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Yahoo
8 hours ago
- Business
- Yahoo
TD Cowen Maintains Buy on P&G (PG), Citing Innovation and Leadership Shift
The Procter & Gamble Company (NYSE:PG) is one of the best defensive stocks to invest in according to analysts. The company reported its Q4 2025 (FY ends in June) on July 29 with $84.3 billion in revenue and $6.83 in EPS. In fiscal 2025, the company delivered more than $16 billion in shareholder returns, including $9.9 billion in dividends and $6.5 billion through share buybacks. Following the results, TD Cowen analyst Robert Moskow reiterated his Buy rating on Procter & Gamble, maintaining a $168 price target. His view remains constructive, even as the company wrapped up the fiscal year on a softer note and issued a wide earnings guidance range for FY26. Copyright: jetcityimage / 123RF Stock Photo Moskow believes that there is uncertainty in the near term due to macroeconomic challenges such as geopolitical risks and shifting tariff policies that could weigh on performance. However, he sees these factors as manageable as he remains confident over P&G's strategic direction. A key part of the bullish thesis lies in P&G's commitment to product innovation. Moskow expects this focus will help the company gain ground against peers, particularly as it looks to reclaim market share in core U.S. categories like Skin Care and diapers. While pricing dynamics may fluctuate, especially if tariffs begin to impact cost structures, he believes P&G will continue to adjust pricing to preserve margins. The company has already announced a CEO transition (COO Shailesh Jejurikar to become CEO effective January 1, 2026), which is also seen as an opportunity for renewed strategic clarity. Moskow anticipates that under new leadership, P&G will sharpen its execution and prioritize initiatives that support longer-term growth. The Procter & Gamble Company (NYSE:PG) is a consumer goods company that creates, manufactures, markets, and distributes a diversified portfolio of daily-use products such as fabric & home care, beauty, grooming, baby, feminine & family care. While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Most Oversold S&P 500 Stocks So Far in 2025 and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
2 days ago
- Business
- Yahoo
ConocoPhillips (COP) Q2 2025 Earnings Call Highlights: Surpassing Production Targets and ...
Production: 2,391,000 barrels of oil equivalent per day, exceeding guidance. Lower 48 Production: 1,508,000 barrels of oil equivalent per day. Alaska and International Production: 883,000 barrels of oil equivalent per day. Adjusted Earnings: $1.42 per share. Cash from Operations (CFO): $4.7 billion. Capital Expenditures: $3.3 billion, slightly down quarter on quarter. Shareholder Returns: $2.2 billion, including $1.2 billion in buybacks and $1 billion in dividends. Cash and Short-term Investments: $5.7 billion, plus $1.1 billion in long-term liquid investments. Asset Sales Target: Increased to $5 billion. Synergies: Over $1 billion of run rate synergies expected by year-end. Cost and Margin Improvements: Over $2 billion of run rate improvements expected by end of next year. Warning! GuruFocus has detected 4 Warning Sign with COP. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points ConocoPhillips (NYSE:COP) exceeded the top end of its production guidance range for the second quarter of 2025. The company completed the integration of Marathon Oil assets, significantly outperforming the acquisition case with more synergies and a more efficient development program. ConocoPhillips (NYSE:COP) identified over $1 billion in additional cost reduction and margin enhancement opportunities, on top of the $1 billion of expected Marathon synergies. The company raised its asset sales target to $5 billion after exceeding its initial $2 billion target ahead of schedule. ConocoPhillips (NYSE:COP) is well-positioned for a strong second half of the year with free cash flow tailwinds, including lower capital spending and higher APLNG distributions. Negative Points ConocoPhillips (NYSE:COP) faces a working capital headwind of $1.5 billion, offsetting a similar tailwind from the previous quarter. The company expects its full-year effective corporate tax rate to be in the mid to high 30% range, which is higher than previously guided. There is macroeconomic uncertainty and potential downside pressure on oil prices, which could impact future financial performance. The company is experiencing some level of uncertainty due to tariffs and inflation, particularly affecting internationally sourced equipment. ConocoPhillips (NYSE:COP) has not added a rig in the Lower 48 in three to four years, which may limit production growth if market conditions change. Q & A Highlights Q: Neil Mehta from Goldman Sachs asked about the free cash flow projections, noting that at $60 to $70 per barrel WTI, ConocoPhillips is generating close to $8 billion