LNG - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Cheniere Energy Fourth Quarter and Full Year 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. welcome Conference Fourth Call. and Year and everyone, Earnings XXXX morning, to Quarter Cheniere's Full Good The webcast are for presentation today's slide and call available access at to the cheniere.com.

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

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

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

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

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

Jack Fusco

outstanding review year for XXXX. be and Good to Randy. from XXXX Cheniere what and our we you, morning, fourth Thank results exciting rewarding expect as quarter joining everyone. an I for vision full in today the Thanks our discuss year for and us

safety-first across the as priorities our Cheniere ambition our deliver uncompromising long-term distinguish our reputation and to driven results Cheniere's results In a culture to across XXXX, excellent by operational again in excellence, we and focus platform. the best reinforce company, further financial These customer by the class value discipline, key in sustainable underpinned consistently market strategic stakeholders. once entire of generated

multiple LNG these for successes and XXXX in government in been the importance prioritized conflicts, in geopolitical and have secure most Throughout long-term powerful solution. years, security the on refocused loud wind all, theaters by market laid backs diverse, natural that natural is stands energy with of LNG have ideal call at an is gas. new energy long-term of portfolio take ringing of conflicts been the our several global and as the and reliable accelerated last general particular, clear. We capacity in gas, as criticality Cheniere's that these a over there, has supply a perhaps and

The the United significant now of energy energy reliable backdrop to for supply have States more world secure country. in this over, infrastructure and opportunity has and a large-scale constructive that provide the development and we operation a

Washington administration We regulatory engaged in and with permitting are clear, predictable new for optimistic and regime. are a and more the transparent

So and more we can the for so to capacity come. continue needs to clearly build world operate decades LNG safely

the the our middle year original a for increased full landed in billion as highlight to billion, $X.X results of billion fourth billion. cash provided quarter and end generated the the in year. in totaled $X Net introduce of quarter, and for the approximately generated the approximately XXXX our year. range fourth Full income EBITDA our approximately flow key the quarter year fourth year and turn quarter bringing $X.XX range where well fourth total full to and the guidance high $X.X for X recently approximately In full billion distributable I'll million $X.XXX as ago. the guidance $X.X year adjusted Slide and $XXX Please for of XXXX. financial for our billion above the consolidated EBITDA approximately of accomplishments we We

million is of most the And the once again Corpus approximately $XXX the focus high supply above produced hours Christi Sabine which without over LNG and results incident. did financial by achieved performance performance. million XXXX, enabled we of lost above quintile the global year. once on outstanding labor original the delivered recent again we labor in In importantly, so safety both Pass XX in colleagues top Cheniere completing turnarounds around my Corpus of and a I'm achieved we record results We end a range. LNG a while world. that successfully SPL are delivered million million XX% time amount DCF, the range These with X to share X,XXX relentless the Christi. And at tons, and XX hours On most proud XXXX, single

take much stakeholders do continue as reliability as in teams Cheniere the the All of safety our as set pride I and in to results these should our industry. standard production

X excellent During almost make on plan, towards Stage and to XXXX, Zach and continued his debt million project, billion. for deploying long-term of $XXX down capital buying approximately billion paying progress team million our shares our over $X.X back XX comprehensive allocation $X.XX

per In ahead announced to schedule. by summer, share increased of $X dividend another addition, authorization $X well and the last billion annualized XX% we share repurchase

per EBITDA in this to was X full say begins growth as a our billion to in distributions CQP. range in will XXXX start-up of few minutes, Zach consolidated These billion to DCF distributable adjusted delivering and guidance $X.XX to in ranges of on as ranges we to $X.X trains XXXX. the reinforced the to I'm expect for flow billion ahead and contemplates these financial operations. we X Corpus in for $X results $X.XX within year a at enter production at Looking more but Christi first introduce unit XXXX, $X.X X committed EBITDA, guidance are The to to Stage trough year. Christi year XXXX pleased year-over-year guidance have cash billion $X.X Corpus XXXX Stage

an in Corpus the schedule. Christi time entire proud progress year-end, helps At to project an X over Stage LNG Train end Bechtel the and execute stood first line milestone by completion We across with our substantial total for progress first We construction forecast the of continues made on at commissioning as growth from December, XXXX back our demonstrated to on significant during important project. XX.X% achieve accelerated on our quarter. complete. our that at reach the X XX% were reinforce completion to construction

upon to X regulatory Stage slide. discuss With final nearing more the expansion remaining required necessary lead can without we X to and FID reach reach of track is permits. brownfield long Trains next this in to Christi FID, I'll year. items this continue receipt to the recently on and the time we ensure construction orders the Corpus efforts delays remain project for on placed We X, on approvals our order regard

completed teams cargo full turn systems the Over on safely production in-depth project. significant working look to commissioning our Train we Christi LNG Slide X turn I'm and first to continues We're Corpus closely of over Please progress progress on start-up X,XXX into number to pleased provide I'll operations. X, to to to to that towards working Train Stage we to a are X of at our of commissioning Stage are advance personnel Stage more completion, project with beginning together plan, X X. where move share Bechtel from X. week, and and this the

