Another investing avenue in the natural gas market

[aja57]

Looks like your thesis, Dan on natural gas prices being dominated by regional demands is going to change pretty quickly.

LNG tankers are the midstream companies of global energy commerce. Maybe add a new research segment to your portfolio?

https://oilprice.com/Latest-Energy-News ... -2022.html

[aja57]

This little LNG shipper is growing quite rapidly and offers an extremely attractive dividend.

LNG shippers are the midstream of LNG.

https://dorianlpg.com/news-and-media/pr ... fault.aspx

[Fraser921]

Dorian actually ships liquids like propane

LNG is a different type of ship as the NG is chilled for transport

see FLNG

[aja57]

Thanks Fraser. I stand corrected.

Great little company. Impressive dividend. Worth a look.

[ChuckGeb]

Thanks for posting the idea.

[Fraser921]

here's something else which I personally found very helpful:

https://blog.opisnet.com/ngl-or-lpg-or- ... automation

[Fraser921]

Aja, I have made the same mistake myself. Aside from the energy markets, my next favorite sector is shipping.

LPG Dorian is a good company with a good dividend and they are earning good rates. The same goes for FLNG /shipment of LNG

Right now the hottest sector is product tankers STNG ,TRMD. I recommended TRMD back in May at 9, its now 32. > Shipment of refined products.

I'm anxiously waiting the results of TNK an TK, Thursday of this week. Midsize crude tankers. I expect good results and a pop in the prices. TNK has been almost a 4 bagger from 10 to 37

https://finance.yahoo.com/news/teekay-g ... 00036.html

[aja57]

Looks like your wish came true on TNK, Fraser. Up 11% on earnings.

[Fraser921]

I'm glad someone is astutely watching what I am writing

TNK was 10 earlier this year. as I write this up 14 %

Here is the slide deck and transcript

https://seekingalpha.com/article/458129 ... t-94554735

https://www.teekay.com/wp-content/uploa ... tation.pdf

Look at slide 9

FCF free cash flow is over 20 annually. Thats every dollar of cash expenses and includes debt repayments

20 divided by 40 is a 50 % yield

Crk at best is 0. FCF not EBITDA

Ships have to travel further distances due to Russian ban. If they travel furter that reduces supply. So a reduction of supply and same demand means prices go up

Their daily cost is 15 k a day . They are earning 55 k a day 55-15 is 40 k a day per ship and they have 45 ships

Cash cow in the classic sense

I mentioned another tanker name in May TORM TRMD ticker symbol. It was 9 then. Today 34.40, almost a 4 bagger in 9 months

From the analyst questions:

The fourth quarter was amazing, the first quarter even better. If I just look at this chart you put on, on Slide 9 and not even having to extrapolate beyond, whatever, 40 days from now, that first quarter-to-date average rate free cash flow equivalent for the quarter, your net debt at $345 million would be cut by more than half just by March 31.