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

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).

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

Join the conversation. Click here to jump to comments…

  1. Andre Frank | March 19, 2014

    I own this stock ever since it was $16 and will for a number of years. Now there's a small LNG Australian company that owns Magnolia LNG, LLC that has approvals from DOE to FTA and progress very well. The company name is Liquefied Natural Gas Limited (LNGLF). Since .15 cents now upto .54 cents. Their Tolling agreement model parallel's Cheniere Energy. Its a sleeper.

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