LNG - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Cheniere Energy Inc Q1 2022 Earnings Call and Webcast. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. Randy Bhatia. Please go ahead, sir.

Randy Bhatia

operator. you, Thank and conference everyone, Cheniere’s quarter first Good welcome earnings call. XXXX morning, to presentation the The call access and slide to at are webcast cheniere.com. available today’s for

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

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

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

and will an on will the Cheniere’s our call intend to call call from Energy selected Cheniere results then The agenda CEO. LNG will turn information of and highlights, will with discussion part Energy, I X. on update those CQP. is As do now Jack After today’s Zach or financial Jack results of the and include review also results Slide over Inc. market, call separately financial cover we provide and and financial CQP’s will LP, President open begin the We Cheniere our Fusco, guidance. operating may remarks, for Anatol prepared for Cheniere’s of results, shown Partners to Q&A. not

Jack Fusco

of this to our quarter achievements all thank joining for to review our us XXXX be for discuss here everyone. and morning you, Thank morning, pleased Randy. and improved your support continued I’m Good outlook. you first further XXXX Cheniere. Thanks today,

spend since discussing in to in moment Before tragic last continues that unfold we like a the Ukraine to situation I spoke would we begin, February.

these volatile broader Ukraine we in Cheniere, At which and with and we navigate live as the uncertain relationships and people the XXX communities built cargoes Europe have we are work they with Our produced LNG. the of Since strong of that times. and prayers That and to thoughts support beginning. are over of LNG over includes Cheniere those who just landed and the we in XX% amounts year, cargoes supply Europe. of by and beginning

on has As Europe evident its relevance allies, looks as to the the and support security supplies LNG more the customers gas natural criticality flexible energy to of to never of reduced administration been energy over. dependency looks a and Russian the reliable, burning and fuel, and governments role and cleaner in our world

we U.S. around have our to ensure on active to customers ahead. the access that We the years energy our force partners cooperation the security. along been participants world is And believe in have months task and energy in and with essential EU allies increased

will these continued For much to everything which possible detail programs, safely to we and excellence our I through operational more as have reasons, challenged produce as do possible our LNG address morning. teams this responsibly in operations

operational and key highlights quarter our to introduce well where financial as some guidance these as I turn revised will the X, please for Now ranges. review Slide first upwardly

further benefited the Pass Train $X.X quarter. cash margins higher Sabine billion, and market of For supported early of throughout distributable flow we ramp-up sustained EBITDA from generated accelerated of of and adjusted the by an quarter, billion both first $X.X completion which X, consolidated were the

flow billion across and guidance the Pass and address in driven expected year to I’m lifting billion, XXXX billion we to are Zach a Train minutes. cash EBITDA as $X.X increases raising prices did distributable volumes, of ahead of to distributable our increase of more driven full once guidance. that open optimization both volumes by Looking accelerated are adjusted to few global the of We both billion margins maintenance now again from EBITDA XXXX flow cash remainder a well than year, significantly forecast sustained pleased $X.X higher on $X consolidated prices. XXXX, announce an as and detail by Sabine will gas margins in increased higher X natural higher in LNG ramp-up forecasted domestic $X.X

Specifically no-cost efforts debottlenecking very on operational through excellence program, there or be volume optimization to low our to successful. or our unlock efforts continue incremental maintenance

planned XXXX weeks, forecast production operations in few to is and be an which by our resulting increase cargoes further approximately maintenance last of planning our LNG, of XX CMI. the for have maintenance teams of or all Over expected sold X optimized in activities TBtu

We orders are pleased maintenance recognition and and to volumes market our a it. expertise projects. to and platform our the We now And clearly and is come. authorizing DOE for the LNG volumes LNG export incremental years to support our by leverage be with the administration unlock in our so the and U.S. recent that customers and able to appreciate FERC of LNG from regulators support that additional needs essential and from the our operations the

debottlenecking demand to increase to LNG. optimization meet our for volumes opportunities We the and continue further will pursue to rising worldwide

stable the our continued announced terms reached extremely to year. substantial achieve signing Corpus fact continued by the wrapped a this Cheniere of for along with procurement, also issued X In to Sabine results preparation over portfolio financing sum to achieved mobilization able I’m Pass financial utilization full the year proud supporting with completion guaranteed schedule, to our FID, X. During team. of milestones fully well results. and to contributed teams while was seamless our in financial of Stage of expect engineering, finalize partnership with lump substantial not work, production summer. to in additional cargos the operations a following and Bechtel operations Bechtel, operations reaching a ahead only commence completion and we Train proceed substantial across bring we our plan, order general but We we quarter, EPC Train turnkey development, with team early and notice the quarter, this X site the execution, Train the our of ahead of contract which after did X Shortly to of occur Christi ahead limited outperformance for guidance excellence few in our which increased completion,

quarter, and we loaded safely a of During and continued delivered platform. the optimization. produced, our on our record excellence number to Thanks operational across volumes focus portfolio

