Cheniere Energy, Inc. Q4 FY2024 earnings call

• Jack Fusco: 2024 results excellent across strategic priorities, safety-first culture, operational excellence, etc. 2024 LNG production record, 45 million tons, over 10% global supply. Successfully completed turnarounds at Sabine Pass and Corpus Christi, top quintile safety performance. 2025 guidance introduced, Corpus Christi stage three progress, working on Corpus Christi trains eight and nine nearing final regulatory approvals, engaging with new administration on permitting. - Anatol Feygin: Russia-Ukraine conflict impact on global energy markets, 2024 LNG market tightness, Europe's LNG imports decline, Asia's LNG import growth, China's LNG import growth and gas demand growth. Global gas market flexibility provided by LNG trade. - Zach Davis: 2024 and fourth quarter financial results, execution on 2020 vision capital allocation plan, share repurchases, dividend increases, debt repayments, CapEx spend on stage three and future growth, 2025 guidance based on LNG production forecast, stage three progress, forward selling of uncontracted volumes, impact of stage three on optimization and earnings variability.

In 2024, Cheniere generated consolidated adjusted EBITDA of $6.155 billion, distributable cash flow of $3.73 billion, and net income of $3.3 billion. Produced a record 45 million tons of LNG in 2024, over 10% of global LNG supply. Fourth quarter consolidated adjusted EBITDA was $1.6 billion, distributable cash flow $1.1 billion, net income $1 billion. 2025 guidance: consolidated adjusted EBITDA $6.5 - $7 billion, distributable cash flow $4.1 - $4.6 billion, CQP distributions $3.25 - $3.35 per unit. Corpus Christi stage three project progress: 77.2% complete at year-end, first LNG in December, first full cargo produced this week, targeting first three trains to ramp up by year-end 2025 and all seven by end 2026.

• 2025 consolidated adjusted EBITDA guidance $6.5 - $7 billion, distributable cash flow $4.1 - $4.6 billion, CQP distributions $3.25 - $3.35 per unit. - 2024 was trough year for EBITDA and DCF, 2025 expected growth as Corpus Christi stage three enters operations. - Forecast 47 - 48 million tons of LNG production in 2025, forward sold ~1.5 - 2 million tons of unsold capacity, ~3 - 4 million tons of spot capacity, CI team locked in almost 2 million tons of spot capacity at attractive netbacks. - Impact of $1 market margin change on EBITDA ~$75 - $100 million full year. - Stage three trains coming online timing and ramp-up impact earnings variability. - DCF could be affected by tax code changes, but immaterial on NPV basis and not impacting ability to generate over $20 billion available cash through 2026.

• Market volatility: commodity-driven market with potential for volatility from events like geopolitical conflicts, weather, etc. - Permitting and regulatory risks: while engaged with new administration, still potential uncertainties in permitting and regulatory regime. - Operational risks: timing and ramp-up of Corpus Christi stage three trains could impact earnings variability. - Tax code changes: potential impact on DCF, although immaterial on NPV basis but could affect timing and amount of cash tax payments.

• Q: Geopolitical developments related to Russia and Ukraine, impact on US LNG commercial discussions.

A: Jack and Anatol: hope for world peace, highly contracted business model, energy security and diversity importance, US energy dominance focus, repeat engagements with Asia customers. - Q: Trump administration targeting trade deficits, impact on US LNG commercial development in Asia.

A: Jack: similar to 2017, expect Trump to help grow business. Anatol: US not government-to-government transactions, but governments important, repeat engagements with Asia customers, tailwinds. - Q: Early days of Trump administration on regulatory and permitting backdrop, impact on new capacity and contracting.

A: Jack: refreshing, strong communications, regulatory certainty important. - Q: Guidance volume sensitivity, stage three volumes in EBITDA.

A: Zach: 2025 LNG production forecast 47 - 48 million tons, based on first nine trains and stage three, toggle between one to two million tons of P&L operational production based on stage three train ramp-up. - Q: Optimization, pricing for long-term SPAs, cost pressures.

A: Zach: optimization from various sources, already locked in over $100 million, keen to lock in more. Anatol: competitive market, US projects at or above $2 - $2.50 range, leverage reliability and operational performance, brownfield advantages. - Q: Macro on Russian gas return, LNG supply, impact on prices and demand.

A: Anatol: yearn for peace, market dictates economics, market needs more LNG, Europe's LNG needs, inventories still low. - Q: Capital allocation, balancing buyback and growth.

A: Zach: strong cash flow and operation maturity, planned CapEx, continue buybacks, dividend growth, debt paydown, plan to fund CapEx and buyback with cash and term loan. - Q: Corpus Christi enterprise platform, permitting, location capacity.

A: Jack: acquired property contiguous to Corpus Christi site, potential for additional LNG production, over 90 million tons enterprise platform. - Q: Corpus stage three ramp-up, learnings, Sabine Pass expansion contracting.

A: Jack: stage three ramp-up gone well, train one near operational, train two progressing. Anatol: comfortable with SPL expansion contracting, phase expansion to make math work