01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy, Inc. reported a net loss of $3.502 billiona for the first quarter of 2026, a significant decrease from a net income of $353 million in the same period of 2025.
This loss was primarily driven by a substantial $4.8 billionb unfavorable change in the fair value of derivative instruments, largely related to long-term Integrated Physical Marketing (IPM) agreements, exacerbated by widening global to U.S. natural gas price spreads and increased market volatility. Despite the net loss, operational performance showed strength with an increase in total revenues to $5.868 billion from $5.444 billion year-over-year, largely due to higher LNG volumes delivered from the Corpus Christi Stage 3 Project and increased Henry Hub pricing. The company also reaffirmed its commitment to growth, with significant progress on its Corpus Christi LNG Terminal expansion projects and a substantial remaining share repurchase authorization of approximately $9.7 billion as of March 31, 2026.
02—Key points
Key Highlights
- Reported a net loss of $3.502 billion for Q1 2026, compared to a net income of $353 million in Q1 2025, primarily due to significant unfavorable fair value changes in derivative instruments.
- Total revenues increased to $5.868 billion from $5.444 billion year-over-year, driven by higher LNG volumes and Henry Hub pricing.
- Operating costs and expenses surged to $9.356 billion from $4.483 billion, largely due to unfavorable changes in derivative instruments included in cost of sales and increased natural gas feedstock costs.
- The company achieved substantial completion of Train 5 of the Corpus Christi Stage 3 Project in March 2026.
- Cheniere issued $1.75 billion in new senior notes in March 2026 and used proceeds to repay debt.
- The share repurchase authorization was increased to approximately $10 billion, with $9.7 billion remaining as of March 31, 2026.
- Liquidity remains strong, with total available liquidity of $8.349 billion as of March 31, 2026, including cash and available credit facilities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $5.87B$5.44B | +7.8% |
| SG&A Expenses | $136.00M$116.00M | +17.2% |
| Operating Expenses | $9.36B$4.48B | +108.7% |
| Operating Income | -$3.49B$961.00M | −463.0% |
| Net Income | -$3.50B$353.00M | −1092.1% |
| EPS (Basic) | $-16.65$1.57 | −1160.5% |
| EPS (Diluted) | $-16.65$1.57 | −1160.5% |
| Shares Outstanding (Basic) | 210.50M223.50M | −5.8% |
| Shares Outstanding (Diluted) | 210.50M224.10M | −6.1% |
05—Questions
Frequently Asked Questions
What caused the significant net loss in the first quarter of 2026?
The primary driver of the net loss of $3.502 billion in Q1 2026 was a $4.8 billion unfavorable change in the fair value of derivative instruments, particularly related to long-term IPM agreements. This was compounded by widening price spreads between global and U.S. natural gas benchmarks and heightened market volatility.
How did revenues perform in the first quarter of 2026?
Total revenues increased by $424 million to $5.868 billion in Q1 2026 compared to $5.444 billion in Q1 2025. This growth was primarily due to higher LNG volumes delivered, benefiting from the Corpus Christi Stage 3 Project, and increased pricing linked to Henry Hub.
What is the status of Cheniere's expansion projects?
Cheniere made significant progress on its expansion projects. Train 5 of the Corpus Christi Stage 3 Project achieved substantial completion in March 2026. The company is also advancing the CCL Expansion Project, with preliminary filings made with FERC and ongoing commercialization efforts.
How is Cheniere managing its debt and capital?
In March 2026, Cheniere issued $1.75 billion in new senior notes and used a portion of the proceeds to repay $550 million of existing debt. The company also has a substantial share repurchase program in place, with approximately $9.7 billion remaining as of March 31, 2026, reflecting its strategy of capital deployment and returning value to shareholders.
06—Continue