Cheniere Energy (LNG) 2 May 232023 Q1 Earnings call transcript

Good day, and welcome to the Cheniere Energy First Quarter 2023 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.

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

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

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

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

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

over and CEO. the turn President call now to Jack will Cheniere's Fusco, I

our first XXXX and joining morning morning, for we us outlook. review Randy. improve Good you, Thank results this everyone. Thanks quarter as

from and in for improved of outlook year the results, guidance exceptional As reflected you we continued our have our can increased is XXXX this ranges. rest performance our the from see

performance origination. platform allocation excellent Cheniere's The operations execution project capital by across from and to to was highlighted first quarter

end gaining already to commercial investment-grade Sabine recently more Pass. expansion SPA an not future. share executed announced are user exciting look the While forward specific yet long-term detail an week, plans on project. new on in last our early SPL This to linked momentum we providing with the are that that signal a Asian expansion we at to this is able SPA details, is near we We

to the review financial where flow generated turn X, from Please our revised of XXXX, approximately operational annual first I'll first financial billion. and and distributable and Slide quarter consolidated highlights of quarter cash key billion nearly adjusted upwardly in We $X.X guidance. EBITDA the introduce $X

drove of a and few from DCF first EBITDA Zach address higher, will which factors benefited The minutes. quarter which discrete a number in

discussed our February and we paid our shares During for of about debt this paid the as progress allocation across $XX.X. to dividend down make the and of on back ratings million X call. We Cheniere excellent $XXX quarterly first quarter, complex nearly Zach bought We $XXX capital continued investment-grade team million and his solidified past over plan. on million

the another prior off we the the a first invested set the producing record, picked $X.X almost right fourth Further $XXX cargoes reliably last X for new every in at future growth. we as in reinforcing as capital status operator, of global safety billion We quarter, last take. during record our Stage quarter first foundation surpassing in LNG of with year. total, of was quarter, approximately action leading LNG which XXX set plus where exporting in quarter, the quarterly our So a year. million Cheniere left Operationally, return in we up

balance improved. ahead XXXX, to Looking our the as I mentioned has of before, forecast

cash on EBITDA both guidance flow. distributable We full year are million raising by $XXX and

margins, questions team $X.X on answer and guidance to both capturing The upstream driven your $X.X and increase in downstream is billion increase in DCF. billion are $X.X in the mainly our color higher preemptively more facility. $X.X ranges Zach provide on EBITDA will billion and a new by in minutes. the Our billion and of to locking few

Turn on construction, of status now Christi expansion with which Corpus where Corpus X, the now is is projects, in expansion, trains process under and will and FERC. the to FERC the which Stage I our update Christi X, X you which Slide mid-scale is SPL prefiling X, in

foundations grow months. X. approximately count head as First, Over which XXX into on expect now workers, groundwork soil stabilization driven this Destructions coal its we been spools Corpus and construction an Christi arrive, Stage first to and to The the preparation and to box at its begin receive transform begun to piles be month, next is X,XXX is complete. mechanical the expect beginning over the from site, is to Stage coming and up rapidly on as installation important effectively we and are and site site ramping have X. for milestone works have poured. Piping we

is XX.X%, of plan. which currently EPC is ahead Overall, well progress

construction XXXX possibly of by complete, schedule, in construction and ahead are early ahead schedule. months X already confidence project Train and activities the X.X% in of While volumes entire outperformance the XXXX, guaranteed my more of only tracking increasing end having schedule the potentially is completed being

We told project. prefiled mid-scale X March. X FERC to Next, on Corpus in a you X, late X this and application last line Christi, we with and year submitted we in trains full trains on what when

all agencies of mobilized transparent review on synergy and process. on FERC trains, the regulators of supporting process significant commercialized stakeholder already being about and smooth the a with advantages Bechtel We for counterparties requiring to forward identical site. X We Stage creditworthy the being optimistic this project, given and infrastructure. look not and are being with And distinct to working fully relevant permitting its

the revealed massive on for economically on ability capacity. at extremely this to which to I'm leverage expansion, Pass our has project, we about million-tonne position Sabine our which back February. incremental XX major expansion in call Sabine Moving infrastructure developing excited advantaged the Pass

signed project, for this carbon the contract recently FERC. Commercially, documents component. is traction. We capture with gaining already We Bechtel the work to FEED to the a have including submitted large-scale project for the related prefiling

annum I user highlighted of an through As over last tonnes volumes for years executing LNG million end for per XX X.X we're Asian with earlier, XXXX. delivered week, SPA investment-grade approximately

of the Train to Most are volumes Pass Sabine of SPA expansion FID of project. subject X the associated with the

our only interest underscore These investment. competitive importance commitment an inflation, advantages developments have rates excited SPA to also project the development. to of and are already the We by marked guide be realities cost an rising approach as We progress signed linked competitive we project to to our LNG environment momentum and commercial progressed to not extremely capital that these but the investment disciplined parameters Cheniere's building in resolute markets.

before, As FID say you heard in are me the have not we business.

