CQP - Earnings call 3 2022 | Cheniere Energy Partners, L.P.

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Operator

Good day, ladies and gentlemen, and welcome to today's Cheniere Energy Q3 2022 Earnings Call and Webcast. Today's call is being recorded.

At this time, I'd like to turn the conference over to Randy Bhatia, Vice President of Investor Relations. Please go ahead.

Randy Bhatia

Thanks, operator, and good morning, everyone. Quarter Conference Third Cheniere's to XXXX Call. Earnings Welcome

to for today's slide presentation are webcast access and The call the available cheniere.com.

morning Executive Chief Joining CEO; and CFO. Davis, this are Cheniere's President Fusco, me President Executive Anatol Vice Feygin, Officer; Vice Commercial and President and Zach Jack and

X Before I'd from these actual and results remind differ materially like our all remarks, in that our of statements, we answers contain to a associated Slide those forward-looking is contains begin, what statements. described statements including forward-looking your risks. to discussion listeners questions, presentation may could of and

In can addition, and measures, distributable references found to appendix be most these presentation. certain EBITDA such A flow. non-GAAP the reconciliation of in the we financial may slide include cash measures the adjusted measure as GAAP consolidated to to comparable

As or of part call Energy from Energy, Inc. include selected results, for We information cover of may Cheniere results CQP. Partners to do also today's Cheniere of and intend CQP's results discussion financial LP, those Cheniere's our separately not

our After is will agenda the LNG with highlights. results call call financial Q&A. and provide shown will begin will X. guidance. we Jack then operating Zach review update and and Anatol on on market, prepared an the remarks, will Slide financial The for open

to I'll Fusco, now Cheniere's the call Jack turn over President and CEO.

Jack Fusco

to remainder our Cheniere. pleased and us and thank you third achievements outlook this and I'm today, all positive our XXXX here Randy, you, next. joining to results continued everyone. good and for and support your for Thank the into year quarter this discuss highlight of Thanks morning, for of morning be

excellence Cheniere's business. demonstrate to our continues throughout which market leadership of and All

and our reliable September, capital shortages laser-focused remained production supply customers energy amidst operations, allocation update and we have Since our for our challenges. ensuring global LNG in on

X of well record of done. last and Sabine Cheniere's just for the well Pass a had the congratulations My TBtu daily also we of for at north LNG. of TBtu X fact, to company, record approximately daily professionals week, a job production producing LNG a In

Bechtel's great start at Construction, conjunction are in and off with we Additionally, Engineering Corpus X. Stage to a

the that have have some on up running ground project. acceleration early sleeves, We seen of signs our potential rolled already hit and

given market, record-breaking volatility pressures. Nevertheless, insulated we weather, have as by accelerate retreated the near-term Across driven Zach market priority ago. remain highly as you the largely nature short-term swings, saw long-term plans months the supply-demand to our focused these short-term contracted Recently, continues value our fairly from dominate, we from warmer with LNG long-term from heard price me and to serving highs we from only our X creation of September. and business, are on dislocations prices in

review Now another quarter. was to will successful please key from operational, Slide I very turn some highlights yet strategic what X, and financial where

For EBITDA rewarded. the margins adjusted we our market as billion $X.X program billion approximately $X.X flow and remained of operational be to third excellence in generated above and and LNG continued historical quarter, cash significantly norms our on execution focus approximately distributable consolidated of the

on year provide early few cash flow and In both Later of shipments and we LNG billion increased the of providing the recently announced transit by $X volatility will allocation DCF the you but Today, pinpointing a EBITDA increased in guidance, degree capital over year September. we with shaping full is data call. we commodity in EBITDA which XXXX full half our upper February our reconfirming plan of currently. of tracking guidance Zach on this up are to ahead on price how points XXXX call, our were forecast, the difficulty when and are ranges

LNG the today's market. the given ever, present volatility more operations discussed, is of we've than As reliability in our critical

world that, in also Of volumes exported as XX% Cheniere has XXX could and long providing landed dynamics advance facing but for our persist security risk than of to to fact the Europe. which is facilities. During of that years less a time landed on By to the meaningful end year, only the the shift minutes. produced comparison, strategies challenges. volume third current to produced quarter, Not insight quarter the the Europe these quickly energy of the hastened last value greatest and region during into volume of market from a governments renewed the in criticality third approximately at supply does we XX% cargoes in focus can of Anatol of Europe. reach provide the challenges of by respond need a for users destination our signals mitigate this underscore flexible The significant number is LNG, energy when further the over a few of energy market term. utilities will that LNG

cash announced maintain envisions investment-grade year believe we quarter, allocation capital billion comprehensive return is we plan implemented accretive plan our available the our capital long-term execution the allocation further cash excellent through run our follows rate XX/XX features review key of Zach flow. in allocation Plan, new accelerated the $XX over framework The and some but per distributable growth. designed ago. under plan to share of a stakeholders time plan vision our the to XXXX metrics During in through $XX the few credit for continue we significantly Allocation a capital just invest over a over capital will of long-term shareholders organic Vision minutes, an of to cycles, and Capital XX/XX revised and plan

so for organizational Chief want also enjoy of Organizational the today. and decade, of my and Before and Cheniere X January ourselves. the quarter. In his set we during Operating platform Corey evolved, Cheniere's Cheniere are has important our London for excellence key part must of as been highlight in as to we September, nearly high made an And operating integral grown XXXX. in have too has promotion priorities. organization incredibly and effective contributions moving I announced a Officer, maintain Vice operational serve leadership clarity currently building on, announcement of President standard Corey an the exceptional Grindal, thorough Trading to we I have Executive been at operating Worldwide to order

leadership Prior SVP his upon reliable reputation and to back to today supplier United Corey I'm as of one COO. in world. purchases to look Corey's natural welcome States. in pipeline of Gas to a role role behind LNG Corey London, trading is as which and safety-first gas continued his the largest was of gas holders Supply pleased leading building as of program the our in overseeing architect We culture was capacity COO, and forward elevated Houston worldwide Cheniere's procurement the in of the

he participates investor You hear year. all earnings conferences Corey directly from begin calls these will in next as and to

now the execution Slide X. Sabine give Turn you to and brief across Corpus site. Christi I'll construction a on Pass and update

commissioning of third week, consistent and for berth marine was completion guaranteed the within last achieved Pass. Sabine substantial First, completed project berth And track record, ahead at budgets. third the schedule the with our

our brownfield The but third like to expansion berth fog flexibility economically particularly leverage we Sabine develop will suboptimal as not as serves operations, can only provide events, during that at plans we Pass. infrastructure a loading our also increased conditions marine

