Cheniere Energy: If You Must Buy, Wait For The Bears

By Stone Fox Capital:Last week, Cheniere Energy (LNG) hosted its annual investor day conference. The presentation provided some interesting facts that highlight the investing opportunity and risk with this stock.

The conventional belief that oil consumption will continue to raise might be generally mistaken, considering the increasing usage of natural gas.   

Centrica Plc, the U.K.’s largest household energy supplier, signed a 20-year deal to import natural gas from the U.S., securing supplies as production from British North Sea fields decline.

ByDavid Kronenfeld:Much digital ink has been spilled in the past few months in the debate over the U.S. export of liquefied natural gas - LNG.

By Bruce Vanderveen:It was a classic miscue. Until just a few years ago almost everyone predicted a shortage of natural gas in the U.S. and Canada. In a rush to meet anticipated demand, companies such as Cheniere Energy (LNG) completed several LNG receiving facilities along the Gulf and East Coasts of the U.S. However, plunging prices from abundant shale gas turned the facilities into white elephants almost overnight.

Centrica Plc teamed up with Qatar Petroleum International to buy gas fields from Canada’s Suncor Energy Inc. for $1 billion as the largest U.K. household-energy supplier increases North American customers. The assets, mostly in southern and central Alberta, will be operated by Centrica and produce about 250 million cubic feet of gas a day this year, the British producer said in a statement. Centrica will own 60% and QPI 40%. The deal is the first under a cooperation accord they signed in December 2011.

ByRichard Zeits: Another Major Contract for Cheniere's Sabine Pass LNG

There’s been a lot of ways to play the rebirth of American energy. The U.S. oil and gas patch has been booming – pipeline players, drillers, processing facilities and operators are just a few of the ways we’ve suggested to play it. Today I want to share one American investment that you’ll want to avoid. It’s hard not to get caught up in the euphoria. Oil is flowing from South Texas to North Dakota – and America’s total crude production is heading higher by the day. Same goes for natural gas. Today we’re producing more of the stuff than we’ve ever produced.