Cheniere Energy reports $15.7bn revenue in 2024, a slight decrease but expects record LNG production in 2025

Overview

Cheniere Energy reported a mixed financial performance for Q4 and full-year 2024, reflecting both strong LNG production and market-related challenges. The company posted $15.7bn in revenue for FY2024, with a net income of $3.25bn, supported by record LNG cargo shipments. However, revenue and EBITDA saw a decline compared to 2023, primarily due to lower international gas prices and the impact of long-term contract structures.

President and CEO Jack Fusco stated: “The outstanding financial and operational results achieved in 2024 are a testament to the dedication to safety, operational excellence and execution across our business demonstrated by each and every Cheniere employee. We exported a record 646 cargoes of LNG in 2024, while once again delivering top quintile safety performance. Record production, coupled with strategic portfolio optimization, enabled us to achieve financial results at or above the high end of our guidance ranges, while the commissioning and startup of Corpus Christi Stage 3 positions us to further serve the global market with our reliable, affordable and cleanerburning LNG. We expect 2025 to be another record year for LNG production as Stage 3 trains are completed, and we look forward to delivering financial results within these ranges and further enhancing the long-term value proposition of Cheniere.”

Q4 2024 vs. Q4 2023:

• Revenue declined to $4.44bn (-8% YoY), due to moderating gas prices.
• Net income recorded a value of $977m (-29% YoY), with diluted EPS of $4.33 (-25% YoY), impacted by lower derivatives gains. Lower international gas prices led to reduced trading margins.
• Adjusted EBITDA decreased slightly to $1.58bn (-4% YoY), reflecting lower LNG margins.
• LNG cargoes exported was 167 (compared to 169 in Q4 2023), maintaining high export levels.
• Distributable cash flow was also on a downward trend, recording a value of $1.05bn (-72% YoY), but supporting further shareholder returns and debt reduction.

Full-Year 2024 highlights:

• Total revenues experienced a significant decrease, down to $15.7bn (-23% YoY), due to lower gas prices and LNG contract structures.
• Net income also declined at a sharp pace, reaching $3.25bn (-67% YoY), with diluted EPS of $14.20 (-65% vs. 2023), largely impacted by derivative market movements. The company had $6.7bn unfavorable impact from derivative fair value changes.
• Adjusted EBITDA was $6.2bn (-30% YoY), reflecting a lower total margin per MMBtu of LNG delivered.
• LNG cargoes exported recorded a value of 646 (+1% vs. 2023), a new record despite market headwinds.
• Distributable cash flow decreased to $4.1bn (-11% YoY), still reflecting good liquidity of the company.
• The company recorded $800m in debt reduction and 13.8m shares repurchased.

Cheniere anticipates another record year for LNG production in 2025, driven by the completion of the first train of the Corpus Christi Stage 3 expansion in Q1, along with a robust contract portfolio covering over 90% of projected export volumes. The company expects adjusted EBITDA between $6.5bn and $7.0bn, supported by strong operational execution, while distributable cash flow is projected at $4.1bn to $4.6bn, ensuring financial flexibility. Cheniere will maintain its disciplined approach to capital allocation, focusing on debt reduction, share repurchases, and dividends, reinforcing its long-term growth and market leadership.

Even though the main results registered quite significant decreases, and these were even below the estimates of Wall Street analysts, the price of LNG shares ended the last trading week with an appreciation of approximately +4.7%, although on February 21st it decreased by -2.5%, after an extremely negative Friday for the main American markets. At the level of the last year, LNG shares are still trading at a rising price, by approximately +40%.

Author: Ionuț-Adrian Lazar