There are only a handful of companies building US projects that will export liquefied natural gas, or LNG, and most are in a fairly advanced stage of constructing very large and complex facilities on the US Gulf Coast. LNG projects take several years to construct, and buying the stock of their developers early in the process has paid off for investors before, particularly in the case of Cheniere Energy (NYSEMKT: LNG). Since Cheniere said it won federal approval to export LNG in 2010, its shares are up more than 2,400%, making it one of the best performers of the last decade.
New Fortress Energy (NASDAQ: NFE) is a smaller-scale LNG developer that has similar ambitions in this industry, and it is approaching this market in a unique way. Let's take a look at this company and see if it has what it takes to become the next Chenierel.
New Fortress Energy has not been around long. It was founded in 2014 by Wes Edens, the co-founder and co-CEO of Fortress Investment Group, with previous experience at BlackRock and Lehman Brothers. He also has some experience in infrastructure project development, particularly with the Brightline passenger rail in Florida.