Our standards projects creation, we of focus discipline, form are same and infrastructure is high developing on existing our these platform. foundation rigor the that the long-term value with

We project are to market-leading extremely have investors returns again our about that from Cheniere. to your of excited expect continued come all target a growth support risk-adjusted for our and you Cheniere. basis organic and we on prospects, continue stakeholders Thank

I turn the will LNG an who the now Anatol, over to call market. will provide update on

million morning, highs in quarter with LNG monthly Thanks, everyone. improved production global turn new as The Slide of to X. Please record tonnes reliability the XX reached exports first Jack, and March. in good

in the increases production year, megatrains of last after In did plants and of and QX was And April worldwide, X maintenance in outages a Hammerfest Prelude restart loss achieved last QX down XX undergoing major was various until shut Australia, Australia year-over-year Qatar in last Norway, power in in a were facility and in year. Following planned December period year. in not Norway, Qatar, across offline of were particular. in

as LNG offline year-over-year Exports broadly restarted since of Freeport having from the February were after production last in flat U.S. year. June been

are balance and first months stabilize we this levels further in production the LNG next market throughout quarter, the While XX to helped in limited the past the expect global year supply as scheduled to uptick the online new months. few few come overall price growth over projects has

then, market Until prices. the the and source supply remain a that weather in market. demand expect remain shocks. precariously of to to and moderating continue ease pressures demand and QX, U.S. to we flexible We to Europe optimistic will critical helping to and U.S. in contributing to supply disruptions, sensitive strong flows balanced remain supply continued be

cargoes averaged year-on-year XX% lower 'XX, sites Europe TTF quarter. delivered In The settlement the were in first by quarter MMBtu. to of average Similarly, $XX to approximately produced X $XX.XX XX% prices of per settlement fact, average of by first decreased our XX% year-on-year. MMBtu monthly the approximately approximately JKM per the in price an

remain year. than year, the TTF quarterly last as pricing gas an benchmarks first invaded elevated marked last markedly global for Ukraine average While inflection levels. indices for Russia JKM surpassed point prices global QX at gas since lower time both are

averaged Henry and stable reliability QX, Cheniere's is, first price MMBtu. MMBtu value front for further the fell Henry mid the course, affordable in in In $X contract Hub enhanced a trading market-leading March, per month front U.S., on Hub approximately XXXX. time of $X.XX September the commodity. proposition in month the and is since below in now by contract built $X the of

Following gas Gulf the LNG. year, response the affordability elevated pricing underscoring our to pricing more of last relative a and production in abundance American Coast North markets led normalized environment,

LNG FSRUs mild Slide despite increased Netherlands, near thanks increase winter and to of of reduce LNG imports Finland, spreads. labor flows. quarter-over-quarter. Germany Europe detail. X-year X year-on-year months exports year-over-year of price X closed terminals Europe range, remained to across affecting in The in locational French the increasing European gas or course, has end Now turn to and, March. inventories high strike the approximately weather current part LNG this sustained let's import about more and X% at capacity in past address XX% U.S. X% some to activity record out few with QX robust, addition the its over dynamics several and in helped

with demand in in Europe's However, decline in for efforts although in reduction markets year-on-year switching. mild fuel QX. burn in coal XX% Gas European opportunities power and pricing resulted market present QX, gas suppressed gas coupled down remained could significant elevated key a the weather, consumers by year-on-year, demand emissions XX% in

Europe storage of well average the XXXX, as supplies 'XX As mentioned, replenish ahead looks this with it levels the X-year year, winter positioned above to season. is

While in risk, gas lost a the much last demand year. Russian already response volume pipe remain this reductions in further of was

will level challenge the XXX elevated through coming Leading stabilizing through levels, remain XXXX induced the new the and will above Europe European balance position policy the demand that second advantage of ongoing European shortfall predict LNG for X rhetoric supply European forecasts term, gas. demand the in on the supply before increase global record. Russian until beyond. The outlook at in million-tonne Longer stable should decade possibly is an winter remain out for LNG despite net consultants pressure of despite and end LNG the on indicate market's Nevertheless, dispatched. imports warmest

spot XX Asia India, the Slide in to turn discuss certain to with relative medium term. further quarter. now especially name QX in in Asian key year quarter-on-quarter. key The as markets, a economic of last narrowed to to year last in Asia. moderation Pakistan, few, overall a weather will flat with in prices moderate observed determinant stable has X% LNG market these and Let's flows be tightness and Demand pickup response demand considerably markets, up activity to Bangladesh China, normalized Demand a remained the this price-sensitive over and continued prices, in decline

curtailed up Korea's due the nuclear X% maintenance, burn in shown As and middle replenishment. LNG inventory in to were imports chart, QX coal