both urgency reach this enables market our X IPM demonstrates more to in in Canadian the value and capacity, On existing world the LNG the this platform once reinforce we EOG shortly. sustained gas natural XX increases around just contracts for one long-term the of in global And support to front, announced Stage agreement provide markets. contract, these new [ph] to investments as we Christi innovative, year in of long-term ability energy Anatol flexible the ARC X, signing of detail from which again, LNG the at Resources, base. of global the ONJ morning, And agreements the our and agreement and further in contracting and commercial this demand largest with with customer natural long-term will To look of Canada. and Each customers for for Corpus solutions gas global international our gas supply, sanctioning secure discuss markets. reflect which the to Stage IPM the announced extensions new producers

currently sanctioning financial on are to the long-term forecast higher our to process Zach in in terms faster allocation timeline, than team capital our and our the margins, capital strategy, due of debt and pay plan unitholders formal of financing and and shareholders sustained down a accelerating X. raising executing the Finally, originally of have his Stage initial returning

now our that in Slide study upon climate producers latest LNG on QMRV shipping April, program the Turning builds providers. an our have and we existing announced X our initiatives. natural progress sustainability to we In update with for gas significant and achieved

emissions and to natural Now the to our applying facilities. methodology gas that with delivery associated examining of rigor gas the greenhouse

As gas part as DT academic infrastructure improve Midstream, Morgan, and expect of Crestwood, our commence technologies similar protocols value QMRV understanding further with equipment. our liquefaction emissions, we to a collaboration advanced including specific providers and key technology program overall multiple Kinder to emission of Williams, midstream providers, across deployment institutions to program, part and greenhouse of as of a well of chain. MPLX, several we midstream leading the the our detection here, announced infrastructure that’s and monitoring From

data our climate sustainability will gas and are expect These program support the to the our We emissions chain and to and improve especially of climate to principles tags, of year. benefits QMRV which transparency value U.S. robust cargo the maximize LNG. strategy this broader our customers emission begin and environmental initiatives, climate these in upon Cheniere providing LNG built our programs throughout QMRV help competitiveness natural

please to Slide turn X. Now

contract we to early and visual Christi Stage Corpus during a I Stage site mentioned slide. Bechtel see with brief moment X to for on can in preparations quarter you begin under as While progress the on notice EPC ago them released Stage the early a update limited proceed. provide And X, a I X finalized work we

finalized with investment pleased past to what underway consistent contract have the few we’ve to We pricing the are X Stage and years. communicated community with the over

we Corpus expected finalize countries global of additional completed work with project, energy Corpus over LNG The to capacity of secure, process. to priorities. after of in State reliable, the in to tons X X energy both which Christi year. for and million as security is We provide currently environmental the is soon has the announce ever expect supplies Christi financing Stage XX FID incremental and Once the LNG critical of support market of affordable long-term more per development the

update LNG contracts for the their for capacity parameters. develop development. be reliability With to puts of additions place forward that, our both times significant back our I to supported team now provide capacity plans market. We sometime by after coming turn for additions. further to Sabine look relative which at the brownfield brownfield to with summer such, LNG the my Pass that entire call LNG greenfield to infrastructure sanctioning an with LNG Cheniere opportunities these significant in As to at in in to during unprecedented underpinned capacity our a Corpus leverage and I long-term the X consistent at gratitude on work Stage economics industry. possess will our sites cost ensure to who by you the growth, Anatol, reiterate sites our will Christi those over want and and continue to further investment would advantage existing we that Both infrastructure of

Anatol Feygin

good and Thanks X. turn Jack to everyone. morning, Slide Please

and with JKM since Ukraine this to April per Jack need price available approximately of renewed were LNG as territory long-term highs respond the $XX As significant daily war gas In and as TTF focus from of to to traded natural resort, being at We the being said, That reliable TTF year. predominantly to ourselves impacts extreme last noted, the through signal. destination market a balancing energy challenges greatest in natural faced market volatility, find from our the to of for deliveries new last gas the supply. on landscape discount Europe markets, March and once gas reaching has the all-time transitioned JKM pushed flexible filter $XX prices in global and uncharted MMBtu sparking market with responsible respectively. global a LNG market call, security

the have in since of premiums half market structural the settlement month given second prices elevated risk geopolitical present the tightness been subsided that’s since XXXX. remain While front

with year-on-year in Sabine be to as maintenance the of year-on-year demand Europe, X. X XX.X and gas needs or partners. European declines resulting of supply growth the Qatar tons. well can in call Indonesia underpinned to Pass tons from U.S. extent, meet this European million As strong the supported LNG from Overall in and This middle on outages LNG exports U.S. quarter nearly slide, growth chart Russia as as from well helping has represented during a growing lesser the supply see with disruptions in in X% as U.S. XX% imports allies by QX offsetting the capacity to half continues new our supply Train including and LNG by grew million LNG U.S. Nigeria. Malaysia been LNG supply the additions, you on growth

the can QX produced responsiveness at has look detail. U.S. XX, little LNG European in our Slide the largely last with fact, in turn supplied pioneered a testament of country to more Much will XX% divert LNG Please by destination the at In Cheniere quarter, industry. market into dynamics a it Cheniere the LNG, volumes and like produced region, we Asia. to the than flexible cargos been Europe focus how landing on LNG the from approximately in where and in facilities regional much market more of QX any other

of capacity. have exacerbated inventory interruptions limited post-pandemic what supply QX in rebound Europe, even and ongoing the strong LNG trended flow Russian fear war a disputes of the was fears demand, given However, XXXX, while tight throughout the in in spare in downwards of sense region already the lower conflict the has gas production raised into only in trended market from Ukraine low but the disruptions. levels urgency of flow XXXX, and

result, XX% from representing a LNG one-third flows Ukraine eastward. of high felt Record heavily As nearly year imports supply ago. plug time. Russian XX% QX buyers XX just began BCM gas up able pipeline Russia reverse shipments via were total than Europe the for and imports the Europe’s or a gap Pipeline on to in rather year-on-year nominated relying gas more as LNG down imports first from

jump storage year deficit, Fortunately, brought back Europe’s the five ease range. XX% helped inventories gas imports the year-on-year in and within LNG

inventories finally cargos Basin flowed than As of to from approaching Asia. Europe LNG away levels. as XXXX of first two-thirds April, More bid quarter in are the Atlantic Europe

