5 Oil and Gas Stocks to Buy According to Phill Gross’s Adage Capital

2. Cheniere Energy, Inc. (NYSE:LNG)

Number of Hedge Fund Holders: 49

Cheniere Energy, Inc. (NYSE:LNG) boasts itself as the largest liquefied natural gas (LNG) producer in the US and the second-largest in the world. The Texas-based gas company transports LNG products nationwide and internationally. Cheniere Energy, Inc. (NYSE:LNG) operates three major pipelines and two terminals in the US. 

Cheniere Energy, Inc. (NYSE:LNG) was named Cowen analyst Jason Gabelman’s best idea for 2022. The analyst raised his price target to $130 from $120 while maintaining an Outperform rating on the stock.

Here is what Horizon Kinetics has to say about Cheniere Energy, Inc. (NYSE:LNG) in its Q3 2021 investor letter:

“Cheniere Energy, from this list, shows our time frame approach in action. The share price is up very substantially from when we initially bought it 2 ½ years ago, and it reaches new all-time highs almost monthly. The stock dropped by 50% early last year, and the entire return occurred this year. You might think, ‘Ok, 3 years, excellent performance, that’s it.’ That’s not why we bought it. We bought a certain business model, a value development pattern on a massive dormant asset, and a valuation discount.

We bought Cheniere because it was exceedingly cheap as it transitioned from a development stage operating company stage, having just turned profitable a year after completing its basic plant construction and selling its first shipload of liquified natural gas (LNG): 2017 loss of $(390) million vs. 2018 earnings of $470 million…” (Click here to see the full text)