Q2 2024 Cheniere Energy Partners LP Earnings Call

August 8, 2024

Please go ahead Sir.

Speaker Change: Thanks, operator, good morning, everyone and welcome to <unk> second quarter 2024 earnings Conference call Slide presentation and access to the webcast for today's call are available at Cheniere Dot com.

Speaker Change: Joining me. This morning are Jack Fusco, Cheniere with President and CEO, Anatol Fagan Executive Vice President Chief Commercial Officer.

Speaker Change: Davis Executive Vice President and CFO and other members of Cheniere Senior management.

Speaker Change: Before we begin I would like to remind all listeners that our remarks, including answers to your questions may contain forward looking statements and actual results could differ materially from what is described in these statements.

Speaker Change: Slide two of our presentation contains a discussion of those forward looking statements and associated risks.

We may include references to certain non-GAAP financial measures, such as consolidated adjusted EBITDA and distributable cash flow.

A reconciliation to these measures.

For the most comparable GAAP measure can be found in the appendix to the slide presentation.

As part of our discussion about generic results. Today's call May also include selected financial information and results for Cheniere Energy partners L. P or <unk>, we do not intend to cover <unk> results separately from those of Cheniere Energy Inc.

Speaker Change: The call agenda is shown on slide three Jack will begin with operating and financial highlights Anatol will then provide an update on the LNG market and Zach will review our financial results and increased 2024 guidance. After our prepared remarks, we will open the call for Q&A.

Jack Fusco: I'll now turn the call over to Jack Fusco, Cheniere as president and CEO. Thank.

Jack Fusco: Thank you Randy good morning, everyone. Thanks for joining us today as we review our second quarter results, which exceeded our expectations. Thanks to the success, we have achieved across the entire cheniere platform.

Speaker Change: Before I address the quarterly results and guidance increase I hope you saw our contract announcement earlier this week.

Speaker Change: We have entered into a new long term SBA with the Portuguese multinational integrated energy company count for approximately half a million tons for 20 years.

Speaker Change: The SBA is tied to the date of the second train of the SPL expansion project.

Speaker Change: This contract demonstrates not only further progress and continued momentum on the development of the SPL expansion project, but also the important rule U S. LNG fulfills in the European energy system for decades to come.

Speaker Change: The SBA represents our longest dated contract with a European counterparty.

Speaker Change: Once the deal is expected to extend beyond 2015.

Speaker Change: We continue to be very excited about the market's response to the SPL expansion project and are working diligently across multiple work streams to advance the project towards FID.

Speaker Change: We're focused on being the world's LNG supplier of choice from the U S.

Speaker Change: Differentiating ourselves with a safety first culture superior reliability, and our customer focus that demonstrates our long term commitment to excellence in LNG operations.

Speaker Change: Please turn to slide five where I'll highlight our key accomplishments for the quarter and introduce our increased guidance for 2024.

Speaker Change: In the second quarter, we generated consolidated adjusted EBITDA of approximately $1 3 billion distributable cash flow of approximately $700 million and net income of approximately $880 million.

Speaker Change: These excellent financial results are once again, the product of our maniacal focus on operational excellence.

Speaker Change: During the quarter, we produced and exported 155, LNG cargoes from our facilities.

Speaker Change: Total LNG production across our platform was up slightly year over year for both the corner in the first half of the year.

Speaker Change: On the maintenance front during the second quarter, we executed a major maintenance programs at both Sabine pass and Corpus Christi, and I'm extremely proud of the outcomes of each of those turnarounds.

Operator: From Investor Relations. Please go ahead, sir.

[Investor Relations] (Cheniere Energy): Thanks, operator. Good morning, everyone, and welcome to Cheniere's Q2 2024 Earnings Conference Call. The slide presentation and access to the webcast for today's call are available at cheniere.com. Joining me this morning are Jack Fusco, Cheniere's President and CEO; Anatol Feygin, Executive Vice President and Chief Commercial Officer; Zach Davis, Executive Vice President and CFO; and other members of Cheniere's senior management. Before we begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements, and actual results could differ materially from what is described in these statements. Slide two of our presentation contains a discussion of those forward-looking statements and associated risks. In addition, we may include references to certain non-GAAP financial measures, such as consolidated adjusted EBITDA and distributable cash flow.

