Cheniere Energy, Inc. (LNG Quick QuoteLNG - Free Report) reported third-quarter 2024 adjusted profit of $3.93 per share, which beat the Zacks Consensus Estimate of $1.79. and the bottom line also increased from the year-ago quarter’s level of $2.37. The outperformance can be attributed to a year-over-year decrease in costs and expenses.

Revenues totaled $3.8 billion, beating the Zacks Consensus Estimate of $3.7 billion. The outperformance was driven by a year-over-year increase in other revenues to $175 million, beating the consensus estimate by 15.9%.  However, the top line decreased 9.5% from the year-ago quarter’s level of $4.2 billion. This was due to the year-over-year reduction in LNG revenues.

Cheniere increased its quarterly dividend by approximately 15%, raising this to 50 cents per share of common stock. The dividend will be paid on Nov. 18, 2024.

In October 2024, the company introduced a voluntary, data-informed target to reduce Scope 1 methane emissions intensity at its liquefaction facilities. The target is part of the company’s broader climate strategy, leveraging insights from its emissions measurement and mitigation programs. This move also aligns with the requirements for achieving Gold Standard status under its participation in the United Nations Environment Programme’s Oil & Gas Methane Partnership 2.0.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The oil and gas storage and transportation company reported consolidated adjusted EBITDA of $1.5 billion in the third quarter, down 11.7% from a year-ago quarter’s level. This decline was due to moderating international gas prices and a higher share of liquefied natural gas (“LNG”) sold under long-term contracts, which resulted in lower margins per metric million British thermal units of LNG delivered compared with the previous year.

Distributable cash flow (DCF) was $0.8 million. In the reported quarter, the company shipped 158 cargoes compared with 152 in the year-ago period.

The total volume of liquid natural gas exported was 568 trillion British thermal units (TBtu) compared with 545 TBtu in the year-ago period.

In September 2024, Cheniere marked a major milestone by producing and loading its 1,000th liquefied natural gas (“LNG”) cargo for export from the CCL Project with the cargo discharged in Italy. Since 2016, Cheniere has produced and exported approximately 3720 cargoes from both the Sabine Pass Liquefaction Project (“SPL”) and CCL Projects, delivering LNG to around 40 markets worldwide.

Release of LNG’s 2024 Corporate Responsibility Report

In August 2024, Cheniere released energy secured, benefits delivered, its fifth annual Corporate Responsibility Report, highlighting the company’s progress and commitment to environmental, social and governance initiatives.

New LNG Sale Agreement With Galp Trading

In July 2024, Cheniere Marketing, LLC entered into a long-term LNG sale and purchase agreement with Galp Trading S.A., a subsidiary of Galp Energia, SGPS, S.A. Under the terms of the agreement, Galp will purchase approximately 0.5 million tons per annum (mtpa) of LNG for 20 years on a free-on-board basis. LNG deliveries are expected to begin in early 2030, contingent on a positive final investment decision for the second train of the SPL Expansion Project.

Credit Rating Upgrades and Outlook Improvements

Also in July 2024, Fitch Ratings upgraded the issuer credit rating of Cheniere Corpus Christi Holdings, LLC (“CCH”) from BBB to BBB+ with a stable outlook. This marked the 22nd credit rating upgrade across the Cheniere complex since 2021. In October 2024, S&P Global Ratings revised CCH’s outlook from stable to positive.

LNG’s Costs & Balance Sheet

Costs and expenses amounted to $2.1 billion for the third quarter, down 50.7% from the prior-year quarter’s level.

As of Sept. 30, 2024, Cheniere had approximately $2.7 billion of cash and cash equivalents. Its net long-term debt amounted to $22.5 billion, with a debt-to-capitalization of 70.7%.
 

LNG’s Guidance

The company expects consolidated adjusted EBITDA in the range of $6-$6.3 billion for 2024.

It also expects DCF in the band of $3.4-$3.7 billion.
 

LNG’s Project Updates

Sabine Pass Liquefaction Project: The company, through its partners, operates six natural gas liquefaction trains at the Sabine Pass LNG terminal in Cameron Parish, LA. The terminal has a total production capacity of approximately 30 mtpa of liquefied natural gas.

