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Cheniere Energy’s Expected Growth in 2018

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Cheniere Energy’s 2017 and 2018 guidance

Cheniere Energy (LNG) increased its 2017 EBITDA[1. earnings before interest, tax, depreciation, and amortization] and distributable cash flow guidance during the 3Q17 earnings release.

Cheniere Energy expects its adjusted EBITDA and distributable cash flow to lie between $1.8 billion–$1.9 billion and $0.6 billion–$0.7 billion in 2017, respectively. At the midpoint, this represents an 8.8% and 8.3% increase, respectively, compared to the previous guidance.

Cheniere Energy (LNG) also announced its financial guidance for 2018. It expects its 2018 adjusted EBITDA and distributable cash flow to lie between $1.9 billion–$2.1 billion and $0.2 billion–$0.4 billion, respectively.

The company’s EBITDA growth in 2018 is expected to come from an increase in contracted sales with four trains online. This could be slightly offset by an expected decline in marketing margins. The expected decline in distributable cash flow is due to the rise in its minority share.

We’ll look into Cheniere Energy’s balance sheet position in the next article.

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