X been In and procured addition, risks point, X materials tariffs. trains Stage import delivered equipment and mitigating at of all on through have this X

ramp by trains the year-end all by continue to and complete be first We this X X target production end of year to to XXXX. up trains of substantially the

priorities XXXX. Please our highlight turn strategic to Slide for X, where I'll

track record reinforce our and we foremost, XXXX. of to expect First operations in best-in-class

especially way, X. will our the we commission We and Christi business to continue right safe Corpus operate as way, construct the Stage

Our of advantage, us term, which hard-earned operator is and well reliable serve is we all that market the and reputation safe advantage. for as the in significant will it vital a competitive maintain one a long

X Second, Trains Corpus we FID. to Midscale and getting Christi to are committed X

forward to later regulatory As I mentioned, in year. near steps this permits the the the an necessary are for preparation we just FID future remaining and in taking receiving look

lead locked with on to Bechtel helping and of costs to the XXXX approximately X related schedule. $X.X under in cost Trains notices proceed to billion equipment efficiencies maximize and can During we and limited other project long both ensure time X,

pursue our long-term Corpus Pass to Sabine and Christi we the Finally, of strategically ensure to optionality intend growth footprints. permits

at and stated action my the remarks, with of administration engaged are the transparent beginning a goals by I new the actively prioritizing early we encouraged policy clear, As and permitting said are process. durable very and

just Given that the per stark to to permitting permits annum. the derisk strategic at improvement requirements ago, million secure in we months here and for for few capacity significant to of and U.S. projects a is a sight a order LNG in both have with opportunity of which from an Corpus contrast line in over XX imperative permitting Sabine a tonnes the environment future project total development growth of

Cheniere. that parameters intend is adhere online. coming have at of course, quarters you for now market. to to our operating at will, We so potentially the approach forward window, permits you advantages built sites both again a LNG be any investment in it pursue to path to to incremental more all I'll we ourselves I hand Anatol aggressively and all disciplined the current always than With and look continued this to accretive while as over permits capacity optimizing develop. facilities. of both likely support our we these a capacity updating economics double on our once while your phased efforts under brownfield that, to discuss But capital they give Thank

Anatol Feygin

Jack, everyone. and good Thanks, morning,

to recent to restoring Russia towards turn in markets, the progress peace and we weeks the a like I'd Before constructive Ukraine. discussion made of acknowledge between

and near While gas We market serving role powerful ongoing would be a a affordable of the the impact talks A the it the resolution peaceful energy more pricing conflict hope the result the over into likely portfolio. in X lives a support It stable markets, soon. rebalancing LNG gas natural and plays and and once encouraged long-term on Russia-Ukraine of demand The fluid to highlighted gas energy Europe long economies can again natural over and had a not a volumes a has to has the aid vital altering a help and resolution in in given, years is conducive environment by but time. criticality gas growth. this of people also not restoration remains supply last would achieved a as we're solution the and Russian everyday in tremendous supply-demand situation global incremental war the year's reliable around secure the balances, of only reminder believe term world.

please to turn back with a 'XX. look Now start X. at Slide We'll

than less due tight continued of online year. outside million throughout The limited year-on-year demand throughout remained delays, LNG strong sanctions coming with trade coupled a grew supply growth to relatively by the lull Russian Europe growth. capacity, and last year tensions projects supply in X limited market and in geopolitical tons project as Global new

the projects sanctions preventing from up and very to due contributed year started Russia, the markets. Congo, to of the in the Mexico projects Russia, new While these the in U.S., case in starting little market or up volume cargoes reaching late

As Europe year. for gradually most well increased Brazil lower averaged other thankfully a the such the XX% the to of over which prices, $XX.XX and in 'XX continued. LNG around 'XX average continue the was of Asia about satisfied rebalancing 'XX, as of Egypt post-crisis MM. than albeit the than as prices conditions in TTF settlement as of consumption as These at unprecedented support result, monthly MMBtu spot lower $XX.XX the remained elevated, an markets levels expense

'XX. price XX% settlement was over Average $XX.XX the XX% in lower in 'XX. MMBtu an 'XX, price to for versus averaged 'XX Hub Henry Similarly, compared JKM settlement lower

in with and at narrowing rebound into attract late agreement JKM coupled expiry weather spot However, later of 'XX, cargoes prices and European Europe, the with of end 'XX gas Russia in caused the in reversal starting in Ukraine Europe. TTF the spread of cold to transit the between order a a

industrial power turn the down the tons 'XX, XX generation sector, sluggish for this the lower over in demand growth to competing year-over-year, imports million outside Let's to next volume Europe's approximately declined In gas-fired XX% address due page further detail. region. and and in

quarter fundamentals Russian gas when the year Europe's in through expiry Ukraine half balances winter turned date However, neared. as reversed and the course, tighter the regional for improved amid especially flows the fourth natural second Europe weather of in

comparable roughly gas-fired period generation, renewables While fourth along cold resulted last XX% withdrawals levels in the drop quarter, below quarter. year-on-year This with gas-fired output year-on-year, inventory XX% temperatures below in from accelerated and generation more rose gas a underground fourth pre-war year. average the persistent XX bcm storage, the the in bringing fell X-year which during

year cargoes likely LNG cargoes winter is in 'XX. a equivalent the call other reason is likely incremental Europe of to in the swift LNG Russian We saw the loss through this critical call most into gas of replenish is helping continue we decline of end approximately of towards this believe and into the for on mitigating This next Europe will XXX in of and to the year the alternatives. as beginning supply absence of inventories be and