Korea could and new impact However, QX start-up of the elevated the upcoming in X.X expected storage months. from in a nuclear gigawatt spot buying levels plant

the in X% X% and in domestic remained QX pipeline Japanese decommissioning in and high In balance both rose Taiwan, reactor imports generation Myanmar. in of grew Thailand nuclear other India driven in parts in the in output of declines imports also during levels and improved contrast, LNG China nuclear year-on-year. imports Nevertheless, by reduced Korea winter for imports demand and order QX, in reduced coal-fired and In inventory gains a the in availability Asia. cover Japan parts weak and to March. amid lower

demand LNG to shoots and post imports tonnes demand in rise year-on-year continues gas month-on-month potential year. but year. down pick and have LNG year-on-year indicators observed March tailwinds the or and in as for some XX% marking China's quarter, up were March, a QX demand With activity first increase could this first in a economic growth GDP leading China, from year-on-year green X.X% we million X.X lockdowns. positive home X% expanding gas In sales increase provide X.X% new over XX% in rose LNG the in further for industrial in A imports demand grew later year-on-year,

on coupled track market end infrastructure gas power fundamentals the long-term long-term Chinese from and before the believe China's natural to generation nation active significant region's the China's a in decade. market Despite the become gas-fired LNG the LNG XXX to recent long-term consumption, weakness with million-tonne as contracting remain terminals, we regas of commitment to solution. gas in role demonstrated capacity, the the is strong, its to in pipelines has investment natural first

we've this LNG growth buyer capacity. forecasted As for evidences building investment source economic in demand reliable immense and XX-year with discussed need expansion in we gas prospective according energy need over a The before, our decades global underpin to SPL project substantial supply, LNG flexible Asia momentum, mentioned, and SPL new enhance expect we region developing high further is Cheniere's to investment-grade the burning project for forward supply we on signed and project the recently to for the standards and the growth to to decades the is major an the capabilities new reliable, long-term come. of liquefaction provide market of to LNG linked driving The ultimately the SPA Asian for Jack with supply. cleaner commercial and that expansion evolution look

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

good continue product year. excellence, first the revised commitment our to are financial as for today Once and unwavering update for we here financial I'm our to key everyone. reported operational and create stakeholders. on and again, team's upwardly financial be outstanding outlook to discipline results XXXX and value full our today the our review results we execution morning, to pleased Anatol, Thanks, you the to accomplishments quarter of

XX. Slide to Turning

approximately the quarter, and generated consolidated billion. billion billion, we income $X.X approximately For $X.X first net of approximately of cash EBITDA of $X.X adjusted flow distributable

quarter higher as last our margins margins first team's starting exposure market quarter of than As at were our marketing first aided some Jack forward by The proactive cargoes spot contribution as loaded mentioned, of at only of majority results our open year the were in current well cargoes of XXXX. year-end which QX. of but XXXX, end CMI at and transit XX XX the delivered in cargoes selling

higher being compared addition, In These quarter by contribution optimization our contracts a certain as were under year. lower as we the offset lifting margin IPM lower long-term from a Hub benefited proportion partially to due benefits vessel activities and portfolio deals first of last well volume from sold higher prices subchartering. to from Henry our

all projects. initial income in long-term first Approximately TBtu quarter, During the XXX SPA an or was LNG volumes which greater we produced recognized these with XX% agreements X at LNG, income of of than XX our physical of terms years. under recognized were IPM sold

served sales long-term we've prior items, related primarily revenue gas unrealized of by sale is purchase As cost derivative our under reported the noncash sales of accounting in price net IPM of for for in benefit methodology these of second item income the a further to noted agreements. valuation number agreements, the quarter earnings first our and corresponding cost driving of the to impacted quarter our net throughout the line The and sustained line in are gas to our international and impacts the mark-to-market volatility mismatch negative of which and for increasing a decline LNG the of row. moderation income calls, curves quarter natural the

of billion positive impact for billion quarter, have X income would Excluding of and billion. and quarterly billion noncash we XX trailing we approximately our pay $X.X prepaying have positive our basis a X-quarter debt, allocation $X XXXX. plan reported earned trailing in debt to to Throughout income indebtedness launching $X.X $X been been sales for quarter income net $X.X the have over unrealized first in continued of would down on now down long-term strategically row. With derivatives, of net $X.X cumulative capital instead billion still pay over $XXX today's original have quarters months. consolidated a and the net total million the the And total negative cumulative bringing since of of approximately results, around cost billion

the principal address transactions on the utilize XXXX. XXXX the repurchasing repurchase ranging from CCH actions to the of January, principal the almost And notes some years. As maturities and $XXX million by the quarter, in have our to our we few remaining continued noted we rating due outstanding past of call, week last our to consolidated of tools nearly our These opportunistically CCH open outstanding $XXX agencies. million recognized strengthen of have in market throughout with of first notes redeemed utilized represent been we the these leverage over sheet XXXX. balance And program

from SPL officially of weighting to next are After During capital we with Fitch. until opportunistically rating corporate the deploy upgraded the And across the to buyback not to BBB- to CEI leverage outlook. structure we we our our to team's corporate shift grade our index efficiently allocation a Thanks BBB+ capital second and achievement our our eligible our have both investment-grade and at during our stable across to investment quarter, with BBB ability received from debt our address program. maturity begun of structure quarter, next IG year. S&P

