Cheniere Energy's Mixed Q2 Results: Earnings Decline Amid Lower Gas Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2024
0mins
Should l Buy LNG?
Source: Benzinga
Financial Performance: Cheniere Energy reported a 21% decline in second-quarter FY24 revenue to $3.251 billion, missing expectations, while adjusted EBITDA fell 29% to $1.32 billion due to lower gas prices and long-term contract sales. However, EPS of $3.84 exceeded consensus estimates.
Future Outlook and Plans: The company raised its FY24 adjusted EBITDA guidance to $5.7 billion - $6.1 billion and plans to increase its quarterly dividend by 15% starting in Q3 2024, alongside a $4 billion share repurchase authorization through 2027.
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Analyst Views on LNG
Wall Street analysts forecast LNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LNG is 274.09 USD with a low forecast of 258.00 USD and a high forecast of 290.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 210.540
Low
258.00
Averages
274.09
High
290.00
Current: 210.540
Low
258.00
Averages
274.09
High
290.00
About LNG
Cheniere Energy, Inc. is the producer and exporter of liquefied natural gas (LNG) in the United States. The Company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. It operates two natural gas liquefaction and export facilities at Sabine Pass, Louisiana (Sabine Pass LNG Terminal) and near Corpus Christi, Texas (Corpus Christi LNG Terminal). Sabine Pass LNG Terminal, which has natural gas liquefaction facilities consisting of six operational trains, for a total production capacity of approximately 30 million tons per annum (mtpa) of LNG (the SPL Project). Corpus Christi LNG Terminal near Corpus Christi, Texas, consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cheniere's Corpus Christi Pipeline Requests Approval to Expand Texas Terminal from US Federal Energy Regulatory Commission
Regulatory Approval Sought: The Federal Energy Regulatory Commission is seeking approval for the expansion of the Texas terminal operated by Chenier Energy.
Impact on Energy Infrastructure: This expansion aims to enhance the energy infrastructure in Texas, potentially increasing the capacity for energy exports.
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- Current Capacity Increase: The existing Corpus Christi LNG facility has a capacity of 18 million tons per year, which is expected to rise to 25 million tons by the end of this year due to the ongoing Stage 3 expansion, enhancing the company's competitive edge in the market.
- Future Expansion Potential: If the Stage 4 project is approved, the capacity of Corpus Christi LNG could eventually increase to 49 million tons per year, reflecting Cheniere's optimistic outlook on future market demand for LNG.
- Gas Supply Demand Forecast: Cheniere anticipates that the Stage 4 expansion will require 3.3 billion cubic feet of gas per day and aims to secure federal approval by May 2027 to ensure the project's successful advancement.
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- Investor Conference Call: An investor and analyst conference call will be held at 11:00 AM ET on the same day to discuss financial results, enhancing transparency and attracting investor interest.
- Global LNG Leader: Cheniere is the leading producer and exporter of LNG in the U.S., with approximately 52 million tonnes per annum (mtpa) of production capacity and an additional 9 mtpa under construction, demonstrating its commitment to market expansion.
- Diverse Business Model: The company offers a full range of LNG services, including gas procurement, transportation, liquefaction, and delivery, ensuring its competitiveness and sustainability in the global energy market.
See More
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- Earnings Release Schedule: Cheniere plans to issue its fourth quarter and full year 2025 financial results on February 26, 2026, before market opens, highlighting its ongoing growth potential in the LNG market.
- Investor Conference Call: An investor and analyst conference call will be held at 11:00 AM ET on the same day to provide in-depth analysis of financial results, aimed at boosting investor confidence and enhancing market transparency.
- LNG Production Capacity: Cheniere's LNG production capacity in the U.S. reaches 52 million tonnes per annum, with an additional 9 million tonnes under construction, underscoring its critical role in meeting the growing global energy demand.
- Global Business Presence: The company has offices in multiple cities worldwide, including London, Singapore, and Beijing, indicating its commitment to expanding international markets and addressing the increasing demand for natural gas.
See More
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- Market Implications: This increase in demand is expected to significantly impact market dynamics and energy strategies moving forward.
See More
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- Production Losses: Analysts forecast that approximately 2 million barrels per day of oil production went offline over the weekend, representing about 15% of total U.S. output, with the Permian Basin alone seeing 1.5 million barrels per day offline, expected to recover by the end of the month.
- LPG Export Impact: The storm led to liquefied petroleum gas exports, including propane and butane, falling to around a third of seasonal norms, indicating significant market tension regarding energy supplies.
