Early Access

10-QPeriod: Q3 FY2024

Cheniere Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 31, 2024For Securities:LNG

Summary

Cheniere Energy, Inc. reported a decrease in revenues and net income for the nine months ended September 29, 2024, compared to the same period in 2023. This decline was primarily driven by unfavorable changes in the fair value of derivative instruments, particularly related to IPM agreements, and a reduction in LNG revenues from its integrated marketing function due to lower international gas prices and a shift towards long-term contracts. Despite these headwinds, the company's operational performance saw an increase in loaded volumes. Financially, Cheniere demonstrated a strong commitment to capital allocation, repurchasing a significant amount of its common stock and increasing its quarterly dividend. The company also actively managed its debt, issuing new notes and retiring existing ones. Liquidity remains robust, with substantial cash on hand and available credit commitments, supporting ongoing construction projects like the Corpus Christi Stage 3 Project.

Financial Statements
Beta
Revenue$3.76B
SG&A Expenses$99.00M
Operating Expenses$2.12B
Operating Income$1.65B
Net Income$893.00M
EPS (Basic)$3.95
EPS (Diluted)$3.93
Shares Outstanding (Basic)226.30M
Shares Outstanding (Diluted)227.00M

Key Highlights

  • 1Revenues for the nine months ended September 29, 2024, decreased by $4.3 billion to $11.3 billion, largely due to lower LNG revenues from short-term agreements and a decrease in revenue linked to Henry Hub pricing.
  • 2Net income attributable to Cheniere decreased significantly by $6.2 billion to $2.3 billion for the nine months ended September 29, 2024, primarily driven by unfavorable changes in derivative fair values.
  • 3The company repurchased approximately 12.2 million shares of common stock for $2.0 billion during the nine months ended September 29, 2024, and increased its quarterly dividend.
  • 4Construction on the Corpus Christi Stage 3 Project is progressing, with an overall project completion percentage of 67.8% as of September 29, 2024, and expected substantial completion between the first half of 2025 and the second half of 2026.
  • 5Cheniere maintained strong liquidity, with total available liquidity of $10.7 billion as of September 29, 2024, comprising cash, cash equivalents, restricted cash, and available credit commitments.
  • 6The company received DOE authorization to export LNG to FTA countries for the SPL Expansion Project in October 2024.
  • 7Interest expense decreased by $101 million for the nine months ended September 29, 2024, compared to the prior year, due to increased capitalization of interest and debt reduction activities.

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