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Reuters
2 days ago
- Business
- Reuters
Cheniere's Q2 profits double, inks first long-term LNG deal to supply Japan
Aug 7 (Reuters) - Cheniere Energy's (LNG.N), opens new tab second-quarter profit nearly doubled year-on-year, driven by positive changes in the valuation of certain assets, steady demand and robust margins, the U.S. liquefied natural gas (LNG) company reported on Thursday. Despite higher year-over-year profit, its adjusted core profit of $1.42 billion missed analysts' forecasts for profits of $1.56 billion, according to data compiled by financial firm LSEG. Shares were down less than 1% on Thursday afternoon. Cheniere also announced it signed a 21-year LNG supply deal with Japan's biggest power generator JERA for 1 million metric tons per annum (MTPA) of LNG starting in 2029 through to 2050. This is its first long-term deal with a Japanese company, Chief Commercial Officer, Anatol Feygin, said on an earnings call. The U.S. is the world's largest exporter of LNG and commercial activity in the sector has gained momentum after President Donald Trump lifted a moratorium on new LNG export permits in January. In July, the European Union pledged $750 billion worth in strategic LNG purchases from the U.S. over three years as part of a sweeping trade pact, opening up opportunities for major producers like Cheniere. While the EU has committed to buying more U.S. LNG, it is up to commercial parties to reach agreements, said Feygin, adding that in the case of Cheniere, those deals must meet its returns. Cheniere's revenue stood at $4.52 billion in the second quarter, about 43% higher than the same period last year, while the number of LNG cargoes exported totaled 154 during the quarter, down by one cargo due to maintenance activities, the company said. Cheniere's largest plant, Sabine Pass, had two of its LNG plants - also called trains - down for three weeks in the second quarter, impacting production, CEO Jack Fusco said during the call. Cheniere could see a lift to its revenue after its effective tax rate fell below 10% through to 2030 following the passage of Trump's so-called Big Beautiful Bill, Chief Financial Officer Zach Davis said. This year alone the company expects a reduction in its tax burden of $200 million, he added. The company raised the lower-end of its current-year adjusted core profit forecast by $100 million to between $6.6 billion and $7.0 billion. The company reported net income of $1.63 billion, or $7.30 per share, for the quarter, up nearly 85% from a year ago. Cheniere has also added 1 MTPA of LNG capacity by increasing efficiencies at its plants, and plans a 24 MTPA expansion project at Corpus Christi, Fusco said. Cheniere plans to move away from smaller plants built in a factory and assembled on site, like those used in its expansion projects at Corpus Christi, and return to utilizing ConocoPhillips' (COP.N), opens new tab technology in large, stick-built plants, those constructed onsite from the ground up, Fusco said. It is more cost effective to maintain larger LNG plants, and current demand levels support those projects, he said. The company is aiming to bring its total production capacity to over 100 MTPA, but will only do so if it has the commercial support, said Fusco.
Yahoo
17-03-2025
- Business
- Yahoo
Cheniere Receives FERC Approval for Corpus Christi Expansion
Cheniere Energy, Inc. LNG, a Houston-based company specializing in oil and gas storage and transportation, has received approval from U.S. regulators to expand its Corpus Christi liquefied natural gas ('LNG') plant in Texas. This expansion is set to boost the United States' position as a global leader in LNG exports and reflects Cheniere's strategic vision for growth. The Federal Energy Regulatory Commission ('FERC') granted approval for the construction of the Midscale Trains 8 and 9 project, a vital development for Cheniere's operations in the Gulf Coast. Cheniere Energy has firmly established itself as the largest U.S. LNG producer. With a robust portfolio of LNG assets, Cheniere has been instrumental in transforming the United States into the world's largest exporter of LNG. This dominance is highlighted by its ongoing investments in expanding production capacity across facilities, particularly at the Corpus Christi LNG plant. The approval of the Midscale Trains 8 and 9 project, announced by Cheniere's chief commercial officer, Anatol Feygin, during an industry conference in Houston, is a key development that will significantly enhance its LNG output. This project marks an important step forward in Cheniere's commitment to expanding its operations and meeting the growing global demand for natural gas. The Midscale Trains 8 and 9 expansions will add an impressive 3 million metric tons per annum ('mtpa') to Cheniere's LNG production capacity at its Corpus Christi facility. This will bring the plant's total production capacity to 18 