Key Takeaways from Cheniere Energy’s Q1 Results

Cheniere Energy beat first-quarter estimates

Cheniere Energy (LNG), a leading LNG (liquified natural gas) exporter, reported its first-quarter earnings results on May 9. It posted adjusted EBITDA of $650.0 million, beating analysts’ consensus estimate for the quarter. In the same quarter last year, it reported adjusted EBITDA of $907.0 million.

Cheniere Energy’s earnings fell mainly due to higher operating and maintenance costs at its Sabine Pass Liquefaction project. The company reported a distributable cash flow of ~$200.0 million in the first quarter of 2019.

Key Takeaways from Cheniere Energy’s Q1 Results

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Cheniere Energy Partners (CQP), Cheniere Energy’s MLP subsidiary, reported adjusted EBITDA of $607.0 million in the first quarter of 2019, a fall of almost 8% YoY (year-over-year). It sees its full-year distribution being $2.35–$2.55 per unit in 2019. Cheniere Partners reported total revenue of $1.75 billion in the first quarter of 2019 compared to its fall of $1.59 billion in the first quarter of 2018.

Earnings highlights

Cheniere Energy reported total revenue of $2.26 billion in the first quarter of 2019 compared to $2.24 billion in the same period last year. Its number of LNG cargo exports increased to 87 in the first quarter, up from 67 in the first quarter of 2018. Its LNG volumes exported increased from 244 TBtu (trillion British thermal units) in the first quarter of 2018 to 310 TBtu in the first quarter of 2019. In the first quarter, Cheniere Energy placed its Sabine Pass Train 5 and its Corpus Christi Train 1 into service.

The company’s management has given it an adjusted EBITDA guidance range of $2.90 billion–$3.20 billion for 2019, which implies an increase of more than 15% YoY. It expects a distributable cash flow of $600.0 million–$800.0 million in 2019.