Cheniere Energy's Q4 2024 Earnings Call: Contradictory Signals on Contracts, Expansion, and LNG Demand

These are the key contradictions discussed in Cheniere Energy's latest 2024 Q4 earnings call, specifically including: Commercial Discussions and Long-term Contracting Activity, Sabine Pass Expansion Plans, U.S. LNG Demand Outlook, Regulatory Permitting Process, Cash Balance Strategy, and Long-term LNG Demand Growth Forecasts:



Financial Performance and Growth:
- Cheniere reported consolidated adjusted EBITDA of $1.6 billion for Q4 2024 and $6.155 billion for the full year, with distributable cash flow of $1.1 billion in Q4 and $3.73 billion for the year.
- The growth was driven by increased LNG production, reaching 45 million tons, and successful completion of turnarounds at Sabine Pass and Corpus Christi.

Stage 3 Project Progress:
- Corpus Christi Stage 3 is ahead of schedule, with Train 1 achieving first LNG production in December and Train 2 nearing substantial completion.
- The progress is attributed to efficient construction and commissioning under an accelerated schedule, with a focus on operational excellence and safety.

Market Demand and Global Supply Dynamics:
- The global LNG trade grew by less than 4 million tons year-on-year, with Asia being the largest contributor to demand growth.
- This is due to limited supply growth despite new project start-ups and an increased reliance on LNG to offset Russian gas supply disruptions.

Regulatory Environment and Strategic Expansion:
- Cheniere is actively pursuing permits to secure significant growth at both Sabine and Corpus Christi, targeting a total capacity of over 90 million tons.
- The strategic move is driven by a more constructive permitting environment and a global call for new LNG capacity to meet energy security needs.