of free cash flow this year, and questioned if the company needs to wait until 2029 to realize the full potential. A: Ryan Lance, CEO, confirmed the math and explained that the company is on track to add about $7 billion of free cash flow by 2029. He emphasized that the growth is not solely dependent on 2029, as there will be consistent start-ups in LNG and other projects contributing to the cash flow over the coming years. Q: Arun Jayaram from JPMorgan inquired about the $1 billion cost reduction and margin optimization plan, asking for details on the drivers and any organizational changes. A: Ryan Lance explained that the plan involves workforce centralization and leveraging the company's scale for lease operating expense improvements. About 80% of the savings will come from G&A, LOE, and transportation costs, while 20% will be from margin expansion. Q: Stephen Richardson from Evercore ISI asked about the increased divestiture target and the types of assets ConocoPhillips plans to sell. A: Ryan Lance stated that the company regularly reviews its portfolio to identify assets that do not compete for capital. The Anadarko Basin sale was an example of an asset that was more valuable to others. The company is confident in achieving the $5 billion target by the end of next year. Q: Douglas Leggate from Wolfe Research asked about the sustainable deferred tax visibility for the Lower 48, given the recent M&A activities. A: Andy O'Brien, CFO, explained that the deferred tax benefits are largely due to one-off discrete items and the One Big Beautiful Bill, which will continue to provide a tailwind into 2026. However, specific numbers are difficult to forecast due to various moving parts. Q: Lloyd Byrne from Jefferies inquired about the LNG strategy and expectations for regasification sales deals. A: Ryan Lance and Andy O'Brien highlighted that ConocoPhillips has placed the entire 5 MTPA from Port Arthur and continues to have discussions for more offtake opportunities. The company is optimistic about future LNG opportunities in Europe and Asia. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Globe and Mail
3 days ago
- Business
- Globe and Mail
Cheniere Reports Second Quarter 2025 Results and Updates Full Year 2025 Financial Guidance
Cheniere Energy, Inc. ('Cheniere') (NYSE: LNG) today announced its financial results for the second quarter 2025. SECOND QUARTER 2025 SUMMARY FINANCIAL RESULTS (in billions) Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Revenues $4.6 $10.1 Net Income 1 $1.6 $2.0 Consolidated Adjusted EBITDA 2 $1.4 $3.3 Distributable Cash Flow 2 $0.9 $2.2 2025 FULL YEAR FINANCIAL GUIDANCE (in billions) 2025 Previous 2025 Revised Consolidated Adjusted EBITDA 2 $6.5 - $7.0 $6.6 - $7.0 Distributable Cash Flow 2 $4.1 - $4.6 $4.4 - $4.8 RECENT HIGHLIGHTS Financial During the three and six months ended June 30, 2025, Cheniere generated revenues of approximately $4.6 billion and $10.1 billion, net income 1 of approximately $1.6 billion and $2.0 billion, Consolidated Adjusted EBITDA 2 of approximately $1.4 billion and $3.3 billion, and Distributable Cash Flow 2 of approximately $0.9 billion and $2.2 billion, respectively. Tightening full year 2025 Consolidated Adjusted EBITDA 2 guidance from $6.5 billion - $7.0 billion to $6.6 billion - $7.0 billion and raising and tightening full year 2025 Distributable Cash Flow 2 guidance from $4.1 billion - $4.6 billion to $4.4 billion - $4.8 billion. Capital Allocation Pursuant to Cheniere's comprehensive capital allocation plan, Cheniere deployed approximately $1.3 billion and $2.6 billion towards accretive growth, balance sheet management and shareholder returns in the three and six months ended June 30, 2025, respectively. During the three and six months ended June 30, 2025, Cheniere repurchased an aggregate of approximately 1.4 million and 3.0 million shares of common stock for approximately $306 million and $656 million, respectively, paid quarterly dividends of $0.500 and $1.000 per share of common stock, totaling approximately $111 million and $223 million, respectively, and in the six months ended June 30, 2025, Cheniere repaid $300 million of consolidated long-term indebtedness. In June 2025, Cheniere announced updates to its long-term company outlook, including an over 10% increase to its run-rate liquefied natural gas ('LNG') production forecast, inclusive of the CCL Midscale Trains 8 & 9 Project (defined below) and debottlenecking. Cheniere also increased and extended its committed capital allocation targets, designed to maintain investment grade credit metrics through cycles, further return capital to shareholders, and continue to invest in accretive growth, as the Company expects to generate over $25 billion of available cash 3 through 2030 to reach over $25 per share of run-rate Distributable Cash Flow 2. In June 2025, Cheniere declared a dividend with respect to the second quarter 2025 of $0.500 per share of common