has tale While in Europe year. the experienced 'XX, markets growth had halves across X for a of Asia its of consistently most

estimated year-on-year overall country's sectors, Asia 'XX. million to an of this peak, China gas XXX grew but tons imports million XX close. to to including its pre-war was in significant X% million growth, LNG added demand the major transportation, all increasing roughly imports, over tons. XX% most the as China's million not reached growth contributor very million to back XX XX which quite XX up X% tons across in LNG to came tons,

added the gigawatts as region, 'XX. the from fleet, is growing across past this helped most which of gas XX its Additionally, China case in power capacity heat generation of boost summer, which experienced waves

of on in added of capacity. total gigawatts for gigawatts 'XX current generation a were the that gas builds This power XXX XX.X installed

of installed per CCGT country's the to incremental of million for annum reach underground an addition and an to the of and of to XXXX energy. coal carbon peak storage XXX 'XX, grow XX% of X regas XX bcm bcm or this by capacity gas consumption all an an Bcf with year, tons Bcf of In peak additional total or country end capacity, estimated aligned goal capacity increase XX% the of XXX emissions natural XX as primary

accounted day. provides high LNG to we've region 'XX, represents a that which support decades we come, conviction calls, representing The growth to in for nearly thesis. a rate region As will 'XX of to demand Pacific all-time XX the for noted on added that growth Asia year-on-year, X.X% continue XX% approximately of believe previous at of growing demand an demand gas incremental Bcf globally, and

in key Let's next the contributor 'XX, and a to global sustained growth of energy shortfalls market to include crisis in the balancing flexibility severe curve with extreme we slide. gained Europe side. the Throughout year. move The LNG come. gas significant gas at is contributed decades of to security factors likely energy a numerous evidenced which in LNG that by there avoidance in supply and XXXX, These has the the last into believe and to role events supply trade, elevated compounding key a market, global on remain global were plays of it for weather end the times demand impacted and the pricing short and supply to the

trade deficits elements counterbalancing factors create Amid markets. major a few last year, in to coincided these some

supply to to for delays, project Depleting LNG expected the LNG I few. outages in additional maturation, resource by LNG resulting an 'XX As just Algeria, general. growth supplies insufficient where and supply new little as of supply Australia areas name Trinidad such deficits in MTPA LNG in resources estimated to of of energy gas a X such examples coming the will imports in system LNG due demand the domestic offset helped earlier, mentioned start reinforces reduce resources. year. market Train XXX structurally offline while projects Egypt, did production in outweighed decade. as legacy growth Shelf the further in other at in even and the gains far in country's Australia have the gas areas growth of LNG West Argentina, last provided from flexible taken security And fact, like of North has demand these future, are supportive LNG believe We the the prospects for destination The require other

Zach also call this should resource supply of under availability, to some from turn results review security over greater new of demand, gas affordability legacy And improved depletion I'll our development, and and offsetting and supply but With worldwide. globally while in help both meet energy the only that, not Cheniere, to the and will help deliverability markets ensuring ensure guidance. to construction financial

Zach Davis

everyone. pleased our fourth quarter and financial Slide outstanding good accomplishments for Anatol, be to and and XXXX Thanks, year morning, review here and to financial to guidance to discuss I'm today key Turn results full XX, please. our XXXX.

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

income contracts we results, fourth of year. positive our of fiscal our optimization extreme a lower and and results to now market long-term prices under contributions XXXX sold gas higher have XXXX, net these moderation XXXX. quarter facilities being the to subside and our full reflect full the as upstream activities reported proportion year from as for Compared XXXX international LNG With well since of second the and downstream volatility continues as

were by These the delivered sites partially offset impacts from during volumes our of higher X year. LNG

fourth from third During included quarter parties, physical XX which from and and year, projects sourced we and XX TBtu TBtu respectively. and of TBtu full income and LNG, recognized the in X,XXX our XXX X,XXX XXX

relation LNG the Approximately recognized XX% respective periods sold SPA volumes agreements. and of to or our IPM in XX% in term were

proud highlight pillars approximately year. have throughout towards deployed to we returns, XXXX, XXXX, management. and shareholder sheet our of I'm execution growth While accretive the we balance plan Vision allocation plan, achievements XXXX key the particularly billion of the on $X.X from many significant capital In the

should as XXXX and flow our by fund enhance to year-end, returns our of that accretive run $XX continue of achieve us across distributable nearly to which position cash our platform. generating we capital per $XX allocated of intend for have target retaining financial our shareholders. we of billion share reduce count of surpass while all to to As our our over we billion share growth target rate flexibility $XX

XXX During announcing are repurchased our XXXX through led working our shares XXXX, Having approximately initial we of Vision increase by in This approximately share shares us currently over repurchased over XX% September for XX.X since are $X.X billion authorization billion. already halfway outstanding year outstanding. last to $X shares we we plan million XXXX, to stated opportunistically. repurchase progress target our XXXX, through which of our million

