The Company is engaged primarily in the business of developing and constructing, and then owning and operating, a network of three onshore LNG receiving terminals, and related natural gas pipelines, along the Gulf Coast of the United States.
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Cheniere Energy operates three terminals along the Texas and Louisiana coast for importing liquid natural gas (LNG), which it regasifies and sends through its pipelines to downstream markets in North America.
So they are importing LNG. Since North America now has a surplus supply of its own natural gas, isn't this a bit like selling ice to Eskimos? It seems to me that the gas is flowing in the wrong direction. Cheniere knows this, which is why they are working to include liquefaction services at their Sabine Pass terminal, which when done, will turn it into a bi-directional facility. But does it make sense to import a commodity and export it from the same location?!
The liquefaction project will take several years to complete, and it is going to take a lot of money -- money which Cheniere does not have. Take a look at the balance sheet. The total debt is almost 3 billion dollars, which is more that their total assets. So the total equity is negative - to the tune of roughly $8 a share by my reckoning.
In summary, this just looks like a perfect storm of misery for shareholders, at least until they get things going in the right direction.