stock, which is payable on August 18, 2025. In June 2025, Cheniere announced, subject to declaration by its Board of Directors, an increase to its quarterly dividend by over 10% from $2.00 to $2.22 per common share annualized, commencing with the third quarter of 2025. Growth In June 2025, Cheniere made a positive Final Investment Decision ('FID') with respect to the CCL Midscale Trains 8 & 9 Project and issued full notice to proceed to Bechtel Energy, Inc. ('Bechtel') effective June 18, 2025. In June 2025, LNG was produced for the first time from the second train ('Train 2') of the CCL Stage 3 Project (defined below), and on August 6, 2025, substantial completion of Train 2 was achieved. In June 2025, certain subsidiaries of Cheniere Energy Partners, L.P. ('Cheniere Partners') (NYSE: CQP) updated the SPL Expansion Project's (defined below) application with the Federal Energy Regulatory Commission ('FERC') to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 million tonnes per annum ('mtpa') of LNG, inclusive of estimated debottlenecking opportunities. In July 2025, certain subsidiaries of Cheniere initiated the pre-filing review process with the FERC under the National Environmental Policy Act ('NEPA') for the CCL Stage 4 Expansion Project (defined below). Commercial In May 2025, Cheniere Marketing, LLC ('Cheniere Marketing') entered into a long-term Integrated Production Marketing ('IPM') gas supply agreement with a subsidiary of Canadian Natural Resources Limited to purchase 140,000 MMBtu per day of natural gas at a price based on the Platts Japan Korea Marker ('JKM') less fixed LNG shipping costs and a fixed liquefaction fee for a term of 15 years, which is expected to commence in 2030. The LNG associated with this gas supply, approximately 0.85 mtpa, will be marketed by Cheniere Marketing. In August 2025, Cheniere Marketing entered into a long-term LNG sale and purchase agreement ('SPA') with JERA Co., Inc. ('JERA'), under which JERA has agreed to purchase approximately 1.0 mtpa of LNG from Cheniere Marketing on a free-on-board basis from 2029 through 2050. The purchase price for LNG under the SPA is indexed to the Henry Hub price, plus a fixed liquefaction fee. CEO COMMENT 'The second quarter of 2025 marked another outstanding quarter for Cheniere, as our team demonstrated its ability to execute safely, reliably and strategically throughout our business, highlighted by the positive FID of the CCL Midscale Trains 8 & 9 Project and the successful completion of our large-scale planned maintenance turnaround at Sabine Pass,' said Jack Fusco, Cheniere's President and Chief Executive Officer. 'Our strong financial and operational results year-to-date, coupled with our constructive outlook and visibility for the remainder of the year, have enabled us to tighten our full year 2025 Consolidated Adjusted EBITDA and Distributable Cash Flow guidance ranges. For the remainder of the year, we are focused on growing our brownfield platform, bringing online new capacity at Corpus Christi ahead of schedule and on budget, and delivering results within our upwardly revised guidance ranges.' SUMMARY AND REVIEW OF FINANCIAL RESULTS (in millions, except LNG data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 % Change 2025 2024 % Change Revenues $ 4,641 $ 3,251 43 % $ 10,085 $ 7,504 34 % Net income 1 $ 1,626 $ 880 85 % $ 1,979 $ 1,382 43 % Consolidated Adjusted EBITDA 2 $ 1,416 $ 1,322 7 % $ 3,288 $ 3,095 6 % LNG exported: Number of cargoes 154 155 (1 )% 322 321 — % Volumes (TBtu) 550 553 (1 )% 1,159 1,155 — % LNG volumes loaded (TBtu) 550 552 — % 1,158 1,153 — % Net income 1 increased approximately $746 million and $597 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily attributable to approximately $873 million and $596 million of favorable variances related to changes in fair value of our derivative instruments, including the impact of derivative instruments related to our long-term Integrated Production Marketing ('IPM') agreements (before tax and non-controlling interests) for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were partially offset by higher provisions for income tax during both periods. Consolidated Adjusted EBITDA 2 increased approximately $94 million and $193 million for the three and six months ended June 30, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily due to higher total margins per MMBtu of LNG delivered during the 2025 periods as compared to the corresponding 2024 periods. The increases were partially offset by higher operating expenses related to planned maintenance activities at both the SPL Project (defined below) and CCL Project (defined below), as well as new capacity from the CCL Stage 3 Project, during the three months ended June 30, 2025, in addition to lower contributions from certain optimization activities related to our vessel charter portfolio during both periods. Share-based compensation expenses included in net income totaled $49 million and $105 million for the three and six months ended June 30, 2025, respectively, compared to $52 million and $92 million for the corresponding 2024 periods. Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of June 30, 2025 consisted of 100% ownership of the general partner and a 48.6% limited partner interest. BALANCE SHEET MANAGEMENT Capital Resources The table below provides a summary of our available liquidity (in millions) as of June 30, 2025: (1) $108 million of cash and cash equivalents was held by our consolidated variable interest entities ('VIEs'). (2) $40 million of restricted cash and cash equivalents was held by our consolidated VIEs. Recent Key Financial Transactions and Updates In July 2025, Cheniere Partners issued $1.0 billion aggregate principal amount of 5.550% Senior Notes due 2035, and the net proceeds, together with cash on hand, were used to redeem $1.0 billion of the aggregate principal amount of SPL's 5.875% Senior Secured Notes due 2026. In August 2025, the $1.25 billion Cheniere Revolving Credit Facility was amended and restated to extend its maturity into 2030, reduce the rate of interest and commitment fees applicable thereunder, and make certain other changes to its terms and conditions. During the six months ended June 30, 2025, SPL repaid the remaining $300 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand. LIQUEFACTION PROJECTS OVERVIEW SPL Project Through Cheniere Partners, we operate liquefaction and export facilities with a total production capacity of over 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the 'SPL Project'). SPL Expansion Project Through Cheniere Partners, we are developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG (the 'SPL Expansion Project'), inclusive of estimated debottlenecking opportunities. In February 2024, certain subsidiaries of Cheniere Partners submitted an application to the FERC for authorization to site, construct, and operate the SPL Expansion Project, as well as an application to the Department of Energy ('DOE') requesting authorization to export LNG to Free-Trade Agreement ('FTA') and non-FTA countries, both of which applications exclude debottlenecking. In October 2024, we received authorization from the DOE to export LNG to FTA countries. In June 2025, the SPL Expansion Project's FERC application was updated to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities. CCL Project We operate liquefaction and export facilities with a total production capacity of over 18 mtpa of LNG at the Corpus Christi LNG terminal near Corpus Christi, Texas (the 'CCL Project'), inclusive of Trains 1 and 2 of the CCL Stage 3 Project. CCL Stage 3 Project We are constructing an expansion adjacent to the CCL Project consisting of seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG (the 'CCL Stage 3 Project'), including approximately 3 mtpa in operation and over 7 mtpa under construction. Substantial Completion was achieved for the first train of the CCL Stage 3 Project in March 2025, and substantial completion of Train 2 was achieved in August 2025. CCL Stage 3 Project Progress as of June 30, 2025: CCL Stage 3 Project Project Status Under Construction / Commissioning Project Completion Percentage 86.7% (1) Expected Substantial Completion 2H 2025 - 2H 2026 (1) Engineering 98.9% complete, procurement 99.8% complete, subcontract work 91.6% complete and construction 64.9% complete. CCL Midscale Trains 8 & 9 Project We are constructing an expansion adjacent to the CCL Stage 3 Project consisting of two additional midscale Trains with an expected total production capacity of approximately 5 mtpa of LNG (the 'CCL Midscale Trains 8 & 9 Project'), inclusive of estimated debottlenecking opportunities. In June 2025, our Board of Directors made a positive FID with respect to the CCL Midscale Trains 8 & 9 Project and debottlenecking, and full notice to proceed was issued to Bechtel effective June 18, 2025. CCL Stage 4 Expansion Project We are developing an expansion adjacent to the CCL Project with an expected total peak production capacity of up to approximately 24 mtpa of LNG, inclusive of estimated debottlenecking opportunities (the 'CCL Stage 4 Expansion Project'). In July 2025, certain of our subsidiaries initiated the pre-filing review process with the FERC with respect to the CCL Stage 4 Expansion Project. INVESTOR CONFERENCE CALL AND WEBCAST We will host a conference call to discuss our financial and operating results for the second quarter 2025 on Thursday, August 7, 2025, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at Following the call, an archived recording will be made available on our website. ________________ 1 Net income as used herein refers to Net income attributable to Cheniere Energy, Inc. on our Consolidated Statements of Operations. 2 Non-GAAP financial measure. See 'Reconciliation of Non-GAAP Measures' for further details. 