XXXX. quarter-on-quarter. call minor high China, in As in as cargos million X.X X.X to each electric creating Asian outages post imports LNG in COVID higher Taiwan to following imports during reflecting as an X.X relatively In fired earthquake buyers XX% opted to million alternative the that or year-on-year induced power increased the fell during tons in tons on cargos March as falling LNG market, a buyers, generation, gas in well power approximately X.X generation. levels. up end largest and importing period divert some In production to top of premium adding result, recent for the to not LNG procured million the market Japan. and restrictions LNG fired major make of instead Four in and as gas tons industrial gas domestic or up growth, imports Asia scaled pipe generation prices the the generation of course, XXXX, dropped fired Asia on growth to the switching. Thanks trucked declines the Thailand and a market back prices, robust sectors, million gas the value QX and sources million gas in providing LNG million first domestic below the Thailand quarter and LNG X.X pipeline gas winter consumption, LNG LNG doubled year-on-year of record Domestic in coal XXXX power price lockdowns. quarter global February supply. tons lower in LNG that’s world’s impact from into fired for production gas demand tons a same nuclear in nuclear of Russian growth reduced respectively. the spot cold to Europe. five in quarter, Korea, back gas At the increased were during to million and Japanese LNG QX of domestic amid to XX. indicating the XX% only higher but LNG helped the tons X% X%, first of all enough coal Japan imports demand relative JKT and market roughly and X.X continue tight burn X.X quarter, deferred with a levels. utilities, of gas Deregulated Asia LNG tons imports to was Myanmar. fuel in Please with up imports balance in for on slide of March buyer XX%, and power turn increased inventories both was despite to were X% lending and major served supports compared capacity and maintenance Korea returned Taiwan, imports coal

with utilities to inclusion the impacts gas coupled top energy early of LNG too EU the within the in a uncertainty, supply now list is current geopolitical likely long throughout fast priority already conclusions additional governments fall, to region, of a last objectives stated is the fulfil on and natural have the thinking having on natural will around Ukraine significant green to Europe alike. natural security globally believe war infrastructure we is reliance it Europe which long-term role tracking While gas of the taxonomy impact the the long-term. and continued Ukraine, able Russian is policy the flow. mix with draw gas impact of conditions reduce few next further years, despite of market to conflict energy region’s a reinforces for the critical gas its orderly has the gas on ongoing meaningful quickly Russian in the its in how over global for term How

its potentially Russia However, pay rubles produces the quickly intact. that At marking between in on supply Bulgaria exports demand to and through especially near-term and and of story supply. signals to LNG how respect halted least supply current Russia, Asian dependence Poland supply cycle, with last with firmly and the an Regardless to market. week, Europe tighter Russia over orderly refusal demand energy specifically suggest remaining Europe, escalation for growth gas volatile gas

security procurement will more believe the of a we and LNG buyers LNG contracts. reliability in market see shift result, the strategies a As long-term as stability, seek

a flexible our ability continued mentioned, outlook tailored our our Jack reliable volatility been long-term LNG has As basis and the this given for amplified for for on structure customers. only to and the demand year market solutions

benefits global the to energy ARC deals not call long-term to EOG evidence of review I’ll gas and long-term And and of highlight results value role view proposition reliable [ph] and Zach also mix, NG, guidance. Our the supply. The with only in recently the turn announced our natural now Resources, over of LNG Cheniere’s criticality customers. and financial clearly flexible energy that the the but

Zach Davis

today good results. Thanks, quarter first XXXX I’m financial morning, Anatol, everyone. review and to be here our pleased to

key financial entire and to a the the team. value and effectiveness accomplishments testament Cheniere Our our our of XXXX the increased of platform guidance,

Slide XX. Turning to

EBITDA billion During the and $X.X of both flow approximately first adjusted quarterly of record quarter, generated we billion, amounts. cash $X.X distributable

the of markets. back with global results namely to environment guidance LNG early of in combined margin X utilization and ramp our higher accelerated Our full Train February, quarter sustained completion increase benefited first Sabine a Pass from the across drivers

be cargos well lifting Additionally, our third the CMI higher LNG we quarter of We net our TBtu long-term including to SPA income million project agreements. a Approximately earnings sold The IPM in We have based prior Hub impacted incremental by to $XXX XXXX, loaded TBtu delivered parties. XXX as year generated first on XXX in from we’re first income LNG sourced as the TBtu further margin continues results. on net XXXX, from related a discussed agreements Henry recognized calls. volumes in IPM physical few but to XX% impact contribution first of derivative end quarter, non-cash or these line XX loss of of unrealized income during the under at and recognized long-term prices the an quarter. contributed as

