The export terminal gives natural gas producers hope not only for selling liquefied natural gas to foreign countries, but that the demand will raise prices in the US. At the current price of around $1/thousand cubic feet, domestic natural gas is essentially free. When exported as LNG, the gas currently fetches $15-$16/thousand cubic feet.

Cheniere has long-term contracts for deliveries to begin in late 2015 or early 2016 for the first two trains and 2017/2018 for the second two trains.

Cheniere Energy Partners and its general partner, Cheniere Energy Inc. (AMEX: LNG), are trading near 52-week highs on the FERC announcement.

Cheniere and its subsidiary, Cheniere Energy Partners LP (AMEX: CQP), have received approvals to convert the Sabine Pass liquefied natural gas receiving terminal into an export terminal. Cheniere Energy Partners will build the $10 billion liquefaction facilities, and construction could start in less than a month.

But today’s secondary stock offering is being used “for general corporate purposes, including repayment of indebtedness.” Two weeks ago Cheniere Energy Partners announced a $2 billion investment from Blackstone Group LP (NYSE: BX) to get construction going on the first production facilities.

Investors are not happy about the pricing of the secondary offering and shares of Cheniere Energy Inc. are down about -5.7% at $15.10, after closing at $16.01 last night. The stock’s 52-week range is $3.17-$17.07.

We are presently owned by a group of investors who don’t think gas prices will ever go above $4. I want to be owned by investors who live in a part of the world that believes gas prices will never go below $10.

That part of the world is Asia, where Chesapeake has already sold stakes in some of the company’s Eagle Ford play to Cnooc Ltd. (NYSE: CEO) for more than $2 billion. The company also sold a stake in the Utica shale to France’s Total SA (NYSE: TOT) for $2.3 billion earlier this year.

Chesapeake’s theory is that natural gas prices demand for natural gas from Japan, South Korea, China, and other Asian buyers will keep the price for liquefied natural gas (LNG) around its current range of $16/thousand cubic feet, nearly 8x US natural gas prices. In order to realize that price, though, Chesapeake needs an export terminal, and the one closest to being started is the Sabine Pass LNG receiving terminal owned by Cheniere Energy Partners LP (AMEX: CQP). First deliveries from that terminal are not due for another five years.

In order to monetize Chesapeake’s assets, McClendon has no choice but to seek partners, and his recent 52-city tour of Asia is a pretty good indicator of where those partners are likely to come from. In Chesapeake’s favor is the long-term view held by potential Chinese investors. In McClendon’s view, Chesapeake is sitting on assets worth about $100 billion and the company’s debt of $10 billion does not raise the doubts among Asian investors that it does among US investors:

They [Asian investors] don’t say, ‘You’ve got $2 billion too much debt.’ They say ‘You’ve got what the world wants, and someday gas prices are going to be unlocked from the jail cell where they are today, and you’re going to be the biggest winner.

Chesapeake’s shares are down about -2% this morning, at $24.08 in a 52-week range of $2041-$35.75.

The unofficial closing bells put the DJIA down about 1.5 points to 12,981.51 (-0.01%), the NASDAQ rose more than 2 points (0.08%) to 2,966.16 and the S&P 500 rose 0.14% or nearly 2 points to 1,367.59.

There were several analyst upgrades and downgrades today, including Sears Holding Corp. (NASDAQ: SHLD) maintained as ‘underperform’ at Credit Suisse; Interpublic Group of Companies Inc. (NYSE: IPG) raised to ‘buy’ at Deutsche Bank; Dunkin’ Brands Group Inc. (NASDAQ: DNKN) started as ‘buy’ at Citgroup; American Electric Power (NYSE: AEP) raised to ‘buy’ at Jefferies; and United Rentals Inc. (NYSE: URI) started as ‘buy’ at Citigroup.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: The AES Corp. (NYSE: AES) is down -0.51% at $13.73; Balchem Corp. (NASDAQ: BCPC) is down about -17% at $29.52 after posting a new 52-week low of $29.35 earlier; Charter Communications Inc. (NASDAQ: CHTR) is up 0.2% at $63.55 after posting a new 52-week high of $64.39 earlier this morning; Cooper Tire & Rubber Co. (NYSE: CTB) is up nearly 14% at $17.81; El Paso Corp. (NYSE: EP) is up 1.8% at $27.65, a new 52-week high; Lowes Companies Inc. (NYSE: LOW) is up 0.83% at $27.39; Quicksilver Resources Inc. (NYSE: KWK) is down -5.8% at $5.73; Transocean Ltd. (NYSE: RIG) is up 5.34% at $53.44; and Valeant Pharmaceuticals International Inc. (NYSE: VRX) is up 5.6% at $50.62.