3 Forecast as of June 24, 2025 and subject to change based upon, among other things, changes in commodity prices over time. About Cheniere Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with a total combined production capacity of approximately 49 mtpa of LNG in operation and an additional over 12 mtpa of expected production capacity under construction, inclusive of estimated debottlenecking opportunities. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, Dubai and Washington, D.C. For additional information, please refer to the Cheniere website at and Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. Use of Non-GAAP Financial Measures In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated. Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP and should be evaluated only on a supplementary basis. Forward-Looking Statements This press release contains certain statements that may include 'forward-looking statements' within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are 'forward-looking statements.' Included among 'forward-looking statements' are, among other things, (i) statements regarding Cheniere's financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere's capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements. (Financial Tables and Supplementary Information Follow) LNG VOLUME SUMMARY As of August 1, 2025, approximately 4,220 cumulative LNG cargoes totaling approximately 290 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects. During the three and six months ended June 30, 2025, we exported 550 and 1,159 TBtu, respectively, of LNG from our liquefaction projects. 32 TBtu of LNG exported from our liquefaction projects and sold on a delivered basis was in transit as of June 30, 2025, none of which was related to commissioning activities. The following table summarizes the volumes of LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and six months ended June 30, 2025: Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Volumes loaded during the current period 550 — 550 1,152 6 1,158 Volumes loaded during the prior period but recognized during the current period 32 1 33 39 — 39 Less: volumes loaded during the current period and in transit at the end of the period (32 ) — (32 ) (32 ) — (32 ) Total volumes recognized in the current period 550 1 551 1,159 6 1,165 In addition, during the three and six months ended June 30, 2025, we recognized 8 and 15 TBtu, respectively, of LNG on our Consolidated Financial Statements related to LNG cargoes sourced from third-parties. Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Revenues LNG revenues $ 4,515 $ 3,042 $ 9,820 $ 7,079 Regasification revenues 34 34 68 68 Other revenues 92 175 197 357 Total revenues 4,641 3,251 10,085 7,504 Operating costs and expenses Cost of sales (excluding operating and maintenance expense and depreciation, amortization and accretion expense shown separately below) (2) 1,117 784 4,688 3,020 Operating and maintenance expense 559 463 1,032 914 Selling, general and administrative expense 99 99 215 200 Depreciation, amortization and accretion expense 329 304 641 606 Other operating costs and expenses 7 13 18 22 Total operating costs and expenses 2,111 1,663 6,594 4,762 Income from operations 2,530 1,588 3,491 2,742 Other income (expense) Interest expense, net of capitalized interest (237 ) (257 ) (466 ) (523 ) Loss on modification or extinguishment of debt — (9 ) — (9 ) Interest and dividend income 31 47 68 108 Other income (expense), net (1 ) 3 19 2 Total other expense (207 ) (216 ) (379 ) (422 ) Income before income taxes and non-controlling interests 2,323 1,372 3,112 2,320 Less: income tax provision 426 210 547 319 Net income 1,897 1,162 2,565 2,001 Less: net income attributable to non-controlling interests 271 282 586 619 Net income attributable to Cheniere $ 1,626 $ 880 $ 1,979 $ 1,382 Net income per share attributable to common stockholders—basic (1) $ 7.32 $ 3.85 $ 8.87 $ 5.97 Net income per share attributable to common stockholders—diluted (1) $ 7.30 $ 3.84 $ 8.85 $ 5.96 Weighted average number of common shares outstanding—basic 221.8 228.4 222.6 231.3 Weighted average number of common shares outstanding—diluted 222.3 228.9 223.2 231.9 ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Cost of sales includes approximately $1.4 billion and $0.7 billion of gains from changes in the fair value of commodity derivatives prior to contractual delivery or termination during the three and six months ended June 30, 2025, respectively, as compared to $0.7 billion and $0.4 billion of gains in the corresponding 2024 periods, respectively. June 30, December 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 1,648 $ 2,638 Restricted cash and cash equivalents 369 552 Trade and other receivables, net of current expected credit losses 761 727 Inventory 482 501 Current derivative assets 147 155 Margin deposits 150 128 Other current assets, net 147 100 Total current assets 3,704 4,801 Property, plant and equipment, net of