During to our paydown $XXX X:X. continue the ratio X:X X.X repurchased approximately cumulative from shares million first we quarter, to for we share to million debt recalibrate repurchase future approximately as

get last on debt pay mentioned there's call, or since our the were throughout the complex. likely over buyback year coming last aggressive grade the As catch-up down to so to in on QX I and into investment X, we trade year a late on order

of take points to in couple be certain we past of like the share quarters. repurchase flexible program is saw Our market these at to designed dislocations order in advantage

last introduced years. cap our an our attempt in back fall X:X We current buyback under target buy the long-term $X.X XX% coming the we to remaining will as market and over billion of we to deploy authorization ratio continue the

pillar seventh cash per dividend plan, for our by week. X XX% declared next final our share CapEx also with the at of approximately approximately quarter the hand. Stage with with annually previous through during of first our comprehensive guidance growing for X disciplined quarter step-up project to of through million the mid-XXXXs our construction capital the allocation And intend last quarterly Stage we follow dividend We year. common later of for the We $XX.X our this planned of funded growth, on $XXX into

of ahead construction we're Jack well schedule. is mentioned, As tracking and underway, the

to fund internally will forward, on efficiently still CCH the continue Going X and $X loan billion available over our cash we flow Stage generated with CapEx term today.

XX, LNG afforded of over billion after progress the become key we competitive deliver has of across further March $X nearly million X of As over billion quarter. allocation capital plan, The of allocation $XX one strength per of process a we tonnes our of by to continue our on accelerated both had our X at as daily deployment year growth procure even capital and financial advantages the available all consolidated and natural during basis, Bcf sites. liquidity towards of our gas accretive our brownfield develop XX pillars

now billion EBITDA. our discuss will in are XXXX $XXX on billion our adjusted $X.X $X.X you guidance our guidance in And of Today, for we to the I financial cash $X.X increasing flow. update to $X.X and billion to Turn billion the consolidated where year. distributable Slide million XXXX to XX, by remainder capacity open

first CMI compared we to our The year due quarter, margins by to and across are of guidance results. increase EBITDA at than fourth don't second, the higher quarter enabled quarters some open guidance opportunistically our guidance, full lower given obviously, forecast. previously the cargoes While we is forecasting provide selling primarily third

position the into guidance curves cargoes a portfolio. forecast as couple increased current optimizing sell from lifting higher reflect as gas continue our to contributions market, increasingly year. margins shipping These origination CMI the further originally the remainder release spot and to gas our ranges supply of open placeholder The limited of of the well international than to price for

long-term Pass Sabine contracts maintenance year and this the planned at Given of our this several summer. start

that this LNG the $XX impact Highlighting of million guide in remaining are Currently, this been year we which in XX change a billions. EBITDA by balance forecast mid-X market XXXX. $X would for of we long-term the proactive approximately have securing unsold for approximately XX XXXX into margin margin currently origination EBITDA reserved how to TBtu year, team and the of has

could cargoes year-end results the be always, certain of impacted XXXX. As our heading by timing into

could code tax the also be changes Our IRA. distributable affected cash flow in any the by for under XXXX

guidance corporate the tax current on this provided IRA XX% qualify we today the tax However, in which is law of not year. do minimum based guidance the for

team, rate and previously, the well remaining timing of international billion overall us However, moderated $XX on burning our and mainly Cheniere dynamics materially cash cumulative our worldwide. generation deliver we Despite further to deployed gas we guidance affordable, growth of and of XXXX and per above flow both of guidance, vision flows capital open billion are to our achieve DCF remain about through is think for every on over year positioning mid-XXXXs our rate XXXX affect impact as these reliably cash our and by as basis. and cleaner future. while customers disciplined resilient energy noted return prices, limited by our of pursue XXXX stakeholders With X-train through our that ranges exposure would cash are to over generating cycles allocation a share deployment. profitable And our continuing high capital to to $X.X visibility meaningfully our the a track this future enable of we available end the $XX our run dollar and responsibly run not

for prepared That interest concludes you line and ready your the open Thank we to in time are Operator, your Cheniere. questions. remarks. our for

Instructions]. [Operator

Our first question Jeremy Tonet JPMorgan. will from come with

out there. their noted of contracts what the market you financial versus expansion get your just for you aggressive the to wanted attempt there's the with regards for It competitiveness. wanted securing share SBA balance guess, Just Good players guys start a as seems this maybe feeling you to of But wondering can there. more see number maintaining contract I the And get of at expansion? a just hurdles in with that off to how SPL like are the, see contracting to point? bit contracts to a

operational Yes, with goes performance. Jeremy, exceptional hand-in-hand I our believe it

So that past fact worldwide gas to with to To that up of the trillions the We're long-term in haven't the dollars invested targeting talked community change not being the unrecognized the sure about for either. being Those we'll fill price, We're user want not have infrastructure. that folks cargo we've folks the missed end are that business that Bechtel the we're foundation model in is contracts. natural a infrastructure. to lock out our customer the going new gas they to there. commercialize we by community in our and infrastructure, make the investments. We're schedule performance, going build going with to the then those

