Cheniere Energy, represented by the ticker LNG, reported a remarkable first quarter, achieving a revenue of $5.44 billion, surpassing the market forecast of $4.95 billion. This impressive start to 2025 is attributed to the company's commitment to operational excellence and strong project execution.
A significant milestone was reached with the completion of Train 1 of the Corpus Christi Stage 3 Project. Additionally, the company celebrated the production and shipment of its 4,000th LNG cargo. The progress on the Stage 3 expansion is ahead of schedule, bolstering confidence that the first three trains will be operational by the close of 2025.
Looking forward, Cheniere aims to maintain focus on safely and reliably delivering LNG to global customers. The company also plans to advance project developments at its Sabine Pass and Corpus Christi locations, provide significant shareholder returns, and achieve its annual targets for Consolidated Adjusted EBITDA and Distributable Cash Flow.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Cheniere Energy Inc (LNG, Financial) is $254.55 with a high estimate of $282.00 and a low estimate of $229.00. The average target implies an upside of 6.61% from the current price of $238.76. More detailed estimate data can be found on the Cheniere Energy Inc (LNG) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Cheniere Energy Inc's (LNG, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cheniere Energy Inc (LNG, Financial) in one year is $164.41, suggesting a downside of 31.14% from the current price of $238.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cheniere Energy Inc (LNG) Summary page.
LNG Key Business Developments
Release Date: February 20, 2025
- Consolidated Adjusted EBITDA (Q4 2024): Approximately $1.6 billion.
- Consolidated Adjusted EBITDA (Full Year 2024): $6.155 billion.
- Distributable Cash Flow (Q4 2024): Approximately $1.1 billion.
- Distributable Cash Flow (Full Year 2024): Approximately $3.73 billion.
- Net Income (Q4 2024): Approximately $1 billion.
- Net Income (Full Year 2024): Approximately $3.3 billion.
- LNG Production (2024): Approximately 45 million tons.
- Share Repurchase (2024): Approximately 14 million shares for $2.25 billion.
- Dividend Increase: 15% to $2 per share annualized.
- 2025 Financial Guidance - Consolidated Adjusted EBITDA: $6.5 billion to $7 billion.
- 2025 Financial Guidance - Distributable Cash Flow: $4.1 billion to $4.6 billion.
- Corpus Christi Stage 3 Completion: Total completion at 77.2% by year-end 2024.
- Capital Allocation (2024): Over $1.5 billion towards Stage 3 project, $800 million debt repayment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cheniere Energy Inc (LNG, Financial) reported strong financial results for 2024, with consolidated adjusted EBITDA of $6.155 billion and distributable cash flow of $3.73 billion.
- The company achieved record LNG production of approximately 45 million tons in 2024, accounting for over 10% of global LNG supply.
- Cheniere Energy Inc (LNG) successfully completed turnarounds at both Sabine Pass and Corpus Christi, maintaining top quintile safety performance.
- The company made significant progress on its Corpus Christi Stage 3 project, with construction 77.2% complete and first LNG achieved in December.
- Cheniere Energy Inc (LNG) increased its dividend by 15% to $2 per share annualized and announced a $4 billion share repurchase authorization.
Negative Points
- The global LNG market remained tight in 2024 due to limited supply growth and geopolitical tensions, impacting pricing and demand.
- Cheniere Energy Inc (LNG) faces challenges from the potential re-entry of Russian gas into the European market, which could affect LNG demand.
- The company anticipates variability in 2025 earnings due to the timing and ramp-up of Corpus Christi Stage 3 trains.
- Cheniere Energy Inc (LNG) is exposed to market volatility, with a $1 change in market margin potentially impacting EBITDA by $75 million to $100 million.
- The company is navigating a complex regulatory and permitting environment, which could affect the timeline for future project developments.