accumulated depreciation 34,829 33,552 Operating lease assets 2,776 2,684 Derivative assets 2,236 1,903 Deferred tax assets 18 19 Other non-current assets, net 1,015 899 Total assets $ 44,578 $ 43,858 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 161 $ 171 Accrued liabilities 1,492 2,179 Current debt, net of unamortized discount and debt issuance costs 609 351 Deferred revenue 145 163 Current operating lease liabilities 562 592 Current derivative liabilities 706 902 Other current liabilities 100 83 Total current liabilities 3,775 4,441 Long-term debt, net of unamortized discount and debt issuance costs 22,012 22,554 Operating lease liabilities 2,216 2,090 Derivative liabilities 1,621 1,865 Deferred tax liabilities 2,307 1,856 Other non-current liabilities 1,338 992 Total liabilities 33,269 33,798 Redeemable non-controlling interest 58 7 Stockholders' equity Preferred stock: $0.0001 par value, 5.0 million shares authorized, none issued — — Common stock: $0.003 par value, 480.0 million shares authorized; 279.2 million shares and 278.7 million shares issued at June 30, 2025 and December 31, 2024, respectively 1 1 Treasury stock: 57.7 million shares and 54.7 million shares at June 30, 2025 and December 31, 2024, respectively, at cost (6,798 ) (6,136 ) Additional paid-in-capital 4,483 4,452 Retained earnings 9,021 7,382 Total Cheniere stockholders' equity 6,707 5,699 Non-controlling interests 4,544 4,354 Total stockholders' equity 11,251 10,053 Total liabilities, redeemable non-controlling interest and stockholders' equity $ 44,578 $ 43,858 ________________ (1) Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission. (2) Amounts presented include balances held by our consolidated VIEs, substantially all of which are related to Cheniere Partners. As of June 30, 2025, total assets and liabilities of our VIEs, which are included in our Consolidated Balance Sheets, were $16.7 billion and $17.2 billion, respectively, including $108 million of cash and cash equivalents and $40 million of restricted cash and cash equivalents. Reconciliation of Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2025 and 2024 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to Cheniere $ 1,626 $ 880 $ 1,979 $ 1,382 Net income attributable to non-controlling interests 271 282 586 619 Income tax provision 426 210 547 319 Interest expense, net of capitalized interest 237 257 466 523 Loss on modification or extinguishment of debt — 9 — 9 Interest and dividend income (31 ) (47 ) (68 ) (108 ) Other expense (income), net 1 (3 ) (19 ) (2 ) Income from operations $ 2,530 $ 1,588 $ 3,491 $ 2,742 Adjustments to reconcile income from operations to Consolidated Adjusted EBITDA: Depreciation, amortization and accretion expense 329 304 641 606 Gain from changes in fair value of commodity and foreign exchange ('FX') derivatives, net (1) (1,479 ) (606 ) (917 ) (321 ) Total non-cash compensation expense 35 33 72 65 Other operating costs and expenses 1 3 1 3 Consolidated Adjusted EBITDA $ 1,416 $ 1,322 $ 3,288 $ 3,095 ________________ (1) Change in fair value of commodity and FX derivatives prior to contractual delivery or termination Consolidated Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies. We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of financial and operating performance. Consolidated Adjusted EBITDA is calculated by taking net income attributable to Cheniere before net income attributable to non-controlling interests, interest expense, net of capitalized interest, taxes, depreciation, amortization and accretion expense, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, changes in the fair value of our commodity and FX derivatives prior to contractual delivery or termination, and non-cash compensation expense. The change in fair value of commodity and FX derivatives is considered in determining Consolidated Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance. Consolidated Adjusted EBITDA and Distributable Cash Flow The following table reconciles our actual Consolidated Adjusted EBITDA and Distributable Cash Flow to Net income attributable to Cheniere for the three and six months ended June 30, 2025 and forecast amounts for full year 2025 (in billions): 2025 2025 2025 Net income attributable to Cheniere $ 1.63 $ 1.98 $ 3.1 - $ 3.4 Net income attributable to non-controlling interests 0.27 0.59 1.2 - 1.2 Income tax provision 0.43 0.55 0.9 - 1.0 Interest expense, net of capitalized interest 0.24 0.47 0.9 - 0.9 Depreciation, amortization and accretion expense 0.33 0.64 1.3 - 1.3 Other income, financing costs, and certain non-cash operating expenses (1.47 ) (0.93 ) (0.8 ) - (0.7 ) Consolidated Adjusted EBITDA $ 1.42 $ 3.29 $ 6.6 - $ 7.0 Interest expense, net of interest income, capitalized interest and amortization (0.19 ) (0.35 ) (0.8 ) - (0.8 ) Maintenance capital expenditures (0.06 ) (0.09 ) (0.2 ) - (0.2 ) Income tax (excludes deferred taxes) (1) (0.02 ) (0.11 ) (0.1 ) - 0.0 Other