Cheniere Energy (LNG) 24 Feb 222021 Q4 Earnings call transcript

Good day, and welcome to the Cheniere Energy Fourth Quarter 2021 Earnings Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Randy Bhatia. Please go ahead.

Thank you, operator, and good morning, everyone. quarter year fourth call. earnings Cheniere's to and XXXX full conference Welcome slide the cheniere.com. available to and for The access are webcast presentation today's call at

me and Zach and Executive Cheniere's Vice Vice Jack CFO. morning Davis, and Anatol and President Officer; Feygin, Executive Joining President Commercial Chief President this are CEO; Fusco,

what would these to results all your forward-looking Slide and actual listeners may we our a questions, our remarks, Before presentation contain in like forward-looking discussion begin, that differ is materially X of of from could I risks. statements. statements to remind described including answers contains associated and statements, those

most may we GAAP found be the distributable addition, such flow. measure as appendix certain adjusted in slide presentation. to include In the non-GAAP cash financial these measures, comparable references to of A can and EBITDA reconciliation the consolidated to measures

Fusco, will and President results results, with our CQP's call shown Cheniere or may and will The LNG is an for the update our on operating Cheniere's Cheniere market, Cheniere's As Energy I'll financial now call Jack Energy, not will Q&A. then to over Slide highlights. part prepared and Jack on to include and will call begin of Anatol do financial remarks, After to information LP, today's those of and agenda of selected separately provide the We from intend results call Partners Inc. guidance. discussion X. review we also Zach results financial open the turn CQP. cover CEO.

here improved my a outlook for your transformative discuss was I'm Cheniere. of for results review today, good Thanks thank XXXX Cheniere's joining pleased this excitement you XXXX Randy, our our to Cheniere. and future. successes, XXXX you, Thank for share support morning year and us and about morning, to be everyone. continued and

initial First, XX to increased platform per million run annum. tons we of the and train construction rate completed X our our production

we And this third, this completes on variety long-term point. EOG meaningful FID flow announced with of the Stage a contract cash reached successfully we contracts of year. executed to the inflection effectively And commercialization to Stage X. Second, X path morning we put a a

our proved platform. in XXXX the the the I've increased were to throughout power these results X advantages to volatility the many where underinvestment on and driven discussed an quarter geopolitical past the supplies extremely in we for providing supportive Cheniere LNG are morning. tensions of long-term The upwardly year on over XXXX competitive an energy competitive full the I to the calls key -- our XXXX contributing turn We While from the year, a resilience, and close secure showcased revised review guidance. reliable, begin will market and XXXX Slide guidance financial years this and X, each and the highlights extended operational prices elevated period the and environmentally by on of Please infrastructure introduce underscore environment, and vital basis. need affordable, display

on revenue of cargoes of cash billion million total approximately LNG billion. shipped. a XXXX our of generated For of a quarter record XXXX, annual XXX adjusted we to the $X.X approximately the of exported and quarter, cargoes consolidated $X.X XXX We distributable flow during EBITDA bringing $XXX fourth

Today, full increased X, delivered in flow billion million, for year on factors: first, approximately and adjusted And billion we forecast the X that is full by raising after last by countries EBITDA now XXXX, November year $X.X in the timing full and pleased in guidance, in the primarily today DCF. in the X,XXX $XXX in the completion shipped improvement February we November which ranges EBITDA and year-end of adjusted the raised consolidated billion We to than increase and I'm margins to of since cash call; significant $X $X.X EBITDA to EBITDA third, our report driven raising guidance occurred and million DCF exported This XXXX. are the XXXX cargoes have this of Throughout further guidance that some announcing to earlier guidance year, repeatedly year XX earnings ultimately a and over guidance billion $XXX consolidated $X.X which we were we regions market billion the Train world. respectively. year; $X.X initial in billion second, substantial XXXX, around variable $X DCF early generating and cargoes of to around November. distributable mentioned

our the efficient cash, in a minutes. of Train Zach given is financial we XXXX. X, to take a XXXX updates in we'll distribution Slide approach our which the unit are $X quarterly $X.XX guidance at variable have But to enables a a raising in the more completion of cover with comprised and CQP's distribution CQP, detail initiation Today the to plan. to range build amount, a XXXX. In announced of where revised lap transformative addition, to results of victory upon base and CQP plus warranted distributions a distribution distribution per with guidance we to expect we success will XXXX introducing Turn This few a quarter more clearly, which are begin respect first X. and amount, expected be to on better a an of the distribution XXXX. even we

in equivalent momentum the Both in Foran further tailored volumes so. to as or early we which feature Sinochem During fees years the and Foran, the XX XX agreements the with SPAs billion long-term Glencore, upon next we fixed long-term reinforcing and bridging XXXX long-term with $XX tons or million with and Tourmaline, in of value our volumes, over and continued the of fourth our Sinochem earlier built quarter, market. ENN and SBAs brought signed year commercial the approximately over signed our signed commercial aggregate solutions

FID. even dynamics, and we just we as execution all-of-the-above as us more the announced of the a market minutes. agreement in in performance Our about XXXX, EOG allocation I'll well X comprehensive continued focus, strategy the more confident demonstrated announced, in midyear commercial recent Stage accelerate financial has momentum few in to success into our Stage excellent a remain speak X brought coupled with The by September. enabled has capital