Other standouts from today include the following stocks:

ATP Oil & Gas Corp. (NASDAQ: ATPG) is up nearly 20% at $8.63. The independent oil & gas company reported a fourth successful well at its Telemark Hub project.

Cheniere Energy Partners L.P. (AMEX: CQP) is up about 14% at $23.80 after posting a new 52-week high of $24.21 earlier. The liquefied natural gas company announced an investment from Blackstone Group LP (NYSE: BX). More coverage here.

Dendreon Corp. (NASDAQ: DNDN) is down more than -20% at $11.83. The drug maker reported lower-than-expected revenues this morning. More coverage here.

Intermolecular Inc. (NASDAQ: IMI) is down more than -15% at $6.31 after posting a new 52-week low of $6.02. The semiconductor equipment and materials company’s stock is likely reacting to the bankruptcy filing by Japanese chipmaker Elpida.

Microvision Inc. (NASDAQ: MVIS) is down more than -16% at $3.28. The laser display company reported very poor earnings this morning.

Stay tuned for Tuesday. Federal Reserve governor Elizabeth Duke and Cleveland Fed president Sandra Pianalto are giving speeches. We have noted the following events on the schedule (all times Eastern):

• 8:30 a.m. – Durable goods orders
• 9:00 a.m. – S&P Case-Shiller housing price index
• 10:00 a.m. – Conference Board consumer confidence index
• 10:00 a.m. – Richmond Fed manufacturing index
• 10:00 a.m. – State Street investor confidence index
• 11:30 a.m. – 4-week Treasury bill auction

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Paul Ausick

Carnival Corp. (NYSE: CCL) Maintained Hold but cut estimates at Argus.
Chesapeake Energy Corporation (NYSE: CHK) Cut to Hold at Brean Murray.
Cheniere Energy Inc. (NYSE: LNG) Started as Outperform with $13.50 target at Credit Suisse
Cheniere Energy Partners, LP (NYSE: CQP) Started as Neutral with $20 target at Credit Suisse.
Cree Inc. (NASDAQ: CREE) maintained Buy with $33 target at Canaccord Genuity; Raised to Buy at ThinkEquity; Cut to Neutral at Ticonderoga.
Expedia, Inc. (NASDAQ: EXPE) Started as Underweight at JPMorgan.
France Telecom S.A. (NYSE: FTE) Cut to Sell at Deutsche Bank.
Google Inc. (NASDAQ: GOOG) Cut to Market Perform from Outperform at Wells Fargo.
Janus Capital Group, Inc. (NYSE: JNS) Cut to Sell at Citigroup.
The Kroger Co. (NYSE: KR) Cut to Market Perform at BMO Capital.
MGM Resorts International (NYSE: MGM) Raised to Neutral at Credit Suisse.
Office Depot, Inc. (NYSE: ODP) Raised to Equal-weight at Barclays.
OfficeMax Inc. (NYSE: OMX) Raised to Equal-weight at Barclays.
PVH Corporation (NYSE: PVH) Started as Neutral with $72 target at Credit Suisse.
Ralph Lauren Corporation (NYSE: RL) Started as Outperform with $168 target at Credit Suisse.
Telefonica SA (NYSE: TEF) Cut to Sell at UBS.
Textron Inc. (NYSE: TXT) Cut to Neutral at JPMorgan.

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JON C. OGG

Unlike the over-supply in other shipping markets, LNG vessels are in short supply and carriers like Teekay LNG Partners LP (NYSE: TGP) and Golar LNG Ltd. (NASDAQ: GLNG) are reaping the rewards. The global fleet for LNG carriers totals just 364 vessels. Day rates have risen above $100,000 and Golar is thought to be concluding a deal at $120,000. By 2013, the day rate could be as high $140,000.