We also during $XXX and the dividends XXXX dividends common in for share year. declared paid in million over $X.XX per

decade. announced previously capital allocation quarterly of XX% June targeted intend the long-term follow of essential time, and with financial allocation us our our We annually we to to payout to retain to this our enable remain of balanced self-funded dividend capital As by XX% ratio growth approximately to with update, and XX% our and will increased comprehensive objectives. plan through $X over committed end dividend our approximately which flexibility through annualized growth the guidance disciplined

we fourth and of $XXX outstanding the and year, full quarter During million long-term million indebtedness, repaid respectively. $XXX

we and on hand in remaining to notes on only the the $XXX SBL of we March. plan with year, cash at our SPL principal the maturities maturity million fully addressed the XXXX XXXX repaid across with complex. repay notes, During XXXX which

sheet. blueprint maturity and Cheniere the year, profile expense, desecuring refinancing, bond we all also investment-grade and for strategic extending desubordinating During reducing interest following the Energy, our our balance inaugural at our issued Inc. while

within CQP continued on Last term, Cheniere the and metrics rating XXXX long issuer agencies upgrade expansion project these agencies in credit of the our grade this, progress at operational The and XXnd in ratings Looking all now while projects execution proven will robust structured reflects recognize rating debt in our corporate to discipline, management can term. complex from received through year, paydown rating the investment for are our recognition to since our excellence agencies. we and developed capital by The more sheet our the X XXXX. financing the continue and preparation every project. credit structure over having expect we have balance to continue ahead, near focus you SPL

$X.X spend over quarter $X.X the of on fourth we CapEx the on million X, to billion During approximately Stage and bringing project billion. funded total year, $XXX and full

We development and for to and future also towards deployed X progress continued including project. certain XXXX in approximately Midscale procurement trains and capital $XXX X expansion million equipment growth the SPL debottlenecking, for

continue $XXX To in mid-scale in of date, approximately With X and for million ample cash and approximately Stage undrawn consolidated our funded X Trains related efficiently. of infrastructure. Jack Cheniere throughout costs the liquidity X to the over we we billion billion while on to opportunistic $X CapEx balances term revolver equity and manage buyback the continue loan mentioned locked $X.X complex, that cash have as funding program active and expect our remaining we we

and year in guidance cash and Slide billion to where our are XXXX a in XX, outlook the XXXX driving consolidated CQP. year. midpoint guidance from year. to $X to financial XX%, expectations of guidance, as $X.X $X.XX XXXX now start-up to I this discuss our billion XXXX XXXX distributable and with $X.XX EBITDA per year Today, the From common unit $X.X and will billion Turning of the flow to adjusted X%, ranges performance we higher X for solidifying of respectively, $X.X actuals billion Stage XX% introducing trough full is XXXX distributions up

of platform million contemplates our at call, tons Christi changes year. of production our for reflect X LNG Corpus discussed plus from Consistent XX on X-train these XX forecast production we the our X existing to outlook with trains XXXX, this the first million which what XQ in Stage

first in with schedule, production, month, and tons of reinforces this million our of the consistent cargo LNG tracking already on XX Achieving first forecast October of XX December in Train with call. commissioning million LNG conviction the X to together our

million netbacks, almost volumes opportunistically. last tons at the capacity X up call, locked uncontracted the million million to as tons forecast call. today, X for in continued on X.X As to guided to of now sell for over such, million And X spot the our of X XXXX market C&I the of X XXXX. last attractive of approximately team unsold has million of from approximately forward tons some remainder Of tons capacity has million to team we our the

$XXX exposure, $X approximately for margin market would that $XX million that forecast impact a Given to million year. full change in we the EBITDA by

However, X. the first the volumes be timing of open most ramp-up will X of trains the contingent and of remaining on Stage

to at for of Looking $X volatile, balance netbacks, around the today, XXXX. $X curves while are hovering

X timing expected of marketing our the Stage resulting in trains online XXXX. volumes the coming significant So and incremental drive earnings for our variability could

X with the the lessons our employing hope first As train commissioning each commissioning we improve for subsequent of process trains, by to learned.

We continue at to starting cash expect the platform Stage keeping mid-XXXXs. have reach take-or-pay substantial XXXX, remaining and mid-scale new point, XX% averaging creditworthy XXXX, long-term style we X with the which XX% contracted counterparties million trains contracted approximately and flows and to of in at several tons our completion through over contracts in XXXX

around tax and could relates any could as code, impacted our results by it always, changes particularly rules on minimum the tax the calls, timing the tax. noted certain year-end. guidance And corporate in to prior be cargoes transition be the the coming by reform, As as of alternative final our DCF IRS affected of

and of impact billion NPV our going cash $XX and this be to changes cash of basis generate immaterial but payments can XXXX. tax the timing our impact on an ability These year forward, through should not available and over amount

sites, start, permitting Bechtel on million progress a term. is take XX sight remains are commissioning bringing already on financial to capacity of X the long over results, constructing XXXX, Trains project Stage that a and of at on growth us supporting optionality site tons across this growth to of will FID, in a we constructive while pleased Stage advantage of in meaningful help X window year's ahead total while help XXXX. to which safely and progressing online off focused Jack and and EBITDA XXXX which X to will X see for are provide of to both deliver line As permitted future keeping Stage to great solidify schedule, brownfield X, we noted,

been fundamentals to multiple also long-term the resiliency but trusted our and that by we all making of and encouraged across us contracted our cycles, strong take highly industry, improving through in a partner has our comfort are We of platform stakeholders. strength demonstrated

our order on our track by Thank we cleaner responsible, supplying platform infrastructure excellence, for the commitments ready as operational affordable you remain to and we delivering grow interest serve value your we to while stewards remarks. our Operator, line to and our with continue reliable, compounding of focused maintaining will of LNG. in the prepared customers delivered record enhance capital burning question. and are As to safety in transparent reliability, concludes long-term That Cheniere. our leading our on for time open and stakeholders your