For reduction this outperform we pay significantly $X billion by of $XXX a exceeded of XXXX, $X goal fast the our million. debt full year, able already billion debt in be down to off are to start target we year. on to and the expect And

security of our fourth continue execution, and reinforce paid last we Sabine market's never on repurchases been of reputation XXXX, and we we in X has since across this we on just to given dividend critical market-leading first more repurchased completion reliability, the of stock course, our declared Train And the important record and earlier on volatility globe. was LNG share we Corpus need quarterly completion Substantial quarter Additionally, substantial track shares XXXX, over X resumed in quarter Christi for XXX,XXX announced ever and which energy Pass on month. the the of recent first the Train year.

we every over initial With gas so addition or of the the scheduling on X% and day of have with platform now our we near efficiency. total We trains, budget. schedule now day approximately of the perfect and Bcf do process per X X-train these production in U.S., ahead safely, X completed

commissioning tangible Corpus Sabine improved yield I'm excellence considering safety of we operational continued during to in Finally, an especially is and continues Safety completing year-over-year the impressive success, focus foundation the and our benefits Pass and feat, metrics our and that stakeholders. and our were at more importantly, all trains Cheniere both year. Christi proud on for safety

Turning now to Slide X.

to I'd list calls, as priorities expect for to on As for to lay but the team us what year-end I in some highlight key I of team the I This top usually exhaustive an achieve of XXXX. do not my this out is of attest, year. certainly year, my to room in will some like this these the accomplish Cheniere goals wanted

First intend financial provided guidance morning. and the foremost, revised this deliver to we we on upwardly

excited the the to degree improved volatile, we within our deliver our significantly provided for outlook visibility high exposure into ability market. markets year. about we remain ranges manage Energy the how but results of to have are given a our We

FID, a which our long-term the capital kind is part meets Corpus of Second, of project achieve plan. to and to target accretive growth Stage our parameters get capital Christi our growth, investment Christi competitive project, X expansion Corpus disciplined as financially very X allocation Stage we

Is As and remaining I crossing and describe ago, our a Ts. sanctioned, to FID the moment said project well be is our to it fair dotting as to steps positioned is our

and a could and early. to closely as LNTPs, Stage schedule working soon. look We had with expect so Train EPC success are same or FID Christi X, Corpus X near Bechtel underway in happen of finalize Sabine We all term NTP the trains sometime the getting with ahead contract something that's them got to would full which progress this derisked the and Pass projects Train full proceed, and do that notices summer. great that in to towards X conclude on We X limited on to we

The finalize Stage contract existing long-term at portfolio commercial the as the now for new commercialization agreement working X, to in support with the well required CMI. both as enhanced for are On agreement front, agreements we to Stage completes effectively X. EOG-IPM regard potentially

additional portfolio Stage to have and in from and long-term of of support CMI CMI's to addition, projects, X. Glencore further and in including Sabine ENN SPAs of assignment support for recently the CMI SBL expect In assigned the contract Pass our support we optimize contracts

banks. finance side, off Zach with the the and treasury to financing On preparing are his process the kick and financing teams

execution it's to So look continuing to deliver on together, world-class we all coming Stage and forward X.

our a on specifically initiatives to want leadership sustainability, demonstrated highlight major I Lastly, we in made XXXX. where strides and through announced goal year. last climate priority our several ESG XXXX, We ESG for programs our major as

to operational sustainability a the effort and science, sustainability our and around from our and all initiatives we announced approach are which which study These transparency, back our our result and demonstrate chain center our XXXX. built with from tags of principles, to issues opportunities, shipping climate and our cargo Our in programs climate mission partners supply QMRV excellence. producer multiyear

efforts to pleased on being such Earlier ranks our a Capital, on this named we leader our by JUST and stakeholders. which behavior as issues by job were companies front year, development. corporate are JUST creation see climate communities community and this recognized We XXX

XXth our in My efforts. And ESG in overall to annual XXXX position the company proud were X,XXX most industry performance our responsible of last first We top-ranked these crucial and sector is companies. time. advance on are within just ranking the out America's for leadership ranked our for among week, goal nearly Newsweek's we be companies to

competitiveness our the aim we and to that. XXXX, enhances Our in long-term further on are our XXXX We And not In believe ESG aren't it strategy. ESG actionable, improves of LNG. just our I initiatives these detailed And integrate focused empty and business being strategy aspirational. is into a of sustainability evidence promises.

be We applies are compensation is. our annual which truly of Cheniere mouth will ESG on was year XXXX, money to for metrics every milestones. our In and transformational Cheniere. a employee, where based XXXX putting XX% our scorecard,

to the are who XXXX for the ourselves the an of LNG on workforce high forward a that expectations over momentum product tremendous after year will and the call look executing results driven and year. turn I'll dedicated to and Our And set delivering We with me. market. Anatol, successes on begin continues update to provide now inspire we