Randy Bhatia: Thanks, operator. Good morning, everyone, and welcome to Cheniere's Q2 2024 Earnings Conference Call. The slide presentation and access to the webcast for today's call are available at cheniere.com. Joining me this morning are Jack Fusco, Cheniere's President and CEO; Anatol Feygin, Executive Vice President and Chief Commercial Officer; Zach Davis, Executive Vice President and CFO; and other members of Cheniere's senior management. Before we begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements, and actual results could differ materially from what is described in these statements. Slide two of our presentation contains a discussion of those forward-looking statements and associated risks. In addition, we may include references to certain non-GAAP financial measures, such as consolidated adjusted EBITDA and distributable cash flow.

Speaker Change: I'll come back to these programs in a minute for their safe and successful execution further reinforces our operating track record as such near further apart from the competition.

Please turn to slide five.

Where I'll highlight our key accomplishments for the quarter and introduce our increased guidance for 2024.

In the second quarter, we generated consolidated adjusted EBITDA of approximately $1 3 billion distributable cash flow of approximately $700 million and net income of approximately $880 million. These.

Speaker Change: During the second quarter, we announced an update to our capital allocation plan highlighted by $4 billion increase in our share repurchase authorization through 2027 as well as a planned increase in our dividend to $2 per share annualized next quarter.

These excellent financial results are once again, the product of our maniacal focus on operational excellence.

Speaker Change: Zach will speak to further our capital allocation plan provides investors with an excellent framework in which they can take confidence.

During the quarter, we produced and exported 155, LNG cargoes from our facilities.

Zach: Proven disciplined approach that provides for cash flow visibility capital management.

Total LNG production across our platform was up slightly year over year for both the quarter and the first half of the year.

Zach: And long term value creation.

On the maintenance front during the second quarter, we executed our major maintenance programs at both Sabine pass and Corpus Christi, and I'm extremely proud of the outcomes of each of those turnarounds I'll.

Zach: Looking ahead to the balance of 2024 today, we are raising and tightening the ranges of our full year guidance to $5 seven to $6 1 billion and consolidated adjusted EBITDA and three one to $3 5 billion of distributable cash flow.

[Investor Relations] (Cheniere Energy): A reconciliation to these measures and the most comparable GAAP measure can be found in the appendix to the slide presentation. As part of our discussion of Cheniere's results, today's call may also include selected financial information and results for Cheniere Energy Partners, L.P. or CQP. We do not intend to cover CQP's results separately from those of Cheniere Energy, Inc. The call agenda is found on slide 3. Jack will begin with operating and financial highlights. Anatol will then provide an update on the LNG market, and Zach will review our financial results and increased 2024 guidance. After prepared remarks, we will open the call for Q&A. I will now turn the call over to Jack Fusco, Cheniere's President and CEO.

Randy Bhatia: A reconciliation to these measures and the most comparable GAAP measure can be found in the appendix to the slide presentation. As part of our discussion of Cheniere's results, today's call may also include selected financial information and results for Cheniere Energy Partners, L.P. or CQP. We do not intend to cover CQP's results separately from those of Cheniere Energy, Inc. The call agenda is found on slide 3. Jack will begin with operating and financial highlights. Anatol will then provide an update on the LNG market, and Zach will review our financial results and increased 2024 guidance. After prepared remarks, we will open the call for Q&A. I will now turn the call over to Jack Fusco, Cheniere's President and CEO.

I'll come back to these programs in a minute for their safe and successful execution further reinforces our operating track record as such generic further apart from the competition.

Zach: Primary drivers of the increase our portfolio optimization activities and excellent maintenance execution at both our sites, particularly at corpus.

During the second quarter, we announced an update to our capital allocation plan highlighted by $4 billion increase in our share repurchase authorization through 2027 as well as a planned increase in our dividend to $2 per share or annualized next quarter.

Speaker Change: Where we expect to make up some of the lost production we had in the first quarter as a result of freeze related gas composition issues.

Speaker Change: That I discussed on our last call.

Speaker Change: Even accounting for the increased volume in our forecast we continue to have an immaterial amount of unsold volumes remaining for the balance of the year and.

Zach will speak to further our capital allocation plan provides investors with an excellent framework in which they can take confidence.

Jack Fusco: Thank you, Randy. Good morning, everyone. Thanks for joining us today as we review our Q2 results, which exceeded our expectations thanks to the success we have achieved across the entire Cheniere platform. Before I address the quarterly results and guidance increase, I hope you saw our contract announcement earlier this week. We have entered into a new long-term SPA with the Portuguese multinational integrated energy company Galp for approximately 500,000 tons for 20 years. The SPA is tied to the date of the second train of the SPL expansion project. This contract demonstrates not only further progress and continued momentum on the development of the SPL expansion project, but also the important role US LNG fulfills in the European energy system for decades to come. The SPA represents our longest-dated contract with a European counterparty as the deal is expected to extend beyond 2050.

