What Happened to LNG Stocks and 10 Best LNG Stocks to Buy Now

3. Cheniere Energy Inc (NYSE:LNG)

Number of Hedge Fund Holders: 65

Cheniere Energy, Inc.(NYSE:LNG), an energy infrastructure company, primarily produces and sells liquefied natural gas. It is a significant exporter of liquefied natural gas (LNG) from the United States as it boasts the ability to produce around 30 million metric tons of LNG annually at its Sabine Pass facility in Louisiana. It is in the process of expanding this operation, with plans to increase its capacity to approximately 20 million metric tons annually.

At the same time, Cheniere Energy, Inc.(NYSE:LNG) also possesses a capacity of about 15 million metric tons per year of LNG at a terminal in Texas. This facility is set to expand, boosting its capacity by more than 10 million metric tons.

The stock is trading close to its all-time highs as investors react to its robust performance in the energy sector. The company has enjoyed robust growth due to its strong market position and ability to capitalize on strong LNG demand.

Cheniere Energy, Inc.(NYSE:LNG)’s competitive edge stems from its long-term and fixed-rate contracts that enable it to generate predictable free cash flow that it can distribute to investors through buybacks and dividends. Its cumulative free cash flow is projected to total $12 billion between 2022 and 2027

The company delivered solid second-quarter results exceeding what was anticipated by the market. The firm declared a combined adjusted EBITDA of $1.3 billion and a net income of $880 million. It has increased its guidance for the entire year of 2024.

Cheniere Energy, Inc.(NYSE:LNG) is projected to see an adjusted EBITDA between $5.5 and $6 billion this fiscal year. Additionally, distributable cash flow is anticipated to range from $2.9 to $3.4 billion. Given the company’s emphasis on long-term liquefaction capacity contracts, the visibility of distributable cash flow is expected to stay strong.

Cheniere Energy is one of the best LNG stocks to buy at attractive valuations as it trades at a forward P/E of 18x and offers a dividend yield of 0.95%. As of Q2 2024, 65 hedge funds held a stake in Cheniere Energy, Inc.(NYSE:LNG)’s.