Cheniere(US:LNG)2025-10-29 21:35LNG Production Capacity - Cheniere's total LNG production capacity is expected to exceed 60 mtpa, with over 12 mtpa currently under construction as of September 30, 2025[130]. - The Sabine Pass LNG Terminal has over 30 mtpa of production capacity in operation and includes five storage tanks with a total capacity of approximately 17 Bcfe[130]. - The Corpus Christi LNG Terminal is expected to add over 10 mtpa of LNG production capacity from the ongoing Corpus Christi Stage 3 Project, with approximately 7 mtpa under construction[134]. - The SPL Expansion Project aims for a total peak production capacity of up to 20 mtpa of LNG, with a target FID expected in 2026/2027[137]. - The CCL Stage 4 Expansion Project is anticipated to have a peak production capacity of up to 24 mtpa, with the pre-filing process with the FERC commenced in July 2025[138]. - The Corpus Christi Stage 3 Project and CCL Midscale Trains 8 & 9 Project are expected to add over 15 mtpa of operational liquefaction capacity, with substantial completions of the first two Trains achieved by September 30, 2025[169][170]. - Corpus Christi Stage 3 Project is 90.5% complete, with substantial completion of Train 3 achieved in October 2025; CCL Midscale Trains 8 & 9 Project is only 21.2% complete, expected to finish by 2H 2028[180]. Financial Performance - LNG revenues for Q3 2025 reached $4,302 million, an increase of 21% compared to $3,554 million in Q3 2024[145]. - Total revenues for the nine months ended September 30, 2025, were $14,526 million, up 29% from $11,267 million in the same period of 2024[145]. - Net income attributable to Cheniere for Q3 2025 was $1,049 million, a 17% increase from $893 million in Q3 2024[149]. - Revenues increased by $678 million and $3.3 billion for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to higher pricing per MMBtu and increased LNG volumes delivered[152][154]. - Operating costs and expenses saw unfavorable variances of $508 million and $2.3 billion for the three and nine months ended September 30, 2025, respectively, largely due to increased natural gas feedstock costs and maintenance expenses[153][155]. - The effective tax rate increased to 18.9% and 18.0% for the three and nine months ended September 30, 2025, respectively, compared to 16.1% and 14.6% for the same periods in 2024, primarily due to a decreased proportion of pre-tax income attributable to CQP[158]. - The company experienced a decrease in net income attributable to non-controlling interests of $67 million and $100 million for the three and nine months ended September 30, 2025, respectively, due to unfavorable changes in fair value of derivative instruments[164]. Capital Allocation and Shareholder Returns - Cheniere's capital allocation plan focuses on financially disciplined growth, aiming to contract approximately 90% of liquefaction capacity under long-term agreements[133]. - The company plans to increase its annualized dividend by over 10% to $2.22 per common share starting Q3 2025[144]. - The company repurchased approximately 4.4 million shares for about $1.0 billion during the three months ended September 30, 2025[144]. - The company repurchased approximately 7.4 million shares for $1.7 billion during the nine months ended September 30, 2025, with $2.2 billion remaining under the share repurchase program[190]. - Dividends paid to stockholders increased to $332 million in 2025 from $300 million in 2024, with an aggregate dividend of $1.500 per share[191]. Liquidity and Cash Flow - As of September 30, 2025, total available liquidity was $9.113 billion, consisting of cash, restricted cash, and available commitments under credit facilities[173]. - Net cash provided by operating activities decreased to $3,484 million in 2025 from $3,753 million in 2024, while net cash used in investing activities increased to $(2,263) million from $(1,706) million[182]. - Financing activities resulted in a net cash outflow of $(3,010) million in 2025, compared to $(3,493) million in 2024[187]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $(1,792) million for the nine months ended September 30, 2025[182]. Tax and Regulatory Matters - The company recognized a tax-related receivable of $380 million due to deferred cash tax obligations following IRS Notice 2025-49[163]. - The company expects the FDDEI regime to favorably impact the effective tax rate starting in 2026, allowing a lower effective tax rate of 14% on eligible export-related income[161]. - The company expects to receive a refund of $380 million of previously paid CAMT due to revised IRS rules[185]. Project Updates and Achievements - The company achieved substantial completion of Trains 1, 2, and 3 of the Corpus Christi Stage 3 Project in March, August, and October 2025, respectively[142]. - The company issued $1.0 billion of 5.550% Senior Notes due 2035, using proceeds to redeem $1.0 billion of 5.875% Senior Secured Notes due 2026[144]. - The fair value of Liquefaction Supply Derivatives was $624 million as of September 30, 2025, down from $2,262 million at the end of 2024[195]. - Investing cash outflows included $1.1 billion for the Corpus Christi Stage 3 Project and $750 million for CCL Midscale Trains 8 & 9 Project during the nine months ended September 30, 2025[186]. - The company achieved offsets to LNG terminal costs of $47 million and $102 million for commissioning volumes during the three and nine months ended September 30, 2025, respectively[167].