turn good everyone. Please to Thanks, Jack, morning, Slide X. and

than total and imports with compared XXXX. XX storage resulted growth spot imports well took tonne trade Last we lower early saw look the LNG at XXXX to gas to demand throughout Virtually, exported Impressively, in following year-over-year growth over year inventories the full declined for in imports period Low above numbers responsible Europe and for the X% weather in pipeline trade, LNG came the total Cheniere in of while compared and rising to U.S. by tons. cold growth Asia demand of market quarter year the as Europe all period prices in growth. storage levels. U.S., Latin and in taking LNG growth Let's X% which from the that price leading year, quick year, as pre-pandemic was growth a XXX winter Asia volume LNG Europe year-over-year. and half by adequacy into XXXX, million the the was to year-over-year. healthy America, supply figures levels more an overall million increasingly regions. during This both became inelastic Despite million increase start compounded what extreme prompt in in rising about additional trade tonnes concerned volatility arguably geopolitical supply a the tensions Europe is relatively year. of in approaching in The levels uncertainty, XX the to matched fourth in fuel unprecedented market of the most

such, turn TTF course, $XX.XX. still, XX. from below Slide the well LNG the into inversion in in More Asia December increase JKM, in by the of LNG in some outbidding extreme JKM price in a with more tightness with supplies while predominantly quarter. attract MMBtu Please and at peak led in regional standards, to at January at the at for recently, an to at helped TTF than of $XX.XX, competition Europe settled between settled cargoes and the X JKM U.S. in of and Both in flows has than highs to levels we of the but As Europe MMBtu, fourth TTF LNG $XX quarter. Europe daily historical alleviate year, market reached last $XX.XX TTF fourth trading MMBtu, JKM benchmarks higher sharp record year-end. Asia saw high $XX.XX

the With caused deficit December, the up dipping same share started reaching highest of LNG to lows gas represented triple from ever LNG billion widen. continued in reached the middle last quarter, the of in X-year meters below with U.S. XX levels with 'XX, the fourth period of year. during over period imports country. That of This deficit the cubic imported share storage XX% and the low any tonnes providing storage about availability the the receipts. to XX% deficit around XX% all LDC domestic production, imports gas year. LNG by XX% pipeline the single volumes in levels number rose in or throughout was imports with resurgence 'XX the coupled for into demand of XX.X million imports Europe LNG Russia December, LNG a of factors: over European as storage Europe; during of European lower reflecting all in lower the quarter, from X/X constrained year-on-year, into January, injections Continental Europe's fourth

role with while and concrete XX of generation long South and near-term and a Nuclear gas overall growth, demand ahead output coal the which to carbon nuclear green for as Despite outages both gas designated million what the we by the for in winter, X% for to a believe new retirements coal nuclear reinforced capacity by renewables pressed gas Nevertheless, lower in coal imports all policy of increase last adding year, the increased energy XXXX roadmap, are for that addition, in throughout China Germany, already of grow to be neutrality economic demand X.X%, primary largest time, and example, Japan, Asian progress. significant the as exacerbated pledges LNG in fueled both with XX% XX% a emissions LNG as the for and XXXX. year, million its a pledged shortage. capacity ramped of growth geopolitical gas along critical fuel gas nuclear In contract plans just importer remained along its gas. the to is with generation dynamics, demand China including and fuel and Europe's energy Last nuclear-free plans the adding for Korea underscoring XXX to signal the in of gigawatts the and XXXX, natural for Foran. time. further region European infrastructure mix South in mix currently of in and world's to investment recent for has of way have country import shut to will by China's natural year-over-year recent and be commitments and term its demand The generation, increased LNG nuclear up prior its and Similarly, and power X.X of supporting and gas its LNG Korea show impacting confirmed gas in prices, in months, carbon tonnes saw and We intention products. and reduce GDP to energy Japan structural virtually further planned import per important import our robust power primary Sinochem term. Asian coal continue on policy a 'XX, last reach Taiwan, the cleared tonnes gas-fired Europe infrastructure in a source, the increased restrictions in gigawatts to Accordingly, term. burn long Both long these continued recent rebound demand activity demand to LNG tonnes on fuel its higher as terminal, by XXXX committed peak South plans supported building X.X over in down Taiwan as currently nuclear continue gigawatts a component natural Korea power carbon and taxonomy, to contributor the announced XXXX. LNG to of shift countries largest use neutral XXX signals use XXth plan ENN, LNG from tensions are LNG described to overtaking long in in capacity same contracts XXXX phaseouts reinforce term. constructive as about At use to while XXXX. to natural future remain LNG, its drop of in annum first by with year. over gas investment growth of LNG year-end. its the growth China's was XX single the long-term million

were our in EOG, market. morning rise year announced firm buyers, signed international execute of several activity and completing increased mid- to were the the surge is contracts second which, has of made given International drivers and contracts commercialization China. product is certainly and our contracts with projects XXXX Stage offerings in impacting long-term affordability like with Moving during into in China XX% XXXX, of China. access providing XXXX capacity XX. U.S. in effectively tailored evolution with executed the market, inexorable to to transactions half signed has competitiveness deals intuitive X. the the in to XX activity moving to the new sourced our was buyers is other the This participated price second year, gas on the Cheniere long-term markets, non-NOC in and with deals while the contracting last The these future. policy demand, LNG prices double price landscape emerging high hubs. commercial last X/X fundamental bridging Cheniere offering, up midyear, and of strong year. LNG of send which and and our all the underpinned this nearly Henry Asian Gulf of the about the solutions ability in Cheniere's of flexibility needs volumes. XX% buyers by above from terminal from was we a attractiveness margins Hub There the including XXXX. long-term total Slide increase midterm the margins upward in of energy which U.S. notable of of their facilitate proud contracts, increase access Asia, in in in which forward turn, tonnes energy highlight to and one including of gas versus constraints stability the of we commercial demonstrates decisions U.S. in I'd to demand to shift tenors continued the support the and a million highlighted, the particularly to in exposure buyers U.S. of assumptions About our efficiently, Coast that new to regas providing international expansion in Chinese with began China. should quarter. often with XX% The Jack customers offer in XXXX, includes which, of year-on-year, added tailwind as Firm surpassing ongoing almost signal have amount relative

