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Cheniere Energy, Inc. 8-K Report, Financial Results (Oct 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 31, 2024
Period End
October 31, 2024
Security
LNG
In the record · 2016–202610-K1310-Q328-K232

LNG filed 13 annual reports (10-K), 32 quarterly reports (10-Q) and 232 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Sep ’18Sep ’18
  2. Material agreement8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Cheniere Energy (NYSE: LNG) reported third quarter 2024 results on October 31, 2024, with revenues of $3.8 billiona and net income attributable to Cheniere of $893 million, down 48% year over year.

Consolidated Adjusted EBITDA was $1.48 billionb, down 11%, and Distributable Cash Flow was $0.8 billion. For the nine months, revenues were $11.3 billion (down 28%), net income attributable to Cheniere was $2.3 billion (down 73%), and Consolidated Adjusted EBITDA was $4.6 billion (down 36%). The steep net income decline was driven mainly by a $923 million unfavorable swing in non-cash mark-to-market derivative gains, while the EBITDA decline reflected a higher share of LNG sold under long-term contracts and moderating international gas prices.

Volumes were up modestly, with 568 TBtu exported in the quarter (up 4%). The company raised and tightened its full-year 2024 guidance, with Consolidated Adjusted EBITDA now expected at $6.0c-$6.3 billion (previously $5.7-$6.1 billion) and Distributable Cash Flow at $3.4-$3.7 billion (previously $3.1-$3.5 billion). Management continued its capital allocation plan, repurchasing about 12.2 million shares for roughly $2.0 billion year to date, repaying $450 million of debt, and raising the quarterly dividend about 15% to $0.500 per share.

Liquidity stood at $10.7 billiond at quarter end, including $2.7 billion of cash. Operationally, the company produced its 1,000th cargo from Corpus Christi, Stage 3 was 67.8% complete with first LNG expected by year-end 2024, and the SPL Expansion received DOE authorization for exports to FTA countries.

The headline net income decline is largely non-cash and reflects accounting mismatches on long-term integrated production marketing agreements, so investors may place more weight on EBITDA and Distributable Cash Flow. Continued cash returns, improved guidance, and visible growth from Stage 3 are the main positives, while the year-over-year decline in margins per MMBtu on long-term contracts is the key ongoing watch item.

02—Key points

Key Highlights

  1. Q3 2024 revenues of $3.76 billion (down 10% YoY); nine-month revenues of $11.27 billion (down 28%).
  2. Q3 net income attributable to Cheniere of $893 million (down 48%), driven mainly by $923 million of unfavorable non-cash derivative fair value changes.
  3. Q3 Consolidated Adjusted EBITDA of $1.48 billion (down 11%); full-year 2024 guidance raised to $6.0-$6.3 billion.
  4. Full-year 2024 Distributable Cash Flow guidance raised to $3.4-$3.7 billion (from $3.1-$3.5 billion).
  5. Quarterly dividend increased about 15% to $0.500 per share; 12.2 million shares repurchased for about $2.0 billion year to date.
  6. Total available liquidity of $10.7 billion at September 30, 2024, including $2.66 billion of cash.
  7. CCL Stage 3 is 67.8% complete, with first LNG expected by end of 2024 and substantial completion between 1H 2025 and 2H 2026; the company also received DOE authorization for SPL Expansion exports to FTA countries.

03—Questions

Frequently Asked Questions

  1. Why did net income fall so sharply while EBITDA declined only modestly?

    Net income fell 48% in Q3 largely because of non-cash mark-to-market changes on long-term integrated production marketing (IPM) gas supply agreements, which were $923 million less favorable than in the prior-year period. Consolidated Adjusted EBITDA excludes these derivative fair value changes, so its decline (11%) mainly reflects lower margins per MMBtu from a higher share of long-term contract sales and moderating gas prices.

  2. Did Cheniere change its 2024 outlook?

    Yes. Management raised and narrowed full-year 2024 guidance. Consolidated Adjusted EBITDA is now $6.0-$6.3 billion (previously $5.7-$6.1 billion), and Distributable Cash Flow is now $3.4-$3.7 billion (previously $3.1-$3.5 billion).

  3. How is Cheniere returning capital to shareholders?

    Through the first nine months of 2024, Cheniere repurchased about 12.2 million shares for roughly $2.0 billion and paid dividends of $1.305 per share. In Q3 it raised its quarterly dividend about 15% to $0.500 per share, payable November 18, 2024. It also repaid $450 million of consolidated long-term debt during the period.

  4. What are the main growth catalysts?

    The CCL Stage 3 project (seven midscale trains, over 10 mtpa) is 67.8% complete, with first LNG expected by the end of 2024, which provides greater visibility into 2025 production. The SPL Expansion (up to about 20 mtpa) received DOE authorization to export to FTA countries in October 2024 but still awaits FERC approval, and a long-term SPA with Galp for 0.5 mtpa was signed for deliveries in the early 2030s subject to FID on SPL Expansion Train 2.

  5. How strong is the company's liquidity and balance sheet position?

    Total available liquidity was $10.7 billion at September 30, 2024, comprising $2.7 billion of cash and $7.7 billion of undrawn credit facility commitments. Total debt (current and long-term) was about $23.2 billion. Fitch upgraded CCH to BBB+ in July 2024, and S&P revised CCH's outlook to positive in October 2024.

04—Continue

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