Cheniere Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2020

Summary

Cheniere Energy, Inc. (LNG) reported strong financial performance for the first quarter of 2020, with net income attributable to common stockholders increasing significantly to $375 million ($1.48/share basic, $1.43/share diluted) from $141 million ($0.55/share basic, $0.54/share diluted) in the prior year's quarter. This growth was driven by increased LNG revenues, up $425 million year-over-year, largely due to higher volumes from additional operational liquefaction trains at both the Sabine Pass and Corpus Christi facilities. Despite lower per-MMBtu pricing, overall revenue growth was robust. The company also highlighted its ongoing commitment to shareholder returns through its share repurchase program, repurchasing $155 million of its stock in the quarter. While acknowledging the macroeconomic impacts of COVID-19 and energy market volatility on future demand forecasts, Cheniere reiterated its confidence in its business model due to the highly contracted nature of its operations and the fixed fee component of its contracts, which are expected to mitigate significant financial impact from potential cargo cancellations. The company maintained strong liquidity with $2.4 billion in cash and cash equivalents.

Key Highlights

• 1Net income attributable to common stockholders surged to $375 million from $141 million in Q1 2019.
• 2Total revenues increased by $448 million to $2.71 billion, driven by a $425 million increase in LNG revenues.
• 3The company repurchased $155 million of its common stock during the quarter under its $1 billion share repurchase program.
• 4Despite COVID-19 and market volatility, management expects minimal financial impact due to highly contracted business and fixed fees on cargo cancellations.
• 5Operational capacity expanded with more liquefaction trains operational compared to the prior year period.
• 6Cash and cash equivalents remained strong at $2.4 billion at the end of the quarter.

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