Christi Stage to X. moving Corpus Now

the approximately accelerating have cost such advantages equipment us off as Long we utilized with invested start construction early start orders suppliers notice significant not limited to Manufacturing lock date before, in running to mentioned schedule of early expected also placed early with at site the been project are before the but enabling I the and excellent to making piles proceed, only and is X. year, Stage prices $X placement and time progress. we equipment. The of we've provided work is soil of and LNTP As key stabilization. provided some billion Inclusive benefits, of to year-end. lead

to X long-term held ceremony providers, recently a to who the the see government across Stage at EPC it groundbreaking and our possible. such spectrum support of customers, project our project We and employees. broad stakeholders and, site, for course, officials helped make banks From regulators, exciting overwhelming a the of equipment was

and X late to from Cheniere's towards XXXX, LNG look first execution work I reputation with As stellar Stage and partnership we upholding on safety in forward Bechtel.

turn of to provide the who now your Anatol, will support all market. call Thank on LNG I'll continued again over you for update an Cheniere. the

Anatol Feygin

Jack, Please and Slide the X. regions, turbulence the quarter gas good it with brief many stability. in turn season everyone. to LNG morning, in shoulder Thanks, markets only few Despite stretches and the being relative global third a of a throughout continued

responsible elevated of gas laying role that Russian volatility. also conflicts are Europe largely the and market the in of related flows we conditions believe While this supply and in today's played a year, prices dynamics some shock for cyclical for curtailment groundwork geopolitical the

given through of new rate during time fact, online the we've FIDs signaled decelerate XXXX in capacity for taken In period, would lack the prior. years significantly that the of some liquefaction coming XXXX

to on capacity. XXXX the need chart clearly rates growth seen level we see new signaled not X%, market to since estimate a near can also and the prices the the was current of you when As left, balance out for be LNG capacity

result, the to by reduction required to years, long market As LNG the supply next develop European balances given a lead several the tight projects, time of the remain and in exacerbated Europe for crisis potentially market. to the we expect Russian

the removal of market XX resource the to Bcm Russian the LNG ability the over quickly middle chart, imports signals. U.S. respond primary imports to year. on from from of U.S. Jack's reinforcing market LNG European this Further earlier shown in the gas As have the been offset of point to

source critical X global and Europe, this largest for flexibility. the installed capacity more become to Australia growth U.S. have As time not supplier the past of could a the and surpassed year, this has LNG by for measured that primary given destination at come growth the supply inherent Qatar years, world's

has Pass to the detail growth, Christi natural contributors helping further facilities significant reliable Europe's supplier, gas to in LNG secure supply this at market, become which U.S. will top have I Sabine and and minute. and European Cheniere's been provide a The Corpus

European as winter generally and rally MMBtu new hitting come third surrounding as an TTF continued In the a into despite an demand. late an levels. Hub year adequacy at of in buyers production storage flows steady temperatures the Nord concerns the off increase at ahead considerably, of in sign compared prices have to TTF have forecasts moderated to have in prices Since much August, for then, Futures have quarter, October and TTF in August, this resuming. late per of MMBtu to about about MMBtu, region all-time supply to U.S., high higher Despite netbacks October as $XX flows fill since rise. the $X.XX order kept Henry to to no Stream gas dropped Europe, JKM at traded reach of LNG continued settling heating Asia $XX discount of settling

to detail. X Page to address regional turn more now dynamics Let's in

year As I its by utilizing just gas total. XX% Russian through the with from mentioned, by imports XXXX as high LNG gas approximately Europe related tonnes year to third imported to of the to of LNG the offset XX% U.S. that quarter, try XX deficit been an imports represented this all-time million much increasing its has into Imports Europe. for supply making cuts LNG

In Europe's fact, this LNG X/X Cheniere imports of approximately year. alone responsible was for

year-on-year utilities. of As XXX% the came the a for average the industrial back over Nevertheless, European the by weather, their top as exceeding X-year the middle Stream demand chart milder to winter, storage shown, European flows management market prepared of Nord buying quarter appears illustrates, of levels with end halt third U.S. as LNG and surged volumes level the in by aggressive quarter. some on well

we moderate as kick prices the have market waits recently to winter for seen demand such, As in.

of at and related import We've infrastructure terminals also the again, provide European additional to evidencing relief once grow, seen allow LNG access certain need regas the the Northwest greater particularly Europe. in in of volumes capacity to to order development market, for continue congestion and

Netherlands September, import delivered The at coming and ] our the recently of began which Pass. expected operations. months, NX [ facility terminal, produced received one in in first FSRUs new the Europe cargo was the Fortunately, in Sabine few to in the from start its terminal

year-to-date weak tonnes of XX% of and with this which a realized Asia, third imports quarter. X remain result reduced the of to China million as a by tonnes demand throughout is in the could winter. this declined attributable nearly In million burn, gas LNG decline trend industrial XX.X decline sector

increasing low X quarter, with the thermal demand by use gas year-on-year by representing generation in industrial while in grew the China, and quarter, an supported power year-on-year Bcm in gas drop In third third X.X% hydro levels generation only X%. XX% coal decreased

year generation generation in However, Europe. from actually disincentivized overall prices January of domestic September encourage high X% gas-fired robust power to the renewables half dropped spot use and cargoes the redirected first LNG as through year-on-year to be and

and of consumption third demand needs. as quarter in Asia of result Thailand, Japan the in a Taiwan occurred in growth Much the inelastic

supplement we a production. availability in As in previous the mentioned and to dwindling on X.X-gigawatt continues continues domestic gas Thailand call the nuclear deficit decline third to coal offset calls, Taiwan LNG in in quarter, plugged Japan to generation.