Zach: Proven disciplined approach that provides for cash flow visibility capital management.

Speaker Change: In fact, we'll have more to say on the guidance increase in his remarks in a minute.

Zach: And long term value creation.

Speaker Change: Please turn to slide six where I'll update you on our growth, but stage three and trains $8 nine at corpus.

Zach: Looking ahead to the balance of 2024 today, we are raising and tightening the ranges of our full year guidance.

Speaker Change: On the construction execution side Bechtel continues to progress our state Street project at Corpus Christi on budget and on an accelerated schedule. Once again demonstrated the LNG market the reliability of execution and visibility on volumes from Cheniere.

Zach: To five 7% to $6 1 billion and consolidated adjusted EBITDA and three one to $3 5 billion of distributable cash flow.

Zach: Primary drivers of the increase our portfolio optimization activities and excellent maintenance execution at both our sites, particularly at corpus.

Speaker Change: In June stage, III reached over 62% completion and the head count has ramped to about 4000 construction workers today.

Zach: Where we expect to make up some of the lost production we had in the first quarter as a result of freeze related gas composition issues.

Speaker Change: You can see from the photos on the slide stage III is very much taking shape.

Speaker Change: Especially the first few trains for which construction is well advanced.

Zach: That I discussed on our last call.

Zach: Even accounting for the increased volume in our forecast we continue to have an immaterial amount of unsold volume remaining for the balance of the year in.

Speaker Change: All equivalent for the first two trains has been delivered to the project site and last week train five cold boxes were shipped and train six cold boxes are ready to ship.

Jack Fusco: We continue to be very excited about the market's response to the SPL expansion project and are working diligently across multiple work streams to advance the project towards FID. We're focused on being the world's LNG supplier of choice from the US, differentiating ourselves with a safety-first culture, superior reliability, and a customer focus that demonstrates our long-term commitment to excellence in LNG operations. Please turn to slide five, where I'll highlight our key accomplishments for the quarter and introduce our increased guidance for 2024. In Q2, we generated consolidated adjusted EBITDA of approximately $1.3 billion, distributable cash flow of approximately $700 million, and net income of approximately $880 million. These excellent financial results are once again the product of our maniacal focus on operational excellence.

Speaker Change: In fact, we'll have more to say on the guidance increase in his remarks in a minute.

Speaker Change: We continue to target first LNG from train one by the end of the year and to bring the first three trains online by the end of 2025.

Speaker Change: Please turn to slide six where I'll update you on our growth at stage, three and trains $8 million at Corpus.

Speaker Change: To that end recently, we commenced the process of turning over utility systems from EMC to the commissioning teams.

Speaker Change: On the construction execution side Bechtel continues to progress our stage three project at Corpus Christi on budget and on an accelerated schedule. Once again demonstrated the LNG market the reliability of execution and visibility on volumes from Cheniere.

Speaker Change: With approximately 35, such systems, having already been turned over and in June spectral energized. The train one liquefaction and utility Substations are critical step, which will enable power at the project site.

Zach: And Julien stage III reached over 62% completion and the head count has ramped to about 4000 construction workers today.

Speaker Change: In addition, we have begun to make some necessary regulatory filings and preparation for the start of commissioning activities up train one.

Zach: You can see from the photos on the slide stage III is very much taking shape.

Speaker Change: Expect to begin taking first gas into train one in the next couple of months, which will begin the commissioning and startup process and we will.

Zach: Especially the first few trains for which construction is well advanced.

Zach: All equivalent for the first two trains has been delivered to the project site and last week train five cold boxes were shipped and trade six cold boxes are ready to ship.

Speaker Change: Give us added visibility into the end of the year target for first LNG.

Speaker Change: Speaking of regulatory matters during the second quarter, we received a positive environmental assessment from FERC on Corpus Christi trains eight nine.

Jack Fusco: During the quarter, we produced and exported 155 LNG cargoes from our facilities. Total LNG production across our platform was up slightly year-over-year for both the quarter and the first half of the year. On the maintenance front, during Q2, we executed our major maintenance programs at both Sabine Pass and Corpus Christi, and I'm extremely proud of the outcomes of each of those turnarounds. I'll come back to these programs in a minute, for their safe and successful execution further reinforces our operating track record and sets Cheniere further apart from the competition. During Q2, we announced an update to our capital allocation plan, highlighted by a $4 billion increase in our share repurchase authorization through 2027, as well as a planned increase in our dividend to $2 per share annualized next quarter.

Zach: We continue to target first LNG from train one by the end of the year and to bring the first three trains online by the end of 2025.

