Chesapeake, Cheniere should benefit from tightened supply, Barron’s says

Oil and oil stocks have been stuck in a tight price range this year, fluctuating by a few percentage points in either direction week by week. Natural gas has been much more combustible, Avi Salzman writes in this week’s edition of Barron’s. There is still a bull case for natural gas. Chesapeake (CHK) is one that still seems to have an embedded advantage. It’s planning to buy competitor Southwestern Energy (SWN) in a deal that will make it the dominant producer in the Haynesville Shale, a gas play in Louisiana, Texas, and Arkansas with easy access to export terminals. The combined company could export as much as 20% of its production, the author notes. Cheniere Energy (LNG) is also well-positioned, given its role as the dominant player in operating LNG export terminals. It accounted for more than half the LNG exported from the U.S. last year, according to the company.