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Cheniere (LNG) Inks Corpus Christi EPC Deal With Bechtel

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Cheniere Energy, Inc. (LNG - Free Report) announced that it has signed up engineering giant Bechtel for Corpus Christi Stage 3. Per the gas exporter’s statement, it has entered into a lump-sum turnkey contract with Bechtel for engineering, procurement and construction (“EPC”). The “notice to proceed” means that the service company will commence early engineering, procurement and site works of liquefied natural gas (“LNG”) trains and associated facilities being developed near Corpus Christi, TX.

While delays related to COVID-19 forced Cheniere to request an extension for the project from the Federal Energy Regulatory Commission, the signing of the EPC contract is viewed as an important landmark in reaching a final investment decision on Corpus Christi Stage 3, which should occur sometime this summer.

The Corpus Christi Stage 3 project is scheduled to add as many as seven mid-scale liquefaction trains that would have the ability to churn out in excess of 10 million metric tons of natural gas chilled to liquid form annually. The project is commercially backed by long-term contracts with top clients, with production scheduled to begin in 2025.

Houston, TX-based Cheniere Energy is primarily engaged in businesses related to the export of liquefied natural gas. Being the first company to receive regulatory approval to export LNG from its Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct competitive advantage.

Cheniere Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space are Centennial Resource Development , ConocoPhillips (COP - Free Report) and Marathon Oil (MRO - Free Report) . Each of the companies sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Centennial Resource Development: Centennial Resource Development is valued at some $2.4 billion. The Zacks Consensus Estimate for CDEV’s 2022 earnings has been revised 21.8% upward over the past 60 days.

Centennial Resource Development, headquartered in Denver, CO, delivered a 30% beat in Q4. CDEV shares have gained around 47.6% in a year.

ConocoPhillips: ConocoPhillips is valued at around $125 billion. The consensus estimate for COP’s 2022 earnings has been revised 22.5% upward over the past 60 days.

COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 71.6% in a year.

Marathon Oil: Marathon Oil has a projected earnings growth rate of 93.6% for this year. The Zacks Consensus Estimate for MRO’s 2022 earnings has been revised 35.7% upward over the past 60 days.

Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.4%. MRO shares have gained around 93.7% in a year.


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