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10-QPeriod: Q2 FY2022

Cheniere Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 4, 2022For Securities:LNG

Summary

Cheniere Energy, Inc. (LNG) reported a significant increase in revenue for the three and six months ended June 30, 2022, driven by higher LNG prices and increased volumes. This surge in revenue contributed to a substantial positive swing in net income attributable to common stockholders, reaching $741 million for the quarter compared to a loss in the prior year period. The company also achieved substantial completion of Train 6 at the Sabine Pass LNG Project and made a positive Final Investment Decision (FID) for the Corpus Christi Stage 3 Project, advancing its growth strategy. Operationally, Cheniere continues to expand its liquefaction capacity, with Train 6 at Sabine Pass now operational, adding to its significant production capabilities. Financially, the company utilized strong operating cash flows to reduce debt and execute share repurchases, demonstrating a commitment to capital allocation. The company ended the period with robust liquidity, positioning it well to fund ongoing and future projects.

Financial Statements
Beta
Revenue$8.01B
R&D Expenses$3.00M
SG&A Expenses$77.00M
Operating Expenses$6.53B
Operating Income$1.48B
Interest Expense$357.00M
Net Income$741.00M
EPS (Basic)$2.92
EPS (Diluted)$2.90
Shares Outstanding (Basic)253.60M
Shares Outstanding (Diluted)255.90M

Key Highlights

  • 1Total revenues increased significantly to $8.0 billion and $15.5 billion for the three and six months ended June 30, 2022, respectively, compared to $3.0 billion and $6.1 billion in the prior year periods, driven by higher LNG prices and increased volumes.
  • 2Net income attributable to common stockholders swung to a positive $741 million for the three months ended June 30, 2022, from a net loss of $329 million in the prior year period. For the six-month period, net income was a loss of $124 million compared to a gain of $64 million in the prior year.
  • 3Substantial completion of Train 6 at the Sabine Pass LNG Project was achieved on February 4, 2022, adding to the company's operational liquefaction capacity.
  • 4Cheniere made a positive Final Investment Decision (FID) for the Corpus Christi Stage 3 Project in June 2022, advancing the construction of up to seven midscale trains with expected capacity over 10 mtpa.
  • 5Operating cash flow remained strong, providing $5.2 billion for the six months ended June 30, 2022, which was used to reduce debt and fund share repurchases.
  • 6The company reduced its long-term debt by $2.7 billion during the first six months of 2022, while also repurchasing approximately 4.4 million shares of common stock for $565 million.
  • 7Cheniere ended the period with substantial liquidity, including $2.6 billion in cash and cash equivalents and $7.3 billion in available commitments under its credit facilities.

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