Cheniere Energy (LNG) Q2 2024 earnings summary

Executive summary

• Q2 2024 results exceeded expectations with strong operational performance, 155 LNG cargoes exported, and uninterrupted production during Hurricane Beryl.

• Revenue for Q2 2024 was $3.25–$3.3 billion, net income $880 million, and Adjusted EBITDA $1.3 billion; all declined year-over-year due to lower LNG prices and reduced short-term sales.

• Corpus Christi Stage 3 project is over 62% complete, with first LNG from Train 1 targeted by year-end 2024 and all three trains online by end of 2025.

• Share repurchase authorization increased by $4 billion through 2027, and annual dividend to be raised by 15% to $2.00 per share starting Q3 2024.

• Signed a new 20-year SPA with Galp, the longest-dated contract with a European counterparty, supporting the SPL expansion project.

Financial highlights

• Q2 2024 net income: $880 million; consolidated adjusted EBITDA: $1.3 billion; distributable cash flow: $700 million.

• Q2 2024 revenues: $3.25–$3.3 billion, down 21% year-over-year; six-month revenues: $7.5 billion.

• Over $3 billion consolidated adjusted EBITDA and nearly $2 billion distributable cash flow generated in H1 2024.

• 93–95% of LNG volumes sold under long-term contracts, the highest contract coverage to date.

• Over $3 billion deployed under the capital allocation plan in H1 2024, including $1.7 billion in share repurchases and $300 million in debt reduction.

Outlook and guidance

• Full-year 2024 guidance raised to $5.7–$6.1 billion consolidated adjusted EBITDA and $3.1–$3.5 billion distributable cash flow.

• Expect to produce ~45 million tons of LNG in 2024, with minimal unsold volumes and guidance reflecting only completed or locked-in optimization activities.

• 2024 is expected to be a trough year, with production step-up anticipated in 2025 as Stage 3 comes online.