Ed, Sempra Energy (SRE) and Marathon Oil (MRO are my picks. Both are profitable, well capitalized, should be able to finish their LNG projects without taking on excessive debt, and pay 3% plus dividends while you wait.
I follow both Cheniere Energy (LNG) and Golar LNG (GLNG) but am not considering either of them for investment at this time. Golar is an ocean shipping line and I have never invested in or followed that industry. I still need to sit down some time a figure out what the company is worth. It's risen rapidly since LNG became Wall Streets 'flavor-of-the-month' but I'm not willing to pay a big premium simply because the haul LNG instead of iron ore or oil.
Also there is a big LNG ship building boom going on and there may a glut of LNG carriers brewing. Cheniere Energy (LNG) is my least favorite. They have a great Power Point slide show, press releases, and not much else, IMHO. They're an 84 million market cap company with more than a billion dollars worth of construction on LNG projects planned. I want to see where they get the money and what they will have to give away to get it. I don't know how much your shares will be worth after they issue a billion dollars in new debt and shares. I don't know what Cheniere brings to the LNG facilities party that the others, Royal Dutch/Shell, Sempra Energy, Marathon Oil, ChevronTexaco, etcetera, don't. One reason I follow LNG developments is that more than 30 North American projects have benn proposed but ony a few will actually get built. I don't think Cheniere's pockets are deep enough. |