Turning to capital our allocation. progress on

higher we meaningful of and are plan marketing the margins a last accelerated tailwind timeline pace, the as year providing laid on out. are laid September on to a previously than production We we significantly executing in expected out

pay we over targeted to $X the bringing over out the total million end by of now $X redeemed the $XXX down billion indebtedness repaid first the quarter, to billion During long-term of XXXX. we or of

quarterly a our the of of During per million dividend a quarter, for approximately for repurchased $X.XX fourth shares share first of also nearly million $XX second and the XXXX. paid quarter we quarter

III position our transaction with the as deal, morning. in that share cash paydown the on repurchase Stage have as the consolidated IPM good shares prioritized plan to announced EOG present grow. in continued further well Resources the we an balances by was enhanced meaningfully including thus as given have we far to targets, transaction a this our the basis, of Commercialization repurchase opportunistic completed ARC is and quarter NG While leverage

price is global Apache, ahead in during mix the Tourmaline launched underway April Bechtel leaves to Deals expect and ARC. is our addition, the increase over now [indiscernible] portfolio up guidance. bank our now Glencore, officially some CPC, we contracts In III announce and financing with executed a and FID, Stage The of to which finalize IPM syndicated now and XX, Foran, to financing, of to I’ll a Sabine with EOG, detail in PGNiG, we available Pass quarter this the officially first fixed with was and that where deals. running, to FOB, long-term with also ENN turnkey provide EPC widely significant summer. second an and train working III a DES, process We Slide contract more Bechtel contract have this LNTP. Sinochem, X signed truly underpin expect under a Stage around group XXXX with Turn our financing which consecutive full contracts

EBITDA We adjusted margin. and are increasing consolidated EBITDA billion the for guidance our $X.X higher to to expected more midpoint $X be cash as to This full increase summarized factors, distributable by and and few attributed simply billion. XXXX cash adjusted billion billion, can year a $X.X ranges consolidated flow $X.X flow billion $X.X distributable of volume to bringing another to each

or eight forecast the production forecast cargos. volume from optimization to our of TBtu driving we’ve incremental is maintenance continued approximately in in an success XX the added the First, increase roughly

the addition, faster All of In XXXX half for X, increase of a across the along extra outperformance cargos few over and with forecast. year. contributed production forecasted to DCF EBITDA general Train in than incremental told, the for ramp-up production portfolio expected this the the accounts

in our currently increase higher on growing opening the attributable predominantly and Second, EBITDA the plan optimization. increase $X this EBITDA $XXX billion production inclusive Under our $X XXXX. is contributes secured margin in our announced balance September, revised impact for the lifting recent approximately on and by incremental unsold. we’ve the over repurchased approximately higher repaid our approximately market capital the to rest initiatives previous the million the paying last X.XX to of with dividend rest to or February production $X volume, margin our XX% mainly redeemed of of a our based of quarter debt million total for market a year. compared year capital MMBtu in sensitivity call. shares on base QX DCF forecast. long-term QX, expectation deployment both XX were million late capacity distribution We revised the and maintenance another nearly expected of from This up declarations about per The margin With the Including allocation $X of to began over we pricing. forecasted the margins is this share of further by EBITDA forecast through and Henry respect we change from plus This dividends TBtu have at Hub variable also here, would per $XX and over of declared for CQP. allocation sold already in through have

and the value accelerated strengthened All agencies. path our sheet, has continues our of progress be plan shareholders. delivered credit balance by on metrics recognized our to credit which ratings to our grade investment to Accelerated

you progress early step continue with to plus our paydown flat this resiliency of front, and dividend S&P the minus, view our the repurchasing BB investment in upgrade with prioritizing towards investing rated execute shares, the goals this this a back updated flows grade all coming the positive completion upgraded CEI outlook and year. debt we consistency later Just opportunistically ratings potentially at With Train BBB S&P, given our III. action. on last reaching we anticipate levels. as week corporate then to on SPL at BBB Stage meaningful CQP in catalysts our ratings for capital X of cash or And SPL and plan, XXXX comprehensive setting as paying to of and we’ll Until accelerated allocation from

metrics not have the debt balance is any focus CCH, facility eye near on our maturing the investment term term in fully questions. We’ll for and spring quarters. approach across time we this we next remarks. debt prepared the as paydown to our coming of we do an your existing your we While which to you Thank in sustainable do the That in line company to interest have consolidated the expect loan our prepayable. SPL maturity with credit at are XXXX, open concludes ready for grade for Cheniere. Operator, the

Operator

we’ll from Jeremy sir. first you. Yes, [Operator question Instructions] JPMorgan. Tonet Thank And with our take

Jeremy Tonet

Hi, good morning.

