24/7 Wall St. » LNG

Credit Suisse Lists the Best MLPs to Buy: Cheniere, Williams and More

Lee Jackson — Wed, 22 May 2013 13:05:38 +0000

A strong stock market has the oil and gas master limited partnerships (MLPs) on fire in 2013, which already offer high dividends or distributions as income and return of capital. MLPs underperformed the broad market last year. Now we have investors getting a catch-up trade, with MLPs delivering 22.6% in total returns year-to-date, as measured by the market-cap weighted Alerian MLP index and by the JPMorgan Alerian MLP Index ETN (NYSEMKT: AMJ), compared to 17.9% for the S&P 500. The MLP research team at Credit Suisse is attending the National Association of Publicly Traded Partnerships (NAPTP) investor conference this week. The firm has issued its list of MLP stocks to buy for income investors.

Investors need to understand that MLPs are technically “units” rather than shares, as these are partnership interests rather than shares of stock. The largest MLP conference of the year is on tap, and the mood is expected to be considerably more festive this year than last year. Fundamentals remain strong, particularly in the oil production area, though pipeline additions are contributing to falling basis. Natural gas liquids (NGL) production continues also to surprise to the upside, especially in the Marcellus and Utica shale plays.

Here are Credit Suisse’s top MLPs to buy now for the next 12 months.

Williams Companies Inc. (NYSE: WMB) is the top stock to buy at Credit Suisse. The company’s strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. The Credit Suisse price target for the stock is $49. The Thomson/First Call estimate is $40.50. Shareholders receive a 3.60% distribution. Remember, MLP distributions can contain return of principal.

QR Energy L.P. (NYSE: QRE) may be a stock to buy for yield-hungry investors. QR Energy recently has expanded into the Permian Basin, and it now makes up 35% of production and proved reserves. Credit Suisse has a $20 price target, and the consensus is at $20 as well. Investors are paid a whopping 11.20% distribution.

Cheniere Energy Inc. (NYSEMKT: LNG) is the operator of the coveted Sabine Pass LNG terminal and is the leader in the export of the product. Credit Suisse has a $38 price target, but the consensus target is much lower at $32. The company does not pay a distribution.

Targa Resources Corp. (NYSE: TRGP) recently completed a $625 million senior note offering to reduce current borrowing costs. Credit Suisse has an $82 target on this top name. The consensus is much lower at $73. Shareholders are paid a 2.90% distribution.

Cheniere Energy Partners L.P. (NYSEMKT: CQP) is a subsidiary of Cheniere Energy. This is the Cheniere entity that actually owns and operates the Sabine Pass LNG terminal. Credit Suisse has a $31 target for the stock. The consensus is $26, which is below its current trading level. Shareholders are paid a solid 6.00% distribution.

Crosstex Energy L.P. (NASDAQ: XTEX) engages in gathering, transmission, processing and marketing natural gas, natural gas liquids (NGLs) and crude oil primarily in the north Louisiana, north Texas and Ohio River Valley. Credit Suisse has a $22 price objective, while the consensus is at $21. Shareholders receive a very nice 6.40% distribution.

Access Midstream Partners L.P. (NYSE: ACMP) is one of the MLP names to buy. The company has established a large-scale position in all the key unconventional basins in the United States. Credit Suisse’s $46 price target is right in line with the consensus target. Investors are paid a 4.30% distribution.

Genesis Energy L.P. (NYSE: GEL) announced it will expand its existing rail terminal in Natchez, Miss., designed to handle straight and minimally diluted bitumen delivered by the Canadian National Railway, and construct a new unit train loading facility in the heart of the Powder River Basin of the Niobrara Shale Play. Credit Suisse has posted a $53 price target. The consensus is at $51. Investors are paid a 3.80% distribution.

The Credit Suisse team has stressed and continues to emphasize a more defensive posture, and they are focusing their attention on large, relatively liquid, investment grade MLPs or affiliates with exposure to the coming crude oil production boom in North America. Given the solid run by MLP names so far this year, that advice makes good sense for investors.

Filed under: Analyst Calls, Dividends & Buybacks, Infrastructure, Oil & Gas Tagged: ACMP, AMJ, CQP, CS, featured, GEL, LNG, QRE, TRGP, WMB, XTEX

Credit Suisse Unveils MLPs to Buy for the Next 12 Months (LNG, TRGP, QRE, CQP, XTEX, GEL, DPM, ACMP, TLLP)

Lee Jackson — Thu, 21 Mar 2013 12:20:58 +0000

Investors still love the realm of master limited partnerships (MLPs) for their oil and gas infrastructure dominance, and of course for those high returns of capital that act like dividends.

Earlier this week we reported on how MLP stocks performed in a rising interest rate environment. Many MLP investors most likely breathed a sigh of relief when the historical data showed that MLP stocks tend to perform very well during interest rate increases.

In a recent report the MLP analyst team at Credit Suisse Group A.G. (NYSE: CS) not only defined historical MLP performance versus rate hikes, but they also came out with a list of names to own for the next 12 months.

For a review, MLPs outperformed the S&P 500 between mid-2004 and mid-2007, the last period of rising interest rates in the past 20 years. MLPs lagged the performance of utilities during that time and were roughly in line compared to REITs. All of these income-oriented equities outperformed bonds. The outperformance relative to the S&P 500 in the 2004 to 2007 period does not necessarily mean MLPs would outperform again should interest rates increase. However, there are factors currently in place that lead the Credit Suisse analysts to believe that MLPs would perform solidly again should interest rates rise.

The Credit Suisse research team has picked the following nine top names that investors should own for the next 12 months.

Liquefied natural gas leader Cheniere Energy Inc. (NYSEMKT: LNG) kicks off the list. It has LNG terminal projects in Texas and Louisiana. The Credit Suisse price target is $33, and the Thomson/First Call consensus price target is $25.

Houston-based Targa Resources Corp. (NYSE: TRGP) provides midstream natural gas and natural gas liquid (NGL) services in the United States. The price target for the stock is $76, and the Wall St. estimate is $67. The company also pays investors a quarterly 3.0 % distribution. Remember, a distribution from MLPs can contain return of principal.

Investors searching for big distributions may want to look at QR Energy L.P. (NYSE: QRE), which sports an 11% distribution. The price target for QR Energy is $20. The consensus target is right in line at $20.

A subsidiary of Cheniere Energy, Cheniere Energy Partners L.P. (NYSEMKT: CQP), also makes the Credit Suisse top nine picks for the next 12 months. With a 6.80% distribution and a $28 price target, this is a solid name for investors also seeking income. The consensus price target is $27.50.

Dallas-based Crosstex Energy L.P. (NASDAQ: XTEX) is also a Texas and Louisiana oil, gas and natural gas liquids leader. With a $20 price target and an above average 7.50% distribution, Crosstex is another solid total return play for investors. The consensus price target is $19.

Genesis Energy L.P. (NYSE: GEL) operates three segments in the Gulf Coast region of the United States. The Pipeline Transportation, Refinery Services and the Supply and Logistics segments keep revenues consistent and growing. The Credit Suisse price target is $52 and the company pays a 4.30% distribution. The consensus price target is $47.

DCP Midstream Partners L.P. (NYSE: DPM) recently strengthened their cash position with a $500 million 10-year bond offering. The company has a $47 price target and pays investors a solid 6.10% distribution. The consensus estimate is at $48.50.

Based in Oklahoma City, Access Midstream Partners L.P. (NYSE: ACMP) is the former Chesapeake Midstream Partners. It has a focus on natural gas and natural gas liquid operations. The Credit Suisse price target for this popular name is $42. Investors receive a 4.50% distribution. The consensus target is in line at $41.

The final name on the list of stocks to buy for the next 12 months is Tesoro Logistics L.P. (NYSE: TLLP). It has multiple income streams from crude oil gathering, terminalling, plus transportation and storage. The target price for Tesoro Logistics is $57. The company pays modest 3.60% distribution. The consensus target is $53.

MLP stocks have posted a solid first quarter this year, after underperforming the market in 2012. Investors looking for growth and income stocks may want to review their portfolios and see if they have investments that would suffer in the event of interest rates increases. If so, they may want to swap in to some of these top MLP picks.

Filed under: Active Trader, Analyst Calls, Dividends & Buybacks, Infrastructure, Oil & Gas Tagged: ACMP, CQP, CS, DPM, featured, GEL, LNG, QRE, TLLP, TRGP, XTEX

Top Analyst Upgrades and Downgrades (ARO, MO, ADM, ATML, CL, CVRR, DNDN, IGT, IP, NKE, LULU, LOW, LSI, OKS, SNDK, TEF, TPH, YUM, CQP, LNG)

Jon C. Ogg — Tue, 26 Feb 2013 13:25:18 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades and initiations seen from Wall St. research calls.

