Cheniere Energy Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Cheniere Energy (ASE: LNG) jumped 10% today after private equity firm Blackstone Group (NYS: BX) said it would make a $2 billion equity investment in its subsidiary, Cheniere Energy Partners (ASE: CQP) .

So what: The proceeds will be used toward developing the liquefaction project at Sabine Pass, as well as purchasing the Creole Trail pipeline directly from Cheniere Energy. Analysts had expressed skepticism over Cheniere's ability to obtain financing for the gas liquefaction plant, so today's announcement comes as a nice surprise to investors.

Now what: Cheniere expects the debt financing for Sabine Pass to be completed by the end of the first quarter, with construction expected to commence in the first half of 2012. "Blackstone is one of the world's largest private equity investors, with significant experience in the energy sector and a history of successful development of large scale energy projects," Cheniere Chairman and CEO Charif Souki said. "We look forward to a successful working relationship with Blackstone as a value-added partner in the development of our Sabine Pass liquefaction project." Given the company's still-heavy debt load and highly volatile stock price, however, Cheniere remains best suited for speculative types.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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