How to Profit from the Rise of

American Energy Exports

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For decades America has been a net importer of energy. We built natural gas import facilities like

Dominion's Cove Point facility to receive liquefied natural gas from overseas to bridge the gap between

demand and domestic production.

Photo credit: Flickr/Roy Luck

Today facilities like Cove Point and CheniereEnergy’s Sabine Pass are being converted to export

natural gas.

Photo credit: Flickr/Steven Straiton

However, it’s not just natural gas that America is now exporting.

Photo credit: Flickr/rabiem22

America is exporting NGLs like propane and refined petroleum products like gasoline and diesel.

Photo credit: Flickr/Justin Russell

There’s even talk that America will lift its ban on exporting oil.

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Needless to

say, there’s money to be

made on American energy

exports…

Profit Opportunity No. 1: Liquefied Natural Gas

There are a dozen LNG export and re-export terminals either approved or proposed in the U.S. according to

the Department of Energy.

Source: Energy.gov

Profit Opportunity No. 1: Liquefied Natural Gas

Cheniere Energy’s Sabine Pass facility is the most advanced as it is expected to begin commercial operations by late next year.

It’s planning a second facility in Corpus Christi.

Because of this the company is a real “pure-play” investment opportunity on LNG exports.

Profit Opportunity No. 1: Liquefied Natural Gas

Other noteworthy companies investing in LNG export projects.

Dominion Energy’s Cove Point LNG project.

Kinder Morgan’s Gulf LNG and Southern LNG.

Sempra Energy’s Cameron LNG project.

Energy Transfer Partners’ Lake Charles LNG project.

Profit Opportunity No. 2: Natural Gas Liquids

Natural gas liquids like propane, butane and ethane are easier to export as these products don’t require expensive liquefaction facilities. This has

turned America into the world’s top propane exporter.

Source: Enterprise Products Partners

Profit Opportunity No. 2: Natural Gas Liquids

Enterprise Products Partners leads the way in NGL exports.

Growing its LPG export capacity from 7.5 million barrels per month to 16 million barrels per month by 2015.

Building an ethane export facility on the Houston Ship Channel, which should be operational by 2016.

Profit Opportunity No. 2: Natural Gas Liquids

Other noteworthy companies investing in NGL export projects.

Phillips 66 is building a LPG export facility along the Gulf Coast.

Targa Resources Partners is expanding its LPG export facility in the Gulf Coast.

Sunoco Logistics is exporting NGLs through its Marcus Hook facility in the East Coast.

Profit Opportunity No. 3: Refined Petroleum Products

While American companies cannot export crude oil, companies can export refined petroleum products like gasoline, diesel and

jet fuel. America is now a next exporter of these products.

Source: Enterprise Products Partners

Profit Opportunity No. 3: Refined Petroleum Products

Refiners like Phillips 66 and Valero are investing to grow refined product export capacity.

Phillips 66 recently bought a facility that’s strategically positioned for exports.

Phillips 66 is investing to grow its export capacity from 410,000 barrels a day to 550,000 barrels a day by 2016.

Valero is investing in several projects to increase its exports of refined products.

Profit Opportunity No. 3: Refined Petroleum Products

Midstream companies like Enterprise Products Partners ship and store refined petroleum products.

Enterprise is currently completing a refined petroleum products export dock expansion.

Buckeye Partners has global marine terminals in the Caribbean and on the East Coast.

Profit Opportunity No. 4: Oil

A ban has been in place since the 1970’s on exporting domestically produced oil. However, shale oil is changing the conversation and recently Continental Resources applied to

export some of its oil.

Source: Enterprise Products Partners

Profit Opportunity No. 4: Oil

Right now the profit opportunities worth noting include:

Valero exports oil out of the Gulf Coast and ships it to its refinery in Quebec.

Enterprise Products Partners has significant access to water and expects to be a major player in crude exports as they evolve. It was also recently approved to export condensate, which is a minimally processed fuel.

Investor takeaway

There are ample opportunities for investors to profit from energy exports. However, three companies really stand out as being the best ways to profit for investors.

The IRS is daring you to

make this investment.