Aeropostale Inc. (NYSE: ARO) named Bear of the Day as expensive even after shares are down 50% from last year at Zacks.

Altria Group Inc. (NYSE: MO) cut to Neutral at BofA/Merrill Lynch.

Archer Daniels Midland Co. (NYSE: ADM) cut to Market Perform at BMO.

Atmel Corp. (NASDAQ: ATML) cut to Market Perform at FBR.

Colgate-Palmolive Co. (NYSE: CL) cut to Neutral at BofA Merrill Lynch.

CVR Refining L.P. (NYSE: CVRR) started as Neutral at Credit Suisse, started as Buy at UBS, started as Neutral at Citigroup and started as Equal Weight at Barclays.

Dendreon Corp. (NASDAQ: DNDN) maintained Neutral but raised price target to $6 from $4 at Credit Suisse.

International Gaming (NYSE: IGT) named Bull of the Day at Zacks.

International Paper Co. (NYSE: IP) started as Buy at Jefferies.

Lowe’s Companies Inc. (NYSE: LOW) maintained Buy with $44 price target at Argus.

LSI Corp. (NASDAQ: LSI) cut to Market Perform at FBR.

Lululemon Athletica Inc. (NASDAQ: LULU) started as Outperform at Cowen.

Nike Inc. (NYSE: NKE) started as Outperform at Cowen.

ONEOK Partners L.P. (NYSE: OKS) cut to Neutral at Credit Suisse.

SanDisk Corp. (NASDAQ: SNDK) raised to Outperform at RBC.

Telefonica S.A. (NYSE: TEF) raised to Market Perform at Bernstein.

TRI Pointe Homes Inc. (NYSE: TPH) was started yesterday by others but was initiated as Buy at Citigroup.

YUM! Brands Inc. (NYSE: YUM) reiterated Hold but lowered 2013 earnings estimates by 15% at Argus.

Credit Suisse on the Cheniere plays: Cheniere Energy Partners L.P. (NYSEMKT: CQP) maintained Outperform but raised target to $29 from $25; Cheniere Energy Inc. (NYSEMKT: LNG) reiterated Outperform and raised target to $33 from $25 with long-term value possibly $48 if all plans come to fruition.

BofA/Merrill Lynch has resumed coverage of the public exchanges in a post-NYSE world (full summary).

Filed under: 24/7 Wall St. Wire, Analyst Calls Tagged: ADM, ARO, ATML, CL, CQP, CVRR, DNDN, IGT, IP, LNG, LOW, LSI, LULU, MO, NKE, OKS, SNDK, TEF, TPH, YUM

Top Analyst Upgrades and Downgrades (ACN, AKS, NLY, BBVA, BLMN, LNG, CLF, DB, DFS, LM, NFLX, OPEN, PSX, GOLD, TM, TSLA, X, UA, WFC, CMO, CYS, HTS, IVR)

Jon C. Ogg — Mon, 17 Sep 2012 12:02:43 +0000

These are some of the top analyst upgrades, downgrades and initiations seen from Wall St. research calls this Monday.

Accenture PLC (NYSE: ACN) reiterated Buy with $74 target at Argus.

AK Steel Holding Corp. (NYSE: AKS) cut to Neutral at JPMorgan.

Annaly Capital Management Inc. (NYSE: NLY) cut to Neutral at JPMorgan.

Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) cut to Underperform at BNP Paribas.

Bloomin’ Brands Inc. (NASDAQ: BLMN) started as Buy at BofA/ML, started as Buy at Goldman Sachs, started as Buy at Jefferies, started as Overweight at JPMorgan, started as Overweight at Morgan Stanley and started as Outperform at Raymond James.

Cheniere Energy Inc. (NYSEMKT: LNG) reiterated Outperform and raised target to $22 at Credit Suisse.

Cliffs Natural Resources Inc. (NYSE: CLF) cut to Neutral at JPMorgan.

Deutsche Bank A.G. (NYSE: DB) cut to Underperform at Credit Suisse.

Discover Financial (NYSE: DFS) cut to Hold at Stifel Nicolaus.