Jack Fusco

Jeremy. morning, Good

Jeremy Tonet

my Thanks here. question for taking

guidance here. Just should start I here, was off drivers benefits the maybe raise to a contributed guidance you with bit if the trying just help parse which to wondering through wanted think the quarters if in was it, higher? raise, your us is about being you than in first understand a the higher, could reflecting little being the about that just quarter some Or original of just next think bit there? we the to three quarters forecast, the

Zach Davis

February were And call, quarter. over two through pretty thirds Jeremy, here. I’ll just the the Hey, much in we say it’s the way Zach

with we we X a QX. EBITDA for So would of then have $X around and already much billion anticipated Train that up pretty running,

increase $XX honestly year be And so $X.X clearly under $XX saying four billion with we’ll the of QX. the EBITDA this that flow. on is but numbers more rest billion out capitalizing billion spread the of $X.X increase. for to on what’s times debt sense to of at rate. be basically QX And a to capital the of give to around people allocation this be cash drivers EBITDA, year, going billion So is $X.X that to over through this $X.X of actually the We’ll

incremental the on the that say Henry and last were optimization rest. cargos of all million, million. better then TBtu XXX XXs, going $X XX was about open those increase mid selling yes, the the terms net in with over higher the XXX maintenance mentioned, backs, and was margin this through lifting into I As then that cargos added that in call Hub let’s the And volatility

you’ll plus now in see it this billion. incremental coming it’s the really future quarters So

Jeremy Tonet

kind of Got existing just production. Thanks and guys optimize rate run should current incremental out that all long-term that out keep EBITDA guys it. we thinking given there. here? pivoting hearing the just just That’s capacity very bias that I helpful long-term And to guidance. the I’m kind you wondering squeezing for still an be or you guidance. squeezing more your upward of Is maybe that. towards keep

Jack Fusco

Yes, Jeremy.

First, they’ve some to for with trains. efficiency the And maintenance my maximizing that. teams so these to and able proud their focus of do on I’ll been take am operations what of I to effectiveness the as and But fantastic trains has actual and them run that of I’ll guidance, class. as get over world just Zach. turn the been rate to performance far optimal

Zach Davis

Sure.

honestly, of next let’s and this So netback our and mid teens the we’re year, yes, to say though year, seeing even forecast. in rest for high the

to forecast going living you new XXX III stick a for infrastructure, with XXX we contracts the existing can at [ph] building make that we long-term good to because in very CMI like where had range. Stage honestly We’re all with

to put pretty and unlevered, this $X perspective in III, digit it’s for double talking much we’re about Just EBITDA fully contracted times unlevered point. at billion the And Stage six returns. CapEx

got interest only, to a now silly, for to We’ll nine reducing extra stick year, so I this increasing you with cash. guidance at ideally, yes, share what be Stage and down be that it’s we about So, is billion plus. we’ll count. X we’ll and then today. with guidance, getting get XXXX We’ll we’re which trains billion bringing the long-term this of with but let’s back holding say available with expense, eventually XXXX, point mean III, cash The little this number’s but tight for our from $XX

Jeremy Tonet

it. Got

Going good to go way with is it. about raises a beat and

color you for there. So helpful. all I Really thank Thanks. the

Jack Fusco

Thanks, Jeremy.

Operator

take question our now Brian We Reynolds next UBS. with from will

Brian Reynolds

potential in And capital good later Hi, everyone. all year. appreciate the color this the morning, on update allocation

late CCL effectively. targeting maybe up service have just the advantage the brought that appears take on given these that previous it backed pivot the just to you’ve So a to to a have early, in curious of late late modular start given, guys versus trains in are dynamics. come that given guys all was few XXXX date. thumbs if of mid-scale a But you of to online you to on III, market Stage And trains XXXX XXXX nearly potential your year some construction

the through expected market mid global XXXXs. Thanks. nat is the Just tight given stay that gas to

Jack Fusco

Brian. Craft been ahead with his schedule. with I’ll expectation Thanks, to is have significantly that team and at of Yes. is what what trains David still and my our say able Bechtel always And bring And E&C do I’m way. in impressed

confident you we conservative and our informed let be delivery that know, we’ve that plan every train have dates four and thereafter, you three to right hit from the think in as another startup. you my – know the the you will to and the commercial months tell, to you the is we tend guided and of end XXXX, expectations pretty LNG have Bechtel. now of can And to are. into as guys And team But what our ops we will I keep a to of guaranteed I’m As then FID, guidance train sooner first producing fairly by world I but plan. get

Brian Reynolds

you that if the data up emissions. the curious with was I could Great, to sign you collecting appreciate provide deals a just the whether contracts, Counterparties were customers counterparties get could specifically as results the and signing to helping. that the GHG follow-up, ESG more effectively is of some of long-term little given a early up Thanks. on QMRV comfortable monitor, those SPA some for curious Maybe program feedback. and that bit commentary concerns you the before. program were share if hesitant

Anatol Feygin

is this. I’ll start This Ryan. Anatol. Thanks,

early relatively still it’s So days.

optimistic. We’re very

own well. obviously our We’re facilities continue, Jack as learning to drive the third a kicks and as Gillis stool leg of the that implemented we’ll lot, off said, at and

things that vetted. that we’re with having data sure properly know, all and collected doing, and partnership of academic is you the and done and making are verified One the institutions it universities of as in

effort all to way commitment continue position, of and the the the I keep our charge on ultimately the fronts any and with engagement obvious continuing and is our early great that counterparties. on think will in have comment And a moving reducing emissions. world the with that we to that’s – entire lifecycle go output, but as and going these too is to engagement and reducing leading to you the it’s drive this said, forward the chain us to So supply critical,

a a quarters. over say too So we more have any findings, to specific the but are and you lot lot to we’ll give coming early learning