Anatol over in market on today? competition it the turn what he I'll But sees to SPA

a reliability never a Well, said, Jeremy. market, Jack bottom And selective transact Jack for performance. and in our do whom as a we'll of safety last proposition, said, is we're clearly guys to for counterparties couple and to over commodity Thanks, mentioned, years, the that on the Yes. have very reliability, competitive premium to very know. continue we we and product, that users, you we still a as with and as built that, as value apparent race and end the already what we that extract today been the are the in it's value the and become -- everyone aren't

base outperform. expose financial we'll this upside ourselves knitting and meeting stick and objectives have to great those our business as So we to the

number it. I think important. that the your up just of first shaping wondering, but maybe year thoughts Got And the How the to CMI kind to to just by across some give there? expectations the expectations, beat a timing big today your and of led of being set kind same open did stack but disconnect, of didn't versus up helpful. number, maybe any by the your results want and of this it's it guidance That's versus just level move street clearly the and median quarter street wasn't

we out it's we're to EBITDA like I trying and what would call, Jeremy, February, by pretty would we thought of those is February with we apples from estimate oranges a literally was off margins Zach. I because well guess significant late for $XX for in came compare billion amount Bloomberg on end ago. in $X with which QX last year, guidance annual the And the our by a time a baked because such open X If locked us our QX say guidance going QX be. the robust QX. mixing months to quarter not the capacity of over anything, into with was create

be knew came XX% them were of in going So QX in was always in EBITDA contribution in QX. spot around XX% the we to year. QX. our the guidance XX% our be of weighted open it's going our year. to going Over our And be to the terms CMI of EBITDA, that for considering and of or capacity for volumes

think quarter-to-quarter. amount be is evenly, of XX-plus, even make We locked XX-plus, of we did our created I folks may in-transit disconnect good and and some the do some in spreading EBITDA out So a in, we more a production basically, year. lot basically those have in of past more QX. the XX-plus that cargoes outperformance. Those bit But delivered all that of a QX in were

of were $XXX higher And we more. subchartered then for our advantage market rest of we beat on we've some last to been a open Europe of coming QX the a bit the secure in sold delivering again some a market able the after to on by and And length to the clearly, the call. our cargoes really able more to million in margin QX increase upstream the next all up that plants, team we the last X for year. by for shipping here and testament lifting that That's portfolio in took of that the to of guidance on say months, accounted still the

it. helpful. leave very it That's there. Got I'll

our from come UBS. Brian will Reynolds with And question next

forward the off the guidance outperformance. follow question of Zach, discuss up to did and sale optimization. based Maybe quarterly the on cargoes subchartering you

Just components? at outperformance context And of to just positive was of we business kind kind you then a the And outlook maybe forward attributable the of optimization. much if how the could view in this time? that that of the down perhaps on some those as some of base break should raise, curious guidance million pull $XXX

the that around locked don't this at million forecast guidance our like things rate, in Yes, point. realized we EBITDA in, $XXX aren't

our point, X% is open that and We're our -- gave X% EBITDA. annual move the to that scratch with TBtu about when going into in of talking total the when to only rest oil, we already look, are heads XX this share we is fluctuates at this locked $X the TTF So our of we of X% when year. $XX of talking the price love about at for We're guidance kind capacity we production. look million. this And

So in basically, in, not the baked in. have further from -- optimization, but that's has and profit upside or is subchartering, already terms ourselves. in in either out a team charters I wouldn't locked realized assume those of locked of terms sold anything for that's It's

for have year. the be yes, So real the new some the about good there just we things feel of we'll guidance upside, how see And play to out could but range. rest

Cheniere appreciate color. but in allocation. reduced bought question for million Maybe capital Zach, on Really that million debt. $XXX quarter, Great. $XXX incremental you, back another another this

there some talked in be your about that for available prepared cash more could You remarks buybacks.

it, retirement? next, there are that What for $XXX think we perhaps quarter? your cadence plans share down maybe quarterly assuming this that should pay impact maybe to billion $X how could no about of, call was buyback and paper year forward, debt this debt Looking

quarterly. going billion have X almost quarter the don't buybacks, years. I going for billion. bought this allocation we have to look, said What robust said buyback be we're $X to we to do In billion we think back program a There's have X $XXX I $X going more is Sure. forward. alone, even like, and quarters ever last including to $X.X

are As the years we a still within well ideally is that bit. within But go $X to through fluctuate X deployment years. going billion X

our program. It's opportunistic. averaging are not cost on dollar We buyback more

buyback. can So you on we're active today the imagine

in of terms was back of million in but first paydown, debt, the terms debt we in $XXX in QX week. then And actually that $XXX bought million of

grade remember, we officially I think until eligible and have weren't January. early actually index to people investment

the to year that on X:X front-loaded other go into a next. $X now finally back debt of the up, finish yes, cumulative we're to down way rest get billion looking and the went we to we pay last to meaning year and do a going and But of bit the at there. there's this light least reset catch-up green truly forward, this and buybacks So that there's there, the late ratio, through year, into that quite year early

yes, So pretty cap. we'll of back to over market X:X terms XX% of eventually in over to the allocation And time, buy we're the back optimistic buybacks. get and

incremental that all context. appreciate I Great.