market the estimate organic to contracts over to expire, growth, to continues to tonnes expire roughly undergo the LNG a as tailwinds between to decade, Over transformation, contracts period next of be new and market In begin are that will we XXXX, providing LNG expected addition XXXX XXX for to million need legacy XXX replaced. and the million additional contracts. tonnes

suppliers, to and While could new see growth. of demand of contracting contracts renewed an brought next market portion opportunities as for these demand, be contracts issues believe and emerging, availability, are well existing continues cycle, forefront other there surrounding long-term feedstock segment the underpin with increase of significant geopolitical Cheniere indexation to these in recent We new the price deals by basis this and form be profile some positioned to the uncertainties the a along environmental we will turmoil. a and that of with capture direction, demand

Now turn I'll Zach the to review our call over guidance. and results financial to

to financial and priorities. and morning, to our our accomplishments, guidance I'm XXXX XXXX our and increased key year pleased here full everyone. XXXX good Anatol, financial well as financial fourth Thanks, as review our be results today quarter

Turning to XX. Slide

our the flow to increase which optimization During an LNG from was the sustained or $X.X global adjusted financial generated recognized billion approximately take arrangements the as fourth to we and continues or X XX% be TBtu in fourth parties. recognized in losses derivative including the long-term generated higher loss under a and cash of agreements. margin to accounting, by continued LNG hedge our billion as IPM exposure third portfolio of a from The unrealized income of IPM $X.X EBITDA income in period discussed from portfolio income prior sourced our the projects TBtu price markets. line IPM and volumes duration advantage net during impact basis offset agreements, calls. have markets, of as teams of these volumes long-term EBITDA sold We our sell with the and LNG fluctuations physical XXX by net curves to purchase we realized impacted used earnings of contractual We derivative to value instruments marketing LNG. partially TBtu Adjusted our long-term our in agreements, SPA quarter. have in LNG XXX fourth physical move. were coupled distributable from fair derivative The in international period, quarter, in in an commodity quarter, million, result to related market mainly environment $XXX on of we to

strategic parameters EOG-IPM long-term with The may IPM project, variability, support help part of contribute which growth of as just plans, agreement disciplined demonstrated While agreements an flows the and stable to meets EOG with our as this investment provide cash to the us accretive we agreements as such, we the will that pursue contracting. those our them accretion our infrastructure platform. agreement. completes X, returns, And effectively to related Stage continue capital commercialization

ranges For and initial ranges we revised consolidated flow the exceeding at high guidance in of our of in EBITDA the adjusted we the full coming end year, $X generated both billion, distributable provided approximately and approximately $X.X of billion cash November.

Our outstanding XXXX was market and the challenges Cheniere hard of a dedication and entire workforce, despite volatility the year. performance throughout result the continued of COVID-related work in

LNG XX% For over including X,XXX almost long-term of under income TBtu X,XXX our the projects physical XX recognized were just and third under we income an from parties. sourced in of SPA these sold or IPM TBtu year, from LNG, recognized volumes agreements. TBtu full

I'd in for recap key priorities some of to XXXX, and also our XXXX. discussing financial like our Before achievements guidance

but reduced with the in Cheniere's capital I'd unsecured transaction lowest non-coal this XX-year XXXX, achieved key extended accelerated executed XXXX which in interest rolled our not enabled year; and we in energy at have our year September, which accomplished achieving priorities price our platform our credibility for of completion third of XXXX, plan, been debt high-yield the With highlight raised project-level weighted year maturity pay we financing aggregate and only for capital plan, the the in to simultaneously. Among fired capital to weighted annual like the comprehensive year our to further issued a strengthening X-train of lines by announcement a approximately our indebtedness, this last point and our support borrowing higher activity by expense and foremost, officially over debt we Through our the sheet company. consolidated per we level; as $XX allocation providers. demonstrating over and several and cash corporate combined our a repayment our allocation in debt sheet. time repaid sheet million at was by capital issuance access all-of-the-above billion have desecured long-term balance average outperforming refinancing debt further environment. the the transaction, the of reached Since the refinancing balance inflection meaningful $X.X average on balance migrated CQP notes of alone, billion rate. outstanding $X our goal. in we the priorities out flow in have quarter, sustained and as Last we billion We goals we X.XX%, First lowered $X transactions the due priorities, down near-term our to margin

the by objectives we of of to plan primary on the capital consolidated ratings One credit investment-grade pleased are continued achieve the our the progression. the metrics, form is plan and execution in accelerated is of rating allocation being that agencies recognized

investment-grade Just under of from the for the CEI capital the S&P we've one execution both continued and to and expectation positive ratings, companies. cited notch positive the allocation progress outlook. both CQP date away as metrics at to to and due achieved last primary financial improved justification plan week, maintain upgraded BB+, in S&P outlook upgrade

over we surpass dividend drawn $X the with of down initiated ago, are redemption as fully generating XXXX, the converts expect CEI for the to goal time. debt pay CEI moment a January in at the flow billion first we and over debt mentioned quarterly have XXXX and dividend at year prepayable freely paid we again in to for XXXX, credit approximately time of pay significant our $X.X billion of the our cash billion I As the the In beginning Corpus quarter. facility down $X.X a of already since down have inaugural pay third at flexibly exceeded

In share repurchase addition, to repurchase newly under our reset program. $X continued we shares billion

over the approximately for XXX,XXX $X we repurchased For year, shares million.

