Venture Global, Inc. Q1 FY2025 earnings call

• Calcasieu Pass achieved COD on April 15, 2025, with a total recordable incident rate (TRIR) of 0.10, far outperforming the national industry average.
• Plaquemines exported 29 commissioning cargoes, with 22 liquefaction trains activated, operating at 140% of nameplate capacity, expects all 36 trains by end of May, and has a TRIR of 0.21.
• CP2 received non-FTA export authorization, upsized its SPA to 9.75 MTPA, secured a $3 billion bank loan facility, and FERC recommended approval of the project.
• Contracted 45 more cargoes in 2025 since the prior report, with 60% of Q2-Q4 2025 production already contracted.

Venture Global generated $2.9 billion in revenue, $1.1 billion in income from operations, and $1.3 billion in consolidated adjusted EBITDA in the first quarter of 2025, representing increases of 105%, 75%, and 94% respectively compared to Q1 2024. Calcasieu Pass exported 34 commissioning cargoes and achieved commercial operation date (COD) on April 15, 2025. Plaquemines exported 29 commissioning cargoes with 22 liquefaction trains activated, operating at approximately 140% of nameplate capacity. CP2 received non-FTA export authorization, upsized its SPA with New Fortress Energy, and FERC issued a final supplemental environmental impact statement recommending approval of the project.

• Revised consolidated adjusted EBITDA range for 2025 to $6.4 billion to $6.8 billion, reflecting fixed liquefaction fees of $6 to $7 per MMBtu for remaining cargoes in 2025.
• Sensitivity to market prices reduced due to contracting in Q1, with consolidated adjusted EBITDA range adjusting by $460 million to $480 million per $1 change in MMBtu.
• Forecast assumes approximately $300 million of Q2 through Q4 expensed development spending related to regulatory and engineering design.

• Exposure to US tariffs on raw materials and fabricated modules, though Calcasieu Pass and Plaquemines are not materially exposed.
• Foreign retaliatory tariffs on LNG imports could pressure demand for U.S.-produced LNG.

Q: John McKay from Goldman Sachs asked about selling more cargoes and longer-term SPAs.

A: Michael Sabel stated there is strong market demand, the company is active in long-term contract negotiations, and expects more 20-year deals.

Q: Jeremy Tonet from JPMorgan asked about CP2 contracting, competition, and Plaquemines ramp.

A: Michael Sabel said there is increased appetite for 20-year contracts, the company has a strong ability to win contracts, and Plaquemines' ramp is constrained by power.

Q: Jean Ann Salisbury from Bank of America asked about Plaquemines ramp limiter and CP2 permits.

A: Michael Sabel replied that power is the limiter at Plaquemines and FERC approval is not a constraint for CP2 contracts.

Q: Elvira Scotto from RBC Capital Markets asked about CP2 costs and competition.

A: Michael Sabel said the company is in a strong position on CP2 costs due to off-site manufacturing and has competitive pricing due to execution advantages.

Q: Brandon Bingham from Scotiabank asked about Lower 48 production and CP2 timing.

A: Michael Sabel said there is a good gas supply position and CP2 timing is accelerated due to the modular approach and lessons learned.

Q: Chris Robertson from Deutsche Bank asked about contract customers and Plaquemines production.

A: Jonathan Thayer mentioned Plaquemines production is ramping up with steady progress and Phase 2 to follow.

Q: Robert Mosca from Mizuho asked about expansion potential at CP1/2 and brownfield opportunities.

A: Michael Sabel said there are large brownfield opportunities at Plaquemines and CP2, shifting ahead of CP3/Delta.

Q: Michael Blum from Wells Fargo asked about CP2 CapEx and funding.

A: Jonathan Thayer stated CP2 is the majority of CapEx, funded by a $3 billion bank loan facility, and the focus is on CP2 and expansion projects.