Cheniere Energy (LNG:AMEX) $129

Loss to date: 2.7%

Original entry point: Buy at $132.62, 3 March 2022

A 2.7% loss in three months may be disappointing but given the MSCI World is down the best part of 10% over the same time period, the performance of Cheniere Energy (LNG:AMEX) could be called resilient.

Liquefied natural gas specialist Cheniere has a central role in boosting LNG exports from the US to a European continent desperate to wean itself off Russian hydrocarbons.

On 9 June the company announced an LNG supply agreement with Norwegian firm Equinor (EQNR:NYSE) under which it will deliver 1.75 million tonnes of LNG per year for 15 years starting from the second half of 2026. The timeline speaks to the fact this is a long-term story.

Half of this total is dependent on Cheniere committing to plans to increase capacity at its Corpus Christi LNG terminal on the Gulf Coast in Texas.

Management recently upped 2022 guidance for adjusted earnings from a range of $7 billion to $7.5 billion to a new level of $8.2 billion to $8.7 billion. Cash flow estimates were also raised from a range of $4.3 billion to $4.8 billion to a new level of $5.5 billion to $6 billion.

SHARES SAYS: We continue to view Cheniere as being attractively placed given the current backdrop.

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