Cheniere Energy (LNG) 3 Nov 222022 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Cheniere Energy Q3 2022 Earnings Call and Webcast. Today's call is being recorded. At this time, I'd like to turn the conference over to Randy Bhatia, Vice President of Investor Relations. Please go ahead.

Thanks, operator, and good morning, everyone. Quarter Conference Third Cheniere's to XXXX Call. Earnings Welcome to for today's slide presentation are webcast access and cheniere.com. The call the available at

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

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

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

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

Since be achievements outlook discuss all ensuring LNG laser-focused for results all we supply Cheniere. of support for production third to today, good our demonstrate operations, Thanks thank for our this update capital remainder joining I'm throughout and leadership here excellence global next, for Cheniere's reliable energy our you and Randy, on and highlight into morning of and September, have challenges. to continues remained of XXXX our and you, market Thank customers positive our amidst continued this which business. quarter allocation and us our the morning, year in pleased to and shortages everyone. your and

last of producing of LNG. also Cheniere just job of at of TBtu we professionals Sabine daily the LNG the north a well fact, week, approximately production had X company, a X daily for to and record My In record a for well done. Pass congratulations TBtu

to in Stage Additionally, with Construction, a Bechtel's Corpus conjunction we off start Engineering X. at and are great

acceleration some given business, in ago. these our with contracted our from the of we swings, months are the long-term plans, nature Across market, by our short-term warmer from to remain hit insulated only record-breaking ground price me and September. dislocations of signs up Nevertheless, largely you heard long-term to potential that creation as highs have prices rolled from saw early already we retreated have from sleeves, on the the project. Recently, supply-demand pressures. accelerate seen barely dominate, focused as priority serving We and our near-term market LNG short-term on driven and X Zach running have weather, continues volatility we highly value

to turn Now financial will what another very yet from review Slide please X, strategic successful and key some highlights I operational, was where quarter.

remained upper as of our which both are but transit and approximately ranges XXXX plan adjusted volatility difficulty by is norms continued focus increased full quarter, excellence and program $X.X half to Later year third margins on we significantly generated data pinpointing on price, cash over flow our $X were early XXXX up call, when cash we guidance, provide with rewarded. the of the points historical flow to ahead few and degree of Zach year the will execution EBITDA of billion increased recently For our full DCF allocation shaping billion and Today, operational the capital on be and announced consolidated above in forecast, EBITDA approximately February $X.X a billion the of market distributable LNG the how call. we on EBITDA providing September. currently. in this you shipments of guidance our are commodity our LNG In in and tracking we reconfirming

As of more volatility ever, in LNG operations we've reliability than discussed, the is the present our critical market. today's given

insight years providing has security advance on and as the volumes energy strategies XX% challenges. does the world time of and market Europe. comparison, of third significant Anatol cargoes hastened of of further long focus quarter criticality landed our can Not greatest quickly in fact end Of to that, the value for need, facing the exported underscore over also renewed is by current third flexible meaningful produced but XXX produced LNG to quarter, respond Europe of our The the number only will volume at By Cheniere in a in during that the the governments than market year, we dynamics energy a destination these landed users During the risks from of a is minutes. supply to facilities. of to region XX% volume shift challenges last few energy of less approximately signals reach this which could for provide mitigate when Europe. LNG, persist the to term. utilities the a that

revised a few available billion an announced cycles, key But shareholders time over just will for accelerated $XX envisions investment-grade and XXXX to plan ago. we and of cash we distributable XXXX organic quarter, our the year rate capital minutes. follows the maintain to long-term some plan our stakeholders flow. capital vision significantly the to features of of long-term through execution run a the in XXXX allocation our Vision new further plan review continue excellent the capital metrics framework believe allocation share The credit we invest per our accretive Zach over designed capital over of cash plan under allocation plan During and implemented comprehensive allocation $XX is capital return through in plan, growth. a

forward a COO. in gas We States. Corey's leading as the architect today. enjoy in welcome Houston his quarter. look today Supply set at to and for of and January a Operating ourselves. has building to pleased of effective In the elevated inaugural reliable of purchasers promotion his which moving in standard have key overseeing on, organizational decade, are President has Before role Cheniere's clarity an Chief also supplier during as must procurement too Executive program, building operating in SVP priorities. leadership September, the as of Corey in operational so highlight of and And made Grindal, and for exceptional we United we currently London, his COO, of the largest to Corey safety-first announced was world. the Cheniere's Corey pipeline my role, our capacity London, an natural I'm integral nearly been Organizational the as LNG maintain was contributions reputation and high our we incredibly Officer, Trading I XXXX. platform is been order to of one and Cheniere to operating excellence I grown have organization to Vice Cheniere gas in behind leadership want important upon continued and Gas X part to Corey holders of evolved, as Prior culture Trading announcement Worldwide the of back Worldwide serve

across begin execution he from on investor calls update will year. these all Slide I'll and our in Christi brief Turn sites. participates Corey conferences a You hear earnings and construction to Pass Corpus to directly you X. next and now as give Sabine

third and berth track the First, completed at record, third project marine budgets. substantial with last ahead week, schedule guaranteed And completion was the consistent Sabine of within berth Pass. for commissioning achieved the our

we only will during infrastructure operations, also like we Pass. a develop loading our not berth brownfield expansion provide at as fog particularly our events, flexibility third to economically can serves increased as suboptimal plans leverage Sabine conditions but that The marine

Now Corpus Stage X. moving to Christi

year, key project at time and As orders been suppliers, to are the help significant year-end. equipment expected a as lead with we've early across Long running of [indiscernible]. our of notice schedule such I not customers, and enabling overwhelming to providers, spectrum the is to Stage exciting support the was provided progress. X. the regulators, who of employees. lock and the proceed from the broad early, to start We in placed making long-term benefits, only prices The of approximately ceremony date construction start before project manufacturing government Inclusive Stage invested to at site, project stakeholders but work, course, we banks site groundbreaking we excellent limited and, utilized it officials, with equipment advantages early equipment before, have EPC to held is possible see a the make and for X of $X mentioned and off some us provided billion LNTP cost also recently such

As work LNG an stellar will now first you on to Thank the Cheniere. towards look again late and your upholding X turn on LNG from the call continued support in Cheniere's XXXX, with who reputation Bechtel. Stage to and I market. of execution all update forward partnership Anatol, provide we safety over for I'll

a the X. with the continued Thanks, LNG in stretches turn season good few being global regions, in of morning, and Jack, Despite and gas the throughout to it Slide [indiscernible]. turbulence everyone. shoulder brief quarter Please many a only markets third

Russian elevated of are curtailment conditions role for gas of in supply also largely Europe cyclical volatility. we a responsible today's played flows laying related shock dynamics believe the and conflicts geopolitical some that the this groundwork While and for market prices year, in

rate the coming would through some signaled during the time given decelerate taken of FIDs lack In years significantly XXXX of the fact, capacity the prior. for in we've new that XXXX liquefaction online period,

also the level on balance when growth the LNG to the we seen you signaled As X%, be need prices see not for current the capacity of rates market near capacity. out a can to was clearly new left, since and chart estimate XXXX

to by European Russian to result, reduction next the the crisis time given the LNG lead required a the several the projects, exacerbated in for years, balances tight we to Europe market. As market develop remain expect potentially long of supply and

from ability quickly LNG in imports earlier year, from offset middle the further resource have gas reinforcing this the to to primary market of Jack's imports respond shown removal the been signals. the to LNG European the on U.S. XX chart, U.S. of of market As point over Russian Bcm the

Hub capacity market, source more given become past to U.S. and $XX as this of MMBtu, supply As of measured The a flexibility. into by to European become top installed quarter, Henry heating inherent prices order LNG in MMBtu critical for primary then, largest Europe's storage and temperatures since an forecasts have rise. flows TTF detail netbacks ahead TTF late this year Stream have the been the surpassed late as kept at has the at have generally hitting in reliable winter to continued has provide to in significant MMBtu settling much contributors levels. about in $X.XX for new a all-time steady which of Pass to resuming. traded Europe, Europe, the dropped buyers come JKM growth global TTF and discount destination demand. world's at Despite and gas further per high X off will August, to sign time a have supplier, supplier supply the at and and Christi Since settling gas in have adequacy in I the secure rally Corpus in growth moderated not of continued [indiscernible] Sabine minute. higher Asia in this to European have U.S. helping reached LNG considerably, Cheniere's LNG facilities surrounding and region $XX years, the the in of despite supply the that come no year, Australia In Nord of could third natural concerns compared October about to prices this at increase Qatar fill U.S. for October August, growth, production to as flows

Page detail. to X dynamics regional turn now to more in address Let's

as year this million supply the by offset XX of for into that high increasing of deficit all-time imports Imports Europe. year As total. much gas utilizing tons cuts from by I to quarter, its third related been with has represented through to LNG imported XX% Russian the making U.S. imports approximately Europe its LNG XXXX to LNG just an XX% the mentioned, gas try

alone imports In Cheniere of approximately Europe's X/X responsible LNG year. was fact, for this

illustrates, the on shown as with prepared X-year of chart over quarter. level back of and their quarter Stream end year-on-year middle winter aggressive As exceeding XXX% the by the demand a top halt market volumes utilities. the came surged third storage buying for flows appears levels Nord European U.S. industrial milder Nevertheless, well average as by LNG to of in some weather, European the the management

As again, need Europe. the in allow to the regas we as of certain We've continue and demand infrastructure particularly have development in. related access capacity moderate and congestion winter provide Northwest in prices the the such, kick import LNG evidencing at European once waits relief for to recently grow, market of seen for order additional market, terminals to greater also to volumes seen

of attributable decline the by Fortunately, the third XX% is in recently remain burn, in power facility September, result XX% this In which coming million Europe at delivered trend few in of and third expected the million tons and increasing throughout in the our only with XX.X new use weak terminal, quarter, Bcm industrial the third Pass. in Eemshaven produced X.X% was by a as the generation import imports could the generation is reduced China, cargo gas from operations. with levels year-on-year drop demand months, The LNG first winter. to supported year-on-year, nearly this which in its of terminal decreased grew and received the X quarter. X while sector demand an began in quarter, X%. low in of Sabine decline Netherlands declined thermal representing hydro tons by coal to year-to-date industrial China a gas realized Asia, gas FSRUs start one In

third of encouraged through Japan dropped year-on-year Thailand, inelastic the generation needs. in renewables September and Taiwan Europe. occurred from the use actually cargoes half Much demand Asia redirected to be year prices generation power a high in as to LNG spot result of and January X% quarter in growth as first consumption robust in gas-fired disincentivized and the overall domestic of the However,

in coal in generation. Japan plugged the a Thailand offset continues in previous mentioned LNG deficit to dwindling supplement to Taiwan on calls, we and As X.X-gigawatt in to call continues availability the quarter third gas production. domestic decline nuclear

reaching million Let's trends were highlighted deals third through U.S. by Last success of that move the continued PetroChina per transactions garnering. our quarter, the That with signed contracting year-to-date and annum quarter, to a Slide in U.S. discussed XX. contracting long-term projects growing long-term with mid-October, total momentum XX LNG tons commercial and projects we that's of PTT.

