Cheniere Energy, Inc. Liquefied petroleum gas reported second-quarter FY24 revenue of $3.251 billion, down 21% year-over-year and below consensus of $3.518 billion.

Adjusted EBITDA decreased 29% year-over-year to $1.32 billion, primarily due to lower international gas prices and a higher proportion of LNG sold under long-term contracts, resulting in lower margins per MMBtu of LNG delivered.

The Company exported 553 TBtu of LNG during the quarter. At the end of June, 30 TBtu of LNG was in transit and sold on a delivery basis, independent of commissioning activities.

As of August 2, the Company has produced, loaded and exported approximately 3,570 LNG cargoes, totaling over 245 million tonnes from our liquefaction projects. Earnings per share of $3.84 exceeded consensus of $1.69 for the quarter.

Distributable cash flow was approximately $0.7 billion for the quarter. Cheniere repurchased over 3.1 million shares for approximately $496 million, repaid $150 million in debt, and paid quarterly dividends of $0.435 per share.

In July 2024, Cheniere Marketing signed a long-term liquefied natural gas (LNG) purchase and sale agreement with Galp Trading. Under this agreement, Galp will purchase approximately 0.5 million tonnes of LNG per year (free-on-board basis) starting in the early 2030s, subject to a positive final investment decision for the second train of the SPL expansion project.

Jack Fusco, President and CEO of Cheniere, said, “Our strong financial and operating results year to date, as well as our constructive outlook for the remainder of the year, have enabled us to raise our guidance ranges for consolidated adjusted EBITDA and distributable cash flow for the full year 2024.”

“For the remainder of the year, we are focused on executing our recently updated capital allocation plan and maintaining our track record of operational excellence and safety, while driving future growth on our leading infrastructure platform to reliably meet the energy needs of our customers around the world.”

As of June 30, cash and cash equivalents were $2.9 billion. In June 2024, Cheniere announced a second quarter dividend of $0.435 per share, payable on August 16, 2024.

outlook: Cheniere Energy raised its FY24 adjusted EBITDA guidance to $6.0 billion from $5.5 billion ($5.7 billion to $6.1 billion) and distributable cash flow guidance to $3.1 billion to $3.5 billion from $2.9 billion to $3.4 billion.

In June 2024, Cheniere updated its long-term capital allocation plan, “20/20 Vision,” and increased its share repurchase authorization by $4 billion through 2027.

The Company also plans to increase its quarterly dividend by approximately 15% to $2.00 per share annually beginning in the third quarter of 2024, subject to a declaration by the Board of Directors.

Investors can participate in the share via Listed Funds Trust Roundhill Alerian LNG ETF LNGG And Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF LNG.

Price promotion: LNG shares rose 0.43% to $178.42 at last check Thursday.

Photo via Shutterstock

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

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