from next question our comes with And Marc Solecitto Barclays.

the of in Maybe lower or Obviously, about XX this just guidance. at open. wonder talk on put end 'XX at largely you just some up point the with But I factors the to range? locked upper pick that of TBT revised remaining you could if could

Sure.

floating about $XXX X% million today, still So again, with not of EBITDA there. talking in mentioned, contribution locked yes, out CMI worth like as we're of the about, I

the There the even rest margins, coming could depending upside? markets at be settle of some cargoes upside what's capacity though the year, down. our is open from So those selling through definitely on where higher

of capacity As I said the before, quarter. half in open was our first

online have summer. starting major new up, we and this also have are contracts that this the year Sabine coming turnaround at maintenance We

open year. So more capacity in earlier were there's a always into things in terms our just baked few having the there guidance that of

other long-term those that's our team, we production, TBtu have X a on they'll train tonnes If embedded per could released upside contracting. are already estimating -- for million the of to to all The at then there. could be upside able there over maintenance prices, short-term we're XX around sell And those still basically, be time, be and little with market that. in reserve major

some update take to to going that's time increases. you give production any So on

get Let's maintenance the summer. major through turnaround this

year this that upside. on the little a Let's could provide are get that, we'll season. see And hurricane later we of bit through where

the And downstream we optimization, plants bake that or aren't lastly, locked in. already don't in then of upstream any

how see out through year. we'll flushes So the that

good So make hypothetical, But on we'll guidance. in the spot. good potentially of very with pressures rest that, we the feel margins the a besides even a in our at year we're that, least, extreme for real

price-sensitive both of green in recovery Curious LNG of outlook shoots markets. and demand how you and out above I sources terms then over in it. winter. there. the with all seasonal But price Europe And and coming commodity appreciate price other emerging with Got equivalency the factors parity levels of see those obviously averages summer? the color egas inventory interplay the fuel close LNG tracking energy

is Yes. went watching Thanks, mean Marc. I and things you the Zach as through. we're same Anatol. This

even learned Obviously, amount our We them. stable minimal And over around add annum is of was added XXXX, to but supplying that of just exposure alone with the not staggering. being added environmentally is we million per where world XX attractive though counterparties watermark from repeat over course, we regas the to in today it's storage high of that's have in infrastructure tonnes it of long-term want to capacity XX. slightly right is QX. relatively going Europe commitment dynamics, over the now our just our that. is added below to you're, and and XXX China product and those affordable, actually that European

meaningful as optimistic manufacturing you active PMI we're last in tells the But that a the very show constraint that incremental second mentioned, be of market. Weak the just green price-sensitive India, we're should you shoots but will infrastructure PMI, March, markets from not like seeing month, it turnaround. a half a tenders for and Chinese

mentioned. are price we're elevated, prices great. are emissions are levels We optimistic. still as elevated, So Coal think prices you these still

good about dealt. the -- feel hand So very we're we're we

next Citi. Dounis question comes from with Spiro And our

days you the First that out a into just here, lot the vision early all was through general with Sabine for about question, the Zach, expansion. could factored if of a in I just fall. maybe you but believe walk XXXX expansion. don't CapEx starting to Still bit I you, the little laid that Pass wonder us fund just plan

thinking that funding we curious about the relative to how should So be just capital place? allocation in plan

Sure.

But money of again, it's get years down going at and everything spending Vision meaningful XXXX to and that is that we Corpus, be some a up we mainly for at of SBL beyond to but And billions through to allocation take only That to And FID money had was still incremental dollars couple goes have ahead ready of in really fully baked get running the there was money capital new that, trains in, mid-scale expansion. trains So the and Sabine. that, for X that there. and officially developments. deploying now XXXX. we'll plan above start still

very base policy. have We a within within out variable cash live cash the flows. more have base plus equity enough pretty continue the and well flows and set to DPU flow up pay than at We're least, the there to live there to cash

as we XX% say, think about and at which just returns, develop CapEx it unlevered you Xx debt-to-EBITDA these highly And contracted a under on to at, out to projects gets and XX% pencils basis, X Xx all fine. leverage,

well It for that I be just capital our probably for baking a allocation next this guess we're row be in in be in. we'll placed So the September won't where third will that. it year. And plan

good That's Got color. it.

tenor. really Second you focus on kind to of the Anatol, you, thinking one, want in maybe I about for SPAs.

just XXXX. SPA not You mentioned this until to years ear, on caught starting given over of and that up really kind this closer my over supplied XX it's recent is