These are the highest day rates since 2006, and are due to the fact that 90% of the LNG fleet is contracted on long-term deals that leave only a relative handful of vessels available for spot shipments. LNG cargoes headed for Europe have been redirected to Asia, where LNG prices are higher, increasing the amount of time the LNG carriers are hauling a single cargo.

Much of the LNG is coming from Qatar and is going to Japan. Before the earthquake and tsunami this past Spring, Japan consumed about 70 million tons of LNG annually. That number is expected to rise to 85 million tons in 2011 and 90 million tons in 2012. Qatar’s exports are soon expected to reach 120 million metric tons annually.

Until the recent US boom in shale gas extraction, the US was expected to be an importer of LNG and several receiving terminals had been proposed. Now, Cheniere Energy, Inc. (AMEX: LNG) and its subsidiary Cheniere Energy Partners LP (AMEX: CQP) have been approved to build a liquefaction facility at the Sabine Pass LNG receiving terminal, but that project is still a few years away. A proposed receiving terminal in Oregon has also begun the process of getting federal approval to export LNG.

The Kitimat LNG facility in British Columbia is another proposed LNG export terminal owned by Apache Corp. (NYSE: APA) with 40% and Encana Corp. (NYSE: ECA) and the Canadian arm of EOG Resources Inc. (NYSE: EOG), each with 30%. The feedstock will come from Apache and EOG fields in Canada. Initial annual capacity of five million metric tons is due in 2013.

The LNG carrier market could be constrained into 2013. New orders for LNG vessels totaled just 5 in 2010, compared with 45 so far this year. Vessels ordered this year are expected to be delivered in 2014-2015, but all may not be built.

The other impact on LNG carriers could come from new Pacific Rim facilities that will be closer to the Asian markets and lower demand for the long-haul trips from Europe and Africa.

For now, though, the outlook is strong for LNG carriers. Teekay has been only a bit better than flat for the past 12 months, but Golar shares are up more than 150%, though about 20% off of 52-week highs.

Paul Ausick

This poses a severe financial risk for many companies who are dependent upon the future of natural gas.  We are tracking United States Natural Gas (NYSE: UNG), Exxon Mobil Corp. (NYSE: XOM), Chesapeake Energy Corp. (NYSE: CHK), Encana Corp. (NYSE: ECA), Devon Energy Corp. (NYSE: DVN), EOG Resources Inc. (NYSE: EOG), and Questar Corp. (NYSE: STR).  Also being tracked are Cheniere Energy, Inc. (AMEX: LNG), Cheniere Energy Partners LP. (AMEX: CQP), Clean Energy Fuels Corp. (NASDAQ: CLNE) and Westport Innovations Inc. (NASDAQ: WPRT).  The losses are brutal, and the weak stock market is not helping things.

United States Natural Gas (NYSE: UNG) has to be one of the worst exchange-traded products out there because of erosion into roll-dates in the futures contracts.  Still, it is actively traded because investors can easily get exposure to natural gas on an intraday basis this way in their normal equity accounts.  This trust is down 3.6% at $9.97 and a new 52-week low of $9.94 was just hit this morning.

Exxon Mobil Corp. (NYSE: XOM) includes XTO after its huge natural gas acquisition.  Shares are down 1.3% at $76.71 and the 52-week range is $55.94 to $88.23.  Chesapeake Energy Corp. (NYSE: CHK) is the largest pure-play for natural gas and it recently even started a venture fund to drive nat-gas interests as part of the next energy policy.  Chesapeake is down a sharp 5.3% at $32.42 and the 52-week range is $19.68 to $35.95.

Encana Corp. (NYSE: ECA) is down 2.9% at $27.40 and close to 52-week lows as that range is $26.02 to $35.25.  Devon Energy Corp. (NYSE: DVN) is down 4.3% at $72.55 but its 52-week range is $59.07 to $93.56.  EOG Resources Inc. (NYSE: EOG) is down 4.1% at $93.96 versus a 52-week range of $85.42 to $121.44. Questar Corp. (NYSE: STR) is down only 1.7% at $17.95 and its 52-week range is $16.03 to $19.06.

Cheniere Energy, Inc. (AMEX: LNG), a liquefied natural gas (LNG) terminal operation, is down almost 9% at $8.89 versus a 52-week range of $2.30 to $12.81.  Its limited partnership is called Cheniere Energy Partners LP. (AMEX: CQP) and that is down ‘only 3.3%’ at $16.55 versus a 52-week range of $15.05 to $24.54.

