Out Fox The $treet

Back at the end of March, Stone Fox Capital suggested that Cheniere Energy ( LNG ) was overheating and investors should be careful buying the stock. The stock quickly surged above $27.50 with numerous technical indicators flashing an over bought condition. The stock spent the next five months fractionally above or below that level. The company is part of a group of high profile stocks attempting to benefit from low natural gas prices. The group includes the likes of Clean Energy ( CLNE ) and Westport Innovations ( WPRT ) that have had drastically different stock results over the last couple of years with Cheniere dramatically outperforming the group. Ironically neither stock has actually benefited from the advantageous situation yet due to the lengthy period it has taken to complete infrastructure projects. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

With a subsidiary of Cheniere Energy ( LNG ) announcing the signing of another long-term supply contract, the stock has become overheated with a RSI approaching 80. Investors need to be concerned that the newest deal won't lead to sales until 2018 at the earliest and could face a block by the federal government. The company plans to be one of the leading domestic LNG exporters. It owns a 61% interest in Cheniere Energy Partners, L.P. ( CQP ) , which owns the Sabine Pass facilities. Cheniere Energy Partners plans to construct six natural gas liquefaction trains that are in various stages of development to produce a total of 27 mmtpa. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Big news lately on the LNG export front. Yesterday Cheniere Energy Partners (CQP) got approval to begin construction on it's export terminal in Louisiana. Today Sempra Energy signed agreements with 2 major Japanese companies to develop and construct a natural gas liquefaction export facility in Louisiana as well. While another major step towards exporting the abundance of cheap natural gas in the US, it will take until 2016 before the facility would commence operations. With these 2 commercial agreements with Mitsubishi Corporation and Mitsui & Co ., the project would already have 66% of production set for 20 years. Now the question is whether the US government will ultimately allow the export of this natural resource. The answer so far is yes, but what happens in 2014 when the future prices for 2015 and beyond start soaring? The plan involves building 3 liquefaction trains with a total export capability of 12 Mtpa of LNG, or approximately 1.7 Bcf per day. Constructi...

Not that the expectations are for natural gas prices to remain this low until 2015, but this is when the real possibility of the US exporting natural gas begins. Until then the possibility remains that the new shale production techniques will keep production ahead of domestic demand and prices low. Without a serious energy policy to utilize this increased resource, it is very probable that this country will begin exporting our cheap energy supplies to Europe and Asia while still importing expensive oil and gasoline. That is assuming the big producers of natural gas remain in business in a subdued pricing environment. The main catalyst for the focus on surviving until 2015 was the huge announcement yesterday that Blackstone would invest $2B in Cheniere Energy Partners (CQP) to provide the equity financing needed for the construction of export facilities at the Sabane Pass liquefaction project in Lousiana. This will be the first natural gas liquefaction export facility in the continental...