Should You Buy Cheniere Energy Stock?
The average U.S. LNG exports rose 61% year over year from January through November 2019, according to the U.S. Energy Information Administration. The LNG exports for the period averaged 4.8 billion cubic feet per day. Moreover, the EIA expects LNG exports to keep rising and average 6.5 Bcf/d in 2020 and 7.7 Bcf/d in 2021. Cheniere Energy (NYSEMKT: LNG) is one of only four companies in the U.S, that currently have commercially operating LNG facilities. The other three operators are Dominion Energy, Sempra Energy, and Freeport LNG Development L.P. Additionally, Kinder Morgan's Elba liquefaction facility is currently under commissioning.
Unlike Dominion and Sempra, which are predominantly utility companies, Cheniere Energy's fortunes are tied to its LNG operations. But rising export volumes may not be enough to make Cheniere Energy a buy. While LNG exports continue to rise as new facilities start operations, weaker prices are spoiling the party for the operator.
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Source Fool.com
