Cheniere Energy, Inc.
LNG · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $3.83 EPS for Sep 2026 across 5 estimates, ranging $3.23 to $5.24.
LNG Jun 2026
- 4.50%
- $2.89
- $3.02
- —
- $5.68B
Reported results
- $5.68B
- $4.29B
- 75.57%
- $3.07B
- $14.65
Highlights
- Earnings beat: Reported EPS was $3.02 versus consensus of $2.89, a 4.5% upside; GAAP diluted EPS was $14.65 versus $7.30 in Q2 2025 and negative $16.65 in Q1 2026.
- Operating rebound: Revenue was $5.73 billion, up 24% year over year from $4.64 billion and down from $6.59 billion in Q1; operating income was $4.29 billion versus $2.53 billion last year and a $3.49 billion loss in Q1.
- Cash earnings growth: Consolidated Adjusted EBITDA rose 27% year over year to $1.80 billion, while Cheniere distributable cash flow was $1.17 billion; first-half EBITDA was $4.14 billion and distributable cash flow was $2.84 billion.
- Guidance raised: Full-year 2026 Adjusted EBITDA guidance increased to $7.90-$8.40 billion from $7.25-$7.75 billion, and distributable cash flow guidance rose to $5.30-$5.80 billion from $4.75-$5.25 billion.
- Higher LNG throughput: Cheniere exported 184 cargoes totaling 672 TBtu in the quarter, versus 154 cargoes and 550 TBtu a year earlier; full-year production guidance tightened upward to 53-54 million tonnes from 52-54 million tonnes.
- Corpus Christi expansion: Midscale Train 6 reached substantial completion in June, with Train 7's first LNG production expected imminently; the Corpus Christi Stage 3 project was 98.4% complete at quarter-end.
- Accounting and volatility: Net income attributable to Cheniere was $3.07 billion, but included approximately $2.9 billion of favorable derivative fair-value changes; the company designated 73% of fixed minimum IPM volumes for normal-purchases-and-normal-sales accounting.
- Capital returns and growth: Cheniere repurchased 2.2 million shares for $550 million and paid $116 million of dividends in Q2, while investing approximately $1.1 billion in growth capital.
Analysis
Cheniere's second quarter was a strong operating and cash-flow quarter, with results above the supplied EPS expectation and a sharp sequential recovery from Q1's derivative-driven loss. Revenue of $5.73 billion increased 24% from $4.64 billion in Q2 2025, while operating income rose to $4.29 billion from $2.53 billion and net income attributable to Cheniere reached $3.07 billion from $1.63 billion. Sequentially, revenue fell from $6.59 billion, but operating income and net income swung from losses of $3.49 billion and $3.50 billion, respectively, in Q1. Adjusted EBITDA increased 27% year over year to $1.80 billion, reflecting higher recognized LNG volumes and stronger margins.
The defining feature of the print was the combination of higher throughput, project execution and a higher outlook. Recognized LNG volumes rose to 660 TBtu from 551 TBtu, helped by additional Corpus Christi Stage 3 trains, while production guidance was tightened to 53-54 million tonnes. Management raised full-year Adjusted EBITDA guidance by $650 million at the midpoint and distributable cash flow guidance by $550 million at the midpoint. GAAP earnings remained heavily affected by commodity derivative marks: Q2 included a roughly $2.9 billion favorable adjustment, although the new NPNS designation for 73% of fixed minimum IPM volumes should reduce future mark-to-market volatility for those contracts.
Financial results
- Revenue and profit: Revenue was $5.732 billion, up $1.091 billion year over year, while operating income increased $1.760 billion to $4.290 billion. Net income attributable to Cheniere rose 89% to $3.068 billion.
- Sequential recovery: Compared with Q1 2026, revenue declined from $6.59 billion, but operating income improved from a $3.49 billion loss to $4.29 billion of income and net income improved from a $3.50 billion loss to $3.07 billion of income.
- Underlying performance: Adjusted EBITDA increased $388 million year over year to $1.804 billion, driven by higher LNG volumes recognized in income and higher margins per MMBtu. Adjusted net income was $632 million, up from $498 million in Q2 2025, after excluding derivative fair-value effects.
Derivative accounting
Reported GAAP earnings were strongly influenced by commodity derivatives rather than only current-period LNG economics. Cheniere recorded approximately $2.9 billion of favorable derivative fair-value changes in Q2, versus a $1.5 billion favorable change in Q2 2025. The six-month comparison was much weaker: derivative fair-value changes were approximately $2.5 billion unfavorable in 2026, contributing to a first-half net loss attributable to Cheniere of $434 million versus $1.98 billion of profit in the prior-year period. In June, the company designated approximately 73% of fixed minimum contractual IPM volumes for NPNS accounting, removing those contracts from recurring fair-value measurement and shifting recognition toward physical gas deliveries. The designation created net deferred NPNS assets and liabilities of $349 million, with estimated amortization gains of $56 million in 2026 and $100 million in 2027.
LNG volumes and margins
- Higher throughput: Cheniere exported 184 cargoes and 672 TBtu in Q2, up from 154 cargoes and 550 TBtu in Q2 2025. Volumes recognized as LNG revenue increased to 657 TBtu from 558 TBtu.
- Mix improvement: LNG revenue from long-term agreements was $3.55 billion on 534 TBtu, while short-term and integrated marketing sales contributed $2.00 billion on 123 TBtu, compared with $687 million on 54 TBtu a year earlier.
- Production outlook: Full-year production guidance moved to 53-54 million tonnes from 52-54 million tonnes, reflecting the additional Corpus Christi Stage 3 capacity entering service.
Project execution
- Corpus Christi Stage 3: Midscale Train 6 achieved substantial completion in June, following Trains 1-4 in 2025 and Train 5 in March. The seven-train project was 98.4% complete at June 30, with Train 7's first LNG production expected imminently and substantial completion expected in the second half of 2026.
- Additional capacity: FERC authorized an aggregate production-capacity increase of approximately 5 mtpa for Corpus Christi Stage 3 and the Midscale Trains 8 & 9 project. The latter was 48.3% complete and targeted for substantial completion in the second half of 2028.
- Sabine Pass expansion: Cheniere Partners signed a lump-sum EPC contract with Bechtel for the first phase of the SPL Expansion Project and issued a limited notice to proceed. The first phase includes Train 7 and supporting infrastructure with expected capacity above 6 mtpa, although FID remains subject to regulatory, commercial and financing conditions.
Capital allocation
- Shareholder returns: Q2 capital deployment totaled approximately $884 million, including $550 million for 2.2 million repurchased shares and $116 million of dividends at $0.555 per share. First-half repurchases reached 4.9 million shares for $1.1 billion, with approximately $9.1 billion remaining under the authorization.
- Growth investment: Cheniere invested approximately $1.1 billion of growth capital in Q2 and $2.1 billion in the first half. First-half operating cash flow was $2.66 billion against $1.93 billion of investing outflows.
- Liquidity and debt: Available liquidity was $7.48 billion at June 30, comprising $1.10 billion of cash, $420 million of restricted cash and $5.96 billion of available credit commitments. Total debt was $24.26 billion, while the company refinanced $1.5 billion of SPL notes due 2027 with longer-dated CQP debt.
