Chart Industries Worth Another Look With LNG Mostly Washed Out

I’ve written in the past about the difficulties that go with modeling Chart Industries (GTLS) and its exposure to the significant upside and uncertainty around large LNG orders, not to mention the volatility that is part and parcel of the U.S. natural gas business. Beyond that, though, Chart still has a very strong industrial and medical gas business; a business that has cyclicality, yes, but that still provides a more stable source of value.

Since my last update on the company, the oil & gas sector has melted down, taking gas processing and LNG with it. I do think we’re looking at a multiyear recovery path for North American energy infrastructure, but I think the industrial gas business will hold up better once we get past these COVID-19 closures and disruptions. There’s absolutely elevated uncertainty here, and I’m hiking my discount rate as a result, but I think these shares are worth a look from more aggressive investors who can be patient with respect to natural gas and LNG project recoveries.

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Chart Industries Worth Another Look With LNG Mostly Washed Out