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Cheniere Energy (LNG)
NYSE:LNG
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Cheniere Energy
(NYSE:LNG)
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Rating:69Neutral
Price Target:
$257.00
â–²(8.16% Upside)
Cheniere Energy's overall stock score reflects strong financial performance and strategic growth plans, as highlighted in the earnings call. While the company shows solid profitability and reasonable valuation, technical indicators suggest limited momentum, and challenges in maintaining free cash flow growth and reliance on debt remain concerns.
Positive Factors
Strategic Growth Plans
Cheniere's strategic growth plan to expand its operating platform by 25% by the early 2030s indicates a strong commitment to long-term growth, enhancing its market position and capacity to meet rising global LNG demand.
Commercial Success
Securing long-term contracts with major players like JERA strengthens revenue stability and underscores Cheniere's competitive advantage in the LNG market, ensuring predictable cash flows and market presence.
Improved Financial Flexibility
Cheniere's plan to deploy significant cash reserves through 2030 enhances its financial flexibility, supporting strategic investments and shareholder returns, while mitigating risks associated with market volatility.
Negative Factors
Reliance on Debt
Cheniere's low equity ratio indicates a dependence on debt, which could pose risks if market conditions change, potentially affecting its financial stability and ability to invest in growth opportunities.
Free Cash Flow Challenges
Negative free cash flow growth suggests potential difficulties in maintaining cash reserves, which could impact Cheniere's ability to fund operations and strategic initiatives without increasing leverage.
Market Uncertainty and Volatility
Global market volatility and uncertainty, driven by geopolitical tensions, could affect LNG prices and demand, posing challenges to Cheniere's revenue stability and growth prospects.
Cheniere Energy (LNG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.00B
Dividend Yield0.84%
Average Volume (3M)1.61M
Price to Earnings (P/E)13.8
Beta (1Y)0.54
Revenue Growth11.20%
EPS Growth-8.80%
CountryUS
Employees1,714
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)7.30
Shares Outstanding219,768,100
10 Day Avg. Volume1,695,309
30 Day Avg. Volume1,606,148
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.60
Enterprise Value/Revenue4.59
Enterprise Value/Gross Profit15.19
Enterprise Value/Ebitda9.49
Forecast
1Y Price Target
$268.93Price Target Upside13.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Cheniere Energy Business Overview & Revenue Model
Company DescriptionCheniere Energy, Inc., an energy infrastructure company, primarily engages in the liquefied natural gas (LNG) related businesses in the United States. It owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana; and the Corpus Christi LNG terminal near Corpus Christi, Texas. The company also owns Creole Trail pipeline, a 94-mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several interstate and intrastate pipelines; and operates Corpus Christi pipeline, a 21.5-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with various interstate and intrastate natural gas pipelines. It is also involved in the LNG and natural gas marketing business. The company was incorporated in 1983 and is headquartered in Houston, Texas.
How the Company Makes MoneyCheniere Energy generates revenue primarily through the sale of LNG under long-term contracts and spot market transactions. The company's revenue model is largely based on the pricing of natural gas and LNG, with earnings derived from liquefaction fees charged to customers who purchase LNG. Key revenue streams include contracts with utility companies, trading firms, and other industrial users globally. Additionally, Cheniere has formed strategic partnerships with various energy companies to secure long-term supply agreements, enhancing its revenue stability. The company also benefits from favorable market conditions, such as increased demand for LNG in international markets, particularly in Asia and Europe, which drives up prices and contributes to its earnings.
Cheniere Energy Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance and operational achievements, with strategic growth plans and successful commercial deals signaling a positive outlook. However, market volatility and declining Asian LNG imports present challenges. Overall, the positive aspects outweigh the challenges.Q2-2025 Updates
Positive Updates
Positive Financial Results
Consolidated adjusted EBITDA of approximately $1.4 billion, distributable cash flow of approximately $920 million, and net income of approximately $1.6 billion for Q2 2025. Revised guidance for 2025 includes $6.6 billion to $7 billion in consolidated adjusted EBITDA and $4.4 billion to $4.8 billion in distributable cash flow.
Operational Achievements
Formal FID on Corpus Christi Midscale Trains 8 & 9 project, substantial completion of Midscale Train 2 at Corpus Christi Stage 3, and successful maintenance turnaround on Trains 3 and 4 at Sabine Pass.
Commercial Success
New 1 million tonne per annum SPA with JERA and Canadian Natural IPM deal signed in Q2, enhancing certainty on meeting increased run rate growth and financial forecast.
Strategic Growth Plans
Plan to grow operating platform by approximately 25% to a total of 75 million tonnes by the early 2030s, with optionality for more brownfield growth beyond this.
Strong Capital Allocation
Over $1.3 billion deployed towards capital allocation priorities in Q2, including $900 million in growth CapEx and $300 million in share repurchases.
Improved Financial Flexibility
Expect to deploy over $25 billion of available cash through 2030, aiming for over $25 per share in run rate DCF.
Negative Updates
Market Uncertainty and Volatility
LNG market faced global uncertainty and persistent volatility driven by trade policy issues, geopolitical tensions, and conflicts in the Middle East, impacting prices and supply concerns.
Asian LNG Import Decline
Asian LNG imports declined 7% or 9.5 million tonnes year-on-year in the first half of 2025, mainly due to China's flat gas demand and increased domestic production.
Seasonal Production Impact
Q2 2025 was the lowest production quarter due to seasonal impacts and maintenance activities, with LNG production 10% lower compared to the first quarter.
