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Cheniere (LNG) Stock Hardly Moves Since Q2 Earnings Miss
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Cheniere Energy Inc.’s (LNG - Free Report) stock has shown an insignificant performance since the company’s second-quarter 2021 earnings announcement on Aug 5.
Despite this industry player’s increased adjusted EBITDA and a solid Distributable Cash Flow (DCF) guidance for 2021, the firm’s shares failed to display an uptrend possibly due to an unpleasant second-quarter earnings performance and significantly higher operating expenses.
Behind the Earnings Headlines
This largest U.S. liquefied natural gas (LNG - Free Report) exporter reported adjusted earnings per share of 54 cents in the second quarter, missing the Zacks Consensus Estimate of 92 cents as well as the year-ago quarter’s earnings of 78 cents due to lower-than-expected LNG revenues.
Revenues from LNG came in at $2,913 million, missing the Zacks Consensus Estimate of $3,141 million. However, the same increased 26.9% from the year-ago number of $2,295 million.
Quarterly revenues rose 25.8% to $3.02 billion from $2.4 billion a year ago, attributable to a year-over-year rise in LNG revenues. Nonetheless, the top line fell short of the Zacks Consensus Estimate of $3.36 billion in the quarter under review.
The company posted an adjusted EBITDA of $1.02 billion with DCF of around $340 million. During the quarter, Cheniere Energy shipped 139 cargoes compared with 78 in the year-earlier period. Total volumes of LNG exported were 499 trillion British thermal units (TBtu) compared with 278 TBtu in the prior year.
Cheniere Energy, Inc. Price, Consensus and EPS Surprise
Overall costs and expenses rose 96% from the level recorded in the corresponding quarter of last year to $2,871 million. This rise is mainly attributed to higher cost of sales expenses that climbed 168.2% from the year-ago quarter’s number to $803 million.
As of Jun 30, 2021, Cheniere Energy had approximately $1,806 million in cash and cash equivalents. Its net long-term debt was $29,327 million.
Guidance
Per the company president and CEO Jack Fusco, “Our outlook for the balance of the year has improved yet again, with sustained higher LNG prices and an improved production forecast from our LNG facilities enabling us to increase our full year 2021 financial guidance for the third consecutive quarter.”
Cheniere Energy updated its outlook for the current year. It anticipates adjusted EBITDA within $4.6-$4.9 billion and distributable cash flow between $1.8 billion and $2.1 billion.
Project Updates
Sabine Pass Liquefaction Project (SPL): Sabine Pass is North America’s first large-scale liquefied gas export facility. Cheniere Energy intends to construct up to six trains at the Sabine Pass with each train’s expected capacity to be 4.5 million tons per annum (Mtpa). The run rate of LNG production is projected within 4.7-5 Mtpa. While Trains 1 to 5 are functional, Train 6 is currently under construction with completion estimated within the second half of 2022.
Corpus Christi Liquefaction Project (CCL): Under this project, the company built three trains with a total production capacity of 15 Mtpa of LNG. Train 1, 2 and 3 are functional. In June 2019, the first commissioned cargo from Train 2 was dispatched. Train 3 came online in March this year, ahead of schedule.
Corpus Christi Expansion Project: Cheniere Energy looks to develop seven midscale liquefaction trains adjacent to the CCL Project. Total production capacity of these trains is assumed to be 10 Mtpa.
Image: Bigstock
Cheniere (LNG) Stock Hardly Moves Since Q2 Earnings Miss
Cheniere Energy Inc.’s (LNG - Free Report) stock has shown an insignificant performance since the company’s second-quarter 2021 earnings announcement on Aug 5.
Despite this industry player’s increased adjusted EBITDA and a solid Distributable Cash Flow (DCF) guidance for 2021, the firm’s shares failed to display an uptrend possibly due to an unpleasant second-quarter earnings performance and significantly higher operating expenses.
Behind the Earnings Headlines
This largest U.S. liquefied natural gas (LNG - Free Report) exporter reported adjusted earnings per share of 54 cents in the second quarter, missing the Zacks Consensus Estimate of 92 cents as well as the year-ago quarter’s earnings of 78 cents due to lower-than-expected LNG revenues.
Revenues from LNG came in at $2,913 million, missing the Zacks Consensus Estimate of $3,141 million. However, the same increased 26.9% from the year-ago number of $2,295 million.
Quarterly revenues rose 25.8% to $3.02 billion from $2.4 billion a year ago, attributable to a year-over-year rise in LNG revenues. Nonetheless, the top line fell short of the Zacks Consensus Estimate of $3.36 billion in the quarter under review.
The company posted an adjusted EBITDA of $1.02 billion with DCF of around $340 million. During the quarter, Cheniere Energy shipped 139 cargoes compared with 78 in the year-earlier period. Total volumes of LNG exported were 499 trillion British thermal units (TBtu) compared with 278 TBtu in the prior year.
Cheniere Energy, Inc. Price, Consensus and EPS Surprise
Cheniere Energy, Inc. price-consensus-eps-surprise-chart | Cheniere Energy, Inc. Quote
Costs & Balance Sheet
Overall costs and expenses rose 96% from the level recorded in the corresponding quarter of last year to $2,871 million. This rise is mainly attributed to higher cost of sales expenses that climbed 168.2% from the year-ago quarter’s number to $803 million.
As of Jun 30, 2021, Cheniere Energy had approximately $1,806 million in cash and cash equivalents. Its net long-term debt was $29,327 million.
Guidance
Per the company president and CEO Jack Fusco, “Our outlook for the balance of the year has improved yet again, with sustained higher LNG prices and an improved production forecast from our LNG facilities enabling us to increase our full year 2021 financial guidance for the third consecutive quarter.”
Cheniere Energy updated its outlook for the current year. It anticipates adjusted EBITDA within $4.6-$4.9 billion and distributable cash flow between $1.8 billion and $2.1 billion.
Project Updates
Sabine Pass Liquefaction Project (SPL): Sabine Pass is North America’s first large-scale liquefied gas export facility. Cheniere Energy intends to construct up to six trains at the Sabine Pass with each train’s expected capacity to be 4.5 million tons per annum (Mtpa). The run rate of LNG production is projected within 4.7-5 Mtpa. While Trains 1 to 5 are functional, Train 6 is currently under construction with completion estimated within the second half of 2022.
Corpus Christi Liquefaction Project (CCL): Under this project, the company built three trains with a total production capacity of 15 Mtpa of LNG. Train 1, 2 and 3 are functional. In June 2019, the first commissioned cargo from Train 2 was dispatched. Train 3 came online in March this year, ahead of schedule.
Corpus Christi Expansion Project: Cheniere Energy looks to develop seven midscale liquefaction trains adjacent to the CCL Project. Total production capacity of these trains is assumed to be 10 Mtpa.
Zacks Rank & Key Picks
Cheniere Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy space are Devon Energy Corporation (DVN - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.