Although capital to enable our debt is the pay the down share and opportunistic to repurchase remains allocation market. program in take us be designed term, in our advantage of near dislocations priority

down we capital capital goals, to continue to authorizations. pay incremental priorities, to including able return via deploy be our to accomplish future allocation expect As capital our repurchase debt other we

progress But disciplined on XXXX investment we perspective. significant capital on where made was Turn build for a and our our that from to growth discuss mentioned, we transformative financial parameters Finally, have better truly in exceed during Slide Stage guidance. now year XXXX. commercializing meet XX, a or expect the even X to an XXXX Cheniere increase significant Jack to as year. I'll

EBITDA distributable cash We months LNG for both Train to are range contribute $X considerably Sabine than reached than to X adjusted to initial DCF EBITDA flow our Since to increasing almost expected, billion. announcing enabling originally earlier and Train longer from X substantial and billion at for to range X consolidated guidance the Pass billion $X.X to completion sales forecast. billion $X.X $X.X ranges XXXX,

sold team's mentioned uplift to after a long-term XX% the an a remaining expected teens XXXX, achieving previously other us XXXX placeholders. CQP $X.XX of the quarterly each whereby the execution we change guidance should evolution $XX capital providing business. cash also levels XXX $X.XXX few plan, to to in continued anticipated DCF year-end as of the annualized, our provide XXXX. reserves record for for allocation the for we including for the the to in the variable sensitivity, global as forecast volume around accounting with would commence the this first addition, in market since strengthen an equal our tailwind to achieve to expected. than In $X distribution the as open in to the plan expected respect market of and be have provide EBITDA elevated distribution fundamentals, announced complex priorities, by November, less XXXX. investment-grade And a unit per some debt available consideration remaining volumes. amount that value also funded is to a unsold. the distribution base taking approximately ordinary have EBITDA of plus and to morning, forecast needed cargoes market after course than and well to to per of reserved Thanks LNG XXXX November, in production quarter a and momentum as year metrics of high the amounts our CapEx margin credit into over This expected repayment total we first million throughout this impact cash is currently With to part equal in amount or catalyst be origination This sooner We share comprised TBtu related for timing quarter cash

opportunities flexible X and are As unitholders, a prepared open within concludes CQP and is line both This result, believe Operator, common growth and it an distribution ready time debt raising you we per Thank for remarks. dynamic, the term. cash to $X plan CQP down for as for enabled and your a efficient shareholders. Cheniere. In unit. completion distribution Pass. full guidance unitholders pay retaining while in win-win $X.XX as Sabine interest updated flexibility we at your questions. CEI the at accelerate is long Train That for our XXXX way returns short, well are range by to future of is We CQP year to to to

Salisbury from first question take [Operator Instructions]. Bernstein. our we'll with And Jean

first with is gas to because duration are XX XXXX. hesitant are years hard European even analysts end to XX of keep European from question new get happened, our clients utilities gas contracts by hearing kind I obviously sign to supposed long-term trains. all for really That it that deals above My for and to financing that's Anatol. makes

guess, how question been I in my see the has So mismatch you've over your seen do experience? you that term? out what that shaking And is, medium

a of in now -- including in a taxonomy healthy Thanks challenges meaningful the issue. Thanks, after Brussels some think, Jean direction comments. function the Europe kind the for a regulatory key evolving we is compacts direction, and of were kind that the Ann. gas green is,

on XX- to had kind some deals were the and As XX-year long-term we've success midterm of you that know, range. with

given trend right the demonstrated to our we've ability our of a kind too entity. the meet that in more having of European XX-plus is see of It's I recent forward. we of clearly, developments, see And well. going to will commitment as terms expect load of early foundation We for to credentials think the But And serving direction. objectives in their a out right the whether traction product customer tell. years environmental

for for what inclusion actively think that Depending it's talk Can year. for things how possible And get would grade are I that? poised positioning the then question could Zach. into next go, and about is to And second for my on Cheniere S&P S&P? take hit you investment you sometime be you it Great.

doing be believe, some We're sufficient to years, market net all most our believe really Considering, income, it we're the can constituent we and float time at on XXX. we We but S&P in the and that, be control. previous the the of for had than whether best in it's quite kind it's in the the free met this cap, larger point. not wouldn't hard candidate I of energy X/X energy logical requirements

net on those yes, this on wait, year. to and of think point, some in to have basis. are marketing until check we the that at we're But And IPM that last unrealized logical the moves boxes, to, X-quarter positive that agreements extent happen income we'll we with curves row. had an deals income quarters on cumulative guess, to negative summer, later derivative would it a the some long-term be I all up the to marketing related keep based a we've going since mainly However, net

with Michael Goldman And we'll Lapides take Sachs. next our from question

you longer-term active would I exposure question than But One curve less open a say position? for just market up. futures question. know in pretty the you short-term so you question, that do XXXX one moved the starting have in with XXXX a question. being having is, Short-term have contracts you ton, many you're open lot in because 'XX That's the first

longer more X, Stage means new the and of that assets, potentially policy to future the Would thoughts et asset of either getting emissions infrastructure on gas statement built. type your pipelines X question, for cetera, term. pipelines, Stage assets type and serve what Second GHG new about projects, assets those liquefaction, FERC or love -- evaluation

