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1. Company Snapshot

1.a. Company Description

Cheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States.It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas.The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines.


It is also involved in the LNG and natural gas marketing business.The company was incorporated in 1983 and is headquartered in Houston, Texas.

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1.b. Last Insights on LNG

Cheniere Energy's recent performance was negatively driven by rising expenses, a weak earnings outlook, and global trade uncertainties. The company's struggles with increasing costs and declining profitability metrics, as seen in Venture Global's "Hold" rating, offset the strong LNG market growth. Additionally, Golar LNG's Q2 earnings miss and revenue beat, while improving, did not fully offset the company's expenses and global trade uncertainties. Furthermore, Cheniere Energy's debt and aggressive growth assumptions leave little room for execution missteps, adding to the company's challenges.

1.c. Company Highlights

2. Cheniere Energy's Strong Q3 2025 Earnings Beat Expectations

Cheniere Energy reported a robust third quarter 2025, with net income of $1.05 billion, consolidated adjusted EBITDA of $1.6 billion, and distributable cash flow of $1.6 billion. Earnings per share (EPS) came in at $4.75, significantly beating estimates of $2.91. The company's financial performance was driven by its operational excellence and growth strategy, with progress on the Corpus Christi Stage 3 expansion and plans for the Sabine Pass expansion. The results demonstrate the company's ability to deliver strong cash flow and navigate the challenging geopolitical environment.

Publication Date: Nov -01

📋 Highlights
  • Financial Performance:: Q3 2025 reported $1.6 billion consolidated adjusted EBITDA, $1.6 billion distributable cash flow, and $1 billion net income, with full-year EBITDA guidance reaffirmed at $6.6–$7 billion.
  • Share Repurchase:: Cheniere repurchased 4.4 million shares for $1 billion, reflecting confidence in capital allocation and shareholder value.
  • LNG Market Dynamics:: European imports grew year-on-year, while Asian imports fell 4% due to soft demand, but Asian LNG infrastructure growth supports long-term adoption, with 35 million tonnes of new liquefaction capacity expected annually from 2025–2030.
  • Expansion Plans:: Corpus Christi Stage 3 progress and Sabine Pass engineering plans advance, with 2026 production guidance of 51–53 million tonnes LNG, up 5 million tonnes from 2025.

Financial Highlights

The company's consolidated adjusted EBITDA and distributable cash flow were both $1.6 billion, indicating a strong cash generation capability. Cheniere reconfirmed its full-year 2025 guidance range of $6.6 billion to $7 billion in consolidated adjusted EBITDA and raised its distributable cash flow guidance range to $4.8 billion to $5.2 billion. The company's financial performance was also supported by its share repurchase program, with approximately 4.4 million shares bought back for $1 billion.

LNG Market Dynamics

Anatol Feygin, Executive Vice President and Chief Commercial Officer, noted that global LNG demand in the third quarter was driven by European imports, while Asian demand remained subdued. The company expects spot LNG prices to moderate as global balances loosen and additional liquefaction capacity comes online. Cheniere's highly contracted business model insulates it from market volatility, providing customers with destination flexible volumes to navigate an evolving global LNG market.

Outlook and Valuation

Cheniere expects to produce approximately 51 million to 53 million tonnes of LNG in total across its two sites in 2026, up approximately 5 million tonnes year-over-year. The company's guidance for 2026 EBITDA is supported by its forecast of approximately 50 million to 52 million tonnes of volume after commissioning and in-transit timing year-to-year. With a current P/E Ratio of 11.61 and an EV/EBITDA ratio of 5.46, the company's valuation appears reasonable, considering its strong financial performance and growth prospects. Analysts estimate next year's revenue growth at 12.8%, indicating a positive outlook for the company.

Growth Strategy

Jack Fusco, Cheniere's President and CEO, emphasized the company's disciplined approach to sanctioning new liquefaction capacity under long-term contracts. The company plans to permit 20-plus million tonnes at both Sabine and Corpus, but the intention is not to FID in the near term. Cheniere's growth strategy is focused on delivering long-term value to its shareholders while maintaining a strong financial position.