Operator

[Operator Instructions]. our We'll Chen with Barclays. Theresa now take first from question

Theresa Chen

your First, the to see execution behind seamless and great it's the tailwinds business.

customers, any commercial the U.S. the geopolitical to quite over your between a this European particular? on. contracts, for there you discussions the LNG Going developments Have Ukraine, back bit comments for so especially inventories developments, going that long-term related depleting on view recent seen understanding Russia geopolitical to forward and weather, with and on has on effects altered your there's the on in path the

hear So love I to here. thoughts would your

Jack Fusco

I'll Jack. specifically you peace. is it world more mean our talk only I not just customers. for years we've thank first, in turn start, last to This Anatol, the and over his that gone has and very it can world, But he broadly around with interactions on been we what's Ukraine. concerning much. pray the I'll more these Theresa, of -- X about very

down settle people and their enjoy and to back and we lives. things let basics that can So live we get pray

a So as business you model. highly know, have contracted very we

different we've we seen in And So it's the have anticipated a than no very market commodity what past. going forward. volatile

and been what's war 'XX diversity or on is Ukraine-Russian engagements in this in war our So whether stability be growth. commodity-driven energy customers, lot to the energy specifically highlighted of extremely there necessary with that country's volatility by in security, and it was more But think COVID market. XXXX I we beyond, our expect a any a is for

Anatol, have So add? any you more to with do that,

Anatol Feygin

Europe. Europe's where of It But amount as is year. uncertainty. XX% and Jack. current a to clear for It than of market and were the a magnitude, loud Thanks, lower volume U.S. situation. the inventories, Thanks, a is in helping was sent to they resolve as call you record January by inventories backdrop Yes. cargoes XX% depleted went were of market. and are volatility Theresa. our additional last still LNG Europe order of heard is know,

events playing You have conflicting multiple out.

other likely hard announce where As very where that, Russian the product the conflict. the All and on come. on from in -- of well U.S. Jack the ebb. as the a are all continue hand, that on next But with on have see results imports which, full the Europe, administration to from Europe. growth uncertainties a wars peace we hand, we good favorable top we the as we that backdrop to week, there's aims on support one cessation ambitions energy to offer end of side, this good just hopefully, further commented, as progress solution energy have soon navigate certain into flexibility, both better starts destination the hot there's as reliable the to geopolitical to commented it's we'll On and how our a and environment,

be tailwinds will that true good at So a hope and Europe of we have large. for number that,

Theresa Chen

world. Got turning the the of it. to side other And

partners, What Trump would in LNG U.S. Asia, demand the of in political here, expect acceleration willingness is shore trading gas to U.S.'s think the complementing there make of from world? development Do up importers largely international commercial the supply be more you deficits As you trade seems growth an this? you administration volumes. to LNG structural Or rhetoric? targets do area with from with that the top including this

Jack Fusco

during to similar pretty No, President grow was through very energy to -- that feel very between more with he business of when Trump's the making and U.S. join And I get follow would Theresa, through that the products and on -- I on domestically. contract and And here China confident dominant. sold help and our focused resulted energy Secretary all long-term Cheniere. happened in expect he's trip us will first invited November President is what first XXXX, first term I Asia, this in Ross and that our a

Anatol Feygin

Yes, for important LNG. suppliers, are the in clearly and transactions. having from with number this one concept of said, add and other Theresa, in very there reliability. a China mentioned U.S. that these to gas just tremendous Jack's commercial through do deals, destination That the to we governments our flexibility, pull Asia these the ultimately, not cycles. PetroChina discussions. various other case Unlike the further We've XXXX. we world having to continue does this customers executed engagements shown built in Jack benefit be expect it's Asia, we repeat general in and relationships executed and LNG comments, to that the no are have And and with of had accident this we've proved And government-to-government

So hard that for tailwinds not us. to say these are

Operator

Justin from next take with We'll now our Raymond Jenkins question James.

Justin Jenkins

expectations have contracting on I if has tack mentioned been versus more maybe permitting maybe backdrop maybe on guess I but your regulatory for that in how early also discussions some the question, into on and played as remarks, details you of potential and the administration Theresa's how new Jack, well. days capacity Trump the and to your this

Jack Fusco

quite refreshing honestly. been it's Justin,

So produced from with of nominated then first from President Dan across of was Secretary was But e-mail -- former we Valette, Wright. during -- first second and the came my December, first came in Energy, Energy, when then Chris administration. at X who the desk the Trump's LNG e-mail Stage the Secretary that

any that together, -- not just given at line. time of very very it very, having These very capital-intensive go, our in There's important parts to it a different important. but project certainty complicated, projects. makes are it's So put lot everything time the is It's helps. very regulatory moving

have clear. strong very communications been and focus and very the So

Justin Jenkins

on getting million I up the volume Train if like looks follow guess are just of of train it guidance mostly here, EBITDA for some X that volumes X and to in X sensitivity million into that maybe tons Is Or the X I EBITDA guidance. XXXX? in Great. Stage framing how you year? incorporated do

Zach Davis

Sure.

