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Cheniere shares drop on weak guidance

EditorRachael Rajan
Published 02/22/2024, 10:15 AM
© Reuters.
LNG
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HOUSTON - Cheniere Energy, Inc. (NYSE:LNG) reported a significant beat on its fourth-quarter earnings per share (EPS), with $5.76 compared to the analyst consensus of $2.69. Despite this strong performance, the company's stock fell by 2.7% due to guidance for the full year 2024 that came in below expectations. The company's reported revenue for the quarter was $4.82 billion, surpassing the consensus estimate of $4.5 billion.

Cheniere's fourth-quarter revenue showed a decline of 47% from the same quarter last year, which had a revenue of $9.08 billion. Net income also dropped sharply by 65% to $1.4 billion compared to the previous year's $3.9 billion. The company's Consolidated Adjusted EBITDA decreased by 47% to $1.65 billion from $3.1 billion in the same quarter of the previous year. These declines were primarily due to decreased total margins per MMBtu of LNG delivered, driven by lower international gas prices and a higher proportion of volumes sold under long-term contracts.

Looking ahead, Cheniere provided full-year 2024 financial guidance, anticipating Consolidated Adjusted EBITDA to be between $5.5 billion and $6.0 billion. This guidance falls short of analysts' expectations of $6.21 billion. The company's CEO, Jack Fusco, expressed confidence in the company's ability to perform at a high level across all facets of the business, citing Cheniere's track record on project execution, operational excellence, and commercial reliability.

Cheniere Energy's financial results are reported on a consolidated basis, with the company owning 100% of the general partner and a 48.6% limited partner interest in Cheniere Partners as of December 31, 2023. The company said it continues to pursue expansion opportunities and other projects along the LNG value chain, maintaining its position as a leading producer and exporter of LNG in the United States.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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