Brian Reynolds

Great.

to Looking forward day me. for great That’s it. a everyone. Have all

Operator

Michael from question Sachs. next with our take now Lapides We’ll Goldman

Michael Lapides

XXXX? million little of guidance going maintenance kind you year a tons is from – you out the Hi, extra back pulling is you’ve debottlenecking doing about? more guys. to seeing are raised. when that that so want congrats pull great elevated, talked lose kind maintenance next come a little and the to a Thank some this work the a about and just bit. a and a that into we delaying for that year forward X of this maybe I and meaning I’m to in quarter little bit volumes XXXX this X it little taking question So what bit maybe but of Or bit, pushing to about of the maintenance a my on tie optimization you’ve think debottlenecking you’re simply million work talked a year. Is

Anatol Feygin

have is Yes, Doesn’t with debottlenecking. Michael, do to this Anatol. anything

program, process. ops maximize maintenance are I’ll that call it’s teams can ensure a our maintenance constantly optimization a So to program. centered production working continuous My through, reliability they that it, and

everybody as this those reliability centered us it that allowed sure over eight produce, we’re that ourselves additional now, manufacturers. program maintenance is a performance the year And of this from And our of we’re as So year lives the components. equipment actual went change doing and the on more out components get the up its a it ended benefits diagnostics us actually at case, to to scheduled of – And we those in and schedule the having equipment extend we we that and before into five original we I had off And Zach continually going in we looking start that we that’s based maximizing production. cargoes performance. useful maintain of make do to plan challenge what to think time-based that found just them year, the mentioned, we we’ve out.

what that’s So we mean by maintenance optimization.

Michael Lapides

little that Got the might so do over longer term, O&M bullet I’m got queue. curious, or average in fully or cost all running this the synergy side. there’s kind you trains it. even savings, And that on opportunities of there just an see the where year train down next at you’ve cost in come some X now cost is a per Sabine

Jack Fusco

Yes, and and that absolutely. and us a mean design, X as you on of should operational I effectiveness. think southwest We should there the parts of be now are significant liquefaction labor trains right? synergies trains, have same

Zach Davis

and expect you add down, to compared you it O&M that and producing just our that the dollar for if is should full you that at to just QX last compare a year. look more I’ll that per that QX results now And year, we’re lot coming MMBtu

Michael Lapides

Much Got appreciated. guys. it. Thanks

Zach Davis

Michael. Thanks,

Operator

Spiro We’ll Credit now from Dounis Suisse. question with take our next

Spiro Dounis

Good would regulatory the appreciate broadly. operator. Jack, U.S. Thanks landscape here morning thoughts on more and energy your guys. policy

few a we’ve like think to to Europe, development. a seen that’s stop foster and I this short feels but positive branches comprehensive administration into more of more from U.S. support LNG kind developments really policy of

in both here you’re So and hearing curious seeing and Europe. regulators policymakers and what from

Jack Fusco

produced very, and Cheniere XXX has what that say we’ve cargoes sent and very very able do that the at to helpful to grateful were Europe. that for the to been needless Well, EU and been

been about all one capacity got we’re of FERC, regulators, collaboratively efforts export the approved pleased ability permits and in closely we the them we the has with with and Obama approval. administration them. then FERC talked back the with relationship the DOT administration and tank that additional our non-FTA debottlenecking build that I the We’ve on And our strong. facility. working before got to from We’ve FEMSA, continue it Our we tank very was on always work to our that got three. service to

They’re busy these we getting So very we’re need. what days.

to bunch. continue the We’re having with to be collaboratively patient, but work we’ll

Spiro Dounis

Great. helpful. That’s

lot more and seeing tapping interest just that to question, E&Ps, LNG moving companies a express more market. in working Second upstream and with upstream into

Your course, great on some ARC about We LNG announcement, projects is with example talking of of taking do have another that. in directly. equity E&Ps interest

forward. that more open point E&P And customers to levels even interest and jointly if described you’d you at here some so be going developing from curious your something on take

Anatol Feygin

that operational with is in We much of comes comes mentioned, them. very deals tolerance line it’s and supply it’s for But elegant in Zach DES the of And IPM and chiming IPM with it. FOB, very Spiro. a love that the Obviously, having gas kind of reasons. in. Thanks, mix it, as is number the risk Anatol with a flexibility that a the from our portfolios This projects composition. collect the we transactions these also fees of

that for by of of now been fairway pool always we’ve the and include we idea of limited producers us. center fortunately the counterparties. know, potential this more Canadian that We’ve pool you expanded the to two would As that

credit that continues improves So quality increase. for especially the as pool E&Ps to

that’s should expect part think of So balanced us if more that you our diet, you we of from and that will.