left higher is global in the XX% signed than all more on chart, what see can and volume of you represents was XX% As the year-to-date. XXXX aggregate approximately than of contracts signed

of tailwinds advantages, the record LNG fact, first success a midstream capacity months X This These largely competitive of development of and and mature signed. prices, destination upstream and pricing, the for coupled a make In owed footprint elevated alone flexibility, advantages U.S. with LNG, key stable to several for U.S. market. contracts 'XX to have year provided commercial time U.S. XXXX the additional market in LNG is

given the move to to inflation projects hurdles, required are those volatility, financing FID construction. getting order forward hurdles to make projects only those most overcome rigorous And are raise regulatory yet and technical given rising However, and commercial, and higher the interest in U.S. have rates. of with still financial,

these customers now debottlenecking our Trains For per project we plan the opportunities, X our add X our continue CCL with last to as we'll them to turn XX XX to plans work sustainable to along and tons growth review ensure on across economic long-term over pursue incremental million annum mid-scale our annum starting hard to And as the some Volume X per discussed tons X approximately we communities. part, at at add growth you million-ton that X end-use milestones. long-term and and and and will on We're continue they million to informed an platform, development call keep Zach for via with achieve of results financial of sites. project our month, supply near-term volume our the security potential and Stage I'll guidance. to

third reflect which good of and Thanks, energy all reliable prolonged to pleased morning, financial everyone. tireless to execution and and to global financial to here accomplishments, ensure seamless continue of period operations today results Anatol, efforts key and this quarter review in markets. safe be team's I'm volatility our the XXXX throughout our

Slide to XX. Turning

EBITDA third approximately During of loss distributable flow billion. the cash of adjusted $X approximately generated and quarter, billion, we a net approximately $X.X $X.X billion of

higher third optimization LNG markets. from Hub higher incremental Our margin supported lifting once achieved quarter global to gas across margins environment portfolio results across due were again quarter, activities. certain sustained the and by the prices margin Henry Higher and

QX CMI Our from achieved QX. of cargoes into a quarterly couple moving results were despite

under agreements LNG years. to impact XX TBtu In again, impacted derivative recognized related payment of long-term of the we net than noncash sold IPM continues line the IPM sourced from quarter, X Christi SPA to LNG our parties. the income addition, agreements, the in during by TBtu with Sabine termination the We were Corpus as or LNG [indiscernible] greater the related unrealized terms long-term recognized Once XX% from Pass be discussed physical have receive portion $X.X TBtu to including of recognized in we margins these expect the commodity the billion prior noncash our before calls. produced of Chevron volatility. these XXX and which early quarter, losses quarter, third to XXX on [indiscernible] Approximately TUA, unrealized price In we from income or the continued year-end. third attributable recognized third earnings to volumes growth a we of regasification projects of third and

LNG, natural in of of gas net the it these of GAAP reminder, period from which for drives purchase methodology a September agreements, permit expect price capital offsetting less corresponding the our in associated accounting period. allocation large of sale LNG, why plan quarterly variability of income does we as of pronounced mismatch mark-to-market that our in this and not noncash margins requires moves long-term significantly part is a results become derivative accounting will accelerated stabilize gas over the Thanks mark-to-market supply on subsides XXXX. these and sale of but because and progress announced As time much the to That in results. in volatility would to unrealized the quarterly

quarter, long-term allocation we plan. out capital revised the rolled During our

cash plan over capital of through flow. XXXX of well to foundation investment-grade the achieve vision in as time $XX cash upon through billion rate is XXXX of Our share X. available Built over invest as per our of distributable over return previous shareholders to $XX continue beyond metrics cycles, this growth and designed Christi further accretive maintain plan, Stage and to Corpus run

XX% repurchase consolidated part of $X target share of long-term XX% an of by approximately our the our the increased increased to Stage the dividend and revised beginning for dividend billion XXXX. X targeting growth X, years, Xx the a As Lowered authorization construction through the plan, X beginning annual third into we by October rate additional XXXX, quarter mid-XXXX. in leverage

progress accelerated as cycles the nearest through of plan infrastructure in revised power operator the solidifies and market global position terms capital our LNG a Our Cheniere North company. American leading demonstrates allocation, with of a coupled platform preeminent and

quarter capital debt. we billion billion months have we plan of consolidated billion $X.X over X our $X.X During pay over year. allocation over to third first launching since $X.X of repaid year, bringing debt indebtedness, our the the through total this down in last quarter, And of the repaid long-term

borrowings XXXX at notice to the levels third under also that loan repurchase at have And $XXX term of on we in an both past notes was under secured notably, $XXX senior price the repurchased during of notes principle quarter. CEI million CCH over senior at prepaid program the pursuant initiated in redeemed $XXX This facility. SBL, we quarter Just outstanding we open CCH issued million par and alone, million of September. the redemption in early month, an market nearly

and We be across metrics. will as by reach and demonstrating sustainable Cheniere target balance to achieve continue to the we we to debt the optimize are resilient clearly efficiently opportunistic sheet leverage our avenues investment-grade credit to commitment those multiple metrics, complex our utilizing

significant to Cheniere entities, Cheniere's one consolidated BBB- by Moody's CEI September, upgrade SBL of Moody's first-ever an BBB- rating upgraded complex. as BaX towards multiple S&P Fitch parent important been accelerated of across our milestone agencies BaaX, investment-grade investment-grade have In corporate all CQP notch and bringing at the ratings Fitch's to upgrades September, Americas and deleveraging and CQP efforts BaX recently. reflected Also ratings unsecured sheet balance in the BBB+. and and in SBL it's to in notches and upgraded evolution. sync to X an Our to CQP is continued in X

