01. Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 65
Cheniere Energy, Inc. (NYSE:LNG) stands out as a prominent natural gas stock due to its key role in liquefied natural gas (LNG) infrastructure and export. The company operates major LNG terminals in the U.S., including the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas. These terminals, along with its natural gas pipelines, allow Cheniere Energy, Inc. (NYSE:LNG) to serve global energy demands, especially in Europe and Asia. As of Q2 2024, Cheniere was held by 65 hedge funds, down from 69 in the previous quarter, reflecting continued strong interest from institutional investors.
In Q2 2024, Cheniere Energy, Inc. (NYSE:LNG) exceeded expectations, reporting an earnings per share (EPS) of $3.84, significantly higher than the expected $1.71. This solid performance is indicative of the company’s strong operational capabilities and its focus on maximizing LNG exports amidst global demand. Cheniere Energy, Inc. (NYSE:LNG) generated approximately $1.3 billion in consolidated adjusted EBITDA and distributable cash flow of $700 million, while posting a net income of $880 million. These financial metrics highlight the company’s robust cash flow generation, providing significant shareholder returns through dividends and stock repurchases.
The company’s forward-looking capital allocation plan includes a $4 billion increase in share repurchases and a planned increase in its annualized dividend to $2 per share. Such shareholder-friendly measures, backed by strong fundamentals, further boost investor confidence. Cheniere Energy, Inc. (NYSE:LNG) also raised its full-year guidance, projecting consolidated adjusted EBITDA in the range of $5.7 billion to $6.1 billion, and distributable cash flow between $3.1 billion and $3.5 billion.
The company is making substantial progress in expanding its LNG infrastructure. Its Corpus Christi Stage 3 project is over 62% complete, with Train 1 expected to produce LNG by the end of the year. This expansion not only increases production capacity but also ensures long-term stability and growth, positioning Cheniere Energy, Inc. (NYSE:LNG) as a global leader in LNG supply, especially during volatile energy markets. Given its financial strength, growth potential, and importance in global energy security, Cheniere Energy, Inc. (NYSE:LNG) remains a compelling natural gas stock for investors.
While we acknowledge the potential of LNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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