Cheniere Energy's Mixed Q2 Results: Earnings Decline Amid Lower Gas Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 08 2024
0mins
Source: Benzinga
Financial Performance: Cheniere Energy reported a 21% decline in second-quarter FY24 revenue to $3.251 billion, missing expectations, while adjusted EBITDA fell 29% to $1.32 billion due to lower gas prices and long-term contract sales. However, EPS of $3.84 exceeded consensus estimates.
Future Outlook and Plans: The company raised its FY24 adjusted EBITDA guidance to $5.7 billion - $6.1 billion and plans to increase its quarterly dividend by 15% starting in Q3 2024, alongside a $4 billion share repurchase authorization through 2027.
Analyst Views on LNG
Wall Street analysts forecast LNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LNG is 274.09 USD with a low forecast of 258.00 USD and a high forecast of 290.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
11 Buy
0 Hold
0 Sell
Strong Buy
Current: 207.300
Low
258.00
Averages
274.09
High
290.00
Current: 207.300
Low
258.00
Averages
274.09
High
290.00
About LNG
Cheniere Energy, Inc. is the producer and exporter of liquefied natural gas (LNG) in the United States. The Company provides clean and secure LNG to integrated energy companies, utilities, and energy trading companies worldwide. It operates two natural gas liquefaction and export facilities at Sabine Pass, Louisiana (Sabine Pass LNG Terminal) and near Corpus Christi, Texas (Corpus Christi LNG Terminal). Sabine Pass LNG Terminal, which has natural gas liquefaction facilities consisting of six operational trains, for a total production capacity of approximately 30 million tons per annum (mtpa) of LNG (the SPL Project). Corpus Christi LNG Terminal near Corpus Christi, Texas, consists of three trains for a total production capacity of approximately 15 mtpa of LNG, three LNG storage tanks and two marine berths. It also owns and operates a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
