The natural gas and LNG industry has struggled over the past few years but is gaining momentum today and is expected to sustain itself in 2025. Increased demand only partially offset by supply is supporting price action in LNG and creating strong tailwinds for US LNG inventories. These tailwinds include increased exports exacerbated by higher prices and increased profit margins and profits. Dividends are crucial to this market due to strong cash flow and capital returns. The demand driver is industrial. Industries are turning to natural gas globally to reduce their emissions, and demand will increase over time as infrastructure and services improve.
The Energy Information Administration expects liquefied natural gas will be used Prices are average $3.00 in 2025, but expectations may be lower due to the emergence of new projects online. Two projects, Plaquemines LNG Phase 1 and Cheniere’s Corpus Christi Phase 3, will account for at least 75% of the capacity to come online this year. Regardless, the $3.00 average is about 36% higher than the 2024 average, with US exports expected to rise by 17%. The bottom line here is that natural gas is reaching a critical mass, and US LNG companies are well positioned to benefit.
Cheniere: Growth and building influence in 2025
Cheniere Energy Today
Cheniere energy
As of 03:58 PM ET
- 52 week range
- $152.31
▼
$228.10
- Dividend yield
- 0.89%
- P/E ratio
- 14.38
- Price target
- $225.00
Cheniere New York Stock Exchange: LNG It is the largest exporter of natural gas in the United States and revenue is expected to grow about 20% in 2025. Analysts tracked by MarketBeat also forecast strong earnings but expect a significant year-over-year decline due to capital spending projects, including the completion of Phase III of Corpus Christi. . This effect will quickly fade, leaving the company with increased ability and improved earnings to maintain its healthy balance sheet and returns on capital.
Cheniere’s outlook for capital returns, including dividends and share repurchases, is strong. The dividend yield isn’t great, around 0.9%, with shares trading near 18 times earnings, but it’s reliable, the distribution is expected to grow, and stock buybacks are significant. Share buybacks reduced the average diluted count by 6.2% in the third quarter and 5.6% for the first nine months of fiscal 2024. In terms of the balance sheet, improved cash flow allows for debt reduction, leaving long-term debt leverage at 2.4 times higher equity. By 3.65%.
Analysts rate the stock a Moderate Buy and raise their price targets for 2025. The consensus implies a fair value near early January prices, but it is up 35% in the past 12 months, with revisions leading up to the $260 level. A move to $260 equals a 35% upside from critical resistance levels.
High yield on Kinder Morgan expected
Kinder Morgan today
Morgan’s children
As of 03:58 PM ET
- 52 week range
- $16.47
▼
$28.81
- Dividend yield
- 4.07%
- P/E ratio
- 24.81
- Price target
- $26.25
Morgan’s children New York Stock Exchange: Quantitative It is well positioned for the LNG boom in 2025 as an intermediary connecting U.S. natural gas producers to end markets, including export terminals. It operates approximately 79,000 miles of pipelines and the liquefaction, storage and distribution terminals to support them. Its revenues and profits are not linked to the price of liquefied natural gas as much as they are linked to the volume of gas transported, which is rising. The volume is increasing due to increased demand, acquisitions and capital projects, and is expected to continue to rise over the next few years.
Analyst sentiment is driving the price action of KMI stock higher. Consensus was lagging the market in early January, but has risen more than 30% in the past 12 months, with revisions leading into the mid-30s. A move into the mid-30s is worth a 25% profit from the critical resistance target.
ETF investors should turn to AMLP
Allerian MLB ETF Today
As of 04:10 PM ET
- 52 week range
- $42.25
▼
$51.47
- Dividend yield
- 5.92%
- Assets under management
- $9.74 billion
ETF investors also have options. Allerian MLB ETF NYSEARCA:AMLP It targets US LNG brokers and pays high returns.
Dividends are worth more than 7.5% at the beginning of 2025, with dividends expected to grow and stock buybacks.
Technical action is also promising, with the stock trending higher. The price action in 2024 has the market testing resistance at a long-term high and is likely to be broken in early 2025.
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If a company’s CEO, COO, and CFO were all selling shares of their stock, would you want to know?
