gas producer has been there ready to respond to changes in the market and help keep the lights on across Europe and the world….
JHVEPhoto Investment thesis Baker Hughes Company (NASDAQ:BKR) is one of the largest providers of oilfield services and equipment (“OFS”) globally. It competes with the other two OFS majors, Schlumberger (SLB) and Halliburton (HAL), as well as multiple lower tier and regional OFS players. Structurally, I am very bullish on OFS stocks (OIH), particularly those with…