LNG - Cheniere Energy Inc.

Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States. Cheniere is pursuing related business opportunities both upstream and downstream of the terminals. Cheniere also founded and holds a 30% limited partner interest in Freeport LNG. Cheniere is based in Houston, Texas with offices in Louisiana, Texas; Washington, D.C.; London, England and Paris, France. Additional information about Cheniere may be found on its web site at www.cheniere.com.

Cheniere Energy, Inc.
Christina Cavarretta, 713-375-5100 (Investors)
Kim Hull, 713-375-5105 (Media)

April 17, 2008 - 8:23 PM EDT

Cheniere Energy (AMEX:LNG) CFO Sells Shares to Cover Margin Calls. This sale resulted from a margin call by a broker to whom these shares were pledged.

Cheniere Energy
Christina Cavarretta, 713-375-5100 (Investors)
Kim Hull, 713-375-5105 (Media)


Source: Business Wire (April 17, 2008 - 8:23 PM EDT)

April 21, 2008 - 11:03 AM EDT

Cheniere Announces Opening of Sabine Pass Terminal

Energy Secretary Bodman Joins Event

Cheniere Energy, Inc. (AMEX:LNG) today announced the opening of its Sabine Pass LNG receiving terminal and interconnecting Creole Trail Pipeline with an on-site ceremony in Cameron Parish, Louisiana.

“The opening of the Sabine Pass LNG terminal and pipeline represents a milestone event for the company,” said Charif Souki, chairman and CEO, Cheniere. “It is the culmination of years of hard work and effort on the part of the employees as well as the contractors dedicated to the project. We appreciate the active support of the citizens and officials of Cameron Parish, the regulators and our customers, who have been supportive of this project from the beginning. Without their commitment, this would not have been possible.”

Sabine Pass LNG will ultimately have 4 Bc/fd of send-out capacity and 16.8 Bcf of storage capacity. The initial phase just completed includes 2.6 Bcf/d of send-out capacity and 10 Bcf of storage capacity. Phase 2 is expected to be completed on time and on budget in the second quarter of 2009.

On Friday, April 11, the LNG vessel Celestine River docked at the terminal to begin the cool-down and testing process. This process slowly introduces LNG into the terminal, cooling the terminal to its normal operating temperature. To date, Cheniere has successfully offloaded LNG from the Celestine River, completed cool down of LNG Tank 1 and all process and utility units, as well as sent vaporized natural gas into the Creole Trail Pipeline.

The cool down has gone extremely well and ahead of schedule. As a result, Sabine Pass LNG is now ready to receive LNG cargoes for further performance testing.

The Sabine Pass LNG receiving terminal is owned by Cheniere Energy Partners, L.P. (AMEX:CQP), in which Cheniere Energy, Inc. has a 90.6% interest through its ownership of common units, general partner units and subordinated units.

Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States. Cheniere is pursuing related business opportunities both upstream and downstream of the terminals. Cheniere also founded and holds a 30% limited partner interest in Freeport LNG. Cheniere is based in Houston, Texas with offices in Louisiana, Texas, Washington, D.C., London, England and Paris, France. Additional information about Cheniere may be found on its web site at www.cheniere.com.

Cheniere Energy, Inc., Houston
Investors
Christina Cavarretta, 713-375-5100
or
Media
Kim Hull, 713-375-5105


Source: Business Wire (April 21, 2008 - 11:03 AM EDT)

Took a 35% haircut today. Trying to find out what happened. Don't see anything yet. May look for a bounce play here.

Perhaps solely on the fact that the CFO had to sell shares for the margin calls, could be a question of company liquidity. Still seems like an unwarranted panic. We'll see.

Posted in another forum:

Cheniere Energy (LNG) NewsBite - Cheniere Energy Plunges on Moody's Comments
Posted on Monday, April 21, 2008 3:02 PM
Cheniere Energy Inc. (LNG) opened at 11.22. So far today, the stock has hit a low of 8.88 and a high of 11.27. LNG is now trading at 8.79, down 2.38 (-21.17%). The stock hit its 52 week high of 43.50 in July and set its 52 week low of 8.88 today. LNG has been dropping since November of last year. Cheniere Energy shares have been tumbling after Moody's Investors Service announced today it placed Sabine Pass, LP's 'Ba3' rating for its senior secured notes due 2013 and 2016 on review for possible downgrade. Sabine is 90.6% indirectly-owned by Cheniere Energy. Technical indicators for the stock are bearish and steady. We will just watch this one for now. There are no bearish trades that we like for LNG. [RHF - Seven Summits Strategic Investments NewsBite]

