UltraShort S&P500 ProShares (SDS)

[JefftDecker]

Coal And Natural Gas Poised For Gains In 2017

<snip>(Inside Investor with Daniel Dicker)

And still only one company leads this trend will remain, the only fully hedged LNG investment to appear in 2017 – Cheniere energy (LNG).


(oil &energy insider edition-oilprice.com)

Cheniere does not bank upon the spot prices of either U.S. or their export markets for natural gas, and does not need an immediate arbitrage to take advantage of that disconnect. It is true that right now the differentials between gas prices here and in, let’s say, Japan, are huge – more than $10 per mcf. But even if those numbers were to shrink quickly, Cheniere would remain unaffected as they have already banked and hedged long-term contracts for their LNG exports.

And Cheniere remains the only game in town – at least until Dominion (D) finally finishes their Cove Point plant, still only 2/3rds done as of August. For the next three years, Cheniere will only increase their lead as they expand from Sabine Pass, Louisiana into their new plant in Corpus Christi, Texas.

They’re not cheap, but I can’t see shares of Cheniere doing anything but trending upwards throughout 2017. That goes for unlikely coal stocks too. They remain two of my best ideas right now heading into 2017.

will Cheniere head back to $100