Financial Performance - Cheniere Energy reported a first-quarter 2025 adjusted profit of $1.57 per share, missing the Zacks Consensus Estimate of $2.81 and down from $2.13 per share in the year-ago quarter, attributed to increased operating costs and expenses [1] - Revenues totaled $5.4 billion, exceeding the Zacks Consensus Estimate of $4.4 billion and increasing by 28% from $4.3 billion in the prior year, driven by strong LNG shipments [2] - Consolidated adjusted EBITDA was $1.9 billion, up about 5.6% from the previous year, supported by higher total margins per metric million British thermal units of LNG delivered [5] Capital Allocation and Shareholder Returns - The company allocated over $1.3 billion in the first quarter of 2025 towards growth initiatives, strengthening its balance sheet, and returning value to shareholders [3] - Approximately 1.6 million shares of common stock were repurchased for around $350 million, and $300 million in consolidated long-term debt was repaid [3] - The quarterly dividend of 50 cents per share is scheduled to be paid on May 19, 2025 [3] Operational Highlights - Cheniere loaded 608 trillion British thermal units (TBtu) of LNG during the quarter, surpassing the consensus mark of 586 TBtu [2] - Distributable cash flow (DCF) was reported at $1.3 billion, with 168 cargoes shipped compared to 166 in the year-ago period [6] Cost and Balance Sheet - Total costs and expenses amounted to $4.5 billion for the first quarter, reflecting a 44.7% increase from the prior-year quarter [6] - As of March 31, 2025, Cheniere had approximately $2.5 billion in cash and cash equivalents, with net long-term debt of $22.5 billion and a debt-to-capitalization ratio of 69.1% [7] Project Developments - The first train of the CCL Stage 3 Project achieved substantial completion in March 2025, with the project being 82.5% complete as of the same date [4][14] - The CCL Midscale Trains 8 & 9 Project received authorization from the Federal Energy Regulatory Commission to site, construct, and operate the project [4][16] 2025 Guidance - Cheniere expects consolidated adjusted EBITDA in the range of $6.5 billion to $7 billion for 2025, with DCF anticipated between $4.1 billion and $4.6 billion [8]

Core Viewpoint - Cheniere Energy is conducting its first quarter 2025 earnings conference call, highlighting its financial performance and strategic direction for the upcoming period [1][3]. Company Participants - The conference call features key executives including Jack Fusco (President and CEO), Anatol Feygin (EVP and Chief Commercial Officer), and Zach Davis (EVP and CFO) [1][3]. Conference Call Structure - The call is structured to include a presentation followed by a Q&A session, with a reminder that forward-looking statements may be included, which could differ from actual results [4][5]. Financial Measures - The discussion may reference non-GAAP financial measures such as consolidated adjusted EBITDA and distributable cash flow, with reconciliations provided in the presentation appendix [5].

Financial Data and Key Metrics Changes - In Q1 2025, the company generated consolidated adjusted EBITDA of approximately $1.9 billion, distributable cash flow of approximately $1.3 billion, and net income of approximately $350 million [9][39]. - Compared to Q1 2024, the results reflect higher total margins due to increased international gas prices and optimization of cargo sales [39]. Business Line Data and Key Metrics Changes - The company achieved substantial completion on the first train of the Corpus Christi Stage three project ahead of schedule and within budget, with commissioning completed in March [9][10]. - The company produced and sold approximately 6 TBtu of LNG attributable to the commissioning of Train one of the Stage three project [39]. Market Data and Key Metrics Changes - LNG imports into Europe rose 23% year-on-year in Q1 to 36 million tons, with U.S. deliveries increasing 34% to 20.5 million tons [27]. - In contrast, China's LNG imports declined 25% year-on-year to 15.1 million tons due to stronger domestic production and increased pipeline imports [30]. Company Strategy and Development Direction - The company is focused on expanding its LNG platform and developing new production capacity to meet global energy demands [7]. - The company aims to achieve first LNG from Train two by the end of the month and expects Train four to be commissioned by the end of the year [11][19]. Management's Comments on Operating Environment and Future Outlook - Management noted that the LNG market is characterized by heightened volatility and geopolitical risks, but remains committed to operational excellence [8][14]. - The long-term LNG demand outlook remains strong, with the company well-positioned to navigate trade dynamics and maintain its competitive edge [46][47]. Other Important Information - The company has locked in over $500 million of costs for midscale trains eight and nine, mitigating risks associated with inflation for materials and equipment [17][43]. - The company declared a dividend of $0.50 per common share for Q1 and remains committed to growing its dividend by approximately 10% annually [41]. Q&A Session Summary Question: Current contracting market and trade agreements - Management highlighted the strong position of LNG in balancing trade and the company's selective partnerships to capture market premiums [52][55]. Question: Competitive advantage in the marketplace - Management emphasized the company's focus on differentiated opportunities and strong customer relationships, avoiding commoditized competition [58]. Question: Permitting process and future projects - Management discussed the administration's focus on permitting reform and the positive progress on permits for midscale trains eight and nine [61][63]. Question: Vulnerability to LNG supply shocks in 2025 - Management acknowledged Europe's vulnerability due to low inventories and the cessation of Russian gas flows, indicating potential for increased demand for U.S. LNG [64][66]. Question: 2020 Vision capital allocation update - Management confirmed progress on the 2020 Vision, with significant capital deployed towards shareholder returns and growth initiatives [70][71]. Question: Future contracting strategy in light of global trade realignment - Management reiterated the importance of Chinese counterparties while emphasizing that U.S. volumes to China are not critical for the company's strategy [80][82].