Last That the projects reaching move that we PTT. in XX contracting Let's trends growing LNG long-term deals of annum garnering. signed commercial XX. quarter, with per and through long-term to of quarter, and mid-October, by with our Slide contracting success tonnes were million third a U.S. projects continued the highlighted total momentum U.S. discussed year-to-date, PetroChina that's transactions

of than than the left was can XX% you aggregate all contracts XXXX signed is represents XX% year-to-date. of more approximately higher signed on what in the As see chart, global volume and

first year X months contracts LNG the U.S. signed. alone, XXXX a of make for 'XX record In fact,

largely of flexibility, time These U.S. U.S. for midstream development prices and and a to success competitive key capacity destination market. additional with of several in LNG, the commercial coupled stable This mature advantages provided the footprint tailwinds is elevated LNG pricing, owed market have upstream advantages, to and

overcome U.S. inflation those with projects regulatory higher are financial, financing and and to to commercial, yet given make hurdles And FID in raise of most rising those forward move projects are technical and have getting rigorous rates. volatility, the to hurdles, order However, only interest given the construction. still required

long-term plans X some our to pursue of debottlenecking month, an million-tonne X at and with security part, mid-scale to annum via million Trains starting sustainable potential and CCL continue X our our Stage growth to near-term economic long-term last tonnes that annum across X incremental communities. end-use X our the projects plan Volumes along with the growth approximately and as to For will our and of per volume for continue discussed add we platform we add to tonnes per sites. supply XX million customers XX ensure

on you work these achieve hard them We're on we'll they as at informed milestones. keep opportunities, project development and

review and the I'll our to financial guidance. turn now And call Zach to over results

Zach Davis

global prolonged Thanks, third XXXX market. pleased efforts to review our all continue tireless of here our Anatol, volatility financial reliable operations financial results and I'm and energy the of today execution accomplishments, and ensure good everyone. to in quarter be key and to seamless throughout period which to morning, reflect safe team's this

Slide to Turning XX.

net cash approximately we flow of quarter, $X billion third $X.X of the approximately EBITDA During generated loss adjusted of approximately $X.X billion, billion. a and distributable

margins supported Our the Henry results and margin and global higher third certain quarter gas the once again across across Hub lifting achieved activities. portfolio from were incremental by sustained to higher higher margin markets, prices environment due LNG optimization quarter,

cargoes Our achieved a into quarterly QX QX. moving couple were of CMI results despite from

to related third we early in TUA, the quarter, the from the the of termination to recognized addition, portion Chevron we a regasification which expect In of before payment year-end. receive

Christi physical were IPM volumes of years. income or in third quarter, LNG XX our Corpus sourced recognized long-term parties. SPA recognized with sold Approximately these from projects LNG third produced with TBtu Pass during TBtu Sabine XXX TBtu XXX greater of income from under XX% than agreements or including terms an We the X

of noncash net quarter, derivative Once prior by $X.X line income of third have derivative In to commodity long-term billion to again, continues IPM earnings unrealized growth these be agreements, unrealized related the to LNG price the continued noncash and we the on attributable our as impact discussed the we volatility. recognized calls. impacted losses margins

LNG, the from the sale mark-to-market natural noncash methodology corresponding this of because of gas why mark-to-market net which that associated pronounced permit quarterly period over period. time in margins a become less moves a of variability would we to expect will income quarterly and agreements, for does in accounting supply results As the LNG, of these reminder, GAAP in unrealized as purchase is subsides sale volatility stabilize That price gas long-term the accounting drives derivative much of offsetting mismatch results. but these and our and not it requires of

significantly allocation plan of large our part, on the progress in to in accelerated September capital Thanks, announced XXXX.

our of out share we cash $XX run $XX available capital vision During cash long-term distributable over as quarter, billion well of plan, per over the flow. XXXX revised through allocation as XX/XX our rolled of rate

foundation shareholders plan, maintain achieve investment-grade capital time metrics and our and continue the through return plan upon Built of to accretive Christi over cycles, further designed this is in invest Corpus previous to beyond to Stage X. growth

of for XXXX, and beginning of As our a rate growth years, construction the our October the in into $X an by increased Stage mid-XXXX. through additional billion to the dividend annual part the authorization dividend XX% the approximately repurchase X of revised times X, by quarter third plan, long-term lowered consolidated leverage increased XXXX, XX% target X beginning we X targeting share

Our position preeminent accelerated and the of of power global progress terms cycles through allocation, as infrastructure market American our a LNG coupled leading the North revised demonstrates company. Cheniere platform plan with Cheniere's and operator in capital solidifies a

During pay consolidated the plan we billion our the X year. bringing allocation over launching we over in down debt. have over our first of indebtedness, since long-term through total debt billion And billion to the last quarter months quarter, this $X.X year, of of $X.X repaid $X.X capital repaid third

principle third quarter. that under the initiated CCH notably, on of at the program prepaid $XXX the loan of market at was over facility. quarter price senior open notes million CCH term an under we alone, CEI And outstanding $XXX Just in borrowings repurchased par, levels both we million nearly during and in repurchase

