| Cheniere Energy Stake Hiked by Carl Icahn the Second Time | |
| | |
|
Activist investor, Carl Icahn, has again boosted his stake in Cheniere Energy Inc. LNG. Icahn now has a roughly 11.43% stake in the company after he increased his stock holding from 8.2% to 9.6% last month.
So what made the billionaire investor raise his share holding in the natural gas exporter that has seen its money being eroded for more than 20 years at a stretch? Also, which fundamentals of the company led him to believe that Cheniere Energy will grow?
Icahn believes that the shares of the firm are undervalued and hence have the potential to rise in the near future. In particular, he is confident about the Houston-based firm becoming the first company to export huge amounts of natural gas from the U.S. shale formations by the end of 2015. Cheniere Energy also has contracts from natural gas buyers for a long period of 20 years. Its first cargo should be ready for shipping by the end of this year. Carl Icahn is also encouraged by the company’s plan to construct its second export terminal at Corpus Christi, TX. The huge export facility will likely cost around $16 billion.
In August, Carl Icahn had said that he is willing to discuss issues with management and the board of directors of Cheniere Energy to sort out the company’s operations, capital spending, aggressive executive compensations and financing. Management might even be compelled by the iconic investor to cut the huge pay packages of its executives. In 2013, Charif Souki, the chief executive of Cheniere Energy drew $142 million as compensation. This made Charif one of the highest paid executives in the country.
We should mention here that Carl Icahn has already bought significant stake in companies like Chesapeake Energy Corp. CHK and Transocean Ltd. RIG. There too he imposed significant changes on management and the boards. If history has a habit of repeating itself, we might see the same happening at Cheniere Energy. On a positive note, these changes might help the company to grow in the coming years.
Currently, Cheniere Energy carries a Zacks Rank #4 (Sell), implying that the stock will underperform the broader U.S. equity market over the next one to three months. Meanwhile, a better-ranked player in the energy sector is Tesoro Corporation TSO. The stock carries a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report TESORO CORP (TSO): Free Stock Analysis Report TRANSOCEAN LTD (RIG): Free Stock Analysis Report CHENIERE ENERGY (LNG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
|
|
|
Cheniere Energy Inc.
|
|
|
CODE : LNG |
ISIN : US16411R2085 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Cheniere Energy is a exploration company based in United states of america. Cheniere Energy is listed in United States of America. Its market capitalisation is US$ 42.9 billions as of today (€ 38.6 billions). Its stock quote reached its lowest recent point on December 31, 2001 at US$ 0.75, and its highest recent level on September 06, 2024 at US$ 180.64. Cheniere Energy has 237 656 695 shares outstanding. |