X of so or a are much a just discussions a versus time in commercial around? curious is how of like capture role other actually maybe playing things that just context, are like curious, tenders this in across carbon features seeing general or And these I'm that trend discussions And year sort ago? now you're then increasing kind

years, absorbed the Spiro. you're you're were seeing clearly And couple but in -- average said, tenor seeing We deal is XX-year last the over over Obviously, largely of the camp period that. Thanks, the Yes. the extending. that never that dead. whatever market has

will XX-year So of We've block over done building end incremental to relationship and is transactions, we're well expect like last when it last will for couple to over is some XX-year -- those the we we deals. again, deals it and And that lead an user a we've some done volume. years. decades a especially

if of you of your component that other incorporated it are reserve piece, of mentioned, is we're the into half starting the some the back volumes decade, there like XX-year opportunity, portfolio the the early as for Zach the part, portfolio. since some that using the -- will, in navigating sort The the in we in volumes that is question, and starting of

and amount a reliable done, like and kind like, XX-year So you kind of of Asia have of fair in a more. that what we've plus to and customers expect do our we structure that's

from come will with Salisbury question next our And Bernstein. Jean

all? your have of one. impact under if policy get extensions affecting have kind build-out, thoughts get on U.S. to secondary construction. harder you're this making does DOE do just to new policy and I wanted LNG you if permit that not How any the I it the Cheniere? the see on at size And pace of

the question. Jean thanks for Hi, Ann,

into they've view there's that sure positive fully what what the we need that want permitted. way construction projects much make a commercialize like today, So which before basis we is policy a I to go actually for do our we or in finance. They

the flows have help move the that -- it they while think maybe I they them help have that to that allocated will with of books projects So been along. on help gas some them a for

So books time a not. And Cheniere, surpassed time quite either is these some or which frankly, Have line project decade. my over here for build years. the a it's been projects to of at X on it's

it And so I view relatively positively.

whether fact, be clean important here for started transition fuel very the embrace a FERC begun beyond, DOE very, In administration, all frankly. and to gas It's have or is energy -- that stay. to quite it's to natural going

projects. movement all infrastructure some So on the we're starting see there to

Morgan question with come next Sean the And Evercore. will from

are think you for CapEx have, What's anything the plan to problems that the with there any the XX there's of tested outstanding? sort formaldehyde, remediate And government be standards. Regarding you if guys or the issue said of turbines X? the XX I you compliant with ability remaining to sort

say, supply No, the matter reach of, chain. a are X, remaining just on the I'll

be know, you is been and water we it's enough immaterial got for data we're waiting planned them. But it all we've And from now not as It's downtime, Corpus. with at injection. during belief, parts issue are we'll those this installed, when that want. at only And So Sabine some Baker compliance. within at all an retest parts But you well get will our and Hughes. the then

think And inclusion mentioned XXX. S&P something required at the then about you I I met that's Zach guys might now assume have for the all criteria the Have of for Okay. index. point? this eligibility

in So row. we I yes, we've a it now index meet eligibility. the talking for of investment-grade was question, X it, the was quarters But terms eligibility your and about in met

Our -- EBITDA LTM net $X over income billion. is

qualify probably not Our in XXX. top S&P in the we're market largest that country cap the is companies X are in large this that enough that

So but a had partner. should obviously, of matter a time, be

from is question next Wells Fargo. Michael the with Blum And

just in XX% like a to levels I So Europe, frankly, at given Europe market me cargoes little had surprised wanted most least your which reopening. China question. looks QX bit, a storage went of and to

year I do just out? if could you So dynamics And then you the how plays talk the wonder to the rest of there? think

we did more Europe and of as advantage majority produce was flexibility. not led it of don't did Asia Yes. the Look, to And as and Zach Thanks, Jack during shipping QX. in Mike. for was than control pricing volume the the It's that we it's materialize. our Anatol. customers vast obviously in the destination in ultimately simple had some that. discussed We as as And out attractive that lengths had but of which, chartering we, took Asia, penciled

highest tricky a reliably is because mid-summer. benefit shoulder a and really May very call the up just before can seeing We of delicate always in dynamic Asia on pick -- always that the to and we're the period, things And balancing most at sitting things this is and dime. of shift market you're global the today goes product netback So act need. between Europe a

expect volumes given tend strength to would that your go to expect the hint the in kind Europe, we to back half more the in the recovery. Asia, year, and Asia I of that materialize its than So to so question of

Okay. of wonder discussions there's in or contracts. that there's long-term to I more the it's been Great. tenor And it Europe? if politically, in less call if I been dynamic? with any challenging then just know change wondering more change sign any been

absolutely that not Europe transactions dynamics are the year, difficult mean we line and that you'll would counterparts I that last those No. that saw kind mean years. time have going beyond of entertain. bottom right XX Doesn't out But a that as you theater see European see as multi said, you're Europe demand of in is Asia, most be we've similar than driver of with to that we well. expect the seeing to expect some multi-decade in we fundamental out always success commitments and we're much that more but comfort counterparties, our

Tuohy Craig come next the from will Brothers. question Shere with And

couple plus First, FID least as the lowest partially last the you out historically, for other their and Anatol, reach competitive year? to MTPA XX could this issues. that think be able next cost may a of commented to home pointed looking due the pricing be about I downstream usual, some you at not in at that or of quarters, competing the demand orphan peers X not and think, financing, for there point contracted Do may that of you be offtake

