• Consolidated Adjusted EBITDA (Q4 2024): Approximately $1.6 billion.
• Consolidated Adjusted EBITDA (Full Year 2024): $6.155 billion.
• Distributable Cash Flow (Q4 2024): Approximately $1.1 billion.
• Distributable Cash Flow (Full Year 2024): Approximately $3.73 billion.
• Net Income (Q4 2024): Approximately $1 billion.
• Net Income (Full Year 2024): Approximately $3.3 billion.
• LNG Production (2024): Approximately 45 million tons.
• Share Repurchase (2024): Approximately 14 million shares for $2.25 billion.
• Dividend Increase: 15% to $2 per share annualized.
• 2025 Financial Guidance - Consolidated Adjusted EBITDA: $6.5 billion to $7 billion.
• 2025 Financial Guidance - Distributable Cash Flow: $4.1 billion to $4.6 billion.
• Corpus Christi Stage 3 Completion: Total completion at 77.2% by year-end 2024.
• Capital Allocation (2024): Over $1.5 billion towards Stage 3 project, $800 million debt repayment.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cheniere Energy Inc (NYSE:LNG) reported strong financial results for 2024, with consolidated adjusted EBITDA of $6.155 billion and distributable cash flow of $3.73 billion.
• The company achieved record LNG production of approximately 45 million tons in 2024, accounting for over 10% of global LNG supply.
• Cheniere Energy Inc (NYSE:LNG) successfully completed turnarounds at both Sabine Pass and Corpus Christi, maintaining top quintile safety performance.
• The company made significant progress on its Corpus Christi Stage 3 project, with construction 77.2% complete and first LNG achieved in December.
• Cheniere Energy Inc (NYSE:LNG) increased its dividend by 15% to $2 per share annualized and announced a $4 billion share repurchase authorization.

Negative Points

• The global LNG market remained tight in 2024 due to limited supply growth and geopolitical tensions, impacting pricing and demand.
• Cheniere Energy Inc (NYSE:LNG) faces challenges from the potential re-entry of Russian gas into the European market, which could affect LNG demand.
• The company anticipates variability in 2025 earnings due to the timing and ramp-up of Corpus Christi Stage 3 trains.
• Cheniere Energy Inc (NYSE:LNG) is exposed to market volatility, with a $1 change in market margin potentially impacting EBITDA by $75 million to $100 million.
• The company is navigating a complex regulatory and permitting environment, which could affect the timeline for future project developments.

Q & A Highlights

Q: How have recent geopolitical developments, particularly between Russia and Ukraine, impacted Cheniere's view on US LNG and commercial discussions with European customers? A: Jack Fusco, President and CEO, emphasized the importance of energy security and diversity, noting that the geopolitical situation has highlighted these needs. Anatol Feygin, EVP and Chief Commercial Officer, added that Europe's call for additional LNG was clear, with 86% of Cheniere's cargoes in January going to Europe. The geopolitical environment is favorable, with support from the US administration and Europe, which is likely to announce the cessation of Russian energy imports.

Q: What is the impact of the Trump administration on regulatory and permitting processes for Cheniere? A: Jack Fusco noted that the early days of the Trump administration have been refreshing, with strong and clear communication. Regulatory certainty is crucial for the timeline of capital-intensive projects, and the administration's focus on energy dominance is expected to support Cheniere's growth.

Q: How does Cheniere plan to balance capital allocation between buybacks and growth, given the potential for new capacity and attractive brownfield economics? A: Zach Davis, CFO, explained that Cheniere plans to continue its buyback program while funding growth projects like Stage 3 and mid-scale expansions. With over $3 billion in cash and a $3 billion term loan available, Cheniere can fund CapEx and maintain its buyback strategy, aiming for substantial completion of projects and opportunistic buybacks.

Q: What are the learnings from ramping up Corpus Christi Stage 3, and how does it affect future projects? A: Jack Fusco stated that the ramp-up of Train 1 at Corpus Christi Stage 3 has gone well, with expectations for Train 2 and subsequent trains to come online faster. The experience has reinforced confidence in the project's timeline and execution.

Q: What is Cheniere's approach to contracting for the Sabine Pass expansion, and what percentage of the portfolio will be contracted? A: Anatol Feygin mentioned that Cheniere has successfully contracted Train 7 and part of Train 8 for the Sabine Pass expansion. The company aims to maintain a contracted infrastructure model, targeting around 90% contracted capacity to ensure risk-adjusted returns and align with its capital allocation strategy.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.