XXXX momentum ratings on We plan Vision grade expect time. migration will continue execute further and and to to our investment positive over

shares metrics. quarter, X our shareholder shares we The of repurchased for further we recalibrated are enhance debt over new under approximately X:X X tell solidifying allocation million now to over announced terms repurchase million. shares million And returns as share X.X for credit until through in shareholder we just investment-grade shares on a having our X:X the million, from and capital returns, total bringing can long-term authorization, XXXX third to fourth upside repurchase to paydown share cumulative In as repurchased I million to our further $XXX have you during over basis ratio authorization new off commence $XX long-term part quarter. a we little while the approximately running our of the repurchased October already didn't plan

the total also Slide related increased year to third paid on XX% now Turn approximately per where over During us open for to our XX% XX, dividend and detail the ratio by remainder as dividend our for additional and payout by our into for construction, XXXX. quarter $X.XXX through X provide dividends as to increasing we share, guidance which per our common the XXXX per grow the capacity commitment a to around of of well plan, third I'll will and Stage quarter, our share. the per the the common maintain dividend time. paid allocation new to common Under $X.XX capital bringing we dividend declared $X.XX our share XX% fourth quarterly

These guidance ranges $XX our XXXX tracking as $X.X cash by the We adjusted to earnings were well our approximately billion in are our flow. full already consolidated EBITDA now reconfirming to to billion are can end $XX.X billion in $X.X guidance ranges last $X.X per increased distributable each in of highlight billion and of since and year into to we upper we unit. high as the call that half CQP of ranges September, of both $X $X.XX currently distribution billion

illustrate sold ranges XXXX guidance has for been approximately Cheniere. had remainder we reserved XX%, $XX increased distribution provided million expected of of the end margin incredible CQP therefore, year were the what market we XXXX by our have balance forecast $X With Since of and are the much midpoint C&I. range long-term remaining. a remainder for Our an by the XX XXXX, released of initial we guidance approximately the total have approximately sensitivity that for have the EBITDA respect volume by ranges been EBITDA to DCF currently year, ago, approximately as months XX and XXXX year by approaching that of in our we of have XXX% impact the to approximately X/X. and for the the for EBITDA unsold our remaining production would TBtu We change back origination

mentioned those in cargoes back also be impacted year-end we on September. results call by could our Our

timing open forecasted the to million market a evolving market commencing approximately for approximately over of likely year half change We in weighting the by course these look into origination With a volume long-term the some contracts reserved cargoes of that as to have being that XXXX as There volume said, and With XXXX the we to market volumes slight negotiations. of $X TBtu being these volatility open push is of year. our drawn EBITDA a of could some impact potential in currently, would recognition the of dynamics, the XXXX. XXX next of and our which is forecast year. first we margin, expect of XXXX we $XXX margin portion term for to cargoes to sensitivity and do be unsold Asia,

expenditures, I capital year, $X.X mainly which major to our have related what X we CapEx funded XXXX. of highlight Corpus payments to a in LNTP terms in forecast to is XXXX, of approximately this since billion Stage we amount spending expect the similar start In Christi including would

ranges call we September, full mentioned quarter As DCF XXXX in EBITDA, on guidance CQP year provide for our February. fourth in distribution the and we will

XXXX to we new XXXX Our be the maintenance XXXX Sabine. year unsold benefited a Christi change global have train X which the lower [indiscernible] scheduled infrastructure, we position from the gas of in and meaningful in next margins in and Corpus Stage of and Cheniere the Without of we material wouldn't which completion course to year, contracts than the underscore year call maintenance at gas for markets, recent Train nearly coming Certain featured leading investment our from elevated market is a production with natural are expect expected XXXX, next X. as into early for over service disclosed current now, commence to forecast ramp-up long-term here. The for May. is sanctioning the optimization state of a have planned global scheduled

are of accelerating growth projects prolonged questions. with capital, the we your to lead progress come. growing expect been the sheet, in meaningful interest accretive heightened our in our this on volatility, shareholder objectives a period prepared for ready prudent stewards Cheniere. we've During we to of for and and to And capital deliberate resilient positioning allocation decades Cheniere line for you That Operator, remarks. open your and sustainable time and Thank concludes balance and investment-grade returns. success

Lapides Goldman [Operator with from question Instructions]. Sachs. our first We'll Michael take

talk, can bit a you quickly, real time Just Jack, line. little about

I know we assume there quantify me that's if the Stage month, probably for it about a And in you -- wrong. able being things forward to bit more Pass on much, let material? X how maintenance little how it's should talk And to but a potentially at volume? terms XXXX? bit, move at hinted then impact Sabine shoulder can is You in a how little way the of

Michael, thanks.

