Cheniere Energy, Inc. ( LNG Quick Quote LNG - Free Report) , the Houston, TX-based liquefied natural gas (“LNG”) exporter, recently announced its intention to pay higher dividends and augment share buybacks while adding to its production units.
This comes at a time when Cheniere’s profits are up due to mounting energy prices and LNG demand as a result of Europe trying to find alternatives to Russian gas over Moscow’s military action in Ukraine.
LNG will hike its annual dividend by 20% to $1.58 per share from the $1.32 payout initiated last year. Moreover, the firm projects more than $20 billion of available cash through 2026 and more than $20 per share of run-rate distributable cash flow.
The full-year 2022 distributable cash flow forecast was increased to the range of $8.1 billion-$8.6 billion from the earlier guidance range of $6.9-$7.4 billion.
Cheniere’s share repurchase authorization has been increased by $4 billion for additional three years as the firm sees even better prospects going forward. Additionally, LNG now anticipates its EBITDA for 2022 between $11 and $11.5 billion compared with its previous forecast of the $9.8-$10.3 billion range.
Jack Fusco, Cheniere’s president and Chief Executive Officer, mentioned how the revised capital allocation plan is another major milestone for the firm, which reflects the success achieved by the LNG’s team, especially in operational excellence and safety. “Energy security has never been more critical, and we are confident in the significant long-term role of North American natural gas in the global energy supply mix,” he added.
Cheniere Energy is primarily engaged in businesses related to LNG through its two business segments: LNG terminal and LNG and natural gas marketing. The company, through its controlling interest in Cheniere Energy Partners L.P., owns and operates the Sabine Pass LNG terminal in Louisiana – North America’s first large-scale liquefied gas export facility.
Cheniere currently sports a Zacks Rank #1 (Strong Buy). Some other similar-ranked stocks from the energy space that warrant a look include
Earthstone Energy ( ESTE Quick Quote ESTE - Free Report) , Vermilion Energy ( VET Quick Quote VET - Free Report) and Ranger Oil ( ROCC Quick Quote ROCC - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
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