Despite Down Earnings, Cheniere (NYSE: LNG) Is One of Top LNG Stocks to Buy

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Make no mistake - Cheniere Energy Inc. (NYSE: LNG) is still one of the best LNG stocks to buy, despite Friday's earnings miss.

Cheniere reported a net loss attributable to common stockholders (basic and diluted) of $0.61 per share or $135.2 million for Q4. That compares to a net loss of $0.44 per share, or $94.3 million, for the previous year.

For the full year 2013, LNG reported a net loss of $507.9 million of $2.32 per share. That compares to losses of $332.8 million and $1.83 per share in 2012.

Cheniere (LNG) stock was up nearly 2.5% today (Monday) despite the lower earnings per share (EPS).

CHENIERE ENERGY
AMEX: LNG
Sep 15
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Price: 81.07 | Ch: -1.57 (-1.9%)

While the initial earnings figures weren't that inspiring, these other report details tell a better story for investors...

Key Numbers in Cheniere's (NYSE: LNG) Earnings

The most important information from Cheniere's earnings report was the update on its two major liquefied natural gas (LNG) export projects.

Cheniere has received approval from the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) for the first four "trains" in its Sabine Pass LNG terminal. Each train has an approximate capacity of 4.5 million metric tonnes per year (mpta). The company is awaiting approval on two additional trains at the facility.

The company reports that the construction of trains 1 and 2 is 57.1% complete, and train 1 should be operational by late 2015. According to Cheniere, that is ahead of the contractual schedule. Trains 3 and 4 are 21.6% complete and should be operational in late 2016 and 2017, respectively.

Cheniere is also making progress toward an LNG export facility in Corpus Christi, Texas, which is currently being designed for a production capacity of 13.5 mpta of LNG. Currently, Cheniere has DOE approval to export 767 billion cubic feet (bcf) of domestically produced LNG to free-trade agreement countries from that facility.

Cheniere is expecting a final FERC decision on the Corpus Christi LNG export facility by January 2015.

Investors can expect Cheniere's financial figures to remain in the red while it finishes constructing its LNG export facilities. But that's not a reason to be pessimistic on LNG stock...

Why We're Bullish on Cheniere (NYSE: LNG) Now

Cheniere's at the front of an industry poised for soaring growth. Global demand for liquefied natural gas has doubled since 2000 and is expected to double again by 2025.

And the United States will be the world's major natural gas supplier.

In January, BP published Energy Outlook 2035, which estimated that the United States will double its current production of shale gas by 2035. The report also indicated that the United States will become the world's largest natural gas producer in that time.

In order for the United States to transport its massive natural gas supply to the rest of the world, it'll start exporting LNG - which is a huge bullish indicator for Cheniere stock, according to Money Morning's Global Energy Strategist Dr. Kent Moors.

"The things we see happening in 2014 are really going to boost share prices [of the companies involved in the LNG business]," Moors said. "By definition, revolutions bring about dramatic change. And whether you're talking about energy, technology or consumer products, periods of dramatic change can be the source of a deluge of profits for investors who know where to look - and are then willing to act."

As the first company to receive federal approval on LNG exporting, Cheniere has a huge jump on its competitors.

"Cheniere will stand as a dramatic example of just how fast - and how much - this essentially new LNG export market is going to advance," said Moors.

In the last 12 months, LNG has gained 136%. Shareholders who bought in on LNG stock at the start of 2010 have locked in an incredible 1,883% gain. Even after posting dismal earnings, LNG is up nearly 2.5% today.

LNG stock is currently trading at $49.58, which is just off its all-time high. However, LNG still has room for major growth as Cheniere begins exporting LNG globally in the next several years.

Do you own LNG stock? What other companies do you think can exploit the liquefied natural gas boom? Tell us on Twitter @moneymorning using #LNG.

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