Financial Data and Key Metrics Changes - In Q1 2025, the company generated consolidated adjusted EBITDA of approximately $1.9 billion, distributable cash flow of approximately $1.3 billion, and net income of approximately $350 million, reaffirming the full year 2025 guidance provided in the previous call [7][36][42] - Compared to Q1 2024, the results reflect higher total margins due to increased international gas prices and optimization of cargo sales [36][42] Business Line Data and Key Metrics Changes - The company achieved substantial completion on the first train of the Corpus Christi Stage three project ahead of schedule and within budget, with overall project completion at 82.5% [7][8] - The company produced and sold approximately 6 TBtu of LNG attributable to the commissioning of Train one of the Stage three project, which is not recognized in income or EBITDA but offsets CapEx [36] Market Data and Key Metrics Changes - LNG imports into Europe rose 23% year on year in Q1 to 36 million tons, with U.S. deliveries increasing 34% to 20.5 million tons [25] - China's LNG imports declined 25% year on year to 15.1 million tons, influenced by stronger domestic production and increased pipeline gas imports [27] Company Strategy and Development Direction - The company is focused on expanding its LNG platform and developing new production capacity to meet global energy demands, while navigating geopolitical risks and market volatility [6][12] - The company aims to achieve first LNG from Train two by the end of the month and expects Train four to be commissioned by the end of the year [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term LNG demand outlook, emphasizing the importance of U.S. LNG in global energy supply [12][44] - The company remains insulated from short-term market volatility due to its highly contracted business model [12][44] Other Important Information - The company has locked in over $500 million of costs for midscale trains eight and nine, mitigating risks associated with inflation and tariffs [14][41] - The company has repurchased approximately 1.6 million shares for about $350 million, with a remaining buyback authorization of approximately $3.5 billion [37] Q&A Session Summary Question: Current contracting market and trade agreements - Management highlighted the strong position of the company in the LNG market, emphasizing robust commercial engagements and a selective approach to partnerships [52][54] Question: Competitive advantage in the marketplace - Management noted that the company does not compete directly with suppliers like Qatar, focusing instead on differentiated opportunities and strong customer relationships [57][58] Question: Permitting process and future projects - Management discussed the administration's focus on permitting reform and the positive progress made with FERC permits for midscale trains eight and nine [61][63] Question: Vulnerability to LNG supply shocks in 2025 - Management acknowledged Europe's vulnerability due to low inventories and emphasized the company's role in supplying LNG to the region [64][66] Question: 2020 Vision capital allocation update - Management confirmed that the company is on track to exceed the $20 billion deployment target before 2026, with significant progress in debt paydown and share buybacks [70][71] Question: Future contracting strategy in light of global trade realignment - Management reiterated the importance of Chinese counterparties while emphasizing that U.S. volumes to China are not critical to the company's strategy [80][82]

Core Insights - The potential changes in sanctions on Russian gas could significantly impact U.S. LNG investments, with a possible effect on up to $120 billion and 29 MMtpa of future projects [1][4][5] Scenario Analysis - **Current Trend Scenario**: U.S. LNG liquefaction project final investment decisions (FIDs) are projected at 33.7 MMtpa, with a direct expenditure of $138 billion from 2025 to 2040 [7] - **Opening the Taps Scenario**: If sanctions on Russian gas are lifted, U.S. LNG FIDs would drop to 16.5 MMtpa, leading to a $67 billion investment reduction [8] - **Phasing Down Scenario**: This scenario anticipates U.S. LNG FIDs increasing to 45.5 MMtpa, resulting in a direct expenditure of $186 billion from 2025 to 2040 [9] Investment Implications - The "Opening the Taps" scenario could curtail over 17 MMtpa in new U.S. LNG projects, equating to a $70 billion investment loss compared to the "Current Trend" scenario [2][4] - Conversely, the "Phasing Down" scenario could enable an additional 12 MMtpa in U.S. LNG projects, representing an extra $48 billion in investment [3][4] Market Dynamics - U.S. LNG is positioned as a balancing supply in global markets, making it particularly sensitive to changes in price signals and market share due to shifts in Russian gas flows [5] - The study indicates that new LNG contracts are essential to address the growing European gas supply gap, driven by demand recovery and declining domestic production [7]