$XXX month, in SPL pursuant million issued early an secured to This new at of redemption also notes September. notice redeemed we past have XXXX the

we'll reach the efficiently debt those Cheniere as resilient multiple clearly metrics. are to sustainable target to investment-grade credit the commitment leverage our to achieve our to across by and demonstrating We optimize opportunistic complex and metrics, be sheet continue balance utilizing we avenues

deleveraging efforts sheet Our and multiple X consolidated been an ratings upgraded towards SBL in in notch complex. X September, Moody's to ratings and first-ever notches of BAX and at Cheniere's reflected BBB- upgrades In across sync BaaX, of entities, Cheniere evolution. and bringing to recently. the continued BBB an the and parent one in by accelerated to Moody's S&P upgraded September, CQP SBL important significant balance investment-grade BBB- corporate rating unsecured and have all BAX agencies Americas investment-grade CEI it's is in Also Fitch's to CQP as milestone upgrade our flat. Fitch CQP to

We our and further investment momentum migration to Plan Vision will ratings XX/XX to over grade continue and expect positive on execute time.

million shareholder In new third can quarter. long-term over shares cumulative terms tell quarter, repurchased authorization. further we bringing part the capital while of until Having $XXX announced October and you shares for just didn't the shares repurchase share from plan basis we are million, through on repurchased million. our fourth X.X long-term XXXX we of shareholder under new returns, to the further total enhance $XX or our already in recalibrated repurchased over X:X a we during returns investment-grade solidifying approximately I X X:X, million X our debt to share approximately paydown our off ratio over The as upside commence little And allocation have now to shares as to authorization a running repurchase credit metrics. million

of around common per Under declared allocation us our $X.XXX time. our the quarterly common for quarter share. also payout our to third dividend bringing maintain construction, over Stage XX% our we share grow total quarter, to dividend will by dividends common which commitment plan, ratio approximately share, dividend new by related paid through X into dividend XX% and we a increased capital increasing third the $X.XX $X.XX the the per year to to per the per and During fourth paid XX%

capacity of our provide detail now Slide as Turning guidance remainder and where I'll additional XX, XXXX around the for to well for XXXX. as the open

our These XXXX already by our and $X.X are ranges to as approximately can distributable we as reconfirming billion increased were billion of upper high tracking billion to $XX.X $X.XX well since $X.X and to We currently guidance to distribution cash our September, guidance now the both ranges billion are $X that CQP into consolidated ranges of full each adjusted in billion unit. call highlight EBITDA of earnings per half $XX flow. year we last of end in in $X.X the

XXXX of what of illustrate we ranges our XXXX guidance initial for for our ranges range year incredible by are approximately an DCF ago, our reserved approximately the therefore, $X Cheniere. approximately TBtu CMI. unsold EBITDA as year remainder have approximately long-term Our Since were With distribution provided guidance midpoint end of margin and we volume and months year, we been CQP market the increased XX XX%, released has the sensitivity expected by XXX% for respect by XXXX, remaining. X/X. would the for to currently for the that EBITDA of by the the of XXXX approaching of that balance forecast have have production in much origination impact $XX and total million remainder approximately change a sold the XX have EBITDA have we remaining back been We to the

could our also mentioned impacted in Our call back year-end we results September. be those cargoes by on

dynamics, market be recognition of timing evolving would and cargoes the volatility the push drawn to these Asia, which these XXXX. some into cargoes of With of could

margin, in that being and look as our we XXX With sensitivity open market to volumes XXXX. currently, of TBtu to we approximately forecast XXXX said,

XXXX by EBITDA in $X a $XXX We market to million. expect approximately impact margin change

forecasted origination being for reserved of volume our negotiation. unsold portion a year As potential for is next long-term

year. term over the some the that have slight the do is first weighting There to course likely commencing the of half of of a We year. volume contracts open

the expenditures, we amount Christi major spending CapEx of a similar LNTP year, mainly In to capital in Stage start including of terms would highlight related X what billion Corpus payments expect have which we XXXX, forecast since XXXX. $X.X funded I to in this approximately our to is

in on quarter the year ranges we call we and mentioned guidance distribution provide EBITDA, XXXX our full CQP February. in DCF fourth will September, As for

Train May. scheduled X contracts from and are to maintenance for into commence planned XXXX we we lower a XXXX as XXXX, from the course the XXXX Without in higher to coming in we the material long-term year, be of production wouldn't is expected have year to benefited the early here. at scheduled disclosed over ramp-up completion next next change a position new the of expect service unsold maintenance optimization Certain Our Train than Sabine. forecast and and

gas investment have which market elevated gas meaningful nearly current call natural for Cheniere global is our infrastructure, Christi which for global in Stage The leading markets, featured of recent state year underscore a Corpus of X. now, margins with sanctioning the

During period allocation and heightened decades on accelerating lead been stewards objectives our with of for volatility, meaningful this a And prolonged of deliberate balance we've positioning growth prudent Cheniere progress shareholder to and capital to expect the capital, projects sustainable come. resilient sheet, investment-grade we and success returns. accretive in growing and

in you our for remarks. prepared and Cheniere. concludes That interest your your time Thank

are Operator, the for we to line ready questions. open

Operator

[Operator Sachs. Goldman question Instructions] take Michael with our from We'll Lapides first

Michael Lapides

ask little time quickly, can I Just about a bit real line.

little You at of move how potentially how it bit much, in material? a things a Stage little bit, terms being for X hinted to forward able

let know maintenance the quantify at assume Pass in you that's volume? probably more is month, on we to how wrong. me about should the impact I XXXX? -- there but way a it's can talk if Sabine shoulder then And And

Jack Fusco

Michael, thanks.

extremely So first, date. the pleased progress on construction to at stage X,

have point and on little developed. for this and has But at continue And plant execute would tuned if tell continue can the my favorable talking I to weather deliver a Bechtel expect perfectly the to way this schedule. I my that my will our and we us we to underpromised have You revise early points to from over staff expectations. it's stay

at in maintenance, are typically the months, where as right. you're prices cycle try far do As We to Sabine. X-year maintenance lowest, a LNG shoulder

coming do on unusual it's us at So time an basically same year to them. the where for trains maintenance have down we X

I'll to of maintenance, far he and give that of detail you As as Zach, part the on can more over it quantities turn it.