Legg Mason Inc. (NYSE: LM) cut to Hold at Jefferies.

Netflix Inc. (NASDAQ: NFLX) started as Underperform at Macquarie.

OpenTable Inc. (NASDAQ: OPEN) cut to Neutral at Piper Jaffray.

Phillips 66 (NYSE: PSX) cut to Neutral at Citigroup.

Randgold Resources Ltd. (NASDAQ: GOLD) raised to Neutral at Citigroup.

Toyota Motor Corp. (NYSE: TM) named Bull of the Day at Zacks.

Tesla Motors Inc. (NASDAQ: TSLA) raised to Overweight at Morgan Stanley.

United States Steel Corp. (NYSE: X) cut to Neutral at JPMorgan.

Under Armour Inc. (NYSE: UA) cut to Hold at Argus.

Wells Fargo & Co. (NYSE: WFC) cut to Hold at Stifel Nicolaus.

FBR Capital Markets downgrades mortgage REITs: Capstead Mortgage Corp. (NYSE: CMO) cut to Market Perform, CYS Investments (NYSE: CYS) cut to Market Perform, Hatteras Financial Corp (NYSE: HTS) cut to Market Perform and Invesco Mortgage Capital Inc. (NYSE: IVR) cut to Market Perform.

JON C. OGG

Filed under: Analyst Calls Tagged: ACN, AKS, BBVA, BLMN, CLF, CMO, CYS, DB, DFS, gold, HTS, IVR, LM, LNG, NFLX, NLY, OPEN, PSX, TM, TSLA, UA, WFC, X

24/7 Wall St. Closing Bell — July 12, 2012: Markets Continue Slide on No Signs of Easing

Paul Ausick — Thu, 12 Jul 2012 20:06:05 +0000

The three major US stock indexes opened lower this morning following yesterday’s release of the minutes of the June FOMC meeting which did not raise hopes for another round of Fed easing. Markets in Asia and Europe were weaker as well today, although the report for May industrial production in Europe was better than expected (our coverage here). The Bank of Japan has also crushed investors hopes of more easing in that country. New claims for unemployment benefits came in lower than expected and import prices fell for the third month in a row, but neither report did anything to boost shares (more coverage here).

The US dollar index rose today, now up 0.15% at 83.690, after rising to almost 84 earlier today (our coverage here). The GSCI commodity index rose about 1% to 612.44, with commodities prices mixed today, following a disheartening report on drought in the US Midwest (our coverage here). WTI crude oil rose 0.3% today, closing at $86.08/barrel. Brent crude trades up 0.6% at $100.82/barrel. Natural gas is up 0.8% today to $2.875/thousand cubic feet. Gold settled at $1,565.30/ounce, down -0.7% since yesterday’s close.

The unofficial closing bells put the DJIA down more than 31 points to 12,573.27 (-0.25%), the NASDAQ fell nearly 22 points (-0.75%) to 2,866.19, and the S&P 500 fell -0.5% or more than 6 points to 1,334.76.

There were several analyst upgrades and downgrades today, including Delta Air Lines Co. (NYSE: DAL) and United Continental Holdings Inc. (NYSE: UAL) started as ‘sell’ at Goldman Sachs; The Walt Disney Co. (NYSE: DIS) raised to ‘outperform’ at Wells Fargo; FedEx Corp. (NYSE: FDX) raised to ‘buy’ at Goldman Sachs; and Archer Daniels Midland Co. (NYSE: ADM) cut to ‘equal-weight’ at Morgan Stanley.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Marriott International Inc. (NYSE: MAR) is down -6% at $35.74, Texas Industries Inc. (NYSE: TXI) is up 16.2% at $44.20 after posting a new 52-week high of $44.23 earlier today; Infosys Ltd. (NASDAQ: INFY) is down -11.2% at $38.72 after posting a new 52-week low of $38.12 earlier today; Progressive Corp. (NYSE: PGR) is down -5% at $19.52; NovaGold Resources Inc. (NYSEMKT: NG) is up 1.6% at $5.35; and Fastenall Co. (NASDAQ: FAST) is up 6.7% at $42.29.

Tomorrow we are scheduled to get earnings results from JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC), and Avalon Rare Metals Inc. (NYSEMKT: AVL).

