Page 4 - NorthAmOil Week 37 2022

NorthAmOil COMMENTARY NorthAmOil

Cheniere unveils long-

term growth plans

US LNG producer Cheniere Energy has unveiled long-

term plans to expand its liquefaction capacity while

also raising its financial guidance for 2022

US GULF COAST THE US’ leading LNG producer, Cheniere generating more than $20bn of available cash by
Energy, has unveiled its long-term plans for capi- 2026 and achieving over $20 per share of run-
WHAT: tal allocation and capacity growth. The company rate distributable cash flow.
Cheniere has raised cited its strong performance over the past year, Cheniere said that it was making progress on
its financial guidance including achieving an initial $4bn debt reduc- the goals set out in its previous capital allocation
for this year and also tion target, as factors behind higher financial plan, unveiled a year ago, “significantly” ahead
released details of its guidance for the current year and more ambi- of schedule. The company said it had repaid or
long-term production tious plans as it looks ahead to the coming years. redeemed over $4bn of long-term indebted-
growth plans. In addition, Cheniere provided some new ness, repurchased more than $600mn of shares,
details relating to its long-term plans to raise initiated and paid $1.32 per common share in
WHY: its liquefaction capacity. The company cur- dividends as of the second quarter of 2022 and
The company anticipates rently has 45mn tonnes per year (tpy) of capac- reached a final investment decision (FID) on the
that global LNG demand ity in operation. The Corpus Christi Stage 3 Corpus Christi Stage 3 expansion project.
will continue rising over expansion project, which is now going to add Given this progress and its “continued out-
the long term. more capacity than previously reported, will performance”, Cheniere said it had now reached
ultimately bring this figure to 60mn tpy. Sub- a new cash flow inflection point. It expects its
WHAT NEXT: sequently, under new plans unveiled on Sep- future cash flow, as well as completion of Cor-
Under its capital tember 12, Cheniere could increase its total pus Christi Stage 3, to help enable it to further
allocation plan, Cheniere liquefaction capacity to up to 90mn tpy. execute on its balance sheet, capital return and
expects to generate more The company says it already has the sec- growth priorities.
than $20bn of available ond-largest liquefaction globally and wants to The company also said it was raising its 2022
cash by 2026. extend its dominance further still. financial guidance by around $1.2bn – both
for earnings and for distributable cash flow.
Capital allocation It now anticipates its consolidated, adjusted
Under the capital allocation plan, which the earnings before interest, taxes, depreciation
company dubbed its ‘20/20 Vision’, it anticipates and amortisation (EBITDA) for 2022 to reach

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