SPL Expansion Project: The company, through its partners, is developing an expansion adjacent to the SPL Project, known as the SPL Expansion Project, with an anticipated production capacity of up to approximately 20 mtpa of LNG, including potential debottlenecking opportunities.

In February 2024, certain subsidiaries of Cheniere Partners submitted applications to the Federal Energy Regulatory Commission (“FERC”) for approval to site, construct and operate the SPL Expansion Project. Additionally, these subsidiaries applied to the Department of Energy (“DOE”) for authorization to export LNG to both Free Trade Agreement (“FTA”) and non-FTA countries, excluding debottlenecking activities. In October 2024, the DOE granted authorization to export LNG to FTA countries.

CCL Project: The company, in partnership with its collaborators, operates three natural gas liquefaction trains at the Corpus Christi LNG terminal, with a total production capacity of around 15 mtpa.

CCL Stage 3 Project: The company, in partnership with its collaborators, is advancing an expansion adjacent to the CCL Project, referred to as the CCL Stage 3 Project. This expansion involves the development of seven midscale trains, with a total projected production capacity exceeding 10 mtpa of LNG. The first LNG production from the initial train of the CCL Stage 3 Project is anticipated by the end of 2024.

As of Sept. 30, the project is 67.8% complete and remains under active construction. The expected timeline for substantial completion is between the first half of 2025 and the second half of 2026. Key milestones include engineering, which is 95.7% complete, procurement at 85.2%, subcontract work at 87.2% and construction progress at 32%.

CCL Midscale Trains 8 & 9 Project: Cheniere, in partnership with its collaborator, is developing two additional midscale trains, known as the CCL Midscale Trains 8 & 9 Project, with an anticipated total production capacity of approximately 3 mtpa of LNG. This expansion will be located adjacent to the CCL Stage 3 Project.

In March 2023, Cheniere’s certain subsidiaries submitted an application to the FERC for authorization to site, construct and operate the CCL Midscale Trains 8 & 9 Project. In April 2023, Cheniere also applied to the DOE for approval to export LNG to both FTA and non-FTA countries. In July 2023, the company received authorization from the DOE to export LNG to FTA countries. In June 2024, the company received a positive Environmental Assessment from the FERC and expects to obtain the remaining necessary regulatory approvals for the project in 2025.

LNG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

Important Energy Earnings So Far

While it is early in the earnings season, there have been a few key energy releases so far. Let us glance through a couple of them.

Liberty Energy (LBRT Quick QuoteLBRT - Free Report) , the Denver-CO-based oil and gas equipment company, announced an adjusted net income of 45 cents per share, which missed the Zacks Consensus Estimate of 55 cents. This was primarily due to poor equipment and services execution and lower activity in the reported quarter. Additionally, the bottom line declined from the year-ago quarter’s reported figure of 86 cents due to a year-over-year increase in costs and expenses.

Ahead of the earnings release, LBRT’s board of directors announced a dividend of 8 cents per common share payable on Dec. 20, to its stockholders of record as of Dec. 6. This dividend represents a 14% increase from the prior regular quarterly dividend of 7 cents per share. In the quarter, Liberty returned $51 million to its shareholders through a combination of share repurchases and cash dividends.

Energy infrastructure provider,Kinder Morgan, Inc. (KMI Quick QuoteKMI - Free Report) reported third-quarter adjusted earnings per share of 25 cents, which missed the Zacks Consensus Estimate of 27 cents. The bottom line was flat year over year. The weakness in quarterly results was caused by lower contributions from the Products Pipelines and CO2 business segments.

KMI also announced a quarterly cash dividend of 28.75 cents per share for the third quarter of 2024 (annualized dividend of $1.15), implying a 2% increase from the third-quarter 2023 level. The dividend is payable on Nov. 15, 2024, to its shareholders of record as of Oct. 31.

Schlumberger Limited (SLB Quick QuoteSLB - Free Report) , a Houston, TX-based oil and gas equipment and services provider announced third-quarter earnings of 89 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 88 cents. The bottom line also increased from the year-ago quarter’s 78 cents. The strong quarterly earnings were primarily driven by broad-based earnings growth and margin expansion, especially in the Middle East, Asia and offshore North America. Additionally, cost optimization, greater adoption of digital solutions and contributions from long-cycle deepwater and gas projects played significant roles.