income (expense) (0.02 ) (0.06 ) (0.1 ) - (0.1 ) Consolidated Distributable Cash Flow $ 1.13 $ 2.68 $ 5.4 - $ 6.0 Distributable Cash Flow attributable to non-controlling interests (0.20 ) (0.48 ) (1.0 ) - (1.2 ) Cheniere Distributable Cash Flow $ 0.92 $ 2.19 $ 4.4 - $ 4.8 ________________ Note: Totals may not sum due to rounding. (1) Our cash tax payments are subject to commodity and market volatility, regulatory changes and other factors which could significantly impact both the timing and amount of our future cash tax payments. Our 2025 full year Distributable Cash Flow guidance reflects current tax law and does not consider any prospective changes to local, domestic or international tax laws and regulations, or their interpretation and application. Our actual results could differ materially from our guidance due to such risks, uncertainties and other factors, including those set forth in Risk Factors or as disclosed under Operating Cash Flows in Sources and Uses of Cash within Liquidity and Capital Resources of the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarters ended March 31, 2025 and June 30, 2025 and Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission. Distributable Cash Flow is defined as cash generated from the operations of Cheniere and its subsidiaries and adjusted for non-controlling interests. The Distributable Cash Flow of Cheniere's subsidiaries is calculated by taking the subsidiaries' EBITDA less interest expense, net of capitalized interest, taxes, maintenance capital expenditures and other non-operating income or expense items, and adjusting for the effect of certain non-cash items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, amortization of debt issue costs, premiums or discounts, impairment of equity method investment and deferred taxes. Cheniere's Distributable Cash Flow includes 100% of the Distributable Cash Flow of Cheniere's wholly-owned subsidiaries. For subsidiaries with non-controlling investors, our share of Distributable Cash Flow is calculated as the Distributable Cash Flow of the subsidiary reduced by the economic interest of the non-controlling investors as if 100% of the Distributable Cash Flow were distributed in order to reflect our ownership interests and our incentive distribution rights, if applicable. The Distributable Cash Flow attributable to non-controlling interests is calculated in the same method as Distributions to non-controlling interests as presented on our Consolidated Statements of Stockholders' Equity (Deficit) in our Forms 10-Q and Forms 10-K filed with the Securities and Exchange Commission. This amount may differ from the actual distributions paid to non-controlling investors by the subsidiary for a particular period. We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be considered for deployment by our Board of Directors pursuant to our capital allocation plan, such as by way of common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures 1. Distributable Cash Flow is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
Yahoo
4 days ago
- Business
- Yahoo
Core Natural Resources Inc (CNR) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Core Natural Resources Inc (NYSE:CNR) generated significant cash flow with adjusted EBITDA of $144 million and free cash flow of $131 million despite a challenging market environment. The company increased its merger-related annual synergy target to a range of $150 to $170 million, which is approximately 30% higher at the midpoint than the original guidance. CNR returned $87 million to investors through share buybacks and a quarterly dividend, demonstrating a strong commitment to shareholder returns. The company increased its cash and cash equivalents by $25 million and overall liquidity by $90 million, enhancing its financial stability. CNR's Powder River Basin segment delivered strong performance, with increased demand from power generators ahead of the summer season. Negative Points CNR reported a net loss of $37 million or $0.70 per diluted share for the second quarter. The company faced challenges with the Lear South mine, including a combustion event that required sealing and delayed production restart. Global coking coal markets remain soft, pressured by sluggish steel production in key regions such as Europe and China. The metallurgical segment experienced increased cash costs due to the delayed restart of the Longwall at Lear South and reduced production at the Iman mine. Export markets, particularly in the metallurgical segment, remain challenged due to ongoing global trade headwinds. Q & A Highlights Warning! GuruFocus has detected 5 Warning Sign with CNR. Q: Why was the buyback not larger given the weak share price and positive outlook? A: Natas, CFO, explained that while the guidance was to return approximately 75% of free cash flow to shareholders, they have actually returned over 100% in the first half of the year. The company monitors market