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Cheniere Energy Reports Strong Third-Quarter Growth

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Cheniere Energy’s third-quarter earnings

Cheniere Energy (LNG), the leading liquified natural gas producer, reported its third-quarter earnings on November 8. The company reported an adjusted EBITDA of $569 million for the quarter ending on September 30—an increase from $442 million in the same quarter last year. The higher earnings were mainly driven by a higher number of liquefied natural gas cargoes exported from the Sabine Pass Liquefaction project.

After delivering a strong performance in the third quarter, Cheniere Energy’s management raised its adjusted EBITDA guidance to $2.45 billion–$2.55 billion for 2018, which implies an increase of 44% year-over-year. The distributable cash flow is expected to be $500 million–$600 million for 2018.

LNG stk

Cheniere Energy stock has been solid in 2018. Despite the recent weakness, the stock has risen more than 12% in 2018. The Global X MLP and Energy Infrastructure ETF (MLPX) has fallen ~8%. Cheniere Energy accounts for ~8.3% of MLPX.

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Earnings highlights

Cheniere Energy posted total revenues of $1.82 billion for the quarter ending on September 30—an increase of 30% YoY. During the third quarter, Cheniere Energy exported 65 liquefied natural gas cargoes from its Sabine Pass Liquefaction project. The company exported 44 liquefied natural gas cargoes in the third quarter of 2017 and 61 liquefied natural gas cargoes in the second quarter, respectively. The liquefied natural gas export cargo is an important metric in regards to the company’s operational performance. Cheniere Energy’s liquefied natural gas volumes loaded during the third quarter increased to 228 TBtu (trillion British thermal units) compared to 162 TBtu in the third quarter of 2017.

Cheniere Energy announced an agreement with Poland’s state-owned PGNiG to supply liquefied natural gas for 24 years starting in 2019. In September, Cheniere Energy signed a 15-year agreement to supply 0.7 million tonnes of liquified natural gas per year to Vitol Group—an energy trading company.

Midstream energy company Energy Transfer (ET) also released its third-quarter earnings on November 8. To learn more, read Energy Transfer Continued Its Strong Performance in Q3 2018.

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