HOUSTON - Cheniere Energy, Inc. (NYSE: NYSE:LNG) today announced financial results for the first quarter of 2024, revealing a mixed performance with earnings falling short of analyst expectations but revenues surpassing estimates. LNG shares were up 1% following the announcement.
The company reported adjusted earnings per share (EPS) of $2.13, which was below the analyst consensus of $2.29. However, revenue exceeded expectations, coming in at $4.25 billion against the consensus estimate of $3.97 billion.
The first quarter revenue represented a significant decline of 42% from the $7.31 billion reported in the same quarter last year. Net income also saw a sharp decrease, falling 91% to $0.5 billion from the previous year's $5.43 billion. This decline was primarily attributed to a substantial $5.0 billion unfavorable change in the fair value of the company's derivative instruments.
Despite the downturn in net income, Cheniere's management remains confident in achieving their full-year financial targets. The company has reconfirmed its full-year 2024 guidance for consolidated adjusted EBITDA to be between $5.5 billion and $6.0 billion, and distributable cash flow to be between $2.9 billion and $3.4 billion. The midpoint of the EBITDA guidance range, $5.75 billion, is set against the analyst consensus, which has not been provided. Similarly, the midpoint of the distributable cash flow guidance, $3.15 billion, is also measured against the analyst consensus, details of which are not available.
Jack Fusco, Cheniere's President and CEO, commented on the results, stating, "Our strong financial results in the first quarter of 2024 reinforce our confidence in delivering full year Consolidated Adjusted EBITDA and Distributable Cash Flow within our guidance ranges. Our focus for 2024 remains on excellence in execution across our operations, construction, and project development initiatives."
The company's capital allocation strategy has been active, with approximately $1.2 billion spent on repurchasing 7.5 million shares of common stock and prepaying $150 million of consolidated long-term debt in the first quarter. Additionally, a quarterly dividend of $0.435 per common share was paid, and the same amount has been declared for the first quarter of 2024, payable on May 17, 2024.
Cheniere's performance in the first quarter and the reaffirmation of its full-year guidance reflect the company's strategic focus on maintaining operational excellence and capital discipline while navigating the volatile energy market. The company continues to advance its liquefaction projects, with the CCL Stage 3 Project construction 55.9% complete and expected substantial completion between the first half of 2025 and the second half of 2026.
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