Clean Energy Fuels Corp. (NASDAQ: CLNE) is T. Boone Pickens’ ‘gas station’ play that he wants to serve the nat-gas trucks as the refuel-stop on major trucking routes.  Shares are down more than 4% at $14.58 versus a 52-week range of $11.75 to $17.85.

Westport Innovations Inc. (NASDAQ: WPRT) is down 4.5% at $22.74 versus a 52-week range of $14.25 to $28.05.  The company specializes in alternative energy engines for trucks, particular those using compressed natural gas.

Dow Jones was calling for a build of 36 billion cubic feet, but the weekly gain reported by the Energy Information Administration was 44 billion cubic feet and U.S. inventories now sit at 2.758 trillion cubic feet.  What is interesting is that Dow Jones noted that this inventory build is still 2.4% under a 5-year average and more than 6% under year-ago levels.

Right now it feels like trying to find the bottom in selling levels is a bit like catching a falling knife.  It is just not very rewarding.  Maybe a bottom is close and maybe not in these stocks, but one thing is a sure bet: Natural gas dipping back under $4.00/tcf does pose a severe financial risk to the business viability of producing and even transporting natural gas.

Natural gas is not alone in its misery today.  Oil is back under $91.00 per barrel as well.

JON C. OGG

Cheniere Energy Partners LP. (AMEX: CQP) Raised to Hold at Citigroup.
Dynegy Inc. (NYSE: DYN) Cut to Sell at S&P Equity Research (late-Tuesday call).
Ensco plc (NYSE: ESV) Raised to Outperform and $71 target at Credit Suisse.
Finisar Corporation (NASDAQ: FNSR) Target cut to $29 from $43 at Credit Suisse.
Interactive Brokers Group Inc. (NASDAQ: IBKR) Cut to Underperform and Short-Term Sell at Zacks Investment Research.
Lululemon Athletica Inc. (NASDAQ: LULU) Started as Buy at Stern Agee.
The Mosaic Co. (NYSE: MOS) Cut to Hold at Citigroup.
BankUnited, Inc. (NYSE: BKU) Started as Market Perform at KBW; Started as Buy at BofA/ML; Started as Neutral at Goldman Sachs.
Potash Corp. of Saskatchewan (NYSE: POT) Cut to Hold at Citigroup.
Suntech Power Holdings Co. Ltd. (NYSE: STP) Reiterated Underperform with $7.80 target at BofA/ML; Maintained Buy with $13 target Auriga.
Transocean Ltd. (NYSE: RIG) Started as Market Perform at Morgan Keegan.
Trinity Biotech plc (NASDAQ: TRIB) maintained Outperform as Bull of the Day at Zacks Investment Research.
United Natural Foods Inc. (NASDAQ: UNFI) Cut to Hold at Argus.
United Natural Foods Inc. (NYSE: WEN) Reiterated Sell at Argus.

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JON C. OGG

Not more than two or three years ago, energy companies believed that the US would begin importing large quantities of liquefied natural gas, or LNG. Re-gasification plants were either expanded or built to accommodate the anticipated LNG shipments. The largest of these plants, called Sabine Pass, is located in the Gulf of Mexico and is owned and operated by Cheniere Energy Partners LP (AMEX: CQP).

Cheniere Energy Partners is a subsidiary of Cheniere Energy Inc. (AMEX: LNG), the company that originally built the Sabine Pass receiving terminal and others in the Gulf of Mexico. Last month, Cheniere Partners received permission from the US Department of Energy to export LNG produced in North America from its Sabine Pass terminal. The company had already received permission to re-export imported LNG that it couldn’t sell.

The reason Cheniere Partners can’t sell imported LNG is because the US is awash with natural gas from the shale gas wells of Texas, Arkansas, Pennsylvania, and elsewhere. In late 2008, it appeared that both Cheniere Partners and Cheniere Energy might be headed for failure due both to the financial crisis and the booming supply of domestically-produced natural gas.

To turn the business around, the companies decided to build  liquefaction facilities, called ‘trains’, at Sabine Pass. Today Cheniere Partners announced that it has signed a memorandum of understanding with a Chinese company, ENN Energy Trading Co., willing to contract for 1.5 million metric tons annually of LNG produced at Sabine Pass. ENN Energy and Sabine Pass will now begin to negotiate definitive agreements that are expected to lead to a 20-year contract.

