Ride the High Seas on a Wave of Higher Dividends

By Taylor Muckerman and Joel South – May 11, 2013 at 11:03AM

NYSE: LNG

Cheniere Energy

Market Cap

$37B

Today's Change

(-0.97%) -$1.56

Current Price

$158.90

Price as of April 23, 2024, 4:00 p.m. ET

Investing in exporters or producers of natural gas aren't the only ways to profit from the international liquefied natural gas trade.

The exportation of liquefied natural gas, or LNG, has been a hotly debated topic in the United States recently. Companies from all types of backgrounds have been staking their claims on either side of the argument. One thing is for certain, and that is that in 2015 Cheniere Energy (LNG -0.97%) will begin exporting liquefied natural gas from its Department of Energy-approved Sabine Pass facility.

Aside from the potential growth in exports from North America, Australia looks to be the largest contributor to the growth of natural gas finding its way into the international trade market. Transportation of natural gas chilled to temperatures as low as -260 degrees Fahrenheit certainly requires a high degree of skilled execution. That's where Teekay LNG Partners (TGP) enters the picture. With a fleet much younger than the industry average and a distribution over 6%, it could be a great second-degree play on the coming trend.

Joel South has no position in any stocks mentioned. Taylor Muckerman owns shares of Cheniere Energy. The Motley Fool recommends Ultra Petroleum. The Motley Fool owns shares of Ultra Petroleum and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, Short Jan 2014 $15 Puts on Chesapeake Energy, Long Jan 2014 $30 Calls on Ultra Petroleum, Long Jan 2014 $40 Calls on Ultra Petroleum, and Long Jan 2014 $50 Calls on Ultra Petroleum. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.