and XX million X tons a gets XX to million million little which X by guided I'd the you commissioning, that million Stage XX based X few ever like at trains to XX of million. the tons. LNG the to XX us over then first be be expected less we've everybody, done. to to and on coming getting to say That's foundation a is tons XX to million would million than tons that year, this for tons summarize XX to million online, of we've Just most

X to of to of would To the year. progressing end completion of the trains X really the pretty early and in X need we're between the get we are X operational that that we're high substantial million get much there by production. the very the and to Right toggle range now, going of in to good that But and end that range, only of And low mean basically P&L then things this basically, that middle million range, to basically, fourth tons feel trains the up fully hit year. well. quarter that's running

Operator

from We'll question Wolfe Research. take our with next [indiscernible]

Unknown Analyst

to already spreads basis it's in certain talk tight Can Asia-Europe whether shipping looking seen procurement year-to-date, the from you you've please optimization volatility. or gas optimization with periods

Zach Davis

optimization. into get guidance, in this the guidance. given XXXX, details the of we've of all most about the and you won't as we We optimization is guidance into And Sure. as think early don't the leg we initial for know,

taking and moving lock it and of times So that subchartering. between our and then comes obviously, we the with from advantage and arbitrage optimization in. And of as some lifting through with plant sourcing third-party time the continue optimize as margin downstream TTF plant of come JKM will cargoes around at then we to the and upstream the

expect As subchartering, with shipping one would rates lower our much are year-over-year.

subchartering online, chartering to length addition is our that, less. book our Stage portfolio our like in with or coming In X

fair will already of a to more. that it's lock to of of imagine But keen less over say to a optimization hundred I'd in the be this to driver upside optimization. get the couple in $XXX of locked So our we're try to we've But million range, year. guidance of

Unknown Analyst

there are as as far notable what for costs new upward as are pressure SBAs builds long-term any And for been pricing recently? has seeing And you rising?

Anatol Feygin

es.

So it over equation at our number that the $XXX. are obvious is course, as range or of the of previous a top FID-ed is and cost competitive end we've market, to the historical as above period. everyone, to you can calls have 'XX, imagine, of side of a But the we said $XXX we 'XX that, projects on of have

For leverage a that market. reliability and can having we're foundation premium missed never Cheniere's customer our confident cargo projects, that operational we performance, and a from extract

So we cost brownfield X to were, above seen forward I or as that's to every saying in move to parameters, in and with that ago. have fair But why all X at is range. we pressures say Zach our it's comfortable the investment meet of you, top end say from in would of meaningfully to And we're let's the up that is say, for years we've get or our book That where that it commensurate not need we're to order use market. to us, will remind advantage that we hurdle. the

Zach Davis

like which there pretty we're a on add And X that's And already X competitive just mean, get over of definitely permitting very least there's million be berths. no there sight sites brownfield, inflated trains. position to get FID of than put to tanks, we and haven't take get tons to these to meaning XX And That as idea of phases. did coming us that in XX to will been, advantage, flexibility SPA and more then speak in But that in labor first this a this it the levels allow to I just that good no unlock beyond years. we is million grow plans line so. advantage XX as train do have to even themselves And to pipelines, allows the site constructive large-scale us to good tons year, be keen but to are work mid-scale no at at to and to to we some maybe and portfolio. cost there's a window phases going better continue to And had going brownfield Corpus closer have to really out have well things debottlenecking Bechtel added or we're they both much at million X tons. total as

Operator

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

Jeremy Tonet

for all the Anatol, thank commentary. you helpful

helpful could, able the supply on times want Just like bit, this in on you and seems wondering on the the to side. and But in coming touched just marketplace to concern go to you've Russian gas coming a call. back which I time. back number particularly macro how be just over into It wondering if this general that could seems or regards a I the if LNG might bit a the more, of our be LNG In long-term to transpiring prices even lines. you along here. more some been Asia these incentivizing avenue with expand to demand, minds, have I'm stable in see share thoughts lower guess, growth to if you

Anatol Feygin

control, example, market LNG a we as commented, earn but course, Thanks, tons globally over -- more grow economics ton and Jeremy. And dictate safety We stable of million again, or last And know, for we've market didn't extent, grew of as gas XXX peace, we X the market will large base. for the by of can but for the market, you has and our year, grew almost X% economics. million earn reliability, to product. moderate and

to And more in that starts past investment that, regas of China, tons demand that is needs needs current that over globally. the over things you've seen gas dispatched, X,XXX those million just the noncincident few of XXX play but of are We've played it LNG, tons, of this over market XXXX. to mentioned the starved generation, XXX construction. markets. in number one have the and storage capacity tremendous the in essence, last years that out thing So Over under this infrastructure, hope of over markets product, number number pipeline the been, out by this course, and the added to out has will regas years. needs is investment. of coming a trotted specifically million million a and refill historical the be we I by tons And

Europe. So says to gas directive into going how knows, right? Who out that no more Europe Russian that's does out? play have come policy You this

I gas are hope on that is continent our we of largest restored are again, peace the and hand, to days. other the these lean will Equinor, On who the flows at friends restored. suppliers

could that the X up XX including little Stream below on highly to get but well be In Europe range through to we bcm, an Nord pre-war sorry, but unlikely, with bit estimate agree Poland. levels, this through highly, are -- through resumed, once flows Ukraine, they'll of the XX a and

for Europe it's great So the of seen prices think we months over the the last We are into start think the 'XX. valve. another highest you've market. it's few relief we've seen The that since

you had elevated, the and take right after very desired out the 'XX the extreme they response. once war, of So highs

but every a below drew LNG a Europe, still percentage XX point are cargoes. of record into percentage points They about year inventories is amount ago. And XX

So now. have you flow Ukraine any through don't

deficit. You're can an Equinor huge LNG will time, to I quote if a continue its estimate and is one cargoes at LNG. Europe need additional more of XXX

serves the the flexible load So Diverse, reliably desperately shows answer? that and what's up needs that again, portfolio gas.