Core Insights - Cheniere Energy reported $5.44 billion in revenue for Q1 2025, a 28% year-over-year increase, exceeding the Zacks Consensus Estimate of $4.47 billion by 21.72% [1] - The company's EPS for the same period was $1.57, down from $2.13 a year ago, reflecting a surprise of -44.13% compared to the consensus estimate of $2.81 [1] Revenue Breakdown - LNG revenues were $5.31 billion, surpassing the average estimate of $4.29 billion by analysts, marking a 31.4% increase year-over-year [4] - Other revenues totaled $105 million, falling short of the $148.90 million average estimate, representing a 42.3% decline year-over-year [4] - Regasification revenues were $34 million, slightly above the estimated $33.37 million, with no change compared to the previous year [4] Stock Performance - Cheniere Energy's shares have returned +9.6% over the past month, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Company Performance - Cheniere Energy reported quarterly earnings of $1.57 per share, missing the Zacks Consensus Estimate of $2.81 per share, and down from $2.13 per share a year ago, representing an earnings surprise of -44.13% [1] - The company posted revenues of $5.44 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 21.72%, compared to year-ago revenues of $4.25 billion [2] - Over the last four quarters, Cheniere Energy has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Cheniere Energy shares have increased approximately 11.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $2.38 on revenues of $4.15 billion, and for the current fiscal year, it is $11.66 on revenues of $18.3 billion [7] Industry Outlook - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly impact stock performance [5][8]

Cheniere Energy, Inc. First Quarter 2025 May 8, 2025 Safe Harbor Statements Forward-Looking Statements This presentation contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical or present facts or conditions, included or incorporated by reference herein are "forward- looking stat ...

Financial Performance - Cheniere generated revenues of approximately $5.4 billion in Q1 2025, a 28% increase compared to $4.3 billion in Q1 2024[3][8] - Net income for Q1 2025 was approximately $0.4 billion, a decrease of 30% from $0.5 billion in Q1 2024, primarily due to unfavorable variances related to derivative instruments[3][8] - Consolidated Adjusted EBITDA for Q1 2025 was approximately $1.9 billion, up 6% from $1.8 billion in Q1 2024[3][8] - Total revenues for Q1 2025 reached $5,444 million, up from $4,253 million in Q1 2024, marking an increase of 28.1%[30] - Net income attributable to Cheniere decreased to $353 million in Q1 2025 from $502 million in Q1 2024, a decline of 29.7%[30] - Consolidated Adjusted EBITDA for Q1 2025 was $1,872 million, compared to $1,773 million in Q1 2024, reflecting an increase of 5.6%[36] - Interest expense, net of capitalized interest, was $229 million in Q1 2025, down from $266 million in Q1 2024, a decrease of 13.9%[30] - The company reported a loss of approximately $0.7 billion from changes in the fair value of commodity derivatives in Q1 2025[31] Guidance and Future Expectations - Cheniere reaffirmed its full year 2025 Consolidated Adjusted EBITDA guidance of $6.5 billion to $7.0 billion and Distributable Cash Flow guidance of $4.1 billion to $4.6 billion[4][6] - The company expects full-year 2025 Distributable Cash Flow to be between $5.1 billion and $5.7 billion[41] Shareholder Returns and Capital Management - The company repurchased approximately 1.6 million shares for about $350 million and paid a quarterly dividend of $0.500 per share, totaling approximately $112 million in Q1 2025[6] - The weighted average number of common shares outstanding decreased to 223.5 million in Q1 2025 from 234.2 million in Q1 2024[30] Project Developments - Substantial Completion of Train 1 of the CCL Stage 3 Project was achieved on March 16, 2025, with expectations to have the first three trains operational by the end of 2025[6][7] - Cheniere received authorization from FERC for the CCL Midscale Trains 8 & 9 Project and anticipates making a Final Investment Decision in 2025[6][18] Liquidity and Assets - As of March 31, 2025, Cheniere had total available liquidity of approximately $10.6 billion, including cash and cash equivalents of $2.5 billion[10] - Total assets as of March 31, 2025, were $43,546 million, slightly down from $43,858 million at the end of 2024[34] - Current liabilities decreased to $3,979 million in Q1 2025 from $4,441 million in Q4 2024, a reduction of 10.4%[34] LNG Operations - During Q1 2025, Cheniere exported 609 TBtu of LNG, with a total of 168 cargoes shipped[8][27] - LNG revenues increased to $5,305 million in Q1 2025 from $4,037 million in Q1 2024, representing a growth of 31.3%[30] - The company aims to focus on safe and reliable LNG delivery, project developments at Sabine Pass and Corpus Christi, and delivering shareholder returns in 2025[7]

