8/29/14: A Royal Coup for Rex

Portfolio Action Summary

  • Rex Energy (NASDAQ: REXX) added to the Aggressive Portfolio. Buy REXX below $18
For more details on these changes, please see the Aug. 29 issue of The Energy Strategist.

Stock Talk

Joseph Merback

Joseph Merback

Is fracking ban an issue for REXX

Igor Greenwald

Igor Greenwald

I don’t think so. Pennsylvania and Ohio aren’t going to ban fracking.

Peter

Peter

What about last weeks IPO of HMLP? Am I understanding correctly that their lng tankers are able to deliver lng to a harbour which doesn´t have specific infrastructure? If so, shouldn´t that give them a significant edge over their competitors?

Igor Greenwald

Igor Greenwald

I think you’re referring to the Floating Storage and Regasificiation Units (FSRU’s), which can certainly transport the LNG. HMLP’s competitors own these as well. It’s true that the FSRU’s might be the only plausible option for ports without comparable land-based equipment. But most of the LNG trade takes place along longtime, long-term routes, and I suspect that in most cases a regular LNG tanker delivering to a land-based regasification terminal would be the more economical option past a certain import volume. HMLP is nevertheless a promising LNG play, and Robert reviewed it here: http://www.investingdaily.com/21026/another-lng-play-steams-ahead-2/

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