Company Guidance
During the Second Quarter 2025 earnings call, Cheniere Energy provided a detailed update on their financial performance and future guidance. The company reported a consolidated adjusted EBITDA of approximately $1.4 billion, distributable cash flow of around $920 million, and net income of roughly $1.6 billion for the quarter. They revised their full-year 2025 guidance, tightening the consolidated adjusted EBITDA range to $6.6 billion to $7 billion, and increasing the distributable cash flow guidance to $4.4 billion to $4.8 billion. Cheniere also highlighted significant operational achievements, including the formal final investment decision on the Corpus Christi Midscale Trains 8 & 9 project and the successful completion of a major maintenance turnaround at Sabine Pass, which involved over 1,650 contractors completing over 2,550 work orders. On the commercial front, they announced a new 1 million tonne per annum sale and purchase agreement with JERA, extending their long-term contract portfolio. Looking ahead, Cheniere is focused on disciplined growth to expand their operating platform by approximately 25% to reach 75 million tonnes per annum by the early 2030s, with optionality for further brownfield growth.Cheniere Energy Financial Statement Overview
Summary
Cheniere Energy exhibits strong financial performance with substantial profitability margins and effective cash flow management. The company has shown resilience in revenue growth and operational efficiency, although the balance sheet indicates a need for cautious management of leverage to mitigate risks associated with liabilities.Income Statement
Cheniere Energy's income statement shows solid performance in TTM with a gross profit margin of 54.57%, net profit margin of 18.37%, and an EBIT margin of 35.13%. The revenue growth rate is 7.56% from the previous annual period, indicating positive business momentum. However, the EBITDA margin decreased compared to EBIT, suggesting higher depreciation or amortization costs.75
Positive
Balance Sheet
The balance sheet of Cheniere Energy reflects a debt-to-equity ratio of 0.51, showing moderate leverage compared to the industry. The equity ratio stands at 12.82%, indicating a weaker equity position relative to total assets. The return on equity for TTM is an impressive 55.61%, driven by strong net income, but the overall capital structure still poses potential risks due to relatively high liabilities.60
Neutral
Cash Flow
Cheniere Energy's cash flow statement demonstrates robust operating cash flow to net income ratio of 1.73, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.94, highlighting strong free cash generation relative to net income. However, the free cash flow growth rate is a modest 90.95%, reflecting a decline compared to the previous period.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.17B | 15.78B | 20.28B | 33.76B | 17.64B | 9.39B |
| Gross Profit | 5.49B | 5.29B | 8.12B | 11.53B | 5.62B | 2.92B |
| EBITDA | 8.78B | 8.20B | 17.54B | 6.23B | 564.00M | 3.29B |
| Net Income | 3.85B | 3.25B | 9.88B | 1.43B | -2.34B | -85.00M |
Balance Sheet | ||||||
| Total Assets | 44.58B | 43.86B | 43.08B | 41.27B | 39.26B | 35.70B |
| Cash, Cash Equivalents and Short-Term Investments | 2.02B | 2.64B | 4.07B | 1.35B | 1.40B | 1.63B |
| Total Debt | 26.62B | 25.59B | 26.32B | 27.95B | 31.95B | 31.66B |
| Total Liabilities | 33.27B | 33.80B | 34.06B | 41.44B | 39.29B | 33.48B |
| Stockholders Equity | 6.71B | 5.70B | 5.06B | -2.97B | -2.57B | -191.00M |
Cash Flow | ||||||
| Free Cash Flow | 2.36B | 3.16B | 6.30B | 8.69B | 1.50B | -574.00M |
| Operating Cash Flow | 5.09B | 5.39B | 8.42B | 10.52B | 2.47B | 1.26B |
| Investing Cash Flow | -2.66B | -2.28B | -2.20B | -1.84B | -912.00M | -1.95B |
| Financing Cash Flow | -3.37B | -4.45B | -4.18B | -8.01B | -1.82B | -235.00M |
Cheniere Energy Technical Analysis
Positive
237.62
Price Trends
234.42
Positive
234.90
Positive
228.28
Positive
Market Momentum
-0.20
Negative
54.54
Neutral
68.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNG, the sentiment is Positive. The current price of 237.62 is above the 20-day moving average (MA) of 236.19, above the 50-day MA of 234.42, and above the 200-day MA of 228.28, indicating a bullish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNG.
Cheniere Energy Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 68.64B | 11.84 | 20.20% | 6.79% | -0.55% | 2.14% | |
73 Outperform | 46.39B | 14.36 | 14.17% | 5.56% | 47.00% | 11.86% | |
71 Outperform | 59.73B | 13.43 | 10.28% | 7.50% | -3.65% | 9.69% | |
70 Outperform | 61.82B | 22.83 | 8.85% | 4.15% | 3.95% | 11.32% | |
69 Neutral | $52.00B | 13.79 | 68.91% | 0.84% | 11.20% | -8.80% | |
68 Neutral | 76.76B | 31.72 | 19.53% | 3.12% | 10.57% | -14.22% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
LNG
Cheniere Energy
237.62
59.60
33.48%
ET
Energy Transfer
17.41
2.47
16.53%
EPD
Enterprise Products Partners
31.53
4.29
15.75%
KMI
Kinder Morgan
27.93
7.07
33.89%
OKE
Oneok
73.44
-12.74
-14.78%
WMB
Williams Co
63.31
19.68
45.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.