pleased extremely at the So first, X, date. on construction progress in I'm Stage to

perfectly tell my But to point to talking would overdeliver way to can we continue it's my execute developed. weather expectations. revise schedule. and have early to points the a us staff I my Bechtel have our for this on that underpromise And the and at this if favorable -- You and tuned has continue we plant I from expect little stay

maintenance, in far X-year try right, are we months you're at maintenance shoulder Sabine. LNG prices lowest. As do as cycle where It's typically to a the

coming do for on where them. So trains down unusual have maintenance X we it's time at to us same year an basically the

of it quantities the on of that detail over and can I'll it. to maintenance, give part as Zach far more As turn you he

think about due X. on had that's of to with up little production production about 'XX year P&L slightly and we're 'XX, QX. year-over-year We we -- as hitting Train going last the total mainly XX versus months this to ramp-up Michael, be a really in

Train 'XX. that We for offset of maintenance that is have be definitively this by will for X a year major But bit a full year. planned next

maintenance, rounding an be rest that XX XX So and we'll the this are basically, the X I'd right the pick we'll for are say the tons not million slack year, to -- down of tons extent. million to year the around we up won't probably have where trains

Michael Blum with next from We'll take Fargo. Wells question our

in just to go on back, Zach, CapEx wanted your comments So to 'XX.

So you the spending. Stage Corpus Christi flagged X

Midscale Anything X. work else So in know past on the major? I you talked about and clear. prep that's X you flagged

major other if wanted are just any items. I see So there to

this CapEx, other things when That's the, spent going let's come to but February. And what and Michael. to on billion pre-FID levered just say, be that I already and have you're we XX% have honestly, with is mean million $XXX millions of money, optimize, in it to spending about Stage go across On of into progressed Corpus Sabine. X. we the year. that's million to dollars next billion as develop And DCF not year we'll notice officially billing at it continue clearly, we're hundreds of out all-in board quarter going deploy costs to also would to next $XXX we're post-FID we year. kind We've about at expect like as this it, $X another say, let's $X.X and the

Okay. between are allocation quarter debt kind wanted was makes equity quarter-by-quarter, Got debt buybacks are up your it. to And bit purchase sense. higher. ask of little in decisions buybacks I That a and picked third then Clearly, just QX. lower,

behind we of be any Just or should process to see if what's decision the there's there? trying aware patterns

Sure.

you a at clearly, , during little could million back see to opportunistic. bought stock just June if the it, you And QX, we the in pressure that had stock $XXX over So period, specifically of we $XX. up Difficulty] went look QX were [Technical and then stock like from on

in we've as the imagine, obviously the set another up, bit over just announcement stagnant the for and back already But on little new capital allocation officially why when And the to shares just things going the can earnest the with [indiscernible] QX, we're upside started X mid-September, then pressure all that opportunistic. XXbX-X to other plan is And So allocation had are we clearly stock, came harder. the less more up is with million we're obviously, hitting in in stock that October. in it till thing -- add with being wait you the bought on QX. that's a there's I'd or

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

reconcile ago guys. to heard the the want I spreads A guidance. you of you kind just the update, faced gave issues, bit you came that over guide. then, high we a of from since Europe point and to end the in And last logistical now with update against month EBITDA September

'XX? carry they will and materialized positives what wondering Just into

Jeremy, it's Zach.

things a that materialized bit the bit into by they're hit forth $XX position the They're now winter for extra pricings And the back even the or I even And the market portfolio on had Asia. into year. came in as and down offset out is proactive of going over and whether of prepared market whole really moving some the cargoes we on that 'XX. us we we've into crossover September a shipping, revenue now in Europe again depending an the remarks, before it selling Corpus. -- terms that we at was there elevated for and I mentioned with pushed little a higher going on were just subchartering rest to few money. added a Optimization, think cargo So then obviously in was some

much million hundred But the a not arsenal took the in over And those mention half cargoes. those into feel long-term pretty team. guidance few we all pretty upper keep XXXX the of for So origination rolled with origination it there. We yes, we'll to final only that's released that to we in range. be the that, good

well. bet a conservatism Cheniere in there as Got it. was little Makes baked I sense.

see How just kind in And issues with European And outlook your to -- we logistics gas is macro just into of do you 'XX. you much good always forward continuing sending impacting these wondering also year? next see Russia So just think Europe here, kind this, if that less question into Europe [indiscernible] XXXX, now? of if carrying broadly that.

expect these Anatol. We Eemshaven. Thanks this it flow. think flow year without a our of will no out worried million Nord very the before for moving do it off. that that good of it's It to winter way because, number question. we first most of is -- additional this more The That we news that really you, to tons front But we infrastructure million the in be the agree Jeremy, throughout 'XX. woods with the will inaugurate substantial was XX regas probably this in We the about about XX for capacity added. Europe aggressively next benefit double. issues. year, shut will tons in of facility spoke get on resolve half 'XX, amount is obviously, That is fully about of honor over is were is pipeline winter Europe did Stream of even have

the challenge. be infrastructure months. a be The will really issues it to addressed next will So XX X over

of seen up the bit little the come very weather for will infrastructure a But by that difficult to additional of amount this You've in quickly. and over floating Europe will a dramatic think get and solutions molecules that, decrease we be cleaned already the storage Europe, was in coming years.

