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Cheniere Energy Financial Strength

: 3 (As of Jun. 2022)
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Cheniere Energy has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Cheniere Energy Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Cheniere Energy's Interest Coverage for the quarter that ended in Jun. 2022 was 4.15. Cheniere Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.96. As of today, Cheniere Energy's Altman Z-Score is 0.82.


Competitive Comparison

For the Oil & Gas Midstream subindustry, Cheniere Energy's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Cheniere Energy Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Cheniere Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Cheniere Energy's Financial Strength falls into.



Cheniere Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Cheniere Energy's Interest Expense for the months ended in Jun. 2022 was $-357 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,480 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $27,734 Mil.

Cheniere Energy's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1480/-357
=4.15

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Cheniere Energy's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2868 + 27734) / 32028
=0.96

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Cheniere Energy has a Z-score of 0.82, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.82 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Cheniere Energy  (AMEX:LNG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Cheniere Energy has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Cheniere Energy Financial Strength Related Terms

Thank you for viewing the detailed overview of Cheniere Energy's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Cheniere Energy Business Description

Cheniere Energy logo
Traded in Other Exchanges
Address
700 Milam Street, Suite 1900, Houston, TX, USA, 77002
Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the under-development Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.
Executives
Peak Scott Bennett director 1200 SMITH STREET HOUSTON TX 77002
Slack David L officer: VP & Chief Accounting Officer 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Collawn Patricia K director 414 SILVER AVE SW MS 1275 ALBUQUERQUE NM 87102-3289
Mitchelmore Lorraine director 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Teno Andrew director C/O FIR TREE INC. 55 WEST 46TH STREET, 29TH FLOOR NEW YORK NY 10036
Klimczak Sean director C/O THE BLACKSTONE GROUP 345 PARK AVE. NEW YORK NY 10154
Davis Zach officer: SVP & CFO 700 MILAM STREET SUITE 1900 HOUSTON TX 77008
Stephenson Aaron D. officer: SVP, Operations 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Evans Michele A director LOCKHEED MARTIN CORPORATION 6801 ROCKLEDGE DRIVE BETHESDA MD 20817
Mather Courtney director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Lipinski John J director C/O CVR ENERGY, INC. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Langham Andrew director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Lehotsky Ed officer: SVP, Engineer and Construction 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Shanda Doug officer: SVP, Operations 700 MILAM STREET SUITE 1900 HOUSTON TX 77002
Markowitz Sean N officer: Interim GC & Corp Sec 700 MILAM STREET SUITE 1900 HOUSTON TX 77002

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