Cheniere Energy Reports Revenue Decline to $15.7 Billion for Fiscal Year 2024

Cheniere Energy, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenues of $15.7 billion, down from $20.4 billion in 2023. The company's LNG revenues specifically fell to $14.9 billion from $19.6 billion, reflecting a decrease of $4.7 billion year-over-year. This decline was primarily attributed to a $3.8 billion drop in revenues from short-term agreements and a $676 million decrease linked to lower Henry Hub pricing, which is a key index for many of Cheniere's long-term contracts. Net income attributable to Cheniere also decreased significantly, falling to $3.3 billion from $9.9 billion in the previous year, resulting in a net income per share of $14.24, compared to $40.99 in 2023.

Operationally, Cheniere continued to load and export LNG at a steady pace, with 2,327 TBtu loaded during 2024, slightly up from 2,299 TBtu in 2023. The company has maintained a strong portfolio of long-term contracts, with approximately 95% of its anticipated production contracted through mid-2030s. As of December 31, 2024, Cheniere had 29 long-term sales and purchase agreements (SPAs) with various customers, ensuring stable cash flows despite the fluctuations in spot market prices. The company also reported a total of 3,930 cumulative LNG cargoes produced and exported from its liquefaction projects.

Strategically, Cheniere has made significant moves to enhance its market position. In July 2024, it entered into a long-term SPA with Galp Trading S.A. for the sale of approximately 0.5 million tonnes per annum (mtpa) of LNG over 20 years, with deliveries expected to commence in the early 2030s. Additionally, the company received a positive Environmental Assessment from the Federal Energy Regulatory Commission (FERC) for its Corpus Christi Midscale Trains 8 & 9 Project, with expectations to secure all necessary regulatory approvals by 2025. Cheniere's capital allocation plan was also updated in June 2024, which included a $4 billion increase in share repurchase authorization and a 15% increase in quarterly dividends.

Cheniere's liquidity position remains strong, with total available liquidity of approximately $10.9 billion as of December 31, 2024. The company repurchased approximately 13.8 million shares for $2.3 billion during the year, reflecting its commitment to returning value to shareholders. The company also reduced its long-term debt by $800 million, aligning with its goal to lower long-term leverage. Looking ahead, Cheniere anticipates continued growth driven by global demand for LNG, supported by its long-term contracts and ongoing expansion projects. The company expects to generate significant future liquidity from its existing SPAs and integrated marketing function, which will help mitigate the impact of market volatility on its operations.