Got it.

on So next like the be last that this point, could tight just as year as to year? winter it you're seeing looks be was fill clear it

more as XX-plus difficult be these entirely full to course, possible of percent reach will but that it levels. Weather-dependent, storage always,

Solecitto next our Barclays. Marc from with question take We'll

just ago of terms fee liquefaction lower might have the the where CMI environment cost the supply, been rates towards the fees trending new X.XX over where and and of wasn't margin do half marginal at they've So liquefaction you range? it In at new trending to today? marginal and costs supply the been cost highest see industry too of of seemed long wondering the assumption EPC XX years trending like it higher, that interest with X now in

Yes. Anatol Marc. Thanks, again.

want in developers competition say There solve, somewhat, that tell of have thoughts that's, the tough the to by why aggressively We U.S. you environment, But buyer [indiscernible]. that's a will expect inflationary kind Zach, been these of that and end the anchoring are think add inflation? of you the aggregate in well pressures reason coming you expectations, interest trend but more has to projects EPC of still as haven't is low as the it rate part that. do early-stage between seen that some priced of equation some deals one much up the the to seen among offtake play expectations trenches, range. of out. that I is I you the on in -- to haven't developers and course, that we

Sure.

or we expenses year, based happening you inflation XX over we have of and than annual have much covering there even SG&A more that inflation SG&A, about world, our for think different flow. just any company, that's escalator run O&M which So for let's out fixed going just XX%. and for, the counterparties if and or with all all SPAs, the over just clearly with fees, acknowledge new they have in in our the cash a our say, CPI the rate we're to take, built-in on operating of which approximately, bake give stability that how And on we highlights into the everybody,

then XXX number? that as very That's to exposure be it. open for helpful. lock And next in you have reference to open the capacity included Got TBT started open XXXX? in that for your some year, And of would relates it

Yes.

in in that's acknowledged the XXX open. we open of placeholders, is million, what in $X that TBtu remarks $XXX XX truly margin, and the reserving for or origination move prepared today. give And for actually take, TBtu So we're we so presentation a that, have

even Clearly, been. making But in However, dent how XXXX give it's is and robust pretty year. liquidity I'd update TBtu onward margins the next a more say tough locked we're we for XX sold and have fixed probably point. there for this around at an volatile we'll with

next from our question We'll with Salisbury take Bernstein. Jean

wanted back whether everything large projects and get LNG more whether Obviously, it's underbuilt but to overbuilt some I decade? in U.S. gas of and moving more Anatol, medium-term or think you Russian LNG your see you half keeps on the go that the the likely pieces view can seeing be now, that market. forward do [indiscernible], will

latent demand, don't I frame. termed destruction, a away if 'XX, demand 'XX, amount this We've that an management. enormous overbuild even the term from 'XX dynamic been such demand of of really see you in There's shying time will. right? We've

demand X.X right? for last a modestly away dramatic the fairly prices resumption a numbers pulled go demand, Europe may going Europe So story tremendous build the of those yes, as a Even BASF over facilities still growth months, back general. in just in X long in picture industrial but and And don't time. change in And others that U.S. month, Asia we in very Qatar, seen and isn't to the and in you've fundamentally, EM out much. see demand

robust FID back U.S. solutions the X through you aren't half plus more mega and continue this on, There tighter contracting, more. that's come that course, this market but to slow much now now, the just know, with believe decade. projects, to as make Qatari trades will relatively that X very of of going enough process we, to fully under plus just the X the So construction

you and see years a So market. of balanced we before dynamic this can years truly see

regas now facilities. gas much in Jack. is pipelines with over invested capital infrastructure being always gas I world how this Jean, the plants track and power nat there's $X and of in projects the around around is world, trillion natural right

it me, continue it's stay that, grow. LNG will side for is So long that is the to signal gas here a to here, term that and of the to

that. I all Great. That's appreciate --

these filing the year, focused As new faster a days? the you maybe but I lot for U.S. on just a a this think FERC estimated waiting it years if said I'm could follow-up, earlier that. of wondering time be what is it, LNG kind X than

I'm that? if than X or years So or a still slower number good faster that wondering possibly is than

at Jean, regulatory believe, Cheniere. construction. tell business the essential, we've it's the whether over right, any current changes, more with they're today, design is mid-course years, No, And more Yes. I'll environment doubled and I on or make here to more our permitting you, because that X difficult last ever, strategy, than

to Trains X-month and filed we -- to So after my that we make contiguous. X ago. expectation file hopefully, X, a immediately trains and prefiled wait. we for then our -- X, It's thereafter, period with accepted we will There's so too Midscale got prefiling that need those long year early that next goal is not X

X Train then want after I commissioned, X is right to and So X. go to Train to Train

So quickly. to trying move we're

you've permitting dotted that's strategy crossed and and is more [indiscernible]. whole just strategically the the that i's part and t's important making the application think I your sure

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

we that see further follow-up insights could process in there? of terms looking growth begin we just to And Sabine? Maybe preference? should on Jean question for on permitting or we Ann's at there when pre-FERC the a to any a whether FERC signposts should Are process. be expect Corpus Any to maybe filing

I points like so additional the we expansion first. at everything is we process moved I'd do Trains there be for No, MTPA understand Corpus, looking that, of X through talking focus across we additional to and and is about accepted be And again, I after to X plans at gets look, we're then year making you talking growth sure know point expect on prefiling our there. Sabine. growth we're done the that, next hopefully, it from can Sabine growth and and it that that Anatol's we have appropriately. and expect sometime that that But said, whatever at a complete, that would portfolio. will that know filing right XX-plus

sell the talk in seem forward the now? helpful. that in improving to past how ability market Great. liquidity. just is Is given it about and shorter prices could as terms cargoes That's market, follow-up, alluded you pricing you just to you'll and super at the Maybe a going cargoes the relative next years those shorter to those was of spot Can cargoes being times forward? basically time? into winter in a situation be that selling tight And where earlier, sell of year able be middle to at to that