mtpa, further reinforcing its critical role in global energy markets. The construction of these two production trains is a key part of Cheniere's long-term strategy to diversify and increase its LNG supply chain. By expanding the Corpus Christi site, Cheniere is poised to enhance its ability to cater to international markets, providing reliable and clean natural gas to meet the world's growing energy needs. In addition to the Midscale Trains 8 and 9 project, Cheniere is also actively working on its Stage 3 expansion at the Corpus Christi site. Once completed, this expansion will add a further 10 mtpa to Cheniere's production capacity, significantly increasing the plant's overall output and reinforcing its position as a global LNG powerhouse. The Stage 3 expansion highlights Cheniere's forward-thinking approach and its understanding of the future dynamics of the global LNG market. With the increasing demand for clean and sustainable energy, the company is positioning itself to meet this demand with innovative solutions and enhanced infrastructure. The FERC approval for the construction of Midscale Trains 8 and 9 is a critical breakthrough in Cheniere's growth trajectory. The commission plays a vital role in ensuring that LNG projects in the United States meet the required safety, environmental and operational standards. The approval, granted following Cheniere's application in March 2023, ensures that it can proceed with expansion plans in line with regulatory requirements. Cheniere's application for the Midscale expansion highlights its commitment to maintaining high standards in energy production and development. The approval is a testament to Cheniere's meticulous planning and its ability to navigate the regulatory landscape effectively, ensuring that projects are completed successfully and on time. Cheniere's continued expansion highlights the critical role that it plays in the United States' energy landscape. By increasing its LNG production capacity, Cheniere is not only strengthening own market position but also contributing to the broader economic objectives of the United States. As the largest LNG exporter in the United States, Cheniere is a key player in the country's growing influence on the global energy stage. The company's expansions at Corpus Christi, coupled with other projects, position it as a critical provider of energy to international markets. This is particularly important as the global demand for natural gas continues to rise, driven by the need for cleaner energy alternatives. Looking ahead, Cheniere's investment in expanding the Corpus Christi LNG plant is a clear indication that it is committed to both growth and innovation. The addition of Midscale Trains 8 and 9, as well as the larger Stage 3 expansion, is just the beginning of a broader strategy to cater to the ever-evolving energy needs of the world. Cheniere's strong track record of delivering large-scale LNG projects with precision and efficiency positions it for continued success in the global energy market. In conclusion, Cheniere Energy's expansion of the Corpus Christi LNG plant is an important development in the U.S. energy sector. With FERC approval in hand, the company is ready to enhance its capacity and meet the growing demand for LNG globally. As the United States continues to dominate the world's LNG export markets, Cheniere's role will only become more critical in shaping the future of energy production and distribution. Currently, LNG has a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Archrock AROC, sporting a Zacks Rank #1 (Strong Buy) and Antero Resources AR and Coterra Energy CTRA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. AROC is valued at $3.98 billion. In the past year, its shares have risen 30.7%. Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services of compression equipment. AR is valued at $10.79 billion. In the past year, its shares have risen 36.9%. Antero Resources, based in Denver, CO, is an independent exploration company focused on acquiring and developing natural gas, natural gas liquids and oil resources in the Appalachian Basin. CTRA is valued at $20.44 billion. In the past year, its shares have risen 1.4%. CTRA is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report Antero Resources Corporation (AR) : Free Stock Analysis Report Archrock, Inc. (AROC) : Free Stock Analysis Report Coterra Energy Inc. (CTRA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Reuters
11-03-2025
- Business
- Reuters
CERAWEEK Regulator approved Cheniere Texas LNG plant expansion, says exec
HOUSTON, March 11 (Reuters) - US regulators have approved the expansion of Cheniere's Corpus Christi liquefied natural gas (LNG) plant in Texas, a Cheniere executive said on Tuesday. The Federal Energy Regulatory Committee approved the construction of production trains 8 and 9 at the plant, the company's Chief Commercial Officer Anatol Feygin said at an industry conference in Houston. here.
