12 Best Infrastructure Stocks to Buy According to Hedge Funds

2. Cheniere Energy Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 62

Cheniere Energy Inc. (NYSE:LNG) is an energy infrastructure company that focuses on LNG-related businesses in the US. It owns and operates the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas, along with connecting pipelines. It’s also involved in the marketing of LNG and natural gas.

On January 31, Morgan Stanley increased its price target for the company to $255, due to the anticipated Sabine Pass expansion following the lifting of the US LNG project permitting pause. This expansion refers to the company’s planned project to increase LNG production capacity at its Sabine Pass facility. Cheniere Energy Inc.’s (NYSE:LNG) core business revolves around its infrastructure for producing and exporting LNG. In FQ3 2024 alone, it generated $820 million in distributable cash flow and $900 million in net income.

Cheniere Energy Inc. (NYSE:LNG) is actively expanding. The Corpus Christi Stage 3 project is a prime example. This expansion, currently under construction, is expected to increase the company’s LNG production capacity. With the first train slated for completion in early 2025, this project will add volumes to its output, and translate to higher revenue streams. The company is projecting 47 to 48 million tons of LNG production, a jump from its current levels. This increased production capacity will boost its revenue and provide greater flexibility in the market.

TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2024 investor letter:

“We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Cheniere Energy, Inc. (NYSE:LNG) operates liquefied natural gas terminals in New Orleans and Corpus Christi. Second quarter results were largely as expected and forward guidance was increased. Management’s comments featured the timely completion of maintenance at both facilities as well as optimization efficiencies. That boosted the stock by 3%.”