Sure.

us now I could $XX requires don't away. end to talking capital $XX for, up the million, into $XX was, have lock over year, We're a previously And ago, know, next of months let's totally about than Zach. of different up that almost capital world it up tying in cargoes financially tie quarter XX XX we calls, reserve year mentioned $X.X is I this plus So say, a or this potentially billion million. on and And start cargoes still. the tying million. to That's $XXX into just but million, a and where you it's cargo maybe

handle XXX and just and $XX-plus in it are year still guess, just I prices is LNG to so to onward, even make for it that with, volatility extent $XX-plus a even the we're So next too us. elevated open drop about year, this an talking though doesn't tenable TBtu

well Henry give the is done confidence, volatility. And just how what updates speak, even Hub selling so already cargoes guidance doing that's able these been we've has plus a fixed tremendously as on been we basis with physical and or to basis. CMI you this price there's a much though So even on year is team

the a time million the it for but the company, So there's sheet see tool. over we you don't $XXX a balance deposits quarter. hedging the as on of tool for large yes, be see being, mean for financially margin still will I

we're being So selective. it, we're using quite but

America. question from Bank next Dumoulin-Smith with of take our We'll Julien

back to of to try to some Just this. come quantify

terms counterparty as terms try the prices commitment pace of on Again, elaborate seeing to own some to know only but improving prospectively retained year terms 'XX, rate you pace what themselves, try context what speak if reframe can a to in returns, you more in certain returns, the to provide the you've maybe little initially a because In bit in if in Obviously, bit terms I Anatol, in contracting? higher terms are speak in a just simply of next you conversations? and maybe of of well? of your your that little you're but of of that that you seeing portion offtake environment, that can

pertain a still and I'm we as All to were we that to locking sum and contract answer haven't have folks hundreds we cost that our off baked have lump today. to I'll can hand a EBITDA, say I we Stage lump of this under and to to experiencing of to it right. then FID they these a basically, touched. then into of try This some Xx sum is millions in mean where that that what year, Bechtel try -- contingency of Zach. are and turnkey I But us turnkey that to you at costs going contract don't we're of started it's earlier lot really Anatol. building with CapEx X dollars

on it's to prices the without of elevating not unlevered I'll to going our hand be of those all. to competitive But contracts, X. off to [indiscernible] going we're see offer it that. long-term able that make X range competitive there. to out. double-digit Anatol they're for out we X at expand returns extremely So and we a and competitive, cost-effective considering shake able prices Obviously, price were to we where there And going good much, if incredibly we're to feel we'll permitting Stage be very using that process though. think we'll on all be really Trains in We're top be in and to

Yes, Julien.

to range. we So felt comfortable with this

anchored that felt previous extract proposals. a like projects performance we still is have overall now those of always heavily We early-stage in operational Q&A, test don't market. better agreements than think are that our earlier firmed some the other the components the bottom, like and a of will that of. proposals a for I you a we of have the to Zach but As the track that for participate and of We've premium record lot U.S. mean in heard the race to the to negotiated, we excellence mechanism are contractual time in it the developer stand market the spoke inflation up much has we the very much and bit, most

still we're So of Zach line comfortable with the very returns that for top the responsible equation.

types of and those this you as and that proposition, with value good cargoes deliver economics. available part we operational very but yes, about. debottlenecking to continue feel of can numbers we're and excellence are that we advantage incrementally think brownfield commercial that today, giving still from we I [indiscernible] And the strong

add And billions of We're really these that down it's a we're day. not much nice all paying to days. debt issuing just that dollars

XX years would we rising than different a a So have in been we're world rate just ago in environment.

Totally. because about the back expect expect that of like that an would t's of much elevated to can't think to Understood, a in you ago, alluded similar know next But Should It I you that to some you guys little just earlier. a from regular clarify I largely and decade? you way? a need albeit we of just come think prefiling. your overlap you was bit year return cadence you to writing them right. in are earlier moment and If are unchanged the of As regular overlap. sounds and sort nonetheless. thought regular a prefiling, dot your should liquefaction a disclosure that. do say Or as you we deployment back new -- on expect coming you out clarify to that cadence i's as have can,

overlap you the We're not Julien, some on have think, site. X between to going I So should overlap X expect sites.

our Ben take question We'll Nolan from Stifel. next with

Cristian yet, those has nobody mentioned about and that surprised but Javier Astros yesterday, how this goodness. my I'm

night for. the because last and a mentioning was night for night bad up made you that before Thank

So Series come the back home bring excited him to very in Houston. and have World we're right here home

I'm with Absolutely. you.

just first any Obviously, X in I'm but curious is just know how fully respect. it shipping. seen questions update relates is, I of where we've here you on recently, my contracted, the of all, sort positioned what you a quick as that you're explode maybe rates of So here lot shipping to stand and LNG do

the Ben. position flexibility lessons within to We long-term and Yes. we before that in not being has and started commitments Thanks, lots learned business We risk market operate a in long-term our a really are short-shipping. of that.

we're So well protected.