Zach Davis

the partnerships we’re much many on of pretty for to on then pretty to not contracts already but as XX plus cash, contracts, Yes, Stage going with million of need before, structure available clearly, new contracts the billion And reiterate what focused as just we’re contingent equity And raised project and with was tons much $XX equity. III. simplifying said on possible.

with do that. we’ll to and leave deals happy IPM more creditworthy So counterparties it at

Spiro Dounis

color, the for Helpful Thanks it. time. guys. Got

Operator

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

Jean Ann Salisbury

volume study year of, you’ve you’re Hi, for that there’s maintenance might good like run and looking down state morning. average do rate at stuff, the if winter gas for or kind the in anticipate good that at prices year-to-date you proxy the more Is a a been little? bring for the time not that

Zach Davis

Hey, just this is Zach, stay. I’ll

for Train our coming rate online at annualized tons this we rate I in XX the in think all the QX. we’re accounting first, run And going across basis. X year the will trains around an range in February produced million on portfolio be

So it with just might up proxy. decent but the colder weather be slightly a QX, it’s in

Jean Ann Salisbury

you on the could volumes and I And getting that get this focused required you’d while the about FID comfortable FERC CC would steps train whether in still beyond X a be to market but know kind to thank talk it’s train theoretical contracting all that of on to we’re Great, process? you. Stage be

Jack Fusco

Yes.

we and our it. customers continue wants us very an strong with pretty to relationships ask this got So ability he Anatol much to to jump I’ll – start and in We’ve grow I’ll business. for if on

many, So many that Cheniere for will years very I hereafter. feel comfortable grow

matched. I be brownfield think aspects can’t the

run Stage there’s and strong see extremely the You think rate economics from can our left. X more are that I

Anatol Feygin

And range Ann. to and we’ve that to as engage contracting, and future three obviously do U.S. as and about offerings market Cheniere’s talked volumes time us in the you’ve projects performance And of afford six Jean continues opportunity reliability a a This absorb the on Thanks months. the terms well. and the incremental very we those of have given product out. strong stands particular, we is and its continues when opportunities, have it’s even the activity, Yes. been in product seen

are now the have volumes, Stage X customers on to we the of the ability serve with with volumes market, well. given opportunities of there right discussions So course, further strength and as of

Jean Ann Salisbury

guidance. Great. on the Thank and you congrats

Jack Fusco

Thanks.

Operator

now take next Morgan Sean Evercore. our We’ll with from question

Sean Morgan

guys. Hey

and an whole X this on on approved in to and supply take Stage market one market for long of be So stalled X, involved of of a coming bit sort if potentially continuation beyond long shift, a so the FERC going potentially it’s would mtpa XX would it’s of project, that’s of time, And table? with where upper a part to might but approvals really buying a this see maybe if if grabs that kind expansion Stage terms that sort minimize a not guys to of months. there a with we are FERC have theme, market share unique you trying it is out take Europe you the on kind you how opportunity, lot have get that not but of changing – this kind is on of is rapidly same Russian to

Jack Fusco

EBITDA, Sean long-term of times, that that value. building from creates amount six significant at we’re X Look, you Zach, a heard Stage

whole foreseeable just think buying I future, buy from I for better, So and do – can faster, build the it than build career my it the else. we I’ve cheaper think there’s and seen someone situation. it

Sean Morgan

how capital? it sort that? how of to then traditionally have involvement, to for do I that view an been government you great. everything that that the news Okay, Federal of to guys the opportunity is you this, on the cost building you of finance do import/export about your involvement is own, you wanted advantageous the mean, Is potentially And potential develop think by able Cheniere, on bank kind on reduce

Jack Fusco

Yes, that’s commitment and speak support. I’ll XX couple not the $X let’s only spread, next bank is months, whatsoever for say project billion And with group, investment finance or but of say Cheniere, which just we’re our mix in to banks need say a we’ll X.X% billion confident that to I going quite agency can get just binding or for funding XM so. $X.X any to government support XX

process already that’s a get have we going So to really efficiently market. kicked bank what attractive off and bank we regular we’re need well and the quite as from

that really may that. can’t need those to speak So

Sean Morgan

Zach and Thanks right. Jack. lot, All Okay. a

Jack Fusco

you. Thank

Operator

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

Marc Solecitto

morning. good Hi,

gas, curious one largest more recent natural prices as of that LNG you the LNG as domestic Henry is $X of variables at and buyer capacity in have still and domestic into on the strength there gas the domestic any U.S. end, on is recognizes insight pricing. think is my added, of export if Just point, with change kind international call multitude or factor this all, equilibrium Hub does that production a on that you

any curious that thoughts dynamic. might Just on about have you

Anatol Feygin

seeing should in production signals had $X these will long-term. number I that in that In about think recovery of the see the and responding But a that LNG lagged Anatol the good continues XXXX once Canadian natural to activity, that We an late exports. say, again. very feel into up the we level quarters increase this $X has still after U.S. to record catch think This coming dynamic you’re there’s right. domestically. capability prices market, not playing a price out is and market. the much structurally elevated similar prices the there’s latency a of coal short switching gas we much across lagged record We a are globally again, That of curve The production we as Thanks, is very move term, high that have commodity bit Marc. market board. because that like domestically, $X see up, – to U.S. do to in gas $X you’ve gas as in

a switching fuel of the bans are point So inelasticity. at

will So pricing and we supply think into half there curve be underway a is back year get we the of the $X beyond. as that’s sort think into to we of and as that response. We get the that range well next

Marc Solecitto

Great. time. Appreciate the

Operator

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

Ben Nolan

guys. Hey thanks. Yes,

or of be So sure there been just would are lot and – possibility or might and so that both the into it obviously, true you curious, being projects the facilities activity really the and past, there’s expansion simultaneously any thinking about Corpus so the Louisiana in forth. I’m developing list Corpus How process, of is FERC of is consider market other you on just future? expanding the foreseeable next sort but a is around I’m same