Speaker Change: It's critical regulatory milestone helps to solidify our expected timeline for us to be in a position to reach <unk> 89 in 2025, which should enable us to realize project efficiencies of having backfill already outside for stage three.

Zach: To that end recently, we commenced the process of turning over utility systems from EMC to the commissioning teams.

Zach: With approximately 35, such systems, having already been turned over and in June spectral energized. The train one liquefaction and utility Substations are critical step, which will enable power at the project site.

Speaker Change: Our ability to navigate the numerous regulatory bodies and obtain the required permits has been a key to our success to date and is essential to our growth plans for both corpus and Sabine.

Zach: In addition, we have begun to make some necessary regulatory filings and preparation for the start of commissioning activities up train one.

Speaker Change: Now turning to slide seven where I'm pleased to cover some highlights of the maintenance program were executed at both Sabine pass and Corpus Christi since our last earnings call.

Zach: We expect to begin taking first gas into train one in the next couple of months, which will begin the commissioning and startup process.

Speaker Change: Our execution exemplifies engineers cultural foundations of safety and operational excellence.

Zach: Will give us added visibility into the end of the year target for first LNG.

Speaker Change: As I've discussed previously this year's major maintenance work would look a little different than last years and that we wouldn't need extended periods of full outages at either facility.

Zach: Speaking of regulatory matters during the second quarter, we received a positive environmental assessment from FERC on Corpus Christi trains eight nine.

Jack Fusco: As Zach will speak to further, our capital allocation plan provides investors with an excellent framework in which they can take confidence. A proven, disciplined approach that provides for cash flow visibility, capital management, and long-term value creation. Looking ahead to the balance of 2024, today we are raising and tightening the ranges of our full year guidance to $5.7 to 6.1 billion in consolidated adjusted EBITDA and $3.1 to 3.5 billion of distributable cash flow. The primary drivers of the increase are portfolio optimization activities and excellent maintenance execution at both our sites, particularly at Corpus, where we expect to make up some of the lost production we had in Q1 as a result of freeze-related gas composition issues that I discussed on our last call.

Speaker Change: Rather we.

Zach: This critical regulatory milestone helps to solidify our expected timeline for us to be in a position to reach <unk> 89 in 2025, which should enable us to realize project efficiencies of having backfill already outside for stage three.

Speaker Change: We will be able to complete our required maintenance programs under shorter outages.

Speaker Change: While operating at reduced rates with a net impact to the total annual production from maintenance being about the same as the major SPL turnaround in 2023.

Zach: Our ability to navigate the numerous regulatory bodies and obtain the required permits has been a key to our success to date and is essential to our growth plans for both corpus and Sabine.

Speaker Change: Major maintenance was concentrated at Sabine pass last year, whereas this year, we performed major maintenance across both facilities in the second quarter Sabine pass we conducted a planned major.

Speaker Change: Now turning to slide seven where I'm pleased to cover some highlights of the maintenance program, we're executing at both Sabine pass and Corpus Christi since our last earnings call and how our execution exemplifies engineers cultural foundations of safety and operational excellence.

Speaker Change: Turnaround for trains three and four and at Corpus Christi, We completed a turnaround of train three in the second quarter and a turnaround of train two last month.

Speaker Change: I'm proud to say these turnarounds were all completed on or ahead of schedule on budget had zero reportable environmental incidents and most importantly, zero recordable and lost time injuries.

Zach: As I've discussed previously this year's major maintenance work would look a little different than last years and that we wouldn't need extended periods of full outages at either facility.

Jack Fusco: Even accounting for the increased volume in the forecast, we continue to have an immaterial amount of unsold volume remaining for the balance of the year. Zach will have more to say on the guidance increase in his remarks in a few minutes. Please turn to slide 6, where I'll update you on the growth at Stage 3 in trains eight and nine at Corpus Christi. On the construction execution side, Bechtel continues to progress our Stage 3 project at Corpus Christi on budget and on accelerated schedule. Once again, demonstrating to the LNG market the reliability of execution and visibility on volumes from Cheniere. In June, Stage 3 reached over 62% completion and the headcount has ramped to about 4,000 construction workers today.

Speaker Change: To be clear.

Zach: Rather.

Zach: We wont be able to complete our required maintenance programs under shorter outages.

Speaker Change: We will have major maintenance programs to execute at our sites every year.

Speaker Change: Since turnarounds are part of our normal operations.

Zach: Or while operating at reduced rates with a net impact to the total annual production from maintenance being about the same as a major SPL turnaround in 2023.

