10-KPeriod: FY2021

Cheniere Energy, Inc. Annual Report, Year Ended Dec 31, 2021

Filed February 24, 2022For Securities:LNG

Summary

Cheniere Energy, Inc. (LNG) reported its fiscal year-end results for 2021, demonstrating substantial revenue growth driven by increased LNG volumes and higher market prices. The company's strategic focus on operational excellence and disciplined capital allocation is evident through ongoing expansion projects and debt management. Despite a net loss attributed to significant non-cash derivative losses and other expenses, the operational performance and long-term contracts underpin a stable revenue foundation, positioning Cheniere for continued growth in the global LNG market. The company achieved substantial completion of Train 6 at its Sabine Pass LNG terminal and continued to expand its contracted capacity. Cheniere also took steps to strengthen its balance sheet by repaying a significant portion of its debt and initiated a quarterly dividend, signaling a commitment to returning capital to shareholders. The outlook remains positive, supported by global demand for cleaner energy sources and Cheniere's established position as a leading LNG producer.

Financial Highlights

52 data points
Beta

Revenue

$15.86B

Net Income

-$1.56B

-9.9% Net Margin

EPS (Diluted)

$-9.25

Total Assets

$39.26B

Cash & Equivalents

$1.40B

Free Cash Flow

$1.50B

Financial Statements
Beta
Revenue$15.86B
R&D Expenses$7.00M
SG&A Expenses$325.00M
Operating Expenses$16.57B
Operating Income-$701.00M
Interest Expense$1.44B
Net Income-$1.56B
EPS (Basic)$-9.25
EPS (Diluted)$-9.25
Shares Outstanding (Basic)253.40M
Shares Outstanding (Diluted)253.40M

Key Highlights

  • 1Total revenues increased by $6.5 billion to $15.9 billion in 2021, primarily due to increased LNG volumes and higher prices.
  • 2Net loss attributable to common stockholders was $(2.3) billion, a significant increase from $(0.1) billion in 2020, largely driven by non-cash derivative losses of $5.8 billion.
  • 3Substantial completion of Train 6 at the Sabine Pass LNG terminal was achieved in February 2022.
  • 4Cheniere initiated a quarterly dividend of $0.33 per share in Q3 2021 and continued this in Q4 2021.
  • 5The company reduced its long-term indebtedness by $1.2 billion in 2021 and extended its weighted-average debt maturity.
  • 6Approximately 95% of the total production capacity from the Sabine Pass and Corpus Christi projects is contracted under long-term agreements.
  • 7S&P Global Ratings upgraded Cheniere and CQP's issuer credit ratings to BB+ from BB with a positive outlook.

Frequently Asked Questions

In 2021, Cheniere saw a significant increase in total revenues, reaching $15.9 billion, up from $9.4 billion in 2020. This growth was driven by higher LNG volumes delivered and improved market prices. However, the company reported a net loss of $(2.3) billion, primarily due to substantial non-cash derivative losses related to commodity price fluctuations.

A major operational milestone was the substantial completion of Train 6 at the Sabine Pass LNG terminal in February 2022. The company also noted that over 2,000 cumulative LNG cargoes had been produced and exported from its facilities as of February 2022, highlighting its significant operational scale.

Cheniere has a stated capital allocation plan focused on strengthening its balance sheet, funding growth, and returning capital to shareholders. In 2021, the company reduced long-term indebtedness by $1.2 billion and extended its weighted-average debt maturity. Importantly, Cheniere initiated its first quarterly dividend in Q3 2021, signaling a shift towards shareholder returns, and also continued its share repurchase program.

Cheniere is well-positioned to capitalize on the growing global demand for LNG, driven by its role as a cleaner energy alternative. The company has approximately 95% of its production capacity contracted under long-term agreements, providing stable cash flows and underpinning future expansion plans, such as Corpus Christi Stage 3, for which it anticipates reaching a Final Investment Decision (FID) in 2022.