Some standouts from today include the following stocks:

Supervalu Inc. (NYSE: SVU) is down -48.8% at $2.71 after posting a new 52-week low of $5.61 earlier today. The grocery store chain reported weak earnings after markets closed last night. More coverage here.

Cheniere Energy Inc. (NYSEMKT: LNG) is up 10.3% at $15.62. The liquefied natural gas company’s subsidiary, Cheniere Energy Partners L.P. (NYSEMKT: CQP) agreed to a $3.4 billion credit facility today for construction of an LNG export facility. More coverage here.

Safeway Inc. (NYSE: SWY) is down -12% at $15.82 after posting a new 52-week low of $15.71 earlier today. The grocer fell on the poor report from Supervalu.

Intel Corp. (NASDAQ: INTC) is down -2.5% at $24.75. The world’s largest chip maker saw its target price lowered today and suffered from a weak forecast on PC sales. More coverage here.

Stay tuned for Friday. Atlanta Fed President Dennis Lockhart is giving a speech. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Producer price index
9:55 a.m. – Reuters/University of Michigan consumer sentiment index

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: ADM, AVL, CQP, DAL, DIS, FAST, FDX, featured, INFY, INTC, JPM, LNG, MAR, NG, PGR, SVU, SWY, TXI, UAL, WFC

Cheniere Lands $3.4 Billion Credit Facility to Build Natural Gas Export Facility

Paul Ausick — Thu, 12 Jul 2012 18:52:40 +0000

Cheniere Energy Partners L.P. (NYSEMKT: CQP) has announced today that its has signed “firm financial commitments” for about $3.4 billion to develop, build, and put into service the first two natural gas liquefaction plants (called ‘trains’) at the company’s Sabine Pass liquefied natural gas (LNG) liquefaction facility. Originally constructed to receive imported LNG and re-convert the stuff to natural gas, the Sabine Pass project has received regulatory approval to process domestic natural gas into LNG for export.

The company has firm commitments for 16 million metric tons per year from 4 large customers. The Sabine Pass project calls for 4 LNG trains, each capable of producing 4.5 million tons annually.

In today’s announcement Cheniere Energy said it plans to withdraw a syndicated $1.25 billion term loan facility. Including about $2 billion in ‘equity commitments,’ Cheniere now has received $5.4 billion to pay for the first two LNG trains. The estimated cost for the first two trains is $3.9 billion. The company’s CEO said:

Our ability to access a very large credit facility will significantly reduce our costs of financing during construction. We expect to reach a final investment decision and issue notice to proceed to Bechtel upon meeting all conditions precedent under the financial agreements, including, but not limited to, completion of the financing process with the Lenders and having all regulatory approvals in full force and effect.

Cheniere Energy shares are up 3.3% at $24.17 in a 52-week range of $11.52-$27.47. Parent company Cheniere Energy Inc. (NYSEMKT: LNG) is up 11.8% at $15.83 in a 52-week range of $3.17-$18.92.

Paul Ausick

Filed under: Commodities, Commodities & Metals, Oil & Gas Tagged: CQP, LNG

Top Analyst Upgrades & Downgrades (AMD, AXP, APO, BPI, COF, LNG, CQP, JCP, LTD, LNKD, MM, NWSA, NCT, NTRS, LUV, STT, AMTD, TIVO, TROW, TSN, AAPL, PCX, ANR, CNX)

Jon C. Ogg — Tue, 10 Jul 2012 12:23:24 +0000

These are some of the top analyst upgrades, downgrades and initiations seen in Wall Street research calls this Tuesday.

Advanced Micro Devices. Inc. (NYSE: AMD) Maintained Neutral and cut target to $6 at Credit Suisse; Maintained Buy but cut estimates at Canaccord Genuity.

American Express Company (NYSE: AXP) Raised to Buy at Nomura.

Apollo Global Management LLC (NYSE: APO) Started as Buy and $16 target at Argus.

Bridgepoint Education (NYSE: BPI) Cut to Market Perform at William Blair.

Capital One Financial Corp. (NYSE: COF) Cut to Neutral at Nomura.

Cheniere Energy (NYSEMKT: LNG) Started as Equal-weight at Barclays.

Cheniere Energy Partners (NYSEMKT: CQP) Started as Underweight at Barclays.

JC Penney (NYSE: JCP) Maintained Neutral and Cut estimates at Credit Suisse.

Limited Brands Inc. (NYSE: LTD) Cut to Hold at Argus.