This Michael. is Jack. you, Thank

and And market to But you And to be a of start. biting the who's volatile. let should in. don't as this guidance I'll to it's know, like into So healthier, opportunistic XXXX. you continues out give you extremely to get Anatol but as jump lot expect we bit at at beyond us I'll point there, XXXX say, the

Thanks, to proposition comments valuable Jack. of components the our volumes. are bridging add Jack's for Thanks, Michael. I'll you value long-term commitments these as of that, more just know, one

important more a discussions. is more that component in valuable that and So becoming these increasingly is

So on our volumes Jack mentioned, that supports a long-term of husbanding the priority. the commitments top that get those volatility top long-term investment to us is

Go ahead.

I Michael, with that dollar add, open the and assuming, just to this with forecast this our Zach, mid- the let's year was would TBtu $XX say, XXX netbacks. is moved high-teens million,

almost this XX% early over same it's the FID decade, to is is $X the contracted it the are time, year, we're really year. and us. the place XXXXs, Stage next And over on average. which trains attractive talking the to time contribution just curves clearly today, this at EBITDA summer. really contracted on this just XX% where year, billion moving now through all for why But next we're we're And even X about So to of X

fully am I have greenhouse new as very very we think well on a regards advantage do then already. completed X I their new slight because emissions is pipelines, that as completed pleased our LCA what to for report. already Stage I'm permitted. FERC, that we've our CSR pleased our infrastructure we've in that project $XX And policy statements In gas billion Michael, --

So very a cycle analysis it profile about competitive advantage we've And life LCA. think how continue for when that we our we to transparent show LNG. to emissions can grow want and that's our impacts been we that

Brian we'll take next our question UBS. Reynolds from with And

you $X in your outside dividends. what's can on day update I an of X was guided wondering expectations for that allocation additional with cash you if billion capital and to Stage give around buybacks at us accounted the

be billion to update guidance and if cash. billion of the post number, $X this CCL curious kind if thinking 'XX, we beyond should could Stage you X about know, potential expansions this impact through Just to $X how as

Sure.

literally the So we're before billion. to rate DCF cash a years is more available break $XX just 'XX, and this going, I'll a out say, with or capital at this plan. billion this to thought at 'XX billion needing again. is $XX it's another That's $XX we'd through $X with 'XX point come billion. allocation have I for Zach closer couple like original through of year, of that But

billion we million year, to about Stage right this program, continue growing debt FID. focus budgeting we is with with the like $X pay X of $XXX-plus already now kick billion really down which Our to And off all just think we're this to. the the year $X goal, you will grow buyback dividend, guided

debt or updated of allocation first capital owe So finish early. down even plans, year have going assume annual base later a plan we're likely the billion, a allocations those to this of that you from bit there, a half $X buybacks. And likely to down more come plan an is even or year. can in that can next to amount And the a it's we you basis, we'll and pay year the be relative what on logical aggressive here at least, very that of on

that. Great. And summer, ahead investors is looking future will start know follow-up sounds and Really plans. CCL on you that color. just X potentially this Stage be appreciate all X at growth like to going Stage a It beyond CCL mid

what pipes? it perspective Permian, of viability from curious kind X to Kind looking a see Is Just growth pipe need and, further an your gas for Corpus? X to perceive the are the particularly, what gas to are customers as looking plans you need to just of a for perspective you long-term for, X? ultimately you do from Stage of support at beyond expansion what start from

Yes.

So thank you, Brian.

look So both in we that pole when we the think we're sites, at position.

even build X, both we growth our our water. would more helps say, Stage more power future with very pipe, I we're us with there, good infrastructure projects, brownfield expansion So substation that in very, capabilities for facilities. another a another in position down at

So grow. I to position our good feel about very

opinion has going additional Anatol ask of of there. what I'll far pipes need we he the As as would coming Permian, out an if

transactions Thanks, Jack. great Yes, is to about Jack's South the in EOG, that particular. comments driving Anatol is point, that to these Permian. -- has and And of I'll factors be, add to course, IPM your place Texas the a behind opinions. The one just of

producers. the and we So to solutions easier of the putt this are, infrastructure the symbiotic these days. be with partners relationship have previous an intrastate fortunately, tend And question are we which FERC, course, solutions, the -- on to

will we're to of and on the The that. But that infrastructure, resource, producers platform. market wherewithal, optimistic decide additional quantum our grow optimistic. Jack as said, brownfield the have the we're So very we have the

And we'll from with question take JPMorgan. next Jeremy Tonet our

other time to touch share any to on that developments wanted your and how you impact could thoughts product. thoughts wondering there? over geopolitical Or for you regards somberly European there any with Just could negotiations Eastern could share

as images morning. I Yes. this satellite all see it's saddens witnessed tragic the And I'm to the news it in we've Jeremy, mean, on what's -- screen very on me Eastern going Europe.