FIDs obviously, in may forward are market move yes, structural, do saw did is more we demand X think short shakes and would we of QX Other number the expect answer is, and the unlikely mean to for as demand types to opportunistic FIDs are to of that that out, that contracted projects materialize. that I not some and look here. counterparties And that. But point, there have of a different we than your meet 'XX. is

some We in contracted aggressive are fall projects good the for expect us. aggregate by is there extent to well some more. that prosecute to fundamental at think that could of that relatively these the wayside, demand rates a the continue difficult opportunity be to we that do But

thought of we're portion I there's is that in actually export, I my time by to broken in wonder not there's the lines obviously much at the time And if of a hard that that gotten and end may than the governing now consistent total wondering have is it more decade, the read decade moment. helpful. are line haven't the that a development the of if a though thought export good And may about DOE and thought the in and and second the their the more a sand authorized is for project ground had DOE not those advantages. reliable That's about and I in end I'm FERC the draw lines authorization competitive for works be factor little people financing. a X-year of starting the so Great. now looking one, to think beyond,

wanted We to agency being either ourselves. competitive we haven't to anything seen that do

tonnes for I've we have my it's all years, in look, and how and X built So been many X here years.

XX. I did over

FID-ed Yes. million tonnes. over XX

on slowed hasn't I down. regulators don't do projects the that a in it timely think focus move I it'll to forward are it really and So will. stakeholders going fashion. think the us help

So overall a for think negative it's positive, the not industry. a

And the Jefferies. next question comes Burwell from with Sam

it might being CapEx and a expect anything quarterly over that's I estimates the a sheet run then confirm rate short-term what be on factors or in it project to higher hit function driving to wanted of to quickly. to XQ, just we XX% And wanted curious now little just are the with that good $XXX like when funding if that I XQ? is of A Or for that leveraged? year? the if of those both balance on the lever cash CCLX, driving the respect funding, still might back from million to million spent be rest in rates $XXX for plan CCLX the that of

Sure.

And adding at X and add well just is mid-scale you in maintenance for $X work development be CapEx, FEED CapEx, and other the in all some work you $X.X than and CapEx in for the a the Stage little the start more not quarter. mainly than during million early or CapEx So X. with less X, the typical billion. think We if for quarter, this But that total and a we'll billion into the I was growth the $XXX in, expansion milestones be around, when the on which year. year, deployed Sabine X, under CapEx will had was year Stage

be well you free terms now at billion billion could $X the intent. billion we're buyback cash over still pay the going It's when the that's flow. so over program or $X and CapEx, the so of about allocated think the end next. Stage DCF, X, or that Account In just account year funding still right into of debt for $X this time They're XX-XX, that you dividend. of to the early down, of technically for

interest X actually of flexibility, plenty of fund don't see use Corpus that even on have fund we'll equity up if Stage X plugging expansion the leverage save Stage -- dollars us that we retain money to years, of or So the for expire the component help And first expense another to and thereafter. to X, the hundreds retain millions away. commitments on finish we keep of banks the from yes,

to pretty on to money. intend us do hold use the time we that for So to flexibly being. just and It's cheap there for

Research. Kania Alex from come question with last Wolfe will And our

I question, as in the half a we're looking the Just back with decade infrastructure. guess, just of upstream

you is how investment? with up Just you're and is feel like looking Do further look think even any how kind situation Corpus Pass. expected to you about for of Christi out that pipeline gas guess, have connecting implications do going demand Sabine you're both And industry caught that the the about seeing? thinking to does I

has that and the from went saw probably Corpus it's XXXX, it's you little benefit of over Permian, look, just a Sabine think that Permian close I bit the a in No, and in Texas, XX? to

XX.X to...

XX.X to Bcf XX. almost XX.X Bcf from Yes,

we growth wanted Permian, days. going to build overly complicated it's advantage we've on you Sabine So to and basin. the because And little a X ourselves of these make can Texas in natural in can significant take At dependent gas you to coming pipe more of be out it. never intend

So we're move we'll seeing right. going take are when Sabine we're time you're to that as Projects swiftly to look is care and getting basins But tap for approved, the be FERC, into to things able moving. of the from to multiple growth. are opportunities hopeful

are to respect kind getting against with is IPM question interest frameworks PAs, international than on of last the sorts lot an long-term the just offtakers of contract you rather as maybe option. of And still a Great.

there's couple type in past, seen that apart but a guess, recently, from appetite for haven't I'm a -- if still I recent Just lot curious we of that.

what in guess book in done rhymes at business history. recent our forward as have we I much short, we Yes. very with of look it

like So delivered expect We of of the optimization We a IPM diversity and healthy of aspects the an lot of FOB supply, the that. deals, a IPM mix contracts. opportunities. like gas

those that. But expect finite us do we've with. amount as said, of that see to So transact of we is counterparties more relatively it a always can

And you for and you. your thanks be Thank and support kind there. words your all safe of out

your Thank you. conference. That does for participation. excellent conclude We thank an Have do day. you today's