Production Capacity - Cheniere's total production capacity is expected to exceed 55 mtpa upon completion of over 8 mtpa currently under construction[120]. - The Sabine Pass LNG Terminal has a total production capacity of approximately 30 mtpa and regasification capacity of approximately 4 Bcf/d[121]. - The Corpus Christi LNG Terminal has a total expected production capacity of over 25 mtpa, with over 8 mtpa currently under construction[125]. - The CCL Midscale Trains 8 & 9 Project is expected to have a total production capacity of approximately 3 mtpa, with a target FID in 2025[130]. - The SPL Expansion Project is anticipated to have a total production capacity of up to approximately 20 mtpa, with a target FID in 2026/2027[130]. - The Corpus Christi Stage 3 Project is expected to add over 10 million tonnes per annum (mtpa) of operational liquefaction capacity once all seven Trains reach substantial completion[149]. - The Corpus Christi Stage 3 Project achieved an overall completion percentage of 82.5%, with engineering at 98.2% and procurement at 99.8% as of March 31, 2025[154]. - The company expects substantial completion of the remaining Trains of the Corpus Christi Stage 3 Project between 1H 2025 and 2H 2026[154]. Contractual Agreements - Approximately 95% of the total anticipated production from the SPL Project and the CCL Project is contracted through long-term agreements with an average remaining life of about 15 years[126]. - The company aims to contract approximately 80-90% of its current and planned liquefaction capacity under long-term agreements[127]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $5,444 million, an increase of $1,191 million compared to $4,253 million in the same period of 2024[135]. - LNG revenues increased to $5,305 million for the three months ended March 31, 2025, up $1,268 million from $4,037 million in the prior year[137]. - Net income attributable to Cheniere for the three months ended March 31, 2025, was $353 million, a decrease of $149 million compared to $502 million in the same period of 2024[139]. - Net cash provided by operating activities for the three months ended March 31, 2025, was $1,228 million, a decrease from $1,246 million in the same period of 2024[157]. - The company experienced a net cash used in financing activities of $997 million for the three months ended March 31, 2025, compared to $264 million in 2024[160]. Shareholder Returns - The company repurchased approximately 1.6 million shares of common stock for approximately $350 million during the three months ended March 31, 2025[134]. - A dividend of $0.500 per share was paid for a total of $112 million during the three months ended March 31, 2025, compared to $0.435 per share for a total of $105 million in 2024[164]. - The company repurchased approximately 1.6 million shares of common stock for $350 million during the three months ended March 31, 2025, with $3.5 billion remaining under the share repurchase program[163]. Liquidity and Capital Allocation - Total available liquidity as of March 31, 2025, was $10,553 million, including cash and cash equivalents of $2,511 million and available commitments under credit facilities of $7,685 million[151]. - Cheniere's capital allocation plan focuses on financially disciplined growth and achieving value-accretive returns[127]. Tax and Regulatory Matters - The effective tax rate increased to 15.3% for the three months ended March 31, 2025, compared to 11.5% for the same period in 2024[143]. - The company is monitoring potential impacts from new federal tax legislation that could affect cash taxes and financial position in 2025[159]. Other Financial Metrics - The company recognized total volumes of 614 TBtu in the current period, with 609 TBtu loaded during the current period and 5 TBtu from commissioning[136]. - As of March 31, 2025, the assets of the VIEs included $94 million in cash and cash equivalents and $80 million in restricted cash and cash equivalents[152]. - Investing cash outflows for the Corpus Christi Stage 3 Project were $321 million for the three months ended March 31, 2025, compared to $509 million in 2024, reflecting a $188 million decrease[159]. - The fair value of Liquefaction Supply Derivatives was $(1,403) million as of March 31, 2025, reflecting a change in fair value of $(742) million from December 31, 2024[167].