Zach Davis

little We Michael, production, to of X. we're mainly think year-over-year as slightly a hitting QX. to up going versus that's total and be in about year with had on due -- production months about the last this really 'XX P&L XX we ramp-up 'XX, Train

planned full 'XX, a bit of will X year. for have be year is that that major for We offset Train by but definitively next maintenance this a

rounding we'll extent. not the that X So basically, up pick trains and won't be say right the the tonnes million XX slack to to are -- XX I'd around the this the rest probably for have we million an where year, are tonnes down maintenance, of will year

Operator

Blum We'll Fargo. take from question our next Michael Wells with

Michael Blum

to back to in wanted go your on comments CapEx 'XX. So just

flagged else so clear. you the about major? Stage work prep I Anything Christi you Corpus in the know mid-scale X So spending, that's flag talked on past you X.

there So to I are just see any major other items? wanted if

Zach Davis

when say, at quarter CapEx, just That's and also it continue Michael. deploy we $X levered all-in of We And year of billion on billing million the what February. other come in say, into we with to already not dollars XX% post-FID out the, this as it is let's $X.X let's I year Sabine. expect it, that this like be DCF going things pre-FID about next we're mean would and about across costs year. go honestly have $XXX and were spending next another progressed at we and billion that's kind to officially $XXX spent the of to to million develop have hundreds we'll going Corpus notice but money, you're X. On board Stage clearly millions as to optimize to

Michael Blum

equity Got to ask sense. Okay. makes debt and decisions of allocation kind between then quarter-by-quarter. And just your That it. wanted

higher. lower, buybacks Third are quarter was Clearly, QX. a up debt purchase picked are little in buybacks bit

there? or behind aware the see patterns be process there's trying decision should of we Just if any to what's

Zach Davis

Sure.

it, look back pressure we of just stock if you on went see we clearly, during and up were So that the $XXX QX from bought QX, the had stock. opportunistic. in a million could $XX. And XXX, to you little over XXX June And like then stock period, specifically at

stock a So going there's harder. obviously, are We're imagine, is obviously stagnant hitting we're less as little things you can opportunistic bit but stock, the on or pressure up. when the more getting it

And then is capital clearly the in the wait we another on -- the to allocation announcement had other till thing mid-September. I'd add

XXbX-X the QX, we've over in that for new that bought the the all back ] [ million with earnest October. And in started allocations with Just just to in shares QX. why came upsized already that's with up and set plan the MMPI officially X

Operator

We'll from Jeremy question Tonet take our JPMorgan. with next

Jeremy Tonet

kind September against with the over ago to last of a we you want just I a guys update. reconcile bit heard update the that month from

You in then, of point you faced and since the spreads now guide. gave And logistical yet guidance, to lifted end EBITDA came issues, guidance. the high Europe

Just what and they carry has will into positive wondering materialized 'XX?

Zach Davis

Zach. it's Jeremy,

extra remarks, few a think of and the that mentioned portfolio in money. an I we the going pricing for some elevated with in whole things we into -- prepared the us as shipping, So cargo had revenue was higher winter materialized subchartering added there at on position terms Optimization, I really Corpus.

back year. we even crossover And then Asia. whether some even we obviously pushed of 'XX. by the September cargoes that and market rest depending on or was now offset out selling Europe bit now just the And a forth for proactive hit before the moving $XX a were that over and into is market in again They're down little bit into going on the came a to they're

took only there. hundred few a million it So

good team. half arsenal over that cargoes. released final we for XXXX, into those rolled range. guidance be with yes, We to the keep that's origination And pretty But in all not upper in to origination long-term that, pretty feel those the mention the we much the of we'll

Jeremy Tonet

conservatism well. in Makes it. baked as sense. was little a I there bet Cheniere Got

with continuing And logistics to kind carrying good of XXXX. this, always forward the that. European issues into So just see

you your now? that of kind impacting outlook see if wondering Just

next much macro you less into And here. just year? broadly Europe think question Europe is gas How in also 'XX. sending still do storage Russia

Anatol Feygin

we aggressively million The the most way year of inaugurate question. these Jeremy, of for throughout fully first added. of facility more benefit that with it's flow, honor about off. you. in amount get was be that this Sabine, it have expect Anatol. think We our winter a moving 'XX. next double. agree Nord the 'XX is We that Thanks spoke will before probably shut obviously, to because front this regas resolve do no about in Europe of news Europe issues. of is capacity very the additional infrastructure pipeline half it is good we about in without XX even million really substantial XX on worried We that is did flow of is winter number Stream year, tonnes tonnes in this But the the will were it out will over That for to woods

So it The months. to infrastructure will XX X the really challenge. over a will be be issues next addressed

up a into You've come quickly. in already of think will that the Europe additional we and difficult But seen this very amount a dramatic years. the get floating Europe, molecules that, bit be by of storage was decrease weather to will cleaned for the infrastructure solutions coming little and over

Jeremy Tonet

Got it.

next just was year? looks that seeing this it be fill it like on as could clear last the winter So year point, as you're to be tight

Anatol Feygin

in will but always, to as that be parallel percent course, of Weather-dependent, it XX-plus levels. possible reach these full more difficult storage

