Golar LNG Ltd (GLNG-Q)

Long-term play on robust gas demand. In a great spot with access to US LNG market growth in next few years. LNG market is tight than usual right now, but it’s only going to get better in December, and you can hold for a number of years. Yield is 0.7%. (Analysts’ price target is $37.75.)

Hasn’t looked at this for a while. He’s just started doing some work on LNG, as there might be some opportunities. He is looking at Cheniere, which has a new liquids action terminal on the Texas Gulf Coast for exporting North American gas offshore. Golar’s primary business is tankers that take LNG across the oceans. A pretty volatile stock. Like a lot of the shipping businesses, there are really big capital assets in a ship, typically heavily debt levered, and the rates move like crazy depending on supply/demand. Shipping might be a little bit oversupplied, so he is not interested in that area. Longer-term, LNG is a growth business.

Liquefied natural gas is going to be huge down the road. It got put on the back burner with the fall in oil prices. There are a lot of LNG plants that have been built and are being built in the US, that are ready to take the very cheap natural gas. Thinks this will be a boom sector. This pays a 1.2% dividend. He prefers GasLog Ltd (GLOG-N), which owns the takers that transport LNG, and pays about a 4.6% dividend yield.