Positive from the 18th from RBC:
LNG Cheniere Energy: Remains undervalued, presents buying opportunity at current price - RBC (10.86 )

RBC says based on their interpretation of the new marketing contract, LNG's new CNAV would be in the range of $25-$40/share. They say liquidity is adequate to last through April 2009. Afterwards, the T.U.A. with Chevron and Total should assure positive free-cash-flow. They note strategic review continues; however, they still believe that LNG is not likely for sale at or near these levels. Given that LNG is likely to trade 30%-33% of the upside for risk reduction measures, they lower their tgt to $20 from $50, for now.

May have caught a falling knife here...let's see if these help me:

Reuters UK

TEXT-Moody's release on Sabine Pass LNG
Mon Apr 21, 2008 5:40pm BST

(The following statement was released by the rating agency)

Approximately $ 2 Billion of Debt Securities Affected

April 21 - Moody's Investors Service placed Sabine Pass LNG, LP's (Sabine)
Ba3 rating for its senior secured notes due 2013 and 2016 under review for
possible downgrade.
"The review for downgrade takes into account Sabine's extensive relationships
with Cheniere Energy, Inc. (LNG.A: Quote, Profile, Research) (Cheniere: not rated) and the growing
negative pressures on Cheniere's financial and business prospects", said
Clifford Kim, Analyst at Moody's. "Recent developments in the LNG and capital
markets are likely to result in Cheniere confronting lower than expected cash
flow generation and dwindling liquidity over the next two years".
Moody's observes that Sabine represents most of Cheniere's consolidated cash
flows and operating assets. Additionally, Sabine has extensive contractual
relationships with Cheniere and its affiliates including the terminal use and
operations and maintenance agreements. These factors serve as strong incentives
to bring Sabine into a possible bankruptcy of Cheniere in order for Cheniere to
better control its estate. That being said, Moody's also recognizes certain
ring fencing provisions at Sabine including an independent director and
separateness requirements.
Moody's believes Cheniere could face significant pressure on its liquidity
position starting in 2009 since tightening of the capital markets appears to
have limited Cheniere's access to additional liquidity. Moody's expects
Cheniere will utilize a substantial portion of its unrestricted cash to pay for
capital expenditures, debt service, and corporate overhead in 2008. Cheniere
had unrestricted cash totaling approximately $297 million at December 31, 2007.
Additionally, Moody's expects continued high international demand for LNG and
lower than expected natural gas liquefaction coming online over the next
several years will likely lead to limited cash flow prospects for Cheniere's
merchant LNG marketing related activities.
The review for downgrade will consider Cheniere's ability to improve its
liquidity position and cash flow generation to meet expected cash uses over the
next several years. Moody's will also evaluate implications of Cheniere's
financial situation on Sabine and Sabine's ability to complete Phase 2
construction, which is scheduled to be completed toward the middle of 2009.
Sabine Pass LNG L.P. was formed in 2004 to construct, own and operate a
liquefied natural gas (LNG) receiving terminal with an aggregate regasification
capacity of 4 Bcf/d. Sabine has signed three 20-year Terminal Use Agreements
(TUA's) for 100% of its regasification capacity on a "take or pay" basis.
Sabine is 90.6%, indirectly-owned by Cheniere Energy, Inc.
(New York Ratings Team)

Ah man! You should have let me know earlier! I woulda let you borrow my chainmail gloves..

I'm still looking into it. I saw that it had taken a beating and was testing/breaking 52 week lows. Jumped in hoping for a quick bounce play, perhaps prematurely.

However, here is an excerpt from another forum (still trying to catch up on all the gossip):

More:

There is also another affiliated company, Cheniere Energy Partners LP - CQP (trying to figure out if LNG is a subsidiary). They just announced a quarterly dividend distribution of $.425. If this is the case and LNG is a subsidiary then liquidity may not be a problem for the company as a whole. All this factored in , including forecasted revenue from the contracts with Chevron and others, may have given the implied projected value. Probably just a seemingly promising future is why it traded so high. not sure without going through the history.

In any event, I'm still doing research and will post anything I find relevant. Unless I fulfill my bounce play and move on...lol. Or, I discover this is a goldmine in the making. You never know.

Not looking too shabby at all!

Um....$8.20 right now...lol

But good job though!

8.28 x 8.29

Out at $8.40

Will look to buy back in on a dip if it presents itself.