Cheniere Energy 2025 Q1 Earnings Misses Targets as Net Income Falls 20%

Cheniere Energy (LNG) reported its fiscal 2025 Q1 earnings on May 08th, 2025. U.S. liquefied natural gas exporter Cheniere Energy reported higher first-quarter LNG revenue on Thursday, helped by higher demand for the superchilled fuel. The company’s results missed expectations with net income declining by 20.4% to $668 million. Cheniere reaffirmed its full-year guidance for Consolidated Adjusted EBITDA and Distributable Cash Flow, maintaining its forecast within previously stated ranges. The company anticipates making significant investment decisions over the course of the year.

Revenue
Cheniere Energy saw a 31.1% increase in total revenue, reaching $5.34 billion in 2025 Q1, up from $4.07 billion in 2024 Q1. LNG revenues contributed significantly with $5.30 billion, while regasification revenues added $34 million. Other revenues amounted to $105 million, leading to a total revenue of $5.44 billion.

Earnings/Net Income
Cheniere Energy's EPS declined 26.6% to $1.57 in 2025 Q1 from $2.14 in 2024 Q1. Meanwhile, the company's net income declined to $668 million in 2025 Q1, down 20.4% from $839 million reported in 2024 Q1. The EPS performance indicates challenges in maintaining profitability.

Price Action
The stock price of Cheniere Energy has edged up 0.45% during the latest trading day, has edged up 2.96% during the most recent full trading week, and has surged 17.36% month-to-date.

Post Earnings Price Action Review
The strategy of buying Cheniere Energy (LNG) shares following a quarter-over-quarter revenue drop and holding for 30 days has historically yielded strong returns over the past five years. This approach achieved a 32.38% return, surpassing the benchmark by 21.39%. Despite a maximum drawdown of -27.94%, the strategy posted a Sharpe ratio of 0.87, suggesting a reasonable risk-adjusted return. Although the volatility stood at 28.84%, considered high, the overall performance underscores the effectiveness of this approach in capturing LNG's price movements. The historical data suggests that this strategy is beneficial for investors looking to capitalize on Cheniere's market dynamics.

CEO Commentary
"2025 is off to an outstanding start thanks to the Cheniere team’s commitment to excellence across our operations, project execution and financial discipline," said Jack Fusco, President and Chief Executive Officer of Cheniere Energy, Inc. The quarter was highlighted by the achievement of Substantial Completion on Train 1 of the Corpus Christi Stage 3 Project, alongside the production and shipment of our 4,000th LNG cargo. Looking ahead, our focus for 2025 will remain on the safe and reliable delivery of our LNG to customers worldwide, advancing project developments at both Sabine Pass and Corpus Christi, and generating full year Consolidated Adjusted EBITDA and Distributable Cash Flow within our guidance ranges.

Guidance
Cheniere reaffirms its full year 2025 Consolidated Adjusted EBITDA guidance of $6.5 billion to $7.0 billion and Distributable Cash Flow guidance of $4.1 billion to $4.6 billion. The company anticipates making a Final Investment Decision on the CCL Midscale Trains 8 & 9 Project in 2025, emphasizing a commitment to delivering meaningful shareholder returns while ensuring operational reliability.

Additional News
In recent non-earnings news, Cheniere Energy has been active in financial maneuvers, including the repurchase of approximately 1.6 million shares of common stock for $350 million. The company also declared a dividend of $0.500 per share, set to be paid on May 19, 2025. Operationally, Cheniere achieved the substantial completion of the first train of the Corpus Christi Stage 3 Project and secured FERC authorization for the CCL Midscale Trains 8 & 9 Project. These milestones showcase Cheniere's ongoing commitment to growth and operational excellence. Additionally, Corvex Management LP recently acquired 12,400 shares of Cheniere Energy, Inc., indicating confidence in the company's future prospects.