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Wednesday, March 09, 2011


I had to really dig around to find out why Cheniere Energy (CQP,LNG) took a huge hit yesterday on the order of 22 to 40 % respectively. The volume was enormous as well on both stocks here. Apparently Cheniere filed a lawsuit against Centerbridge Parnters. I got this from Galaxy

Cheniere Energy, Inc. (AMEX:LNG) ($6.25, -35.77%) has registered a lawsuit versus Centerbridge Partners LP, stating the distraught investment-focused hedge fund interrupted business of Cheniere with a letter claiming it had evaded on debt.

Cheniere charged that Centerbridge occupied in offense, business criticism and circuitous intrusion with business relationships versus it and its Sabine Pass unit, in a complaint in the Harris County, Texas, state district court, it stated recently in a Securities and Exchange Commission filing.

Sabine Pass, which is almost 91% possessed by Cheniere, controls a liquefied natural gas terminal on Texas and Louisiana’s border.

Cheniere stated that Sabine Pass obtained a letter from Centerbridge saying it drifted from usually established accounting principles by recording associate expenses from Cheniere Energy Investments LLC as revenue. By itself, the letter disputed, Sabine Pass was in evasion under the terms of some of its notes, of which Centerbridge stated that it was a noteworthy holder.

Cheniere commented that it deems that all of the claims in the letter are lacking merit and that Sabine Pass is in complete fulfillment with its agreement.

Cheniere Energy traded with an immense volume of 17.23 million shares as compared to average volume of 3.37 million shares in last trading session.

So apparently the the story of the letter has everyone in a tizzy. Citigroup however this morning is upgrading Cheniere (CQP) to a hold from a sell. CQP is up 1 in the pre open and LNG is up .69. It was over 10 bucks and closed down around 6 yesterday. Cant be fun for shareholders here as this one went down before the 2008 meltdown and has been slowly getting its footing back.

El Paso Pipeline Partners (EPB) is moving its' public offering today and the stock is down just under a buck in the pre open. Breitburn (BBEP) put up earnings above expectations and announces guidance for 2011 which looks pretty strong and is based on an average price for oil at about 80 bucks going foward. The company is optimistic that it can continue to grow the distribtution which in the end is what matters to unit holders.

Stocks are flat to a little lower this morning after yesterday's nice up day. MLPS finished down but off the lows. Atlas Pipeline Partners (APL) and Atlas Holdings (AHD) continue to lead the group as stock offerings continue to distort the index. Plains All American (PAA) did their offering yesterday. The whole group has pretty much gone to the well so maybe we'll get a breather for the next few months. Bond yields are a touch lower ahead of the 10 year auction. Crude and nat gas are a little higher this morning. Bring on the open!

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