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Cheniere (LNG) to Increase Repurchase, Raises Earnings Forecast

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Cheniere Energy, Inc. (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 - Free Report) , Vermilion Energy (VET - Free Report) and Ranger Oil (ROCC - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Earthstone’s 2022 earnings has been revised upward by about 29% over the past 60 days from $4.54 to $5.85 per share.

The Zacks Consensus Estimate for ESTE’s 2022 earnings is pegged at $5.85 per share, indicating an increase of about 368% from the year-ago earnings of $1.25.

The Zacks Consensus Estimate for Vermilion’s 2022 earnings stands at $6.32 per share, which is an increase of approximately 150.8% from the year-ago earnings of $2.52.

The Zacks Consensus Estimate for VET’s 2022 earnings per share has been revised from $4.51 to $6.32, suggesting an increase of about 40%, in the past 60 days.

Ranger Oil beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 67.7%.

The Zacks Consensus Estimate for ROCC’s 2022 earnings stands at $12.07 per share, which is an increase of 120.3% from the year-ago earnings of $5.48.

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