Below are the top 5 mid-cap stocks stocks billionaire Brian Higgins’ King Street loves the most. For a comprehensive list see 10 Best Mid-Cap Stocks To Buy Now According To Billionaire Brian Higgins.
5. Cheniere Energy, Inc. (NYSE: LNG)
King Street Capital has reduced its stake by 10% in Cheniere Energy, Inc. (NYSEMKT: LNG) during the September quarter after initiating a position in the second quarter. It is the fifth-largest stock holding of King Street Capital, accounting for 7.48% of the overall portfolio.
Shares of Cheniere Energy also outperformed the S&P 500 index in the past three months. Its shares rallied more than 36% in the last three months and the stock price soared 73% in the past nine months.
“Cheniere Energy was formerly an oil and gas exploration company. Around 1999, it abandoned its oil and gas drilling strategy in favor of building a liquefied natural gas terminal on the Gulf Coast – management at the time believed that the abundance of the natural gas reserves held within the United States could position it as a large net exporter of liquefied natural gas.
Over the course of the next two decades, Cheniere managed to navigate the quite cumbersome regulatory and permitting process. Eventually, permission was granted, and construction of the Sabine Pass facility commenced. Yet, given the immense capital requirements of the export facilities, Cheniere financed construction mostly through debt. Since a number of years were required to complete the construction, during which no operational revenues were produced, the incremental debt continued to accumulate, leaving it as a highly leveraged company.”