Jeremy Tonet

could to I quick capital if then And allocation. on there. helpful here Zach very That's turn it. Got just

side reduction of wondering, been count about. that in At the we speed when Just that's kind the continued the see has like described, you've to buyback exceeded share forward we as just as in the has permitting and to at on contracts if seems side, and look but economics think you've here. time, years brownfield the about midstream growth, we've talked LNG, future seen to discussed it that same material Corpus, very Cheniere plow market. past. maybe signed The others first X.X attractive one from window, FID no We deemphasize

seems like just wondering growth It the more you these balancing these sides. sooner plan be so coming into factors. about And could how think some given

thoughts if this. on share wondering you Just your could

Zach Davis

first I'd just train which the that. completion not we're we're pretty targeting X X.X, LNG in also of and all for years, first say about. inside substantial Thanks And excited of

have have. sure the have that business our we back think in peers operation to many I'm I fact level flow it maturity or comes we the cash that that not

CapEx $XXX So And we're like have stretch CapEx of relatively now yet be this year. of X, and to of on unlevered a but there. to not going a right? CapEx going We're mid-scale million we're FID have X year, we that to $X.X position in billion home X big where around the could we're Stage plan

$X we're over fit over we $X on billion. us talking we still term over cash of available the see have coming to same have So loan the well balance billion as time, billion an and we to the about At draw in sheet, $X years.

balances Basically, So down we billion was what last low of allocation this and from the we you Xs. more our year brought DCF is deployed cash past $X.X billion, to expect going year, same. can capital $X.X on mid-$X into and billion

that draw to We're to on year $X and down so eventually term or $X work billion going by that next continue the loan. or billion in

still you fund So all coming down of grow we'll be. $X.XX to us buyback. buybacks just We'll a again pay amount as relates we to how can have opportunistic capital we of anomaly. do expect by SBL as shouldn't X we this come of the that down expansion healthy in and in It years. the will to billion guided debt and can dividend ready for year, the But be the the same more CapEx to, it enough than to XX% more as an get

Operator

come question Craig Next Shere Tuohy Brothers. from will with

Craig Shere

up can question Zach, some I pick maybe on Jeremy's others.

discussed So the you've after funding, C-corp high buybacks, even we on have some growth cash everything stubbornly balance balances debt. CapEx sheet reducing

down down C we it here? bringing the stage CQP you corp catalyst what as for bringing the X after So sustainable, $X more what distribution a a you billion? looking the see ultimately to to Is should base balance be do for perhaps finally maybe or FID cash

Zach Davis

whatsoever X.X% just going without over this year the allocation. come you'll methodical slowing it as it that down down even see capital we'd from $X as we of to to X, to like of it's be think more and do have I billion CapEx planned so down was rest

buyback the back the could lot opportunistic an understatement. be can QX is in comfort last we folks a bought on XX% for the think that stock, we number had I to of year, over of when Basically, pressure that that take actually say program year.

we're the first of did -- we today, If you just February back weeks look quarter bought January. all in we at than more that this of the probably coming in X

well year-over-year, to. very to away. can will to X, DCF position see meaningful start and continue and almost be will billion guided LNTPs, doing be just have coming $X.X CapEx billion with Mid-scale year we're capital of to you expansion very, it where But similar a we even to plug Stage for So the the that, to than Sabine next in continue that develop allocation placed higher demonstrably $X.X we'll

Craig Shere

what into Christi that MTPA trains. to permitted the at question. that's location math I hold? my then opening Jack ultimately least comments. the platform Back And enterprise another right? And Great. Am could in of second the X segues that XX-plus major the Presumably, assumes XX kind after doing Corpus prospective that alluded MTPA growth

Jack Fusco

included -- know, gives purchase. our we you contiguous access but Corpus Craig, property site. Christi acres The recently birth We so There to us a acquired access. water -- LNG in as XXX of that ready, it was isn't birth

on paper, trains. X that of the of big somewhere site, could XX tons on have trains So to around million and in additional we production the probably, clean sheet addition X a Stage X LNG

Zach Davis

growth over That's well with the at Sabine tons. is we're say we why But million idea brownfield true. close XX placed even just just Corpus and that not not to

by to And economics as Xx window advantage a align. few grow doubles to this that bunch and hit just that brownfield to back might EBITDA. we we Xx fact to singles always to of come at going projects, thanks this the then phases and in FID we're But give and economics to can it'll So get those ourselves optionality. a trains CapEx

Operator

to Gabelman Cowen. We'll move with Jason TD now

Jason Gabelman

to combination I isolation have with may have maybe in X target for not but with equity Stage missed you it Stage in earlier, equity, X expansions. an continue you mid-scale do but to fund the funding as debt

