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Cheniere (LNG) Q3 Earnings Beat on Elevated Prices & Demand

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Cheniere Energy (LNG - Free Report) — the largest liquefied natural gas exporter in the United States — announced third-quarter 2022 adjusted earnings per share of $7.80, which beat the Zacks Consensus Estimate of $5.46 and improved significantly from the year-earlier bottom line of 94 cents. The outperformance could be attributed to high natural gas prices and increasing demand from customers looking to replace Russian energy.

Meanwhile, Cheniere Energy’s revenues of $8.9 billion surged 177% year over year and beat the consensus mark by $813 million, primarily due to soaring LNG sales. Revenues from gas exports came in at $8.2 billion, up 167.6% from the third quarter of 2021 and 10.9% above the Zacks Consensus Estimate.

The company’s third-quarter adjusted EBITDA was $2.8 billion, with distributable cash flow (DCF) of around $2 billion. In the July-September period, Cheniere Energy shipped 156 cargoes compared with 141 in the year-earlier period. Total volumes of LNG exported were 558 trillion British thermal units (TBtu) compared with 500 TBtu in the prior-year quarter.

As a matter of fact, the energy player informed that it has signed long-term contracts to deliver some 60 million tons of natural gas chilled to liquid through 2050.

As part of its capital-return initiative, the company repurchased 600,000 shares worth $75 million during the quarter under review and paid a dividend of 33 cents.
 

Cheniere Energy, Inc. Price, Consensus and EPS Surprise

Cheniere Energy, Inc. Price, Consensus and EPS Surprise

Cheniere Energy, Inc. price-consensus-eps-surprise-chart | Cheniere Energy, Inc. Quote

 

Cost, Balance Sheet

The company, carrying a Zacks Rank #2 (Buy), reported total operating costs and expenses of $11.9 billion in third-quarter 2022, rising 113.8% from the year-ago quarter. This rise is primarily attributable to 127.5% higher cost of sales.

As of Sep 30, Cheniere Energy had cash and cash equivalents of $2.5 billion and long-term debt of $25.3 billion.

Guidance

Based on the strong macro environment and positive outlook, Cheniere Energy reafirmed its guidance for 2022. It continues to see annual adjusted EBITDA between $11 billion and $11.5 billion. Cheniere Energy also anticipates distributable cash flow of $8.1-$8.6 billion.

Other Energy Picks

Apart from Cheniere Energy, investors interested in the Oil/Gas sector might look at HF Sinclair (DINO - Free Report) , PBF Energy (PBF - Free Report) and Helmerich & Payne (HP - Free Report) , each carrying a Zacks Rank #1 (Strong Buy, currently.

You can see the complete list of today’s Zacks #1 Rank stocks here.

HF Sinclair: HF Sinclair is valued at some $13 billion. The Zacks Consensus Estimate for DINO’s 2022 earnings has been revised 14.2% upward over the past 60 days.

HF Sinclair, headquartered in Dallas, TX, delivered a 9.1% beat in Q3. DINO shares have surged 100.3% in a year.

Helmerich & Payne: HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 124.2%, on average.

Helmerich & Payne is valued at around $5.5 billion. HP has seen its shares gain 99% in a year.

PBF Energy: PBF Energy is valued at some $5.7 billion. The Zacks Consensus Estimate for PBF’s 2022 earnings has been revised 24.8% upward over the past 60 days.

PBF Energy, headquartered in Parsippany, NJ, has a trailing four-quarter earnings surprise of roughly 49%, on average. PBF shares have rocketed 234.6% in a year.

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