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With Middle East tensions calming, gas prices stabilizing, and hydraulic fracturing expanding at a meteoric clip, LNG stock news is quite positive, as investors flock into this thriving sector.
Dynagas LNG Partners LP (Nasdaq: DLNG), whose IPO went live just three months ago, reported fourth-quarter income of $11.0 million (up 25% from fourth quarter 2012) and annual income for 2013 of $45.6 million. Its first dividend, pro-rated to the IPO date, was $.17 per share, or $1.47 per share annualized from present income. This sizable dividend supports the market's bullish reaction to this newly-traded stock, which has soared 20% from an $18 IPO to $22.30 as of closing Feb. 24. This stock's rapid ascendency combined with the partnership's income statement make it one to watch closely over the coming months.
Further impressive LNG stock news comes from Cheniere Energy (NYSEMKT: LNG), the premiere player in the field. Its stock closed Feb. 22 at $50.00 near its 12-month high of $50.69.
This enthusiastic market response comes despite its reported net losses of $61.3 million for December 2013 and $258.1 million for the year. Most of these losses are attributable, says the company in its report released Feb. 21, to expansion into liquefaction via Sabine Pass Liquefaction, LLC, derivative exposure, and early repayment of debt related to the liquefaction facilities.
Cheniere Energy has received federal approval for two-thirds of its liquefaction project and has filed the necessary paperwork for the final third. While these are preliminary data and no balance sheet has yet been released, these new investitures should portend very good news for shareholders in the coming quarter.
Energy Transfer Partners LP (NYSE: ETP) offers more good LNG stock news as its quarterly dividend amounted to $0.92, or 6.8%. This is a great stock to buy and hold, as it should continue to pay hefty dividends as the sector expands. Additionally, its stock price rose 15% in the last quarter, for a total gain of 21.8% including dividend.
Teekay Tankers Ltd (NYSE: TNK) is a rather odd duck in the pool since its stock is trading at a mere $3.96. However, of its 67 tankers currently in operation, 23 are dedicated solely to LNG. Furthermore, its projected P/E ratio for FY 2015 is a healthy 11, and its fourth-quarter dividend, despite a -0.10 EPS, was $0.12 or 3%. This will be a stock to watch, as Teekay has invested heavily into LNG, and as the industry grows so should its valuation.
Chicago Bridge and Iron (NYSE: CBI), a very old company with roots in the Gilded Age, is now trading very near its yearly high ($83.42) with a Feb. 24 closing quote of 80.30. While its P/E is slightly high at 24.24, its EPS are very healthy at $3.31. CB&I now has stakes in liquefaction, re-gasification, and LNG import (operating two terminals in the UK). Its last quarter dividend was only 0.3%, but its steady growth and recent major investments mean that it's likely to remain a stalwart of the LNG industry.
Our final bit of great LNG stock news is that DHT Holdings Inc. (NYSE: DHT) posted a 20% share price gain in January 2014 alone. Its stock soared from $6.84 to $8.19 in just 31 days. While its dividend remains relatively small (1%), its rapid market increase and growth potential are definite buy signals. DHT is based in Bermuda, with eight double-hull crude tankers, and with the expansion of the Panama Canal nearly complete (and the potential for a competing, larger Chinese canal in the next few years), DHT may become a strong global player.
LNG stock news is thus overall extremely positive, and continued investment in this rapidly-growing sector is strongly advised.