On August 8, 2024, Cheniere Energy Inc (LNG, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Cheniere Energy owns and operates the Sabine Pass liquefied natural gas terminal via its stake in Cheniere Partners. It also owns the Corpus Christi LNG terminals as well as Cheniere Marketing, which markets LNG using Cheniere's gas volumes.
Performance Overview
Cheniere Energy Inc (LNG, Financial) reported revenues of $3.3 billion for the second quarter of 2024, a 21% decrease from the $4.1 billion reported in the same period last year. The net income for the quarter was $0.9 billion, down 36% from $1.4 billion in Q2 2023. Consolidated Adjusted EBITDA also saw a decline, coming in at $1.3 billion, a 29% drop from $1.9 billion in the previous year.
Financial Achievements and Challenges
Despite the revenue miss, Cheniere Energy Inc (LNG, Financial) raised its full-year 2024 financial guidance. The company now expects Consolidated Adjusted EBITDA to be between $5.7 billion and $6.1 billion, up from the previous range of $5.5 billion to $6.0 billion. Distributable Cash Flow guidance has also been increased to a range of $3.1 billion to $3.5 billion, from the prior range of $2.9 billion to $3.4 billion.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenues | $3.3 billion | $4.1 billion | (21)% |
| Net Income | $0.9 billion | $1.4 billion | (36)% |
| Consolidated Adjusted EBITDA | $1.3 billion | $1.9 billion | (29)% |
Income Statement Highlights
Cheniere Energy Inc (LNG, Financial) reported a significant decrease in net income, primarily due to lower total margins per MMBtu of LNG delivered and unfavorable changes in the fair value of derivative instruments. The company recognized $819 million and $494 million of non-cash unfavorable changes in fair value for the three and six months ended June 30, 2024, respectively, compared to $593 million and $4.6 billion in the corresponding 2023 periods.
Balance Sheet and Liquidity
As of June 30, 2024, Cheniere Energy Inc (LNG, Financial) had total available liquidity of $10.6 billion, including $2.4 billion in cash and cash equivalents. The company also has substantial available commitments under its credit facilities, totaling $7.7 billion.
CEO Commentary
"The second quarter of 2024 marked another outstanding quarter for Cheniere, highlighting our team’s ability to execute safely, reliably and strategically throughout our business," said Jack Fusco, Cheniere’s President and Chief Executive Officer. "Our strong financial and operational results year-to-date, coupled with our constructive outlook for the remainder of the year, have enabled us to increase our full year 2024 Consolidated Adjusted EBITDA and Distributable Cash Flow guidance ranges."
Analysis
While Cheniere Energy Inc (LNG, Financial) faced challenges in Q2 2024, including a significant drop in revenue and net income, the company’s decision to raise its full-year financial guidance indicates confidence in its operational capabilities and market position. The increased guidance for Consolidated Adjusted EBITDA and Distributable Cash Flow suggests that Cheniere is well-positioned to navigate the current market conditions and continue delivering value to its shareholders.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Cheniere Energy Inc for further details.
