Page 10 - NorthAmOil Week 36 2021

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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