Cheniere Partners also signed a memorandum of agreement with Morgan Stanley Capital Group Inc. earlier this week that would allow Morgan Stanley to import or export up to 1.7 million metric tons annually from Sabine Pass.

Cheniere’s plan for the Sabine Pass liquefaction facility includes up to four LNG trains each with a capacity to liquefy up to 700 million cubic feet/day of natural gas, or about 3.5 million metric tons annually. The company believes that exports of US LNG could begin in 2015.

So far Cheniere faces competition from just one other North American LNG facility. A small liquefaction plant owned by ConocoPhillips Corp. (NYSE: COP), Marathon Oil Corp. (NYSE: MRO), and the Alaska Natural Gas Corp. has been operating in Alaska for more than 40 years and ships 98 billion cubic feet/year of LNG to Japan.

US oil company Apache Corp. (NYSE: APA) owns 51% of the Kitimat LNG plant in British Columbia that is expected to begin operation in 2014 and targets Asia as a destination for its shipments of liquefied gas from northwestern Canada. The Kitimat train is a lot closer to Asia than Sabine Pass, and has signed a memorandum of agreement with Korea Gas Corp. to take up to 40% of Kitimat’s annual production of about 3.5-5 million metric tons annually.

Shares in Cheniere Partners have moved up only marginally this morning, but Cheniere Energy shares are up about 4.5% on the announcement of the memorandum of understanding with ENN Energy Trading.

Paul Ausick

We have compiled the news or the catalyst for each, as well as offered additional color and an expected move for the week ahead.

Abbott Laboratories (NYSE: ABT) is already worth almost $80 billion so we’d normally not care so much about one upcoming drug.  The issue coming this Wednesday is a FDA panel review of its Meridia drug, which is to treat obesity.  As the obesity class is largely unmet and as there have been many FDA roadblocks on this indication for others, this could easily be a new blockbuster drug if ultimately approved.

Adobe Systems, Inc. (NASDAQ: ADBE) and Apple Inc. (NASDAQ: AAPL) are one issue.  It appears as though Steve Jobs decided that he was being too much like some other Technocrats in his heavy-handed and severely limiting blockage of Flash.  This last week Apple relaxed some App restrictions and requirements, and Wall Street’s vote was that this means that Adobe’s Flash will now get to run on iPhone and iPad platforms. While Adobe closed down 2% at $32.20 Friday, its shares closed up 9.5% for the week and its 52-week range is $26.01 to $38.20.  With Samsung apparently bringing a tablet earlier than expected, Steve Jobs may have waited too long to stop his heavy-handed tricks.

Allos Therapeutics, Inc. (NASDAQ: ALTH) was up 6.8% at $4.25 on Friday after it was floated out there are as one of the possible takeover candidates in the sector.  Frankly, the argument sounded weak but there was over 300% normal share volume and the low call option volume was actually well above normal trading levels.  The 52-week trading range is $3.58 to $8.79.

Best Buy Co. (NYSE: BBY) has earnings this coming Tuesday.  With all the technology warnings seen and with the building of inventories, we have been critical of the lack of any guidance from the company.  It has to be expected that Best Buy will talk down the yearly results when it reports, but there is a lot of that warning already baked into the cake now.  At $33.88, its 52-week range is $30.90 to $48.83.

Cheniere Energy, Inc. (AMEX: LNG) saw a large pop of Friday night after it already closed up almost 6% at $2.66 Friday because of a Department of Energy approval allowing it to sell LNG all over the world.  But then came more than a 10% pop after Jim Cramer talked it up on CNBC’s MAD MONEY.  The 52-week trading range is $1.77 – $5.40, but investors may also not want to forget about the Cheniere Energy Partners LP. (AMEX: CQP) in there also.

Cisco Systems Inc. (NASDAQ: CSCO) has its analyst meeting on Tuesday.  You know the routine and it is not an uncertain outlook.  Chambers needs to address this dividend.  Cisco is a tech growth leader, but the stock has been dead money and by the looks of it all the share buybacks conducted to date have just been to keep employee stock options from diluting the stock too bad.  Chambers always talks about “Caishe-flow” and he needs to start paying a dividend.