3. NewsRoom

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Eni Launches Congo LNG Phase 2 as FLNG Nguya Arrives Offshore Congo

Dec -04

Source: zacks.com

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Glenfarne finalizes 20-year LNG supply deal with South Korea's POSCO

Dec -04

Source: reuters.com

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TotalEnergies Says Mozambique LNG Partners Will Cover Cash Shortfall After U.K., Dutch Pullout

Dec -02

Source: wsj.com

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Mozambique LNG : Clarification by TotalEnergies on Financing of the Project

Dec -02

Source: businesswire.com

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TotalEnergies says Mozambique LNG partners to provide additional equity

Dec -02

Source: reuters.com

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TotalEnergies, Tree Energy, Japanese firms to jointly develop synthetic LNG in US

Dec -02

Source: reuters.com

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Britain withdraws $1.15 billion backing from TotalEnergies-led Mozambique LNG

Dec -01

Source: reuters.com

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PGIM Jennison Energy Infrastructure Fund Q3 2025 Contributors And Detractors

Nov -30

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Oil & Gas - Integrated

Expected Growth: 9.5%

The global demand for LNG is expected to increase, driven by the transition to cleaner energy sources. Cheniere Energy's integrated business model and expertise in LNG operations position it well to capitalize on this trend. However, the growth rate is slightly lower than the global average due to potential competition and market volatility. The company's strong market position and operational capabilities are expected to drive revenue growth, albeit at a slightly conservative rate.

7. Detailed Products

LNG

Cheniere Energy, Inc. is a leading producer of liquefied natural gas (LNG), which is a cleaner-burning fuel used to generate electricity, power industrial processes, and fuel transportation.

Natural Gas

Cheniere Energy, Inc. also produces and sells natural gas, which is used to generate electricity, power industrial processes, and fuel homes and businesses.

Pipeline Transportation Services

Cheniere Energy, Inc. provides pipeline transportation services to transport natural gas and LNG to customers.

Terminaling and Storage Services

Cheniere Energy, Inc. offers terminaling and storage services for LNG and natural gas, providing customers with access to storage and loading/unloading facilities.

Marine Services

Cheniere Energy, Inc. provides marine services, including LNG vessel loading and unloading, to support the transportation of LNG.

8. Cheniere Energy, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Cheniere Energy, Inc. is medium due to the availability of alternative energy sources such as solar and wind power. However, the high cost of switching to these alternatives and the lack of infrastructure to support widespread adoption mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for Cheniere Energy, Inc. is low due to the company's position as a leading LNG exporter. The company's customers, primarily utilities and energy companies, have limited bargaining power due to the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Cheniere Energy, Inc. is medium due to the company's dependence on a few key suppliers for natural gas and other inputs. However, the company's scale and diversification of suppliers mitigate this risk.

Threat Of New Entrants

The threat of new entrants for Cheniere Energy, Inc. is low due to the high barriers to entry in the LNG export market. The company's significant investments in infrastructure and its position as a first-mover in the US LNG export market make it difficult for new entrants to compete.

Intensity Of Rivalry

The intensity of rivalry for Cheniere Energy, Inc. is high due to the competitive nature of the LNG export market. The company faces competition from other LNG exporters, including those in Qatar, Australia, and Russia, which puts downward pressure on prices and margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 84.11%
Debt Cost 5.15%
Equity Weight 15.89%
Equity Cost 8.72%
WACC 5.72%
Leverage 529.45%

11. Quality Control: Cheniere Energy, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 5.0

Quality: 4.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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A-Score: 6.2/10

Value: 4.8

Growth: 8.8

Quality: 6.2

Yield: 1.0

Momentum: 8.5

Volatility: 8.0

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Yield: 10.0

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A-Score: 5.0/10

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Quality: 4.7

Yield: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

205.69$

Current Price

205.69$

Potential

-0.00%

Expected Cash-Flows