anything, but and if the even long-term energy security drive -- So contracting. volatility more high prices, these

how European to customers. fact I on conversation increase driving say So secure that more would LNG that there's and a scarcity contracts our for these more the our of monthly days infrastructure is and

and product forward. be and of water has on Obviously, a obviously, I prayers. others early the by, reliable supply. tragedy, build on, put moves themselves thoughts you've think that's our to Lithuania, And going flexible will that in the the avail seen human Jack region the great, Poland, that and the solution the Jack. key part as The we said, infrastructure toll of and

seeing that acreage expansion just the always think here. what's a lot wondering sites maybe as looking in returning it's point. other seems will it and for out like pivoting this there's steps you a the then like CCL in point. plans -- looking back negotiating Corpus like And for or EPC at market maybe and do frame Seems could kind or is more priority I you you next, capital how a growth future of guess, more, If of there about And base it. be could and after next pocket if X. Got towards at just at off greater I'm bit

what if could through next be us could think wondering help there. Just you

I see to about... that, on our a is got then having Thanks, say But of lot going are There talk project, to operational Corpus and of X a And crowd. to little expansion team all and over a Zach, be to It's you excited Jeremy, said quality expansion my Stage large equivalent portfolio. work million the X. which to done tough between FID is another XX bit I'm in and trains. do project action you deliver want to tonne

numbers year, Sure. cash think we'd to billions margins share platform I Jeremy, a thought we $XX there's put in it's value dollars there of it be $XX doesn't of hurt go it give for of clearly, perspective, honestly, teams XXX get this the value to don't the range to think of to this having $X.X future, $X.X just our types shows us opportunity. able foreseeable With and XXX and, to construction just of to and, of operations the flow. DCF but which, above I this the billion billion those around. quickly, to the

to years by and for still the get we've for then already X or So XXXX there's running X up budgeted next $XXX And Stage million billions. so. X on to that

sheet. will and see the you'll have balance growing ready of Buybacks us care large taking a the to arsenal dividend. So go

above. the more way. few accentuated It's a our all billion coming just really with it's So of

Sean with take we'll Evercore. our And from question next Morgan

-- of So lot markets the kind trended there's pretty have just wide open. been success of is a year, favorably obviously, touching arb this and and

kind relative water see to now an wondering So Gulf of of pricing? from the see in of to the what domestic we percentage sort before started exports. it's maybe the increase and on gas the I'm markets, impact could capacity U.S. depths right U.S. export we total on adaptive But

right, on is to a the with X. place industry think impact so, it unfair Well, would over or there us a an day healthy takes market I that been well Bs LNG hasn't in The say be domestic XX as now. pricing

things the of back course, We're is records production function responds. One the of watching for, of we're setting terms how production. daily in

resource resource counts get comfort growth Texas some that the to previous we of pre-pandemic and seen the There there. We be can that at rig and surpass make gives is South the supply in the great to are level. think, very questions, And going now Louisiana Northeast the saw is to that the gas we availability but comfortable that you've us not being levels. XXX to Western -- will bet probably forward, us, the

figure is it competitive the So that we out enough globally will think respond. gas there's if dispatch. that will ultimately, But market to

Okay.

of it that made exclusive? sign helps Regarding they out mutually total export you I for any total would required sort Stage mean, clear IPM, fill in this you of and X. the EOG, capacity limit takes to kind your a Or are But up necessarily notional want versus offtake is agreements? the think capacity the puts of terms there for there IPMs? I is not sort of

-- million time of worth this in eventually I say -- IPM million that's than And X tonnes of I exclusive. let's deals, it's so same at context signed portfolio. point, XX-plus don't maybe or say, mutually more a the the a up, we've at we're know, little tonne But that. wouldn't

gives seeing well credible the of benefit really of piece wise the us strong we're small doing and for puzzle then or a time gas of as producers, which the what grade investment is here, still rather you're with this credit-wise it's counterparties extended the periods supply So with and well. most as also

So say DES think but offering. to is mix IPM showing the do, going what deals of a and going not it's I majority a of I our ever that would FOB, be just it's commercial we of nice be yes, Stage indicative X really evolution to

comments. be to in back as that to a The said, Zach XX-plus delivering that project with operational a as last XXX project, side we've X the have, supply overstated, gas mix this reliable of the right? years. that the piggy partnership products, be of fact with on the cannot be to operational and Just be to allows EOG seen going piece us Zach's The in over equation is will we which flexibility tonne X the the million day as

Barclays. Marc with from question next comes Our Solecitto

up LNG just be as today, medium-term price to curve you've the strip Just your general customers through price with the effectively environment moved $XX-plus the last curious the thoughts time outlook price latest forward in from has on move extending call. of responsiveness XXXX, forward since seen the the higher your and get the

Yes.

shift So caused but this tragic gas midterm upwards and second not out half in progress seen you've through a as been you the that again, morning, storage, inexorable meeting has those of structural the the accordingly. for to challenge of right, referenced, curve of Asia the just refilling year logistics we European of events the also margins notwithstanding, the respond that growth market, and has that a

we of through that assured And commitments some transactions our take at the will cycle So in rest in point long-term volumes that advantage tailwind either as prompt is more or tailwinds. of nice obviously we've of that a bridging obviously, structurally are discussed. more that, the this

you open your long-term of point color strategic there's would there. And considerations strip a perhaps certain wondering then sales. of and percentage exposure if allocation NPV the bridging recognizing Great. spot a for allocate in greater Appreciate in forward year, this the where the cargoes your price the forward just

always prevailing and transact these right? volumes volumes, deal, let transaction. long-term me thing. are prices, the would in bridging one Yes. I they the we a that for but in market guess, -- bridging embedded execute They're clarify When balancing it at we the we is act these at are when market are economics done the

