The Zacks Analyst Blog Highlights Cheniere, Shell and Chevron

For Immediate ReleaseChicago, IL – December 2, 2024 – Zacks.com announces the list of Stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cheniere Energy LNG, Shell SHEL and Chevron CVX.Here are highlights from Friday’s Analyst Blog:3 Stocks That Can Thrive via Trump's LNG PolicyPresident-elect Donald Trump’s return to office promises a significant shift in the U.S. energy landscape, focusing on reviving the liquefied natural gas (“LNG”) sector. This ambitious agenda aims to reverse policies implemented by President Biden, whose LNG permit moratorium came under heavy scrutiny from industry leaders and lawmakers alike. Biden's pause, justified by economic and environmental studies, posed a question mark over long-term U.S. energy dominance.Trump’s administration plans to eliminate this moratorium immediately, bolstering LNG infrastructure through deregulation and fast-tracked permits. Major U.S. LNG exporters, including Cheniere Energy, Shell and Chevron, are poised to benefit significantly from this strategy.Comparing Present Vs. Future Energy AgendasThe Biden administration has emphasized climate-conscious policies, halting LNG export approvals and introducing tax credits for renewable energy projects and electric vehicles. While these initiatives aimed to curb carbon emissions, they were perceived as a hurdle to U.S. energy development. On the other hand, Trump envisions an expansive approach, emphasizing drilling on federal lands, reviving the controversial Keystone XL pipeline, and even reconsidering international climate agreements like the Paris Accord.While Biden sought to balance environmental priorities with energy needs, Trump prioritizes energy independence and economic growth, potentially positioning the U.S. as a dominant global LNG supplier.Balancing LNG Growth With Market StabilityTrump’s policies could also reshape global energy markets. Expanded LNG exports would strengthen U.S. ties with Europe, which remains keen to reduce reliance on Russian gas amidst geopolitical tensions. Additionally, China, having invested heavily in regasification infrastructure, could become a key trading partner if tariffs and trade disputes are managed. However, rapid expansion raises the risk of oversupply, potentially lowering global LNG prices and affecting producer profitability.Analysts warn that over-aggressive LNG expansions could lead to a market glut, echoing previous cycles where excessive supply dampened prices. The key challenge lies in balancing domestic production goals with international market demands to ensure sustained competitiveness. This dynamic will be critical as global LNG demand is projected to reach 600 million metric tons annually by 2030, with a potential supply gap of 140 million metric tons by 2035.Investor TakeawayFor investors, the impending policy shift underscores the need to monitor leading U.S. LNG players. Companies like Cheniere Energy, Shell and Chevron are well-positioned to capitalize on Trump’s agenda, given their existing infrastructure and export capabilities.Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct competitive advantage. The Zacks Rank #3 (Hold) company is primed for significant revenue and earnings growth on the back of solid operations and long-term contracts.Cheniere Energy’s Corpus Christi Stage 3 expansion is also progressing well, with construction 68% complete and Train 1 scheduled for initial gas introduction by year-end. The company’s gas supply deals for its Sabine Pass and Corpus Christi projects offer excellent cash flow visibility in the coming years.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shell: Shell’s long-term strategy revolves around LNG. This London-based firm bought BG Group for $50 billion in 2016 to become the world’s largest producer and shipper of LNG. With LNG export demand likely to rise significantly in the near-to-medium term, Shell’s position as a major supplier of LNG should help the company meet the fuel’s growing demand and help cash flow to improve. Shell’s exposure to this transitional fuel also offers a stable growth avenue within its diversified portfolio.Chevron: Chevron is another world-class operator of LNG. The giant Gorgon and Wheatstone developments in Australia are part of Chevron’s long-term strategy and are its flagship LNG developments. These mega projects allow the supermajor to tap the strong Asian LNG demand. Combined, these projects have an annual LNG production capacity exceeding 24 million metric tons. Chevron is the operator of both projects — with a stake of 64.14% in Wheatstone and 47.3% in the Gorgon development.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Must-See: Solar Stocks Poised to SkyrocketThe solar industry stands to bounce back as tech companies and the economy transition away from fossil fuels to power the AI boom.Trillions of dollars will be invested in clean energy over the coming years – and analysts predict solar will account for 80% of the renewable energy expansion. This creates an outsized opportunity to profit in the near-term and for years to come. But you have to pick the right stocks to get into.Discover Zacks’ hottest solar stock recommendation FREE.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks