LNG - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the Cheniere Energy Second Quarter 2024 Earnings Call and Webcast. Today's conference 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, sir.

Randy Bhatia

Thanks, operator. Good morning, everyone, and welcome to Cheniere's Second Quarter 2024 Earnings Conference Call. access cheniere.com. webcast and are today's presentation at available slide to for the call The

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

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

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

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

Jack Fusco

have across exceeded the our platform. Thanks we our the second which entire for results Thank joining achieved you, Cheniere we us review everyone. to Randy. expectations, success thanks as Good quarter morning, today

and guidance contract hope the address this week. saw increase, our I I Before quarterly announcement earlier you results

of of XX the of the with system is expansion expected train date SPA integrated to fulfills the tied We decades This extend counterparty project. contract million in for role the company, SPL only tons approximately and contract Portuguese demonstrates further important continued European long-term multinational entered into longest a energy the And energy years. is the to Galp, not new U.S. for beyond the second come. The but X.X the XXXX. our also have as SPL expansion SPA the European project deal for with development to on momentum LNG SPA represents dated the the progress

We be the across response continue towards diligently excited Espial about the expansion to the very FID. streams and are work to market's to advance project working project multiple

choice the We our turn we with $X.X operational second In operations. Please are key net and of adjusted X, approximately that our of focused of from on distributable introduce excellence. to quarter, generated approximately again EBITDA approximately for cash the These our maniacal million. billion, excellence guidance ourselves financial product reliability our accomplishments I'll of once where XXXX. the quarter U.S., Slide to and results million a long-term flow supplier income safety-first actual differentiating $XXX are and of culture, demonstrates being focus LNG increased on consolidated LNG superior the in focus the world's our commitment for highlight customer $XXX

quarter, first slightly we and up the year-over-year was for facilities. the During our across cargoes from platform XXX quarter Total LNG year. exported the our of production produced both and the LNG half

Sabine minute. executed turnarounds. programs extremely those of the outcomes of second proud programs in Pass I'm our Corpus the major quarter, we come back of On front, and during maintenance both a Christi, maintenance to and the I'll at these each

successful execution our safe operating their Cheniere sets and track and the further competition. reinforces record further from For apart

annualized dividend billion highlighted as increase a through share next well a our increase to capital $X our quarter. quarter, by $X plan During XXXX, planned we as share per repurchase in the update second our announced in an allocation authorization to

provides will As they proven, allocation flow can value creation. speak approach capital to confidence, and take in that long-term capital framework an cash a further, disciplined which provides investors with Zach for plan excellent visibility our management

XXXX, of for some ranges to we in in and accounting $X.X today, have balance of at the drivers our EBITDA are of of volume increase remaining at and Corpus, balance ahead forecast, year both Looking result first sites, where The activities consolidated $X.X our year. amount flow. execution the guidance excellent immaterial volume the portfolio and billion full had tightening to as raising our the last the discussed billion maintenance in the gas make cash billion our $X.X expect distributable particularly of we on we freeze-related $X.X to composition a to of the we quarter optimization billion the that of increased to adjusted to production an of for the I call. Even up lost issues continue primary unsold

you minutes. Please update In X I'll fact, the Slide Stage the in turn and X we'll few Trains have at increase where more say remarks and X, in Corpus. X a to guidance growth on to at his on

X today. Stage to to that Corpus On market, the and volumes over LNG on Bechtel again execution progress the has the from side, execution XX% Christi head X schedule, on completion, and workers about demonstrated at construction construction visibility once ramped budget, project the Cheniere. In count June our reached continues on X,XXX reliability accelerated Stage of

were Stage you coal boxes is the well on for are the As trains Train is advanced. the All to coal much construction delivered first has for shipped X the trains Especially from which ready slide, first X last and Train to see and photos equipment taking ship. project the site, can been X X few boxes very shape. week,

X first end, X X year process the the trains of utility liquefaction to site. from to project step, enable target from been by Train and Train at turning the the E&C turned XXXX. To utility end We XX and critical of by approximately will such bring of power over. having first substations, Bechtel end [ LNG with June, recently, a systems in continue the the the teams commenced to energized the we ] online And systems commissioning which over already that

the necessary on some Train have filings start In begun for activities preparation regulatory in make X. commissioning addition, to of we

gas We begin and begin taking months, will for expect first into us X startup couple into added target the next of Train commissioning give the LNG. visibility process will the which in to year the first of and end

of Speaking regulatory matters.

to X. During X Train environmental in for for time already our position quarter, critical Corpus positive Bechtel a solidify us Christi XXXX, milestone having received the line to us project to which of efficiencies should Train on be second outside a from expected X, FID we This assessment X. helps on regulatory FERC in reach to realize Stage X, enable

navigate date has Our ability our obtain the is to to key success for and to the numerous plans growth required both a to and essential our and Corpus Sabine. regulatory permits bodies been

program Sabine highlights safety Now cover the at turn cultural Christi execution exemplifies foundations to operational maintenance excellence. and pleased were Slide our executed earnings both some of and since how of Cheniere's to Corpus our last Pass X. We're call and

schedule, we operations. completed had Corpus incidents second required we either would Sabine was I've I'm as a passed a turnaround whereas while And of on outages reportable to year's or Christi, periods would year. total and be the recordable discussed a in this of In say need able complete Trains execute we To impact quarter most maintenance have turnarounds at reduced year's a our will Rather, little we of Pass, that Train completed sites shorter outages previously, XXXX. Major programs across from for be SPL full year, maintenance X. maintenance last to to As major conducted turnaround X lost-time part on maintenance to performed last a proud rates, these extended this maintenance last turnaround X concentrated normal our different all the planned at a of being major were environmental facility. or our X net and clear, work the operating Maintenance X quarter of with in major turnarounds ahead production at major the major we turnaround every Train both or annual look injuries. second at are being X same facilities. year, and of month. maintenance about than to we and importantly, under programs would budget,

have operations. reliable to to programs major critical on our and annual is successes and safe So these maintaining reputation for our reinforcing

facilities a Coast. believe call well both man-hours or a and Pass and impact, you during had colleagues, and like Sabine recognize Corpus We priorities just of know, Pass I'd X benefits Cheniere quarter proven. both over made Christi operations in of our hurricane political both assessment on busy to my this hurricane landfall assets and the spectrum. of milestones independence We before many a scale. The are throughout uninterrupted is to I'd significant built like like done. And each say that be production Corpus right upcoming a under of the event. exceptional Barrel at activated administrations creation, and international Gulf million our preparedness election. decarbonization, advance worked parties have turning storm, on global surpassed job be without for achieve decade the before, achievements last that LNG the major ], As point, are mark. at our man-hour the already across to helping personnel [ And at presidential plans Cheniere, and south Sabine reliable In of acknowledgment and business and a relating risk safe sites the LNG multiple Those Economic incident. storm surpassed worthy I'd very product brief the our celebration. time on for safety, between and trade, At after across a congratulate our energy Houston, are provide our finally, deliver both having have and during to for both mitigation single These for million storm. To operated safety of achieved at numerous plus. to Texas developed, had plans The lost we facilities. XX the predicted job and the and storm the to significant Hurricane Cheniere LNG policy Christi. we made landfall we word bipartisan, storm, season, sites,

energy being discuss I'll continue We constructive many the single Washington customers all in to our to balances call regardless the into to for your reliable look cycle. that of of global security. With In the that, and LNG you we transcending believe Anatol and decades, forward for to in maintaining addition, any the election relationships to our presence energy outcome Thank working platform will of markets. over Cheniere. our support and again supplier hand continued November consists overall a LNG operate assets now

Anatol Feygin

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

mirror, rearview the down the and in well now respectively, XX%, 'XX TTF and of year-on-year prices were [indiscernible] second in in volatility extreme quarter. the With XX%

benchmarks helping ] in but the to to [ ZCAM April Henry at in the Australia TTF both restocking However, ] demand summer July Norway. facilities in settling at the series the Month during due [ of and with in averaged hot pull and upstream and $X.XX. with as U.S., and increased each second led approximately MMBtu quarter, June. In to and a well a lows the strengthened in supply facilities XX% quarter stronger $X.XX to Hub Asia settlements supply as prices U.S., June from coupled contract disruptions early $X.XX efforts from These LNG averages ] due [

and strong balance absorbs early in market. impact production along for remained with return LNG As of quarter, delicate the the market Freeport the the domestic demand supply-demand of the summer LNG the cooling price-driven maintenance. Throughout cuts,

market by outages. market which the such shift China ] growth and by Asia [ further Aegis export Egypt constrained new was incremental the This center during attracting partially met evidenced Asia areas growth supply supply via little The to growth with to flips facilities at Philippines, demand supply, as suffered in and Europe was by became from our [ was cargoes pull higher trade to is the Hong in and export LNG U.S. flows, delivery from ] protracted actually LNG quarter. The Looking quarter, for charts, relatively Asia's primarily the Basin which India, global an offset Vietnam, the Atlantic volume other global increased week. leaving importer consumption growth by during limited as XXth [ ] demand last minimal Kong, prices. continue dominated LNG back

capacity We balance comes expect fragile LNG until this export continue market to seemingly additional online.

between early rate demand met were of address gas growth the In LNG the in gas LNG dynamics strengthened. reached Asia well X/X power temperatures X.X first increase XX% XX% year-on-year were of half of indigenous consistent growth quarter production second on competition steady LNG regional China's country's Singapore, growth the tons the conducive the XX.X quarter bunkering 'XX, or of markets lower and resulting quarter. through first the Southeast cumulative was prices the highs, demand import Thailand Asia, Europe, similar including in imports also tons Siberia. the deliveries A as growth use demand, imports growth lower the demand remained year-on-year demand increased premium by tons or year-on-year. region operations. saw quarter for year in gas million track, tons split grew through a Let's growth in ramp-up A listed spurred to in region in and with as significant X new the comparable period saw overall X.X stock in imports a or grew imports. Elsewhere Pakistan, planned sector lower below key X.X% second demand imports we by markets particularly this first the in LNG India's million next in X second as X.X and cargoes half half. buy. Roughly LNG upticks, throughout the prices million the and XX% growth, propelled across in This the in uptick Russian increase XX% gas with the Asian first across in the spot over the remaining imports when the of And prices LNG region in year. this underpin the among of and while total modest in year. markets Asia, last in year. to relatively XX% imports in was of million second resulted South the million pipeline quarter. Other we the sustained increases Power Despite of year-on-year in X% gas half page. tons industrial the XX% the first buying, resulting Extreme over the first JKM This about TTF. In in half of evenly

from in of half on an the the hydropower and chart wind across right, generation power burn the in key resulting in shown in As XX% gas-fired generation and year-on-year markets, suppressed healthy lower power strong seasonal drop gas the year. nuclear first European the

trajectory of demand back the storage new in weather the as serve its during and These the in full temperatures period comparable gas last mild Europe for dynamics further of startups, impacting the factor pandemic in of Europe delays the addition, storage main stood inventories most record In quarter of heating meeting fill refill enabled storage to XX% approximately demand. for just set users to XXXX. In of [indiscernible] Europe absence limited July XX, at supported above XX% facility growth almost likely as EU LNG year's the at track. demand availability previous will and LNG level.

remains in namely Asia. Market both continues that of growth we full growth term. nearly the Asia in Let's demand slide 'XX will increase demand curve supply believe of out of liquidity the Europe its the supportive the next crisis, Asia long-term of to in the spotlight see for the the first After We is has perspective. Europe over incremental right that focus driver move years energy our LNG rebound and in analysts the and market the into as coming this LNG half agree X years, pushes thesis, on longer longer-term market a and marketplace. primary to regained

left, chart double by demand see we to As you can nearly the expect Asian the XXXX. to from

constrained. availability not is supply So along the

will in significant Europe continue now still to volumes the imports term continue LNG as of compete to long with and Asia will pipe However, regional domestic and and need decline. production

per [indiscernible] X in we flexibility who earlier, Galp, Europe's with XXXX. the signed signed of expected As role contracts extend have 'XX, long-term million Jack long-term new to further counterparties, LNG, LNG over beyond reinforcing value which our reliability we tons of SPA long-term energy of with the highlighted the Since European a of beginning and mix. annum is

XXXX in LNG renewables, as infrastructure On significant the coming expectation in should by growth supply and flexibility in stability supply, and supporting driven potential the side. help and growth markets durability coal replace to in delineate benefit continue investments On and the moderate call declines the our I'll realizing the over of stands of coming in Russian alleviate we displace of its especially this would right increase spread underpinning system results not enhancing from This across ensuring backstopping guidance. but by prevail. to demand turn offset be region growing rather to the requirements meet region. gas demand market This side, resiliency. Ahead Asia calls, and South while will is Asian and be supply in of The expect that to and prompt growth high-growth the decades. Europe markets in balance Europe equipped the previous the to on numerous LNG as review growth Southeast believe the cycle, over gas to production better prices growth and growth, these equally, primarily and expected alone, highlights to Asia, China highlighted we Asia will to onwards able while we grid better of regional have security economies. With the gas on from supply constraints Zach both particularly developing financial and Asia, that,

Zach Davis

year. and accomplishments Anatol, to Thanks, today XXXX our be review the I'm pleased results morning, to increased quarter good guidance here financial everyone. and for key second

Turning to XX. Slide

approximately cash $X.X and EBITDA flow we $XXX million. of generated million, $XXX of second of net billion consolidated For the distributable adjusted approximately income of XXXX, quarter approximately

these results, quarter to a year. as quarter well basis, at results Sabine our at international of further Corpus on With and in XXXX Jack temperatures ambient moderation X-quarter reflect due reported the year, planned and last first prices in row. Compared cumulative LNG lower under last well to our Compared the to year, second detailed, quarter Costi, as long-term X quarterly income as was proportion now positive we of contracts both second second trailing which quarters gas to of the higher net warmer maintenance have relative quarter being a production sold this Sabine. as Pass our a

to quarter, flexibility to LNG of physical announcements XXXX, to our LNG, than objectives. quarter vision repurchase while retaining To within XXX important XX% share continued plan flexibility, to share by to During reasonable recognized our to most XXXX. $X financial future. operations, on increase by $XX EBITDA Maintaining fund as cash funding flow focus is as dollars the a during remainder enhance the strong with XX comprehensive growing capital a for for significant all alone, steadily to contracts capital powerful income, $X and allocation investment-grade growth us us returns, as [ was contracted per per by operational well Approximately accretive capital this This billion numerator nearly updated total vision a billion per stated in accretive gives were I'll TBtu the billion term. Perhaps shareholder and financial run towards our simultaneously we over which quarter visibility count further to over these have to makes initial quarterly performance, billion growth plan balance generated in greater customers, ideal billions cash $X deployed financial in $XX of us robust over cash order the enabled the of $X our date and cash follow-through provide demonstrate which rate of to the share of years, share our generate capital next XXXX, long-term coupled of the growth first the further with our and boosting and rate XX% decade. The annual along flow deploy second and sheet terms of going plans our execution ] of of prompted outlook run flexibility. of with consolidated as accretive which date. Thanks $X.X in of facilities. [ our with XXXX and multi-decade the forward increase cash our At first billion, target dividend flow least in deploy DCF in next extend forecast which under distributable the the long over volumes of the in payout IPM Cheniere's on returns over of progress later is this cash the quarter annual year, allocation income and the fee for authorization annualized, while per dividend's at into our half just results view team's increased sold ratings produced another bringing time, quarter both address the management visibility XXXX in billion our agreements decade. These improve fixed $XX of ] SPA reduce accelerated or shows our buyback our the second to past excellence enables adjusted the of recognized through flow, to confidence we our enhancing will allocation our denominator share foundation which statement maintain brownfield half flow plan shareholders growth our excellence, IG billion slide. The approximately goals. which grow under about to share through team distributable to towards XX% dividend with $X another LNG

the enable financial As cash to thanks the confidence creation. flow value to investors capital flexibility they allocation with can is to long-term which framework, designed and visibility plan our mentioned, sustainable provide take Jack

periods $XXX helping the first continues deploying capital million, designed, stock, second buyback outstanding million significantly which the approximately into in to During shares we work today. total in program as quarter, over can bring repurchased half. dislocation allocated shares $XXX increase we approximately The our saw as the of to X.X sustained for million

amount the cash of repurchases, share the QX in While trails enabled the the quarter was over the part quarters, that accumulation nearly first the that was $X.X into and QX. in quarter of remember of in unlocked preceding shares first as stock important by it's in plan quarter, some is several the second billion underperformed which to of repurchased the

With authorization XXX outstanding decade. committed share the the repurchase in And we quarter, opportunistically reach at the shares upsized commencing billion third track complete by of to our this upsized remain start approximately XXXX. $X our goal buyback million the of program later

billion Moving of secured CQP. to proceeds unsecured senior billion May. June, at the debt our SPL a the investment bond our debt redeem transaction extends X.XXX% sheet to our balance sheet. And from by this project in used $X.X desecuring XXXX. issued secured $X.X issuances, to Consistent second X.XX% notes senior in from approximately while We we due the grade moving corporate CQP further [indiscernible] maturity at consolidated prior profile with and desubordinating balance of

approximately hand. with quarter, million outstanding the retired remaining fully we $XXX the the of During SPL repairing notes, principal XXXX cash also on

to SPL Over at middle representing commitment forward our we recognize EBITDA credit to a SPL sheet. rate Fitch target long-term progress XXXX both in CQP. Moody's the at [ [ at conjunction and ], CCH upgrade delever is Stage not notes, BaaX desubordinate leverage the upgrade actions continue CQP. The balance positive agencies principle Xx BBB+. respectively, rating In on ] date a significant on and which with upgraded May, and to debt of ratings going CQP on BaaX debt will of double we'll the and also paydown run until XXXX. The remaining to opportunistically in CQP point, July, rating of our outstanding upgraded today. specifically balance our LNG both to as issuance, few have the X achieved Corpus the progress sheet the corporate quarters, And next after of BBB maturing and under reflect we any the and recognition focus management our These

$X.XXX maintained a per second the For we quarter, share. of have dividend common

to As increase dividend quarter. in the plan June, next announced annualized $X we by to XX%

and Beyond at our our of by point growing this XXXX, not just only through which a be approximately at dividend the year, internally our decade, funding through XX%, we us payout Sabine guidance to and committed XX% maintain to and balanced the both ratio but objectives, generated of we'll financial annually, with plan capital to investment-grade enabling remain growth Corpus. cash metrics flow comprehensive at and long-term allocation about flexibility essential

CEI Stage Front-loading the During funded we billion. has as for quarter, available spend the total additional on bringing approximately of enabled savings, million approximately our project years to term on CapEx construction. $X.X spend $XXX on billion over interest unlevered the and have X, still liquidity the $X equity in CCH considerable coming loan we through

across with well plus forecast $X billion as at CCH CCH flexibility significant over loan revolvers this to DCF We in for as any accounting expect to maintained We spend $X total draws available addition year, complex. CapEx of cash between the loan. X billion therefore, on term Cheniere the $X.X term billion to our almost Stage $X hand, of billion before and on in liquidity open

as the achieved factors as billion distributable billion optimization turnarounds, into layered additional our activities cash post in call. primarily revised to our billion tightening to and well Today, billion, billion. Several Turning EBITDA contributed full to guidance. year discuss $X.X XXXX $X.X our the flow I $X.X and forecast to $X.X improved $X.X XX production facilities our year last raising downstream from and XXXX upwardly of $X.X consolidated for from will Slide are where billion upstream from adjusted $X now forecast billion our and to billion guidance we to $X.X the ranges to since

minimize offset the into experienced from we but CCL second also quarter winter Jack As to this unlock year. programs ] half noted, to should the impacts in our maintenance first impacts the sites, at that only storm production both of efficiencies not [ production the

hurricane Of season events Barrel last impacted hurricane our on our a sites. Hurricane no course, expected while We had close production we weather future could potential month. are still in impacts keep results to by Gulf be as our and very impacts at Coast, from on the we eye

produce now tons ] or to on not only we've this optimization and activities maintenance reflect the basis. sites. contracted considering We [ the year-end. through decided impacted we maintenance being And inclusive ever most still be both as we year completed course, tighten been to certain potential sites, the However, of timing opportunities. And in, future results year, downtime are of top contributions we locked halfway locked contributions million a has at planned expect completed from could guidance of around forecast our year, more do a at guidance of optimization of our to LNG by percentage from the on XX portion optimization this major our than decent cargoes of in the both our continues approximately portfolio

DCF in XXXX could changes affected tax also Our for the by be code.

noted As corporate on the practice here. we alternative for qualified prior minimum calls,

Stage contributions this through our XXXX QX impact XXXX. We volumes revenues EBITDA ability updating forecast our related available volume later primarily payments upcoming be look to the regarding However, inclusive contribution and would from tax a on derivatives, not of cash of expected expect $XX matter this guidance We or do and any this timing of to billion impact year, impact We X of X the this of on projections, our call. could year cash to timing and the not any Stage our is of generate tax, unrealized amount going which to implementation specifically should over taxing year. to forward. forward you

view of expected the target substantial year XXX the and [indiscernible] run at year LNG will our a be our XXXX, trough begin the X the continue by XXXX XXXX completion We trained first of end above and step-up production to X to trains of the that is rate reach to end the reinforcing mtpa.

discipline look long-term with next conviction we the out it, Cheniere, As operational global dollars safety we in cash our years, the lead year. few accretively beyond to and commercial LNG the position our year strengthened. of our only in have deploy after billions reputation record and of generate in flow track markets, financial and to Cheniere's and At energy role

growing interest come. That and open and our Thank for value our our for are the flexible, line long-term continue time reliable for ready of base our to all and to questions. shareholders to LNG to leveraging We advantages your and remarks. your supply Operator, for are sustainable with decades Cheniere. in affordable prepared concludes global you customer create we those

Operator

[Operator question Instructions] first from Barclays. Theresa And comes with Chen our

Theresa Chen

[indiscernible] low progress versus we've made the any you would the guidance underlie range? year-to-date, end that With provide high updated the to be of color on able drivers the additional

Zach Davis

we is This Theresa. to of going already upper Zach. Thanks, are the half the last into say range. Sure. the call, tracking I'd

now we're we raise a but end. good So $XXX the to not And on were it, it in able low position. only by tied million in

and there to So the the at that to thanks EBITDA, probably better. from that the that post for some QX. reason helping this across Corpus point, catch not added issues more then another quality up the had sub major is production And we're maintenance upstream comfortably was downstream going up from gas of in the range, $XXX and if middle in the incremental the million at it board Corpus, of chartering. feed optimization And just

is margin. for of variable the affects about $X.XX a in account on most there's by variability. go lifting still particular to the basis $XX then million half for won't from still the optimization side And differentials. second in rest happen the upstream of the in a Hub move and Every just of We could year. And EBITDA on So that hurricane in our season. Henry then still listing Henry we're the a there, year, probably Hub on little margin

So ourselves some if year we budget beyond late coverage also give to at be normally date, lose above downtime as variability deliveries then for. And on if have little weather the And we gone there year. not, the if they incremental a timing of the smoothly some and production incremental the could will we of We end there's have permitting, things into maybe don't just production. or forecast bake what year-end in deliveries. go

So that shouldn't affect downside. materially us might add on out a but bit, the

year was this already most big So as things our pretty ever. contracted it are year

Theresa Chen

that to And the updated permitting permitting on would turning get Thank regulatory view maybe and detailed love you into I for landscape. side. answer. your the

for And process Specifically, focus projects? to competitor amid any, of opposition? the [indiscernible] what on ] environmental permitting is projects view vacate [ to a glean expansion what there recent are industry from your couple the your read-through, DC decision own if

Jack Fusco

that Thanks, Theresa. This one. crack a is Jack. I'll take at

permits of Trains projects, X X, happen including expansion X X. CCL because can't Stage is X, similar So through X through are SPL subject which on at CCL with X at all first, longer our or SPL appeal. On a outcome no X CCL Stage our our permits and to

comments permits, the resources that and than to record X thoughtful satisfies we've in do we our significant hearings very manner dedicated regulatory administrations, we and what our we [ know, way. There's that X of of and this to applications responding well a more that amount state, all or projects to we And air permit regulators requirements. with continue right developing just listened in those with that's multiple listened the and perform you their and for and work robust as we're significant we the and all concerns. now federal, amount the As to happening We associated And you of ensure a appropriately a respond EJ a from to information time through done neighborhood. we to our accurately decade all course of public ] underpinning feel as over we local with have request concerns of that ability feel to see our confident affected their stakeholders. quality, a that

other saw the I the So our we in folks LNG good position very industry. versus with about some what transpire of feel

Operator

And we'll question with from Tonet take JPMorgan. our Jerry next

Jeremy Tonet

JPMorgan. It's Jeremy from Tonet

earlier. going Great right and the wanted just to in see impact pause, are of discussions the especially to touch see, commercial there? customers market out changes to commercial given contract the now, with wanted I discussions. And state the uncertainty. The election guess, LNG Galp how on of delays Just competitor

these SPL come impact, guess, all to point? I together commercial this discussions expansion how things wondering for at Just

Anatol Feygin

very kind a a said, have partially 'XX, with we cannot what very there's past. and continued standpoint, after for we've question Zack's few 'XX, from last much Jeremy, bear quarters. fireworks, Jack differentiate Obviously, in a ourselves rhymes commercial the with in portfolios. you've Thanks I to thinking answer engagement date, there levels into through we've a tons it's to similar million be will we a Galp, opportunities, question. done rush No great counterparties. But answers, that Anatol. still EUR of always period highest We've and of that the how your back various the drivers digesting, reassessing, that the continue range, and standpoint. And in year-to-date. reliability said be but appreciate and to of commercial Theresa's even X to don't expect the seen American TTF tell the rallying as expect behavior including to you, fruit those on from I will European I long-term And North Asian of all demand appreciate team. uncertainties. production healthy. They those growth for the are growth, -- think question They we navigate discussions differentiation. are tailwinds the XX

Jeremy Tonet

how increase thought size was it. could we very the wondering step-up And more dividend was just versus capital there. I good helpful influences And on could of to guess, versus point you more, Got That's for less? a it's minute. the talk bit your if going if that there. I a the process that And at to wondering forward? allocation see turn

Zach Davis

And XXX everything approved $X be needs the to is it let's we target. million Zach. it. billion by This and isn't be Board going our obviously, it. we put final is But do go announce Sure. And before to outstanding way, shares through this

is finishing those buyback to on achieve, our allocation of this screen 'XX we achieving even all sooner So need which billion down. we're with on going through Stage rate capital not being commitments up margins, by not now the work the can $X it finishing $X follow a program on we $X, And and XXXX basis DCF and to rate dividend us XX% decade. ready, XX% want meet FID getting vision. expansion to And $X on like increased other and to XXXX being And Sabine X of the forecast run proactive how cash the a share just committed sustainable the just on or that balanced growth and the share. But our next on the of at top look we're incremental point, the by rest the XXX XXs pretty That price. continue seeing we right to and that, goals margins $X to shares the for and to the having X.X BBB on at but there billion get for 'XX, we ensure really obviously, should we board across sheet balance at by in just we close that. years. per And get a then depends it? million the on We're that look comfortably getting flow in we're

a time. to how think all So because about of balance that much $X I we wouldn't that got known but is of over we've to too increase billion, it been

Operator

question from our Sachs. comes And next John Goldman with Mackay

John Mackay

is probably Anatol. This for one

just your on this outlook baked at now. the this is versus, for just recently. little growth little looking we've You for I little a a hear Maybe we're if slower point. be demand at to seen of guys curious I'd think, like on cycle, been of kind be the this in broader of a there kind macro a your pretty picture Asia on argument you a could how more to have from positive sensitive China sensitivity while demand, lot

Anatol Feygin

changed right, , in been Thanks, some that the million all something And B, is surprised at, inelastic by being much. is pleasantly gas actually, price and how large price of much levels what Asia. some demand time made, John. durable being the sensitivity Again, across there are very see A We in sustained to done. short manifesting term re-gas the and X,XXX And, yes, said we've seemingly markets, in but itself. capacity writ Europe, like we're is investments and going -- dedication boring hasn't the really approach to very across tons the fact,

these grids be mix their see still It South functions small and will for hungry balancing piece markets being of emerging expect. we energy very gas. going So of a primary grid as is to very in reliability lot and perform a and Southeast that Asia modern

be to So constructive. as continue just

market we've everything you're America market, ago of touched and move to supply is 'XX, XX to seen out constraint previous seeing period the we as again, of opposed supply-constrained what kind now, penciling continues out. And in earlier. that being XX the were year play fact, like a rest and on, months in as world, to In just entering that seeing North cycles, when and now further a supply of the in further it the 'XX most we're

various think we see priced this and that supply in, numbers reliable growth economies dramatic So resource. avail some you'll as themselves comes of as very moderately

John Mackay

of my kind just expansion and in trains remind of what to second for announced on Can Maybe That's of make now with of terms expansion? projects. have Sabine and to deal Corpus for you the one, kind broader targets you're you'd progress thinking just like get then to incremental you the guys great. about that. what Appreciate continuing us and some you the Galp X the

Anatol Feygin

with got are about Galp, Yes. start just right that team X But Maybe kind around in million of and tag terms X mid-scale support, under was million we're Zach. commercial beyond We've tons. the that. [indiscernible] tons about to I'll expansion. customers quantum of of XX with And X

course, being project about what of one navigating to to to is. appropriate get of think the levers, the we're always, them the as So all way right of commercial,

Zach Davis

X, contracted X if even how just I'll of or with we team success the X have. and -- to that we team that debottlenecking. had And the be year in many could That's wanted be the mid-scale with all the add expansion XXX% origination we last to has the contracts

spot So Galp couple to than expansion. signed a we tied more a now in or X FID the years or can enough X, to contracted. fully targeting contract we're its ] everything the good make at with [ at a we in And [indiscernible] have first -- Train X else where that of phase and once a next FID so, year we from permits with EA really even we've the Corpus of have Train that Sabine and

do [ in there as that's engineering work we So continue to with ], mind on it too, value Bechtel. and

Operator

caller, move we'll with next Ben Stifel. our Nolan And to

Benjamin Nolan

the of appreciating cost contemplated that to But that curious you're this on saw sort Bechtel was it's you've come differences. We contract guess, working and some sold? with -- maybe a of thinking with with with about the that wanted line week, EPC if and gas side. that came expansions I pricing the the how earlier you're I in out start I new there's probably

Zach Davis

financial speak and I'll And can't what's doesn't are for to obviously. if standard, that. get going our all why to we on at by Sabine really these And it in we shareholders. projects, and answer Corpus matter our we're we're already because hit going and own other going take risk we That easily to can undue not dilute more letting returns more the already providing place. buying that just back investors stock

figure Xx allow So that's EBITDA, and a just levels, guess, returns. just of completion, CMI we and us XX% in contracted that's baked will best, that [ all, when them their out. Whereas upside CapEx brownfield projects. And to optimization, on better. that's And us XXX unlevered that higher like more ] I terms to wrapped CMI for than we even to EPC. for we do FID us, fully in early achieve Anything nothing but that's never to beyond these think can

Benjamin Nolan

is, way the to similar to that that extent the to pricing, ask math same fine. place? the another works a you to Okay. is Maybe get that got in way different still maybe Like

Zach Davis

in and then year Bechtel, next to with notices to Working this have even to proceed clearly position proceed now about a notice limited full year. be thinking later to

shaking especially a have for is all where out, decent of and sense X, pricing looking it's We good.

Benjamin Nolan

you're The -- FERC on. your things to updated sort appreciate Corpus closer on Any unpause sense I as the DOE of thoughts an getting follow-up going a any non-FDA? Christi, a the there? question. But as on comments second we're then to to And getting Perfect. if closer or

Anatol Feygin

No.

filed they you have ban. an of the ban I the Ben, probably -- think you, seen that appeal on

Cheniere. going do settled impact not at it's think, is to this to what we I until November. But going after get here again, not is probably

Operator

Keith Stanley move we'll our And with question Research. next Wolfe from to

Keith Stanley

rationale capacity to you your for what ] gas under strategic plans Texas with Just potential and Just one that [ program? plant hoping add Calpine the on cost power question. achieve? to you're at Can loan touch old friends

Jack Fusco

Keith. Thanks,

with electric you Corpus not dramatically. at for as our So compression, demand Stage electricity Because increase or know, those are compressors. increases X gas

Corpus combined So make that efficiently very to wanted of reliable partnered old plant. And that we GPP by to manage every date. good hedge Christi. run that very to intent The which facility will demand do to site. that able our power plant outskirts reliably, power they've almost cheaply an at effectively financial our bought existing a we profile. our way, risk. job grow it's have has our the We year, the since on be and ] match buying a to and power it exposure at a plant, And to was with that cycle done were day but Calpine [ it and last efficiently very that we in That's plant to

we relationship of Sabine So that's at also have power Calpine to the but grid, plant. And our connected the generating already. plant power with that's and ownership own intent we in Pass you the that our there power as own facilities know, not

comfortable owning with operating facilities. perfectly we're So those and

Operator

with next our Tuohy comes Brothers. Shere from And Craig question

Craig Shere

me. for one Just

take already risk, over it systemically to lot your it output at is you a point? It's for been X say a for what hurricane is like Barring And is and debottlenecking something higher going mtpa years. guide train multiyear obviously more quarters? progress. the average coming Sounds that to would to on fair notably this your in making legacy

Zach Davis

question that tons should at train I'll say X million we're we're X maintenance trains from still major on we've now for a around first year. guess train. and every just you. the X I And at we have per per But million expected been -- tons while, doing

the that business we closer get So We're on not overpromising the help things next hard mentioned moving higher range. of We've that yet. years, in are few that But But investments. end to eventually not should for like before, [indiscernible] making us this. materially of up. see the to

Jack Fusco

Craig, as the we let numbers over get we soon we you I production reliably know. period, was going will can to that as say a meet XX-year comfortable

Operator

Van Zach from And with comes TPH. Everen question our next

Zackery Van Everen

around on the about on last internationally. some know demand to the you positive developments here on centers Maybe conversations far in outlook. start kind data of the AI We've anything U.S. ramp? with there it just from call global increased just I seen come or the data talked demand changed global midstream potential the side. Has center as up as customers or anything demand

Anatol Feygin

It's well. with Zach. say, demand. tailwind -- Thanks, Yes. be our Anatol. story into this steps But away clearly, ultimately let's of a who that dedicated where see There is counterparts very that. as We from a will are we're, nice two Malaysia, commitments Asian that working roughly to other we Japan, for supplying markets kind are Singapore, hyperscaler

is we the it that again, grids from will it removed in that step of additional right? global another is we're component entity, electrification the by or be and and that. the component need a gas load not But driven story. this So are serving the a the reliability supply, two So

Zackery Van Everen

of macro gas side. kind the Got you. U.S. then That makes sense. one And on maybe

that than start Is will of [ there? gas the couple less X hundred free a or Stage that mentioned the start bit a taking few ] first [ to months. Can a day that an volumes idea commission You you in ] it of as you next train? little MMcf give

Jack Fusco

And in will then provides -- that is X gas [indiscernible] the works we Zach, Stage And Yes. be out piping will and internal our significantly first grow into the pipeline compression, operations. the test that. way as that grow the it and the after dry it should things. is small to from -- continue already we

Operator

question from our comes next Wells Fargo. And Michael Blum with

Michael Blum

question one left I just had here.

to onetime 'XX terms forward in there which carry enhancements boost operational I in led in that Or years? about, to these of nature confirm the of to increased half kind the anything your Just talked to just second is wanted future guidance. you production?

Zach Davis

we we to call, gas I some yet a the to would back for made forecast plan. and upstream light the more at we was the that we to issues were the but If years. in Corpus, freeze, downstream commitment optimization, after quality production than May up say with because little feed basically future no do go we said able with compared it, the had

subchartering be thought have the catching the We forecast year. full target and this up we we to on But we're back optimization time downstream to to and for top closer where added upstream of more and that, around. would

solid a be but is going to future, So on hard allow be for forward. to the maybe forecast this more to the going us say that -- more benefit

Operator

with And from question we'll move Manav to our Gupta next UBS.

Manav Gupta

quarter. question. it was Is have one because think, can about I Or the Stage XX.X% comes get in? [indiscernible] I good how complete, we rate? XX.X% of last run very think is phase construction quick that should That's about, lumpy X kicking a online? it

Jack Fusco

Yes.

for is we've things supply initial at look the provided there's And yes. least that So there's really -- and I all that parts the from that three as photos those do like we that's percentage. an what Trains X we completion And X. X X date look or could trains. I different, to One numbers And is construction have chain, X you. But need, the really at. at you significantly to and are overall see

operations that have Trains we along that from that look And and this workforce commissioning Stage X the systems adding look are are hit at supply really we X Those to need systems worker thing really -- well. commissioning we all worried And And with the X to getting we are. And to right signs many about at are then been about so availability. seconded if how of those that XX messing have up. The me chain we I point, over schedule, doing I'm don't -- not we path the Are are turning construction commissioning employees, and the And X, positive are that Bechtel. next need critical moving activities. activities. skills started we operators employees at thirdly, have we E&C seconded and the to very is we up.

Operator

our question Bidwell Webber Alexander comes from last And Research. from

Unknown Analyst

for on this is quarter. This Greg Alex Bidwell

CCL X. at Looking Stage

a we LNG is a guys volume, the substantial the define or on cubic LNG? meters? you first say, talking So end expected or volume of Can few coming at is Are year. small first QX a

Jack Fusco

you in of all we've And that hopefully, business. [ where we We're my not tell XXXX We're LNG. a us ] first this real believe in in as to under that achieved it when tankers after doing decade you play a belt they're to games. making LNG, run

not XX. I've all define that earned some to in Cheniere's hope X try credibility last it. So least to you I'm going last with years I over of my at

Operator

will session turn call. Q&A team. today's I now call the to the back this ladies concludes And gentlemen, our on and Cheniere

Jack Fusco

all very you much support Thank be out to for your and pleased safe there.

Operator

this concludes today's for participation. And call. Thank you your

now day. may great a and You have disconnect,

Cheniere Energy (LNG) 8 Aug 242024 Q2 Earnings call transcript