Operator

from We'll next Marc Solecitto question with Barclays. take our

Marc Solecitto

seemed too like ago the long that margin terms of liquefaction the trending XXX where cost it might of lower been it wasn't range. have supply, assumption the XXX the towards CMI to of industry new In and half fee environment marginal

supply rates now in trending marginal new the you the of at been and cost they've at higher, costs wondering with interest highest trending EPC today? fees So see XX do over and where liquefaction just years

Anatol Feygin

again. Yes. Thanks, Marc, Anatol

to as you a aggressively offtake expect coming in rate and There is of the ]. Zach, I haven't aggregate, low that that's, anchoring some the [ tough inflationary environment, plus equation interest do the you solve, of the we more as of haven't and the EPC the play thoughts but want range. by priced trend U.S. inflation? you up to among one the that end in early-stage are well think that's that that. much these you has reason seen the to deals that -- course, somewhat, out. We say add pressures will competition is of the still part trenches, projects developers of buyer in been on why between some FID seen to expectations that developers -- kind But have tell expectations I it of

Zach Davis

Sure.

our in how if say, O&M of year, haven't any we're you with flow. bake stability on So of, the new counterparties over we based run than or everybody, escalator happening just into and inflation all on we fees, approximately, even and covering our out have take, much clearly cash rate SG&A, XX inflation just the operating that's with company, XX%. annual the about that there world. expenses the to the built-in fixed give all a different going for our we that for, over CPI SPAs, And SG&A acknowledge or which They for have more think and just which let's highlights

Marc Solecitto

And XXXX? to it you the year, for Got to of open number? would as open it. open helpful. your for That's referenced started some XXX then exposure that very that in have be capacity in TBtu included lock next And relates

Zach Davis

Yes.

the XX prepared what in that, our presentation we XXX placeholders. have of we remarks reserving and TBtu open. TBtu actually And is truly origination So in the we're acknowledged for

in take, today. margins, that or a that's $XXX So $X open give million, for move

XX However, this margins onwards sold fixed I'd for for locked probably have TBtu point. around at say we and in XXXX

we're Clearly, pretty next volatile and it's the even making update a robust dent is how But give an with year. liquidity been. more we'll tough there,

Operator

take from question Jean next Salisbury our Bernstein. Ann with We'll

Jean Ann Salisbury

whether Anatol, of will in I flowing. Obviously, half or do market. can overbuilt more some you back LNG go wanted it's the the now, moving projects But U.S. the be view see get gas on forward pieces whether medium-term Russian LNG think and that more that seeing underbuilt large keeps and to you everything your decade? likely

Anatol Feygin

enormous 'XX demand termed latent don't the seen a an disruption, resumption back We've you've last right? I even 'XX, from as for amount of shying fairly very a term over numbers a overbuild demand, demand, away prices really X.X go away dramatic We've in those if even right? month, this pulled been that demand frame. Europe time. you in management of There's don't dynamic industrial 'XX, time in such So X months, will. the modestly see long

fundamentally, that Asia U.S. just of build picture facilities general. out going isn't to in And and EM Europe growth in tremendous and change see may demand a Qatar, the the yes, BASF but and in demand others much. in And story still we

on. projects, more. There trades So Qatar aren't and relatively course, solutions market fully back that The but robust just plus make process under we, plus to FID the X as now much through U.S. the now, that's construction very half just more this tighter believe come X enough contracting, you of with the continue will that going know, of slow to to X this mega decade.

years balanced So truly dynamic before years this see can a market. we you see and of

Jack Fusco

invested I is plants infrastructure the in much gas the Jean and of how track around world and regas facilities. always natural now and world, there's nat Ann, projects Jack. capital with this trillion around being $X is over right gas power pipelines

side the that is me, the LNG signal for here, it's to that, gas to here and grow. it long to continue will is that the stay term So of

Jean Ann Salisbury

appreciate Great. -- That's I all that.

that. As new estimated days? what a for a you is year, that waiting a could it, earlier the kind than of the lot on follow-up, wondering time focused said I'm LNG it be X FERC just if these I years faster think filing this maybe U.S.

that? than a is good if number lower I'm faster or that So Cheniere still possibly wondering than or

Jack Fusco

today, X right, to Ann, And any ever, over I more more regulatory design difficult more that on Yes. doubled than it's environment they're and No, believe, essential, construction. you, whether the Jean is the changes, strategy I'll business with our years, here the make at Cheniere. because permitting we've last mid-course tell current or

accepted There's X and prefiled It's file need our X to mid-scale X-month after too thereafter to period is X not that Trains and So and from we those -- we we got a expectation will my goal hopefully, early that wait. X filed so trains next prefiling immediately year make long then -- with and ago. we that contiguous.

and want Train Train then I to to is go commissioned, after X. right X So X to Train

move to trying quickly. we're So

part you've is Ts and permitting today. than that just crossed sure the dotted the ever I making think more in strategically your important the strategy that Is and application whole

Operator

We'll UBS. Brian take from Reynolds our next with question

Brian Reynolds

Maybe And question Are begin see permitting process. the we should growth a there there? looking just on whether we should further in be or preference? process filing first Corpus maybe that a pre-FERC when follow-up to on for Any we to signposts to Jean terms at could any of Ann's Sabine? expect insights

Jack Fusco

XX-plus our and from that know -- Sabine Anatol's we we everything expect next points looking of like that that I sometime do points additional Sabine. complete. a we're that is is But to would MTPA about growth year to understand at growth know growth prefiling portfolio. the No, expect it that be that that, first. look, that, filing again, you talking said, I'd we're there talking across at for and making sure I

process the gets through So and it accepted moved appropriately.

be Trains have expansion done we after will And at X then whatever focus we additional and that, can right X plans and Corpus, hopefully, on there.