producer as Zach our contracts them some that customers, have of Our in of our and lot embedded a over year. delivered that, the we've are take optionality earlier, advantage experienced by paid and optimization in contracts for mentioned opportunities of we this

and So moment. side us at we're in on shape the the market good give that

sign typically at long-term charter almost world. this the charters. as in Yes. we're ships And deals. We're we been on I'll just point, largest locking basically add. second or I [indiscernible] IPM proactive we've in mean of this up the simultaneously the deals

have that's doubled, winter, day portfolio we've prices this going a well even this sometimes year, into going or into $XXX,XXX large So a more. been tripled, quadrupled had under when

we directing got EBITDA towards this tailwinds upper as ships in that part this year all part the able range last month Asia, some the of been to to our of get is haven't Europe. been that's used how do subchartering of even end at are them to the to we've we and just So of guidance the to but the point

happen Corpus then color. talk about something about next of thinking And here Obviously, Pass. that, doing do be Christi model is are they you're the that fit I do looking interesting to sort I'm is beyond -- you're that's your incremental forward be for at great probably X? way a trying Zach. that the of going because hear thinking forward? Midscale curious done? follow-up, as to moving going and to phase way Sabine you to you potentially all Is Stage versions. the you're good development lately, That's whatever my how just appreciate Midscale the Or the guys to you're it's what that with where

the at looking all We're No. technologies.

looking looking compression. compression. at Midscale gas compression. at electric electric looking large we're We're We're at So

inflationary a of precious pressures X. I that It the doing But stay doesn't we're the the complete mean nickel Stage a where like large on it the see solution for of trains and the with So for control portfolio. rest Midscale we [indiscernible] we're that's helped evaluation. going lot to metals.

for appropriate site. solution that So we'll develop is the a

Alex with Wolfe from next Kania our question take Research. We'll

commercial maybe broader LNG little these end Do more And Just of can you up amount bit contracting projects some these moving if forward? to so, that those about end kind do for ultimately, kind contracted you on the of landscape of you those a talk parties think of not fair a may just of that projects? may up with forward? some discuss partially already opportunities that of not represent that, are kind moving board,

the demand, is if major look, supply Russia was a This Anatol. to -- first choice. in. and try of Alex. U.S. LNG I'll next meet But as we the Yes, loss see to that with Arctic anyone [indiscernible] else the wants chime logical

contract rush You entities questions And were the that what in these attractive that out to to and can isn't to load tons XX there pass and those just up. multiple in the too line LNG, serving a million of lot participants. lot -- economics buyers yet performed there million the has of offer all be anymore XX get possibly over XX that of year-to-date are kind opportunistic tons There becomes and need to that are good finish of see million with as for saw has that this large, of simple are the like answer these a tons a there on. market XX million diverse,

it position there's and potentially So each. grow great the We a some from the really our need to to continue do buyers years. platform, coming in we're over some the of think of benefit certainly judiciously supply that that

some BBB have know up you Great. about on the already plan maybe had rating follow they've I rating updates. that some time though, allocation had a that may heading look to the just mean of goal range? getting into kind into what capital rating how you year next -- a so? to the sense Just rating of trend uniformly need investment-grade or else of towards digest the I kind agencies maybe they've broadly Do Then agencies. sense the agencies get the the

sheet we even Zach again. recently. quite that say has our balance is just This Sure. And confident feel I'll been strategy validated

With more rating, that the over years stretch is the the with basis. momentum getting yes, starting I they execution capacity. momentum the I'll from Astros we're over life the metrics counterparties, World point when going on to And the them credit is paydown add just that operations of we're an it little the ratings, in and our finally game a -- in on on the under basically, XX too hit construction are how overwhelm and just of guess home upgrades, at debt night, LTM on even spirit we're plan paydown EBITDA the catch for to Xx on put the we up it's you remaining this evident I to contracts the going of the last or to [indiscernible]. the XX% have mean on Series But and the to being growth. and XX And average debt is be inundate then in contracts. on

we're And already XXXX, the all all getting to up, you the get upgrades started not when first if there this pretty yes, by provide we're half add of just there. confident that year, So agencies going yes, we're sooner. seeing

our Shere take last Tuohy question We'll Craig with from Brothers.

question Just kind couple a of kind of actual picking on up in months. materially projects the off SPAs U.S. long-term contracting. the from last that about little last perspective trailed Note

and next a to again cargoes, the helped Anatol, work that opine prospective commitments will who a in of long year degree you first can a sense your bridging that those medium half to if to new make this confidence partners on you in the and to and due And hydrogen year? you into Cheniere investments Given priority? up on hiatus, Europeans the reward wonder, desire that a clean long-term the can shortlisted by desire CCUS energy to if brief table of combination term step is Europeans the a I with the could us your being give think

the Thanks, you confident the question. leading counterparties, as will an I ever misspoke. Craig, impression serving armada utilities that of we for load If that feel there I be gave European

that as have Equinor of the between. buyers will be European what optimistic there I think part you we with buyers course, view, primary and We, far forward. primary driver that the done and freshest solution long-term transactions contracting do of been few call year, table. portfolio and those market the part of Engie, to and would that know, going as will I think, European-based But Year-to-date, this are have and see come have the opportunity. the you Asian we the the be growth

You'll and We're see them there. in discussions. obviously here those

to we lot a even And and to Europe rebalancing critical year said, you though are be European we year its don't best a of the meet bring and that counterparty list efforts fewer going and forward. XX-plus to between. have expect they utilities last continue far load table, to our we As but do we'll of support energy demands, serving to its this a been lot part in

your Cheniere. for Thanks support everybody. of Thanks,

participation. gentlemen, does We conclude conference. today's appreciate and your this ladies And

disconnect. now may You