- Natural Gas Decline: The winter storm resulted in a loss of up to 11% of U.S. natural gas production, with January output expected to decline by 3.3 billion cubic feet per day compared to earlier forecasts, affecting overall market supply-demand balance.
See More
Cheniere's Corpus Christi Pipeline Requests Approval to Expand Texas Terminal from US Federal Energy Regulatory Commission
Regulatory Approval Sought: The Federal Energy Regulatory Commission is seeking approval for the expansion of the Texas terminal operated by Chenier Energy.
Impact on Energy Infrastructure: This expansion aims to enhance the energy infrastructure in Texas, potentially increasing the capacity for energy exports.
See More
Cheniere Energy Seeks Approval for LNG Plant Expansion
- Project Application Submitted: Cheniere Energy has filed an application with the Federal Energy Regulatory Commission to construct a 24 million metric tons per year liquefied natural gas plant at its Corpus Christi location in Texas, marking a significant expansion in its LNG operations.
- Current Capacity Increase: The existing Corpus Christi LNG facility has a capacity of 18 million tons per year, which is expected to rise to 25 million tons by the end of this year due to the ongoing Stage 3 expansion, enhancing the company's competitive edge in the market.
- Future Expansion Potential: If the Stage 4 project is approved, the capacity of Corpus Christi LNG could eventually increase to 49 million tons per year, reflecting Cheniere's optimistic outlook on future market demand for LNG.
- Gas Supply Demand Forecast: Cheniere anticipates that the Stage 4 expansion will require 3.3 billion cubic feet of gas per day and aims to secure federal approval by May 2027 to ensure the project's successful advancement.
See More
Cheniere to Release Q4 and Full Year 2025 Financial Results
- Earnings Release Schedule: Cheniere Energy plans to issue its financial results for Q4 and full year 2025 on February 26, 2026, before market open, highlighting its ongoing growth potential in the LNG sector.
- Investor Conference Call: An investor and analyst conference call will be held at 11:00 AM ET on the same day to discuss financial results, enhancing transparency and attracting investor interest.
- Global LNG Leader: Cheniere is the leading producer and exporter of LNG in the U.S., with approximately 52 million tonnes per annum (mtpa) of production capacity and an additional 9 mtpa under construction, demonstrating its commitment to market expansion.
- Diverse Business Model: The company offers a full range of LNG services, including gas procurement, transportation, liquefaction, and delivery, ensuring its competitiveness and sustainability in the global energy market.
See More
Cheniere Energy Announces 2025 Earnings Release Schedule
- Earnings Release Schedule: Cheniere plans to issue its fourth quarter and full year 2025 financial results on February 26, 2026, before market opens, highlighting its ongoing growth potential in the LNG market.
- Investor Conference Call: An investor and analyst conference call will be held at 11:00 AM ET on the same day to provide in-depth analysis of financial results, aimed at boosting investor confidence and enhancing market transparency.
- LNG Production Capacity: Cheniere's LNG production capacity in the U.S. reaches 52 million tonnes per annum, with an additional 9 million tonnes under construction, underscoring its critical role in meeting the growing global energy demand.
- Global Business Presence: The company has offices in multiple cities worldwide, including London, Singapore, and Beijing, indicating its commitment to expanding international markets and addressing the increasing demand for natural gas.
See More
EXXONMOBIL LNG EXECUTIVE: WE PREDICT LNG DEMAND WILL DOUBLE BY 2050
- Long-term Demand Forecast: ExxonMobil's forecast predicts that global demand for oil will double between now and 2050.
- Market Implications: This increase in demand is expected to significantly impact market dynamics and energy strategies moving forward.
See More
U.S. Winter Storm Halts Oil and LNG Exports
- Export Halt: The winter storm caused U.S. Gulf Coast crude oil and LNG exports to drop to zero on Sunday, with recovery only on Monday, highlighting the severe impact of extreme weather on the energy supply chain.
- Production Losses: Analysts forecast that approximately 2 million barrels per day of oil production went offline over the weekend, representing about 15% of total U.S. output, with the Permian Basin alone seeing 1.5 million barrels per day offline, expected to recover by the end of the month.
- LPG Export Impact: The storm led to liquefied petroleum gas exports, including propane and butane, falling to around a third of seasonal norms, indicating significant market tension regarding energy supplies.
- Natural Gas Decline: The winter storm resulted in a loss of up to 11% of U.S. natural gas production, with January output expected to decline by 3.3 billion cubic feet per day compared to earlier forecasts, affecting overall market supply-demand balance.
See More