Brian Reynolds

alluded that able shorter cargoes in those selling helpful. ability talk liquidity. forward? that at in sell to a as to at years how could Is Great. where time? and Maybe market And it past the to the you be basically going be market, middle forward terms just just now? time of a tight spot winter in next sell is That's shorter follow-up, cargoes super improving given of to you'll the Can about cargoes we seems being prices situation into year you earlier and the those relative -- to pricing that

Zach Davis

Sure.

just cargoes this $X.X of about quarter and That's financially million, was, I've it's Zach. still. cargo months year up in $XX or million. next into cargoes calls, million, We're lock requires is totally tying than a this tying XX XX where reserve up us let's potentially up a a into maybe mentioned billion don't $XXX talking the $XX to previously And we and to that the it away. of $XX end capital And I you over but world million. say, ago tie different for, know, plus So now on almost year capital start could

we're in about though that I onward. year plus drop So LNG open a next talking the doesn't elevated XXX just It prices even make guess, volatility handle so extent and too and tenable still it an for us. TBtu $XX-plus even is are to to year, with, $XX just this

confidence, Henry a the on that's much selling what able plus so we price fixed is team updates year Hub been these even basis. done well a is how speak, doing just we've even basis or there's So and tremendously give this physical though been as guidance on cargoes has CMI volatility. to And you with already

large being, for on don't for there's we for $XXX the company, will still sheet financial as So the over I it margin tool tool. a hedging you deposits million the but a yes, mean see the of time see balance quarter. be

So quite we're we're being using it, selective. but

Operator

We'll Dumoulin-Smith next question from with take Julien America. of our Bank

Julien Dumoulin-Smith

to some of try quantify Just to back come this. to

terms a pace prices if themselves, contract? Can you know in terms returns, context bit year a In rate but of and retained in Again, of prospectively next terms speak 'XX, in simply your maybe And because speak pace what try reframing own some terms I just conversations? of you've terms commitment to the the try can higher your of obviously, that but little in it elaborate in more certain offtake improving seeing portion provide environment. maybe to what little that that returns, in of you're to the of Anatol, initially you seeing are you a you counterparty only as well? on of that bit to

Zach Davis

we're sum that then turnkey I cost dollars EBITDA of Xx CapEx haven't Stage contingency a of sum baked answer and today. we can some that to of were building to hand it started that our have of really then I But it's us say FID you folks into we in that Bechtel. touched. And basically, locking still with mean we what these lot they is earlier contract I'm this don't a millions to at I'll to turnkey off where going have This All lump costs are that a year, and of experiencing try and under X contract right. we Zach. lump as pertain hundreds Anatol. to to -- try to

to and double-digit that unlevered were contracts, X. So to to able going we on we returns feel very make long-term good our in $X.XX for $X we're competitive Stage range be

to we'll We're all. elevating be to tanks X or it's those where competitive, price we're prices But see permitting not without in extremely out. there that think of we of they're we'll using able out and cost-effective, on expand much, X offer and top prices all there. the going be process pipelines at considering take going be if to And to competitive Trains really that. a incredibly Obviously,

hand to it Anatol off though. I'll

Anatol Feygin

Julien. Yes,

we comfortable this with range. felt So to $X.XX $X

record has the don't the participate in we still of market. the we in we mechanism inflation always the of. now agreements As for of market the much much heavily Q&A, the like contractual race that felt we heard performance that are up negotiated, have of for time but like of that extract earlier better some our projects the and are We developer lot to test early-stage will than a and proposals to components excellence bottom, stand Zach a the think spoke previous anchored have track overall the most to is We've other premium those very a in a bit, that U.S. firmed it the you proposals. operational and

of So we're with still that exact for the line very top returns, equation. responsible comfortable the

available giving as and we we're to today, excellence good of still advantage but those debottlenecking economics. -- value we operational types and proposition, you yes, about. commercial deliver that are I continue very and numbers cargoes brownfield with that from think we And incrementally part the this strong of feel that can

Zach Davis

paying And all just days. dollars not we're down these it's nice debt to add billions really We're that that issuing day. of much a

a XX been in years than different have So environment. we're world rate a would rising in just we ago

Julien Dumoulin-Smith

we If Understood. as from should alluded largely to a the out your new think regular nonetheless. are back return expect moment ago, cadence you sounds prefiling, liquefaction earlier regular of to writing your just Or that regular come do say in of bit a overlap? expect about you dot we Totally. you Obvious similar you and guys a next It of unchanged. deployment can, in decade? that elevated, on year have I are a just earlier, Is need an because some and clarify to little you that disclosure you like you As would can't I back as expect but that know you the that prefiling. of coming much overlap sort Ts to was thought Should way? cadence think to clarify that.

Jack Fusco

you some the site. one overlap think, sites. I We're should on to not going between overlap Julien, X have No, expect

Operator

from We'll Nolan next take our Ben with question Stifel.

Benjamin Nolan

nobody that Cristian surprised yesterday, my has this goodness. and Astros about yet, those I'm mentioned but how Javier

Jack Fusco

a that for Man, bad night night last mentioning thank night you the before and [indiscernible]. because was

excited home here So to bring come him we're in Houston. home the back very right and have world's series

Benjamin Nolan

Absolutely. I'm you. with

shipping? is explode a to how positioned So seen here as update what my But sort here it all, questions shipping of I you're curious Obviously, fully of respect. rates on And maybe recently. we've I'm any lot the X just know in you do first LNG just contracted. stand quick that you -- of where relates is

Anatol Feygin

before operate We business not Thanks, learned Yes. lots that we started We Ben. that. short of are flexibility and and in the a long-term in being shipping. our to commitments long-term really market risk position has lessons a within

we're So protected. well

Our customers, delivered opportunities the optionality contracts them of optimization earlier, some advantage over we've and that mentioned experienced a take lot in this of embedded we our producer contracts by have in for that, as Zach year. of are paid our and

that So we're moment. give on in good shape side market and us at the the

Zach Davis

simultaneously the sign we of in point, just world. up deals, locking this typically been as largest I'll we're the ships on I charters. second basically in DES proactive And the charter IPM deals long-term this mean, Yes. we've almost or at we're add.