Jack Fusco

say, two great we I’d sites have and great No. two assets.

sites, We – Sabine. it’s out to both or have both the them of back to us and do additional at real see estate not question pivot pivot to either

coming The ships. first there third this but And more been our know infrastructure we’ll at end additional questions it, have birth load then shift there, haven’t is on sometime any to the we of year. there expect to I well. along very receive would

making finish in what’s prospects. foremost then X get at sure additional us. about we’ll focused the across potential. But team our us And front I excited got That’s you look keep growth we’re line. for all of can, – and we first if very on we Ben, So to Stage here. And I my of execute

Ben Nolan

Okay. And for I just then I quick real understand Anatol. absolutely Jack. if could that,

markets implications and that as the bit a at volume, little there are you down that possibly number moment you think to are little a more moving Europe as remarks demand there they destruction? mentioned as buying are were prices Do better. prepared of in the bit they function your as sort prices the of much long-term the high Just as was and of You’d there? might be a a is more what’s happening Do any are. that the Asian because think is long-term some LNG Europe

Anatol Feygin

keep close as valid We In part, the possible. is back again, a that issue. to see others the as previous And on to going fact eye that discussion, fuels very we it Like, $XX, and don’t and Australian bargain competing it than quite. we And it’s an Great long-term anything. expensive coal bring ounce, is supply no that’s is $XX contracted So either. in right? much more an table. the Yes.

we’re to see And pivots any not over going overall believe your been We gas portfolio. from we will three, question, So seeing we on change Asia change last the continue. commitment to that months very profile expect still in is – to your Asia Asia meaningfully the natural as to gas of seen driver So the not still gas. the what’s the contracting Europe demand. part going Obviously, it six you’ve demand the away supply right? driven, But has and partly activity will. that to

going And keeping any structural don’t are point, eye the We shifts a forward. this see very in close that. on I demand profile at

Ben Nolan

guys. you, Thank it. appreciate I right. All

Operator

from question take Fargo. next Wells Michael now our with Blum we’ll And

Michael Blum

seeing And most LNG Thanks. contracts about duration of the the in everything, the Thank all all might kind for of just Asia? I’ll announced part and you. think new your here. Thanks you just that there. The comments and are out structure of is of greeting of get talk environment the light of earlier that one stop how come just forward? in combine commodity referenced. contracts tensions the we really. going second why me question broadly I’ll questions given you just you Europe, into my Can shape that, geopolitical price

Anatol Feygin

Yes. Thanks Mike. It’s Anatol, again.

like your your part growing where to seen you’re demand that entities going the to question going to So bring short And demand, first. that and second the The solutions back that’s be happening we’ve by have come obviously can infrastructure. if majority focus right? growth right said perfect into to So only right? the into happening Europe and sense underpin fundamental is, imports constraint, European of to is the much and should question, going us. makes previous a contracts these driver infrastructure record always issues on so it of seen to of to now, load We’ve too has is those the driven serving long-term There’s Asian that the that are the what be their you tremendous numbers early a players. call existing what’s little structurally

a bottlenecks. resources governments lot first. lot So that dedicating are of solving They’re solve is for these Europe The to dedicating resources. of to a

we’ll ability volumes has yet out. commercially more So shake bring but see is that underpinned how our to into still Europe, to

growth driver. last and quarter So going to And of continue XX this or signed the challenges, unprecedented were to times majority Asia’s be contracts longer. years the

believed XX XX And that the demise that the was – the that back always the come Asian you quarters by So really we’ve players. greatly year said, last driven you’ve year contract as few of exaggerated. in again, seen

Michael Blum

Thank you.

Operator

now We’ll with take last Tudor, our Taylor Pickering, from & Holt Matt question Co.

Matt Taylor

look your flow taking Zach, here. silly is one. for like a cash last bit Thanks you to this Yes. said, starting

to organic wondering how be developing still capacity. you shorter lens? value beyond on that would the thinking chain Jack extending backdrop, but at Well, is just What changed on But cycle bit through development guys broadening thinking develop and I’m if potentially by production opportunities. So your you are on your has I with contracting. that long-term obviously all focused a mean

Zach Davis

I to I’ll debt not like mentioned and we’re in go let then wants. Gulf valuations. And if chime the in first Jack of But right on Sabine. Louisiana the Coast our Corpus think sweet we spot he with Xx metrics Xx, that enjoy I’ve Texas before, our in we as the CFO, and

let with And product. risk liquefaction very we’ll then But anyone coast biggest So too to downstream, our think not go on of I fans the that’s that we’re different more return prospect. just a for the stick because we’re far creating do going and others upstream. adjusted demand

Jack Fusco

Very well, Zach.

Matt Taylor

Yes. Thanks that. for

Operator

our right, go All conclude does everyone. question – ahead. It

Jack Fusco

to the appreciate of wanted for and has in an just all we thank Cheniere. everybody their No. energy your to of support be support. interesting markets, continued time I been It

Operator

today’s thank conclude all does conference. for that And participation. you We your

now disconnect. You may

Cheniere Energy (LNG) 4 May 222022 Q1 Earnings call transcript