Cheniere(LNG) - 2025 Q2 - Quarterly Report

Part I. Financial Information Item 1. Consolidated Financial Statements This section presents Cheniere Energy's unaudited consolidated financial statements for the three and six months ended June 30, 2025, including statements of operations, balance sheets, changes in stockholders' equity, cash flows, and detailed notes Consolidated Statements of Operations Total revenues for the six months ended June 30, 2025, increased to $10,085 million, with net income attributable to Cheniere rising to $1,979 million, or $8.85 per diluted share | Financial Metric | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :--- | :--- | :--- | | Total Revenues | $10,085 | $7,504 | | Income from Operations | $3,491 | $2,742 | | Net Income | $2,565 | $2,001 | | Net Income Attributable to Cheniere | $1,979 | $1,382 | | Diluted EPS | $8.85 | $5.96 | Consolidated Balance Sheets As of June 30, 2025, total assets reached $44,578 million, with total liabilities decreasing to $33,269 million and total stockholders' equity increasing to $11,251 million | Balance Sheet Item | June 30, 2025 ($ million) | December 31, 2024 ($ million) | | :--- | :--- | :--- | | Total Current Assets | $3,704 | $4,801 | | Total Assets | $44,578 | $43,858 | | Total Current Liabilities | $3,775 | $4,441 | | Total Liabilities | $33,269 | $33,798 | | Total Stockholders' Equity | $11,251 | $10,053 | Consolidated Statements of Cash Flows Net cash provided by operating activities for H1 2025 was $2,059 million, with investing activities using $1,575 million and financing activities using $1,653 million, a significant decrease from the prior year | Cash Flow Activity (Six Months Ended June 30) | 2025 ($ million) | 2024 ($ million) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $2,059 | $2,362 | | Net Cash Used in Investing Activities | ($1,575) | ($1,185) | | Net Cash Used in Financing Activities | ($1,653) | ($2,746) | | Net Decrease in Cash | ($1,173) | ($1,571) | Notes to Consolidated Financial Statements These notes detail operations, accounting policies, and financial items, including Corpus Christi LNG Terminal expansion, derivative instruments, debt, revenue recognition, and share repurchases - The company is expanding its Corpus Christi LNG Terminal with the Corpus Christi Stage 3 Project and made a positive Final Investment Decision (FID) on the Midscale Trains 8 & 9 Project in June 2025[33] Derivative Asset (Liability), Net | Derivative Asset (Liability), Net | June 30, 2025 ($ million) | December 31, 2024 ($ million) | | :--- | :--- | :--- | | Liquefaction Supply Derivatives | ($2) | ($742) | | LNG Trading Derivatives | $91 | $17 | | FX Derivatives | ($33) | $16 | | Total | $56 | ($709) | - As of June 30, 2025, the company had $106.3 billion in transaction price allocated to future performance obligations (backlog), with a weighted average recognition timing of approximately 8 years for LNG revenues[101] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial performance, highlighting increased net income from derivative changes and LNG pricing, operational progress at Corpus Christi, and a strong liquidity position supporting growth, debt reduction, and shareholder returns - In June 2025, the Board made a positive Final Investment Decision (FID) for the CCL Midscale Trains 8 & 9 Project and issued a full notice to proceed with construction to Bechtel[150] - Net income attributable to Cheniere for H1 2025 increased by $597 million compared to H1 2024, primarily due to a $596 million favorable change in the fair value of derivative instruments and a $508 million increase in LNG revenues (net of cost of sales and excluding derivatives)[157] Liquidity Source | Liquidity Source | Amount (as of June 30, 2025) ($ million) | | :--- | :--- | | Cash and cash equivalents | $1,648 | | Restricted cash and cash equivalents | $369 | | Available commitments under credit facilities | $7,685 | | Total available liquidity | $9,702 | Item 3. Quantitative and Qualitative Disclosures about Market Risk The company discloses commodity price risk exposure from its derivative portfolio, with a 10% price change impacting Liquefaction Supply Derivatives by $2,327 million and LNG Trading Derivatives by $59 million Derivative Type | Derivative Type | Fair Value (June 30, 2025) ($ million) | Change in Fair Value from 10% Price Change ($ million) | | :--- | :--- | :--- | | Liquefaction Supply Derivatives | ($2) | $2,327 | | LNG Trading Derivatives | $91 | $59 | Item 4. Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures are effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[197] Part II. Other Information Item 1. Legal Proceedings No material changes to legal proceedings have occurred since those disclosed in the company's 2024 annual report on Form 10-K - There have been no material changes to the legal proceedings disclosed in the company's annual report on Form 10-K for the fiscal year ended December 31, 2024[200] Item 1A. Risk Factors No material changes to the company's risk factors have occurred since the 2024 annual report and the Q1 2025 quarterly report - No material changes have occurred in the risk factors since the disclosures in the 2024 Form 10-K and the Q1 2025 Form 10-Q[201] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds During Q2 2025, Cheniere repurchased 1.41 million shares at an average of $217.38 per share, with $3.2 billion remaining for future repurchases Share Repurchases | Period (2025) | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | April | 1,049,473 | $212.54 | | May | 246,149 | $231.37 | | June | 112,666 | $231.92 | | Total Q2 | 1,408,288 | N/A | Item 5. Other Information On August 1, 2025, the company entered a $1.25 billion Third Amended and Restated Revolving Credit Agreement, extending maturity to 2030, reducing costs, and incorporating sustainability-linked pricing - On August 1, 2025, Cheniere amended and restated its $1.25 billion revolving credit facility, extending the maturity to 2030 and reducing borrowing costs[204] - The amended credit facility's interest rate and commitment fees can be reduced based on the achievement of certain methane emissions management standards[206] Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including supplemental indentures, construction agreement changes, the new credit agreement, and CEO/CFO certifications