LinkedIn Corporation (NASDAQ: LNKD) Maintained Buy with $135 target at Canaccord Genuity.

Millennial Media Inc. (NYSE: MM) Started as Outperform at Oppenheimer.

News Corp. (NASDAQ: NWSA) Maintained Hold at Argus.

Newcastle Investment Corp. (NYSE: NCT) Started as Outperform with $7.50 target at Credit Suisse.

Northern Trust Corporation (NASDAQ: NTRS) Raised to Buy at Goldman Sachs

Southwest Airlines Co. (NYSE: LUV) Raised to Buy at Stern Agee.

State Street Corporation (NYSE: STT) Cut to Neutral at Goldman Sachs.

TD Ameritrade Holding Corporation (NYSE: AMTD) Cut to Sell at Goldman Sachs.

Tivo Inc. (NASDAQ: TIVO) Started as Overweight at Barclays.

T. Rowe Price (NASDAQ: TROW) Raised to Buy at BofA/ML.

Tyson Foods Inc. (NYSE: TSN) Cut to Neutral at JPMorgan.

David Einhorn on CNBC called Apple Inc. (NASDAQ: AAPL) an extremely undervalued company which could be worth $1 trillion.

Nomura changes to Coal Sector: Patriot Coal Corp. (NYSE: PCX) maintained as Reduce with $5 target on bankruptcy; beneficiary companies include Alpha Natural Resources (NYSE: ANR) and CONSOL Energy (NYSE: CNX).

If you enjoyed the top analyst upgrades and downgrades, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls Tagged: AAPL, AMD, AMTD, ANR, APO, AXP, BPI, CNX, COF, CQP, JCP, LNG, LNKD, LTD, LUV, MM, NCT, NTRS, NWSA, PCX, STT, TIVO, TROW, TSN

Exxon Considering Natural Gas Exports (XOM, CHK, EOG, APA, ECA, LNG)

Paul Ausick — Wed, 30 May 2012 18:58:02 +0000

At the company’s shareholders meeting today, the CEO of Exxon Mobil Corp. (NYSE: XOM) said that Exxon is studying the possibility of exporting natural gas from the US Gulf Coast and Canada. Natural gas production in the US has exploded as hydraulic fracturing (fracking) technology has boosted US reserves to the point where there is sufficient natural gas to meet US demand and to allow exports, according to Exxon CEO Rex Tillerson.

Chesapeake Energy Corp. (NYSE: CHK) has also discussed natural gas exports as a means to boost natural gas prices, and EOG Resources Inc. (NYSE: EOG), Apache Corp. (NYSE: APA), and Encana Corp. (NYSE: ECA) have already announced a plan to begin shipping liquefied natural gas from Kitimat, British Columbia, in 2016. Cheniere Energy Inc. (AMEX: LNG) has already obtained the required permits to allow it to export liquefied natural gas from its Sabine Pass facility in the Gulf of Mexico.

Natural gas exports would certainly result in higher domesticd prices, but Tillerson emphasized job creation, higher tax revenues, and a better US balance of trade in his remarks. Liquefied natural gas fetches $15-$16/thousand cubic feet in Asia, compared with around $2.50/thousand cubic feet in the US.

Exxon is the largest US producer of natural gas following its 2010 acquisition of XTO Energy.

Paul Ausick

Filed under: Commodities, Commodities & Metals, Oil & Gas Tagged: APA, CHK, ECA, EOG, LNG, XOM

24/7 Wall St. Closing Bell (CHK, LVLT, QCOM, CRM, DSX, COCO, APA, WNR, YRCW, SHOO, SRE, SLE, RGLD, OWW, GM, MGM, AES, LNG, DUK, EL, PGR, WPO, GMCR, KNSY, HLF)

Paul Ausick — Thu, 03 May 2012 20:08:03 +0000

The major US stock indexes opened mostly flat this morning following a softer-than-expected report from the Institute for Supply Management on non-manufacturing growth (our coverage here). The report on new unemployment benefits claims came in better than expected, but not enough to overcome the ISM numbers (more coverage here). Retail sales reports were also weak, with growth of just 0.8% compared with an estimate of 1.5% (more coverage here). The energy sector has been particularly hard hit today on reports that supply is keeping up with demand, some weak earnings reports, and a comment from OPEC that it would like to see Brent crude at $100/barrel, not $120 or more (our coverage here).

