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Cheniere (LNG) Q1 Earnings Beat on Soaring Gas Export Volumes
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Cheniere Energy Inc. (LNG - Free Report) , the largest liquefied natural gas exporter in the United States, reported an adjusted profit of $7.35 per share in the first quarter, surpassing the Zacks Consensus Estimate of earnings of $3.34. This could be attributed to higher-than-expected sales during the reported quarter, backed by a rise in energy prices. Moreover, the bottom line bettered the year-ago quarter’s earnings of $1.54.
Revenues from Cheniere Energy came in at $7,340 million, beating the Zacks Consensus Estimate of $6,028 million, up by around 155.7% from the year-ago figure of $2,999 million. This could be attributed to the year-over-year increase in cargoes shipped and an increase in volumes and prices.
Total Quarterly revenues rose 142.2% to $7.48 billion from $3.09 billion a year ago.
Cheniere Energy posted adjusted EBITDA of $3.15 billion, with distributable cash flow (DCF) of around $2.5 billion. In the quarter, LNG shipped 160 cargoes compared with 133 in the year-earlier period. Total volumes of LNG exported were 585 trillion British thermal units (TBtu) compared with 476 TBtu in the prior year.
Costs & Balance Sheet
Overall costs and expenses rose almost 300% from the level recorded in the corresponding quarter of the last year to $8,097 million. This rise is mainly attributable to the higher cost of sales expenses, which climbed by a massive 429.3% from the year-ago quarter’s number to $7.34 billion.
As of Mar 31, 2022, Cheniere Energy had approximately $2,487 million of cash and cash equivalents. Its net long-term debt was $28,907 million.
Cheniere Energy, Inc. Price, Consensus and EPS Surprise
Houston, TX-based Cheniere Energy repurchased a total of 0.24 million shares for about $25 million and paid a quarterly dividend of 33 cents per common share on Feb 28, 2022.
Guidance
For 2022, Cheniere Energy mentioned that it is raising its financial guidance for the year due to sustained strength in the global LNG market and an increase in expected LNG production.
It revised the adjusted EBITDA guidance range to the $8.2-$8.7 billion range from the existing $7.0-$7.5 billion range.
LNG revised its DCF for 2022 to the $5.5 billion-$6 billion range from the previous range of $4.3-$4.8 billion.
Project Updates
Sabine Pass Liquefaction Project (SPL): Cheniere Energy operates six natural gas liquefaction Trains for a total production capacity of about 30 mtpa of LNG at the Sabine Pass LNG terminal (the SPL Project). Sabine Pass Train 6 reached substantial completion over a year ahead of the guaranteed schedule and Cheniere was able to bring Train 6 to full utilization and stable operations well ahead of the plan.
Corpus Christi Expansion Project: Cheniere Energy looks to develop seven midscale liquefaction trains adjacent to the CCL Project. The total production capacity of these trains is assumed to be 10 mtpa. In the quarter, the company finalized the EPC contract with Bechtel for Corpus Christi Stage 3. Cheniere expects to announce the FID of Corpus Christi Stage 3 soon after finalizing the financing of the project, which is currently in process.
In the United States, Occidental Petroleum is among the largest oil producers. Occidental Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, OXY is likely to see earnings growth of 264.3%.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. ConocoPhillips has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, COP is likely to see earnings growth of 141.3%.
Marathon Oil is a leading oil and natural gas exploration and production company. Marathon Oil has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, MRO is likely to see earnings growth of 194.90%.
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Cheniere (LNG) Q1 Earnings Beat on Soaring Gas Export Volumes
Cheniere Energy Inc. (LNG - Free Report) , the largest liquefied natural gas exporter in the United States, reported an adjusted profit of $7.35 per share in the first quarter, surpassing the Zacks Consensus Estimate of earnings of $3.34. This could be attributed to higher-than-expected sales during the reported quarter, backed by a rise in energy prices. Moreover, the bottom line bettered the year-ago quarter’s earnings of $1.54.
Revenues from Cheniere Energy came in at $7,340 million, beating the Zacks Consensus Estimate of $6,028 million, up by around 155.7% from the year-ago figure of $2,999 million. This could be attributed to the year-over-year increase in cargoes shipped and an increase in volumes and prices.
Total Quarterly revenues rose 142.2% to $7.48 billion from $3.09 billion a year ago.
Cheniere Energy posted adjusted EBITDA of $3.15 billion, with distributable cash flow (DCF) of around $2.5 billion. In the quarter, LNG shipped 160 cargoes compared with 133 in the year-earlier period. Total volumes of LNG exported were 585 trillion British thermal units (TBtu) compared with 476 TBtu in the prior year.
Costs & Balance Sheet
Overall costs and expenses rose almost 300% from the level recorded in the corresponding quarter of the last year to $8,097 million. This rise is mainly attributable to the higher cost of sales expenses, which climbed by a massive 429.3% from the year-ago quarter’s number to $7.34 billion.
As of Mar 31, 2022, Cheniere Energy had approximately $2,487 million of cash and cash equivalents. Its net long-term debt was $28,907 million.
Cheniere Energy, Inc. Price, Consensus and EPS Surprise
Cheniere Energy, Inc. price-consensus-eps-surprise-chart | Cheniere Energy, Inc. Quote
Shareholders Capital-Return Initiative
Houston, TX-based Cheniere Energy repurchased a total of 0.24 million shares for about $25 million and paid a quarterly dividend of 33 cents per common share on Feb 28, 2022.
Guidance
For 2022, Cheniere Energy mentioned that it is raising its financial guidance for the year due to sustained strength in the global LNG market and an increase in expected LNG production.
It revised the adjusted EBITDA guidance range to the $8.2-$8.7 billion range from the existing $7.0-$7.5 billion range.
LNG revised its DCF for 2022 to the $5.5 billion-$6 billion range from the previous range of $4.3-$4.8 billion.
Project Updates
Sabine Pass Liquefaction Project (SPL): Cheniere Energy operates six natural gas liquefaction Trains for a total production capacity of about 30 mtpa of LNG at the Sabine Pass LNG terminal (the SPL Project). Sabine Pass Train 6 reached substantial completion over a year ahead of the guaranteed schedule and Cheniere was able to bring Train 6 to full utilization and stable operations well ahead of the plan.
Corpus Christi Expansion Project: Cheniere Energy looks to develop seven midscale liquefaction trains adjacent to the CCL Project. The total production capacity of these trains is assumed to be 10 mtpa. In the quarter, the company finalized the EPC contract with Bechtel for Corpus Christi Stage 3. Cheniere expects to announce the FID of Corpus Christi Stage 3 soon after finalizing the financing of the project, which is currently in process.
Zacks Rank & Key Picks
Cheniere Energy currently sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Occidental Petroleum (OXY - Free Report) , ConocoPhillips (COP - Free Report) and Marathon Oil (MRO - Free Report) , each sporting a similar Zacks Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the United States, Occidental Petroleum is among the largest oil producers. Occidental Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, OXY is likely to see earnings growth of 264.3%.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. ConocoPhillips has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, COP is likely to see earnings growth of 141.3%.
Marathon Oil is a leading oil and natural gas exploration and production company. Marathon Oil has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, MRO is likely to see earnings growth of 194.90%.