That and real-time incremental having that's are bulletproof foremost very commitments portfolio margin to thinking. So long-term those the we and To strategic extent having like opportunities, kind benefit there team our is at good reliable us. available platform. that the the optimizing and in is capturing of of the that first that

power business, volatility. and game up And say, in seen that And type years would the down. come goes will and before I've this XX what power of I electric in this Marc, I spent

we're to through production creditworthy do is long secure contracts term us the additional and build So then without all infrastructure our taking for counterparties risk. with trying help

on sold portfolio. an I'm not merchant having So entirely

And we'll question Brothers. next from Shere Craig take Tuohy our with

upsizing right opportunities FERC question pick see want also I next quarters on may more capture. and efforts if question and actively if to Michael's pursue elaborate can be you up on further and Jeremy's for train in -- carbon timing coming what perhaps the some

Okay.

So that's Craig. a load,

production of I'm extremely reliable back excellence pleased start. XXXX, So We've results with that. I'll been significantly where program in and increase we XXXX. were operational able our from to the our

I think there's to and that. there, still go I'm more excited about

As very we're far the positive expansion I on Stage as think goes, X.

As working growth I you've do secret. and worst then expect this see. today, an it's industry, us the from next export the Is. takes and to -- potential. heard terminal, point, And that on know, dotting force we'll sometime in public for transparent well as Ts, at a us year. and pretty It it's our years X this LNG X you the FID kept would to market crossing And to FERC start with then full we're later to on launch full the review

say tuned. same you told So I a act. -- I done We're guys what not is thing Stay would are I tough Jeremy, yet. which

see us spent making ready some for capture. we're of second on those XXQ planning and with totally desire We that good supportive administration's or of at We're now. having lot healthy on And price, the to the CCF, yet, the make say question, of to yes, will, engineering but The fossil-fired announce not we've effort least little mostly I'm carbon economically it. of Sabine if industry. opportunity for aspect anything a CCF Pass greatest the a ground that in I'd more you

have to little significantly. But in to a that price carbon is what true Sabine first, been facilities. signal we to bit price need there'll more We and be it. of We've at need some both America, on we going think help there better and will come. I us have be the options focused on

One follow-up. quick

If you do capacity have X-train you stand to the ability mtpa that? X.X, authorizations with to X.X a on say increase where portfolio the by do CapEx per little train, another

No. remember our million We're tonnes now -- $X.X to up annum I per authorization train. is if per right,

So gives of room. that breathing us plenty

Dumoulin-Smith Julien with America. from question last of our taking be we'll And Bank

this make quick. one I'll

a potential sites of if and start just moment how subsequent what are that think I how you a to to taking of of you ago I whole do about has think or X asked to time on existing whether volumes? you set volumes, back mix conceptually FIDs least you do beyond, acquisitions we be the through to right kind Jack, answered. just of about cadence lot saying about a of get kind benchmark it's you and/or some 'XX, set what the how for want 'XX as Or a CCF going able at you target at terms been in word? to could kind But mean, right? of to talking least mean, were think move process, would jump that's if the I kind process

Yes.

acquisitions. in points. two it take One, I'll potential So

like will it It Stage Xx building we're So EBITDA. looks X. around be

some some these traded infrastructure multiples where EBITDA. these of with seen have You've terminals Xx funds, LNG out above of the

this So a whether power, just buy, build was it would is than premium. and cheaper rotate or to Julien, it's definitely else to buy in to where case, to like in it cheaper pay build somebody it

think, expansions cost competitive just ball, second on to I forgot do these today. half I the see of would how So question. that from now initially, And about are least continue I brownfield at us we my crystal

-- you're kind to how just was organic yes, brownfield route, if the what saying, I of... going go

Okay.

one -- So X come Stage won't lump. big just X Stage in --

X X, when we tonnes. So on Sabine right, completion, that substantial Corpus and million was took X

couple every X or train a months. be to going it's Here of

online. I have every then we another if expect that train tonne 'XX train XX of So million would in over by construction sometime the start fully we'd on months portfolio first running couple we're thereafter, this And year, up XXXX. until that and

it's there'll expansion would pretty be file soon. growth for us -- So additional rate. a expect high I to

-- then have 'XX to portfolio And in 'XX online ideally, we'll some the or to 'XX, add you would growth there from these 'XX. goal to the 'XX 'XX. trains late have coming And to to be 'XX, even

Got it.

then Okay. the not All assets And development ideal. down, enough. right. that's front, on Fair acquisition even like

were I that's to. alluding you think what

sold Magnolia over the mean, for $X I million. Yes.

turn or will remarks. I time, additional the conference this At back for to speakers the closing any

support. say is again you where to This for I good all thank about today. Jack. feel just of I want are your really we

what's overall, and I our think, bit. Europe I thoughts But is the industry all think natural of with be gas the point. this like Anatol -- down needs at are a to I LNG around and said, and Eastern prayers safe. you world, wish value I to the settle showing

your participation. for concludes today's Thank you this And call.

disconnect. now may You