The US dollar index rose today, now up 0.11% at 79.221. The GSCI commodity index is down about -1.3% at 678.65, with commodities mixed on the small gains in the dollar. WTI crude oil closed down -2.6% at $102.54/barrel, and Brent crude trades down -1.84% at $116.02/barrel. Gold settled down -1.2% today, at $1,634.80/ounce.

The unofficial closing bells put the DJIA down nearly 62 points to 13,206.59 (-0.47%), the NASDAQ fell more than 35 points (-01.16%) to 3,024.30, and the S&P 500 fell -0.77% or nearly 11 points to 1,391.57.

There were several analyst upgrades and downgrades today, including Chesapeake Energy Corp. (NYSE: CHK) maintained as ‘buy’ but target price cut to $31 at BofA/ML and raised to ‘outperform’ at Bernstein; Level 3 Communications Inc. (NYSE: LVLT) reiterated ‘buy’ at SunTrust Robinson Humphrey and cut to ‘neutral’ at Piper Jaffary; Qualcomm Inc. (NASDAQ: QCOM) reiterated as ‘buy’ at BofA/ML; and Salesforce.com (NYSE: CRM) raised to ‘outperform’ with a $185 target price at Credit Suisse.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Diana Shipping Inc. (NYSE: DSX) is down -4.4% at $7.63; Corinthian Colleges Inc. (NASDAQ: COCO) is down -21.6% at $3.05; Apache Corp. (NYSE: APA) is down -3.7% at $91.99; Western Refining Inc. (NYSE: WNR) is down -2.6% at $18.42; YRC Worldwide Inc. (NASDAQ: YRCW) is down -8% at $6.79; Steve Madden Ltd. (NASDAQ: SHOO) is down -1.7% at $43.54; Sempra Energy (NYSE: SRE) is up 0.6% at $64.29 after posting a new 52-week high of $65.37 earlier today; Sara Lee Corp. (NYSE: SLE) is down -1% at $22.10; Royal Gold Inc. (NASDAQ: RGLD) is down -2.6% at $59.43 (more coverage here); Orbitz Worldwide Inc. (NYSE: OWW) is up 4.9% at $4.09; General Motors Co. (NYSE: GM) is down -2.3% at $22.42 (more coverage here); and MGM Resorts International (NYSE: MGM) is down -4.4% at $12.95.

Tomorrow we get earnings from AES Corp. (NYSE: AES), Cheniere Energy Inc. (AMEX: LNG), Duke Energy Corp. (NYSE: DUK), Estee Lauder Companies Inc. (NYSE: EL), Progressive Corp. (NYSE: PGR), and The Washington Post Co. (NYSE: WPO).

Other standouts from today include the following stocks:

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is down -47.3% at $26.11. The company reported earnings last night, and lowered guidance. More coverage here and here.

Kensey Nash Corp. (NASDAQ: KNSY) is up 32.2% at $38.35. The company is being acquired by a Dutch firm for $360 million. More coverage here.

Herbalife Ltd. (NYSE: HLF) is down -12.7% at $46.02. The nutrition products company flubbed some questions at last night’s conference call. More coverage here.

Stay tuned for Friday. San Francisco Fed President John Williams is giving a speech. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Non-farm payrolls
3:00 p.m. – Treasury STRIPS

Paul Ausick

Filed under: Active Trader, HI/LOW, Market Close Tagged: AES, APA, CHK, COCO, CRM, DSX, DUK, EL, GM, GMCR, HLF, KNSY, LNG, LVLT, MGM, OWW, PGR, QCOM, RGLD, SHOO, SLE, SRE, WNR, WPO, YRCW

Cheniere Gets OK to Export Natural Gas (CQP, LNG)

Paul Ausick — Tue, 17 Apr 2012 11:05:03 +0000

Cheniere Energy Partners LP. (AMEX: CQP) announced last night that the company has received approval from the Federal Energy Regulatory Commission (FERC) “to site, construct and operate facilities for the liquefaction and export of domestically produced natural gas at the Sabine Pass LNG terminal.” The FERC’s order permits the company to build up to four liquefied natural gas plants, called ‘trains,’ at the Sabine Pass terminal.

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.

Filed under: International Markets, Oil & Gas, Regulation Tagged: CQP, LNG