Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Cheniere signed a 20-year LNG sale and purchase agreement with Spanish utility Iberdrola to supply LNG. The company will purchase 0.4 million tonnes per year when train 1 is completed and increase to 0.8 million tonnes when train 2 is finished .
Now what: This is another solid long-term agreement and estimates put its value at $5.6 billion over the life of the deal. Train 2 isn't expected to be completed until 2019 though so deals like this won't supply any revenue for years. This is no doubt an incremental positive but without consistent cash flows yet this is a stock that's just too risky for me today.
3 stock picks to ride America's energy bonanza
Another way to play the energy boom is through midstream suppliers. Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. 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.