Why the Origin Energy Share Price Rose Today

What Happened to Origin Energy Ltd’s Share Price?

Today, shares in energy developer Origin Energy Ltd [ASX:ORG] jumped through nearly 2.7% on a whirlwind day for the Aussie stock market. Today’s price action is encouraging, but it has been difficult to make real money out of Source shares for a long time. At $11.Forty five, ORG shares are still less than at almost any time in yesteryear seven years.

Why Did This Happen to ORG Shares?

One associated with Origin’s key projects is Australia Pacific LNG Pty Ltd. This is a coal seam gas opportunity that Origin is developing like a joint venture with ConocoPhillips [NYSE:COP] and Sinopec Company [HKG:0386].

This morning, Origin passed on what’s promising about the project — it’s on track to meet its export target. The JV has started in order to load refrigerants to its Curtis Island LNG facility. It’s ‘firmly on track’ to create its first LNG export within the second half of 2015.

This good news obviously caught a few investors by surprise — putting a solid bid under this big company’s inventory price.

What Now for Origin Ltd?

Companies like Origin Energy must always find buyers for their items — but the question for you as an investor is: at what price?

A deluge of Foreign LNG is due to hit the market next year and beyond. Will there be enough demand at the right price, both here and internationally, to justify the massive investment in capacity the likes of Origin have made?

If not, writedowns could come — and the stock price could endure more than what investors possess copped over the past seven years. And when the macroeconomic picture falls apart, that pain could come swiftly for Origin traders.

To learn how you could use Aussie shares backed by hard property to protect your portfolio from potential collapse, go here to claim your free book through financial warfare analyst Rick Rickards.

And for deeper analysis on the Aussie stock market and worldwide economy, keep an eye out for my essays in Money Morning — Australia’s biggest free daily financial e-letter.

Cheers, Ricky Dohrmann+
Editor, Money Morning