Page 10 - NorthAmOil Week 36 2021
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NorthAmOil                                    INVESTMENT                                          NorthAmOil


       Cheniere unveils capital allocation plan





        US GULF COAST    US LNG producer Cheniere Energy said this   Cheniere will target around $1bn per year in
                         week that its board of directors has approved  debt repayment, saying it would aim for “invest-
                         a long-term capital allocation plan. The plan is  ment grade consolidated credit metrics by the
                         aimed at bolstering the company’s balance sheet  early-to-mid 2020s”. Repayment of secured call-
                         while returning “significant” capital to share-  able or maturing project debt will be prioritised
                         holders and continuing to invest in accretive,  in a bid to strengthen project credit metrics.
                         organic growth, Cheniere said in a September 7   The company is also launching a stock divi-
                         statement.                           dend for the first time in its history. The quarterly
                           The company said it had reached a “cash flow  dividend of $0.33 per share will be payable from
       Cheniere will progress   inflection point”, with its 2021 financial results  November 17.
       Corpus Christi LNG   expected to be at the high end of guidance and   According to the statement, Cheniere will
       Stage 3 towards a final   the substantial completion of Sabine Pass Train 6  reset its $1bn share buyback programme for an
       investment decision in   anticipated in the first quarter of 2022. The train  additional three years beginning in the fourth
       2022.             had previously been anticipated to reach sub-  quarter of 2021. Share repurchases under the
                         stantial completion in the first half of next year.  previous $1bn authorisation resumed in the
                           Cheniere now expects to generate around  third quarter of the year, the company said.
                         $10bn of cumulative distributable cash flow   On the growth side, Cheniere noted that
                         (DCF) between now and 2024, with annual run-  it would progress Corpus Christi LNG Stage
                         rate DCF of $2.6-3.0bn. The plan is designed to  3 towards a final investment decision (FID)
                         achieve a run-rate DCF of $15-17 per share on a  in 2022, once the remaining investment and
                         long-term basis, inclusive of the Corpus Christi  commercial parameters for the project have
                         Stage 3 expansion project, the company added.  been met.™



                                             PROJECTS & COMPANIES

       ExxonMobil, Seneca make separate



       gas certification moves





        US               TWO separate announcements have come from  environmental performance.”
                         ExxonMobil and Seneca Resources since the   ExxonMobil, for its part, announced on
                         start of this month on the companies’ efforts to  September 7 that it had partnered with MiQ to
                         certify natural gas production from some of their  begin the certification process for gas produced
                         respective assets. They are the latest companies  at its Permian Basin facilities at Poker Lake, New
                         to make a foray into gas certification.  Mexico. MiQ is a partnership between RMI –
                           Seneca said last week that it had signed  formerly the Rocky Mountain Institute – and
                         an agreement with Project Canary to seek a  global sustainability consultancy SYSTEMIQ. It
                         Responsibly Sourced Gas (RSG) certification for  assesses and grades methane intensity, enhanced
                         roughly 300mn cubic feet (8.5mn cubic metres)  monitoring technology deployment and operat-
                         per day of output from its Appalachian Basin  ing practices that promote a culture of emissions
                         operations. This amounts to nearly one-third  management and continuous improvement. It
                         of the company’s gas production. Seneca – the  then issues tradeable certificates based on the
                         exploration and production business of National  grade achieved.
                         Fuel Gas – said it was also planning to install   ExxonMobil said it had selected Poker Lake
                         continuous monitoring devices at three well pad  for certification because of the wide range of
                         locations, which would provide real-time, site-  technology already in place, scale advantages,
                         level emissions data.                proximity to nearby markets and growth poten-
                           “Responsibly sourced gas certification is  tial as production in New Mexico rises.
                         readily becoming a key piece of the independ-  Around 200 mmcf (5.7 mcm) per day of
                         ent analysis reviewed by investors, regulators  output from Poker Lake will be certified, and
                         and customers to confirm top environmen-  could be available to customers by the fourth
                         tal  performance,” stated Project  Canary’s  quarter of this year. ExxonMobil said it was also
                         co-founder and CEO, Chris Romer. “Seneca  considering expanding certification to include
                         Resources is an early mover in working to gain  other areas, both in the Permian and poten-
                         certification for its operations and produc-  tially beyond, including in Appalachia and the
                         tion, underscoring its commitment to strong  Haynesville shale.™



       P10                                      www. NEWSBASE .com                      Week 36   09•September•2021
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