Shares of Houston-based Cheniere Energy, the largest US LNG producer and the world's second-largest operator, may be included in the S&P 500, says Cowen. "It is unclear how quickly the name could be included in the index, though the market is likely to find out March 3 when new adds are announced," Cowen says, noting Cheniere checked the necessary boxes including 4Q results showing trailing 12-month positive GAAP earnings. "Speed to decision is important. During periods of large global gas prices increases, GAAP earnings have turned negative due to non-cash hedging impacts. As such, if LNG is not included in S&P this quarter and gas prices rise rapidly, it may not qualify for inclusion in subsequent quarters."