conditions and deploys cash accordingly, with some quarters seeing higher returns than others. Q: How should the $100 million insurance recovery for Lear South be considered in terms of capital returns? A: Natas, CFO, stated that these funds, similar to working capital, are available for all corporate purposes, including the capital return program, as the company sees significant value in its stock. Q: What is the confidence level in Lear South returning to normal production levels? A: Paul, CEO, expressed high confidence in resuming operations, with plans to recover longwall equipment in early fall and move it to a new face. The expectation is to be up and running relatively quickly, particularly heading into Q1. Q: What are the expectations for domestic contracting season on the Met side? A: Bob, SVP of Marketing and Sales, mentioned constructive negotiations are ongoing, with expectations that cost structures will prevent significant price decreases. The company plans to participate more in the domestic market. Q: Can you provide more color on the PRB segment's contracting outlook? A: Bob, SVP of Marketing and Sales, noted increased demand, with 33 million tons contracted for next year at an average price in the mid-14s, and a strong appetite for future contracts in both the PRB and high CV segments. Q: Have you conducted any studies on rare earth potential at your mines? A: Paul, CEO, confirmed ongoing drilling and analysis of rare earth potential, similar to peers in the Powder River Basin, and expressed interest in pursuing this further. Q: Can you provide more details on the insurance claims for Lear South and the Baltimore Bridge? A: Natas, CFO, explained that initial claims for expenses have been submitted, with hopes for resolution by year-end. The business interruption claim for Lear South is expected in 2026, with total recovery potentially exceeding $100 million. Q: How should we think about working capital in the second half of the year? A: Natas, CFO, indicated some reversal of working capital is expected, particularly from inventory reduction, but not to the same magnitude as seen in Q2. Q: What are your thoughts on the Union Pacific and Norfolk Southern merger? A: Paul, CEO, acknowledged potential benefits like improved access to East Coast terminals and blending opportunities, but emphasized the need for cost savings to be shared with shippers and for service levels to remain high. Q: How are recent trade tensions with India affecting your business? A: Paul, CEO, and Natas, CFO, noted the importance of India as a trading partner and expressed hope for resolution. They highlighted the flexibility of their product and logistics to adapt to changing trade dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Bursa Malaysia Berhad's (KLSE:BURSA) Dividend Will Be Reduced To MYR0.14
Bursa Malaysia Berhad (KLSE:BURSA) has announced that on 27th of August, it will be paying a dividend ofMYR0.14, which a reduction from last year's comparable dividend. However, the dividend yield of 4.7% is still a decent boost to shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Estimates Indicate Bursa Malaysia Berhad's Could Struggle to Maintain Dividend Payments In The Future A big dividend yield for a few years doesn't mean much if it can't be sustained. Before making this announcement, Bursa Malaysia Berhad was paying out quite a large proportion of both earnings and cash flow, with the dividend being 126% of cash flows. Paying out such a high proportion of cash flows can expose the business to needing to cut the dividend if the business runs into some challenges. The next 12 months is set to see EPS grow by 5.1%. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio reaching 115% over the next year. See our latest analysis for Bursa Malaysia Berhad Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of MYR0.347 in 2015 to the most recent total annual payment of MYR0.36. Dividend payments have grown at less than 1% a year over this period. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited. Bursa Malaysia Berhad May Find It Hard To Grow The Dividend Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Earnings per share has been crawling upwards at 2.8% per year. There are exceptions, but limited earnings growth and a high payout ratio can signal that a company has reached maturity. That's fine as far as it goes, but we're less enthusiastic as this often signals that the dividend is likely to grow slower in the future. Bursa Malaysia Berhad's Dividend Doesn't Look Sustainable Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. The payments are bit high to be considered sustainable, and the track record isn't the best. We don't think Bursa Malaysia Berhad is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 2 warning signs for Bursa Malaysia Berhad that investors should take into consideration. Is Bursa Malaysia Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