Speaker Change: Sort of have these successes on our major annual programs is critical to maintaining and reinforcing our reputation for safe and reliable operations.

Zach: Major maintenance was concentrated at Sabine pass last year, whereas this year, we performed major maintenance across both facilities.

Speaker Change: As many of you know.

Speaker Change: This is predicted to be a very busy hurricane season, and we have already had a significant storm hurricane barrel.

Zach: In the second quarter at Sabine pass, we conducted a planned major.

Speaker Change: It made landfall on the Texas Gulf Coast.

Zach: Turnaround for trains three and four and at Corpus Christi, We completed a turnaround of train three in the second quarter and a turnaround of train two last month.

Speaker Change: In advance of the storm, we activated our hurricane preparedness plans at both facilities.

Speaker Change: These plants provide for operations risk assessment and mitigation before during and after the storm event.

Jack Fusco: As you can see from the photos on the slide, stage three is very much taking shape, especially the first few trains for which construction is well advanced. All equipment for the first two trains has been delivered to the project site, and last week, train 5 cold boxes were shipped and train 6 cold boxes are ready to ship. We continue to target first LNG from train 1 by the end of the year, and to bring the first three trains online by the end of 2025. To that end, recently, we commenced the process of turning over utility systems from E&C to the commissioning teams with approximately 35 such systems having already been turned over. In June, Bechtel energized the train 1 liquefaction and utility substations, a critical step which will enable power at the project site.

Zach: I'm proud to say these turnarounds were all completed on or ahead of schedule and on budget had zero reportable environmental incidents and most importantly, zero recordable and lost time injuries.

Speaker Change: The storm, making landfall south of Houston random between Sabine pass and Corpus Christi.

Speaker Change: He had uninterrupted safe and reliable production of LNG at both facilities throughout the storm.

Zach: To be clear.

Zach: We will have major maintenance programs to execute at our sites every year may.

Speaker Change: To that point on safety.

Zach: Maintenance turnarounds are part of our normal operations.

Speaker Change: I'd like to recognize the personnel on both sides for having achieved major safety milestones during the quarter that are worthy of acknowledgment that celebration.

Zach: Have these successes on our major annual programs is critical to maintaining and reinforcing our reputation for safe and reliable operations.

Speaker Change: Corpus Christi surpassed 6 million man hours worked without a single lost time incident, and Sabine pass surpassed the 10 million man hour Mark.

Zach: As many of you know this is predicted to be a very busy hurricane season, and we have already had a significant storm hurricane barrel made.

Speaker Change: Those are exceptional achievements.

Speaker Change: And I'd like to congratulate my senior colleagues at both sites for a job well done.

Zach: It made landfall on the Texas Gulf Coast.

Zach: In advance of the storm, we activated our hurricane preparedness plans at both facilities.

Jack Fusco: In addition, we have begun to make some necessary regulatory filings in preparation for the start of commissioning activities on train 1. We expect to begin taking first gas into train 1 in the next couple of months, which will begin the commissioning and startup process and will give us added visibility into the end of the year target for first LNG. Speaking of regulatory matters, during Q2, we received a positive environmental assessment from FERC on Corpus Christi trains 8 and 9. This critical regulatory milestone helps to solidify our expected timeline for us to be in a position to reach FID on trains 8 and 9 in 2025, which should enable us to realize project efficiencies of having Bechtel already on site for stage 3.

Speaker Change: And finally before turning the call over.

Zach: These plants provide for operations risk assessment and mitigation before during and after the storm event.

Speaker Change: I'd just like to say a brief word relating to the upcoming presidential election.

Speaker Change: At Cheniere, we have developed built and operated our assets under multiple administrations across both parties for the last decade plus.

Zach: The store made landfall south of Houston random between Sabine pass and Corpus Christi.

Zach: He had uninterrupted safe and reliable production of LNG at both facilities throughout the store.

Speaker Change: We believe our business and our product to be bipartisan, helping achieve policy priorities across the political spectrum.

Speaker Change: To that point on safety.

Speaker Change: I'd like to recognize the personnel on both sides for having achieved major safety milestones during the quarter that are worthy of acknowledgment that celebration.

Speaker Change: Economic impact job creation global de Carbonization energy independence or international trade.

Speaker Change: Cheniere and our LNG deliver on each and scale the.

Zach: Corpus Christi surpassed 6 million man hours worked without a single lost time incident, and Sabine pass surpassed the 10 million man hour Mark.

Speaker Change: The numerous and significant benefits of our LNG or proven.

Jack Fusco: Our ability to navigate the numerous regulatory bodies and obtain the