Zach Davis

to as project, bringing before Xx into return, a to that earn project. a bake around these want back we that don't unlevered about then economics leverage, over XXX Basically, advantage leverage. CapEx adding we in justify think of a early, of we upside And shareholders on taking FID FID which are to margins are our trains all of XX% that being EBITDA Sure. it to back comes we to

costs we to the to So balance and future that's to obviously, how X we we X distributing as X plan debt projects. out. and term grade we're distribution, billion that the continue to Stage in year. this $X to still X paydown, with billions it paydown. over But of interest same and being equity with the following just cash to loan, efficient FID funding interim. the day think very incremental of to term that's expansion have that fund we about raise overall one of plan bit do a without mid-scale loan will that a lower in the use raised to an have out It's stay that be X just dollars our to X that distribute debt a to project investment to plan inside as and We We here with of debt. through even the MLP, plan But remainder as fund Sabine and and interim. and relates having Stage Midscale cash undrawn and We debt portion the don't

of during with more than is XX-XX forward. staying So that. all to around parameters going do leverage have plan. under other the don't the It We even aligns Xx construction

Operator

We'll Ann now Salisbury Bank of from question with a America. Jean take

Jean Ann Salisbury

you into else are that anything or Stage learnings nameplate had positive that ramp-up time, foray to run important? any speak think ramping you Corpus can you you've negative or to around your As is modular, X, over first ability

Jack Fusco

curve, Ann, question, modular? into threw say you the Jean you On did a me for our foray first

Jean Ann Salisbury

yes. I did,

Jack Fusco

build. stick We

Bechtel and as way American not it to against between the So does difference with we And you're do Italian betting America on if only workers, is the on know, and bet but... the you workers' we tend it modularly productivity. somebody way

Jean Ann Salisbury

should I using phrase to modular guess, -- just fair. size. maybe That's I of instead smaller the I'll revise the

Jack Fusco

The smaller size.

Okay.

some very well. year. We're cleanup and with it's train down go us a -- Bechtel construction would on tuning end well was I very group, with Train staff control doing of gone to before work. first and with schedule. operational on I X the to ahead that very now month of next expect work pleased we're my small basically LNG last So

X where then units, the And from the are online the LNG on an to the well. systems is schedule construction gas fee AGRU, the the gas for going XX% Train a A X bring of line. of that we lot we've fully removal turned had like acid systems accelerated over flare, commissioning. Train extremely active We're already perspective. the to pipelines, rundown staffed

that would Train what -- X, X, we expectation just with I is So experienced my Train here on than come faster X X.

Jean Ann Salisbury

as portfolio that follow-up, a you to just about contracting then That's can of thinking And as expansion, Sabine you're the give contract Pass would percentage latest us the want great. your you pursue? minimum

Anatol Feygin

Yes. Ann. Anatol. Jean It's Thanks,

in we that you've see and had agreement So offtake the look have we'll to those of agreements now We're our success work the as good you know, comfortable returns as we've X generating already ourselves. there. of on X. very partners very terms phase require math done we Zach the mentioned, types for and And Train essentially contracted SBL and how our expansion, second with where make expansion Train the of

to Cheniere there LNG this to we've robust So to solutions flexible a destination the very position. as LNG some work throughout call, covered the to are U.S. we the of these be very as tailwinds provider consumers. key healthy And platform and

Zach Davis

debottlenecking we a we torque before And since. don't lot And basically to open company. contracted trains X year to every having hell a us and it the better early fine and facility, EBITDA, Xx make on advantage the at just take begin. like a build we XXXX contracts the bringing are capacity, years wrong, we infrastructure XXXX in But by of of and through get do CapEx years contractually like

right So XX% Corpus way. of the just risk-adjusted this We portfolio we this returns by buying around the to this we're Sabine on how the staying and compare own and just basis. banks. do company building we're we've everything the for kind last, of for know letting standard of a benefit don't to back more and more we that to and stock do shareholders that We the held getting

Operator

last question Sachs. now with from our Goldman John We'll take Mackay

John Mackay

one quick a me. for Just

kind previously, I moving potentially maybe think train once talked we've less you through us at Can of kind what there? being Sabine a maybe like process maybe look at of of you XX sort XXXX walk all a towards first the about FID. one with brownfield on your understand economics. timing of could and I

Zach Davis

'XX say over right earliest most is what's and art window XX-plus maybe more tons likely because understanding at our million important now the both late even or this permitting sites the at time. get 'XX, of it's the to of I would possible to

for but on over going ability permitting time. we're tons to ourselves XX we super not to that Phase the just that sure process a million So for XX make up work million and brownfield X, to to get tee

most year next on it's With And us FID and already expansion, optionality expansion. to we see that forces that said, us money in LNTPs could starting 'XX, if Sabine important have that long of be spending so it we're because that Sabine term. I the on development

start and in other locking in a that done as we're go to to and project out we've allow time successful to way be to line every as date. going is project the money going door, So positive costs to

Operator

That question-and-answer like session. for our concludes the back closing conference to any today's to I'd turn or comments. presenters additional

Jack Fusco

is This all forward to you we look seeing for of support want thank the Jack. to I future. just near everybody your in and very

Operator

today's once for participation. your does thank conclude again, We And conference. all you that

disconnect. now may You

Cheniere Energy (LNG) 20 Feb 252024 Q4 Earnings call transcript