On August 24, the stock of leading liquified natural gas exporter Cheniere Energy (LNG) had an implied volatility of 28%, close to its 15-day average. In comparison, the Global X MLP & Energy Infrastructure ETF (MLPX) showed an implied volatility of ~18% on the day.
Implied volatility measures investor nervousness, and a rise in implied volatility is normally associated with a fall in a stock’s price.
The implied volatilities of Enterprise Products Partners (EPD) and Energy Transfer Equity (ETE) were 14% and 21%, respectively, on the day, while the broader market’s volatility was ~8%. Cheniere Energy stock is far more volatile than its peers and even the broader market.
Energy Transfer Equity stock has been relatively flat this year. However, its pending consolidation and strong second-quarter earnings results present attractive growth prospects for it going forward. You can learn more about these prospects in Energy Transfer’s Upcoming Projects, Charts, Yield, and More.