have under that's we've doubled, a even XXX,XXX going this well year, prices been day winter, more. tripled, quadrupled this large into going a So into when portfolio had sometimes or

EBITDA So do of upper even guidance to part the able been in haven't point range of just the towards subchartering them some this this year month all Asia, of to Europe. and our that's of but used at ships are the part to we been is the the get directing to we end we've got how tailwind last as to that

Benjamin Nolan

That's what of done? you're looking incremental hear the thinking whatever Corpus something way Stage at how going And trying the is as follow-up, my and great good Obviously, the of about development sort because be you're probably X? be mid-scale the just to lately, beyond that phase way Is forward to at I here that happen versions. Or next do you then Pass. to that your forward? for a interesting all you're going Christi you color. I'm Sabine do mid-scale to it's appreciate that. model talk guys are to moving about the fit you're curious with potentially thinking they that's doing

Jack Fusco

technologies. No. We're at looking the all

So mid-scale at gas at compression. electric large we're electric We're at looking looking looking compression, we're compression.

evaluation. we're X. So going nickel mid-scale on I inflationary we're for doing a the that's the But stay portfolio. that Stage helped of pressures to metals. see the control rest solution the for like the we lot complete it with and doesn't trains mean It where large a of precious

a is the for develop that solution appropriate we'll site. So

Operator

We'll take Alex Wolfe with Kania next our Research. question from

Alex Kania

projects amount a you Can partially those contracted more fair just broader projects? LNG on already commercial And about ultimately, you little a are talk if up up board, discuss contracting that, the moving forward? kind may landscape that not so, do you that kind maybe these for bit some Do of end not that think end with forward? these those of represent parties of of opportunities of some may moving to

Anatol Feygin

we try Yes, anyone the to a see Alex. major I'll in. -- and next Russia choice. look, of the with as loss to Arctic was supply logical chime else is Anatol. meet But wants demand, if the This that LNG first U.S. node

that multiple just XX XX serving are of the finish rush entities that line that fires questions there over attractive pass need You be million in too these for large, possibly a diverse, And economics anymore get tonnes like and load offer performed good of as are these -- LNG, contract, answer and has there becomes the to yet participants, million million lot to XX of that saw of can with there tonnes all isn't XX on. to see of simple are and market a tonnes million what this the to kind has in were those opportunistic year-to-date there the a up. out that lot

some over our grow of that some that years. we're to it a need buyers supply benefit the and certainly each. think judiciously position great continue really do there's We platform, of in from coming potentially to the the So

Alex Kania

already investment-grade updates. delivery get rating goal they've the Then a mean, follow next heading to the that of into just maybe to sense into of on maybe I to I just towards agents, kind up of capital the rating the trend agencies. Great. plan the digest allocation year BBB or the some need how have sense had you may some what a agencies and the getting they've Do time had you broadly about range? else kind so look rating know uniformly

Zach Davis

growth. But just on I'll finally This say, debt the Series starting we momentum IG. we're at stretch or confident guess upgrade getting balance in sheet to on game I'll And and it recently being to on And we're in night, that a paydown Sure. the catch with on ratings, little last quite more even and strategy the we're is our them an on even EBITDA the under point LTM World is put metrics has how up the Astros hit plan the home of the spirit feel are Xx Zach been -- paydown to basically, in the on going debt that with then credit her again. the is the overwhelm basis. this to inundate I validated the momentum they

And When XX operations just of A, construction capacity. life the of average you the and too evident. from going it's be XX% years remaining mean, have is and that, for add I to rating XX contracts. to just contract the over on over execution we our yes, counterparties,

not XXXX, you And get we're there all of upgrades going provide getting there. confident the pretty that by the we're to agencies if when just yes, seeing half year, started yes, this sooner. up, we're add already all So first

Operator

We'll Tuohy take our with Shere Craig question Brothers. last

Craig Shere

up projects off months. about picking on materially that U.S. SPAs of the trailed a contracting. little the Just kind couple in last question actual of from of last perspective kind long-term Note

next your hiatus, step if can first up again will at you on confidence year? the brief that table into Given the wondering that half Europeans all, opine to

due sense a in that those being cargoes, degree who us desire new give your to could on you Europeans hydrogen the medium the work investments with the a by of if to help year a desire prospective shortlisted make term to a Cheniere's long the CCUS And this combination bridging commitments clean in partners priority? reward you can to long-term think and and and energy

Anatol Feygin

misspoke. utilities load counterparties, Thanks, Armada I I Craig, as leaving the If for be confident that European in question. there gave will ever feel that the serving you impression we

We, the But Asian primary part will the you as opportunity. that this the going part and see between. that we be market buyers will and course, of driver European-based Equinor, do forward. solution contracting long-term the are think those I transactions year, have and of be portfolio far of as done with few and optimistic know, the primary growth the Engie, we

have there I come think been you the table. would view Year-to-date, what to European precious have that call buyers

to have You'll a are see of rebalancing there. obviously critical and we we them those to energy in you this and continue demand. lot counterparty European here our as load best list we'll that XX-plus they and been a few though support a utilities year, don't discussions, And serving We're but in this be Europe said, far to bring even part and the lot between. going to year of forward. to do table, last meet efforts We its expect

Jack Fusco

Thank support you, everybody. for Cheniere. your of Thanks

Operator

ladies appreciate participation. and does your We And gentlemen, conference. this today's conclude

You now may disconnect.

Cheniere Energy Partners (CQP) 3 Nov 222022 Q3 Earnings call transcript