What Could Drive Cheniere Energy’s 4Q16 Revenue Growth



Cheniere Energy’s 4Q16 revenue estimates

Cheniere Energy (LNG) and its MLP subsidiaries, Cheniere Energy Partners (CQP) and Cheniere Energy Partners Holdings (CQH), are scheduled to release their 4Q16 earnings on February 28, 2017.

In this series, we’ll talk about Cheniere Energy’s 4Q16 estimates, key performance indicators, and analysts’ recommendations. Let’s start with analysts’ revenue estimates.

Wall Street analysts’ 4Q16 consensus revenue estimate for Cheniere Energy is $590.5 million. Cheniere Energy’s 4Q16 estimate is 762.9% higher than its revenue in 4Q15 and 26.8% more than its revenue in 3Q16. The estimate includes the impact of plant shutdown for maintenance work during 4Q16. The year-over-year rise in Cheniere Energy’s 4Q16 revenue is expected to be driven by the commencement of LNG (liquefied natural gas) export from Train 1 and Train 2 at Sabine Pass and strong LNG demand from Asian markets during 4Q16.

Cheniere Energy beat its revenue estimate by a huge margin in the previous quarter. In 3Q16, the revenue estimate for LNG was $233.3 million, while it reported revenue of $465.7 million—an ~100.0% beat.

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Cheniere Energy’s 4Q16 EBITDA

Cheniere Energy’s EBITDA (earnings before interest, tax, depreciation, and amortization) turned positive in 3Q16 after a long time. It reported EBITDA of $19.4 million in 3Q16—compared to -$138.0 million in the same quarter last year. The trend is expected to continue in 4Q16 due to strong LNG volume growth.

Cheniere Energy is expected to build seven train platforms including five at Sabine Pass and two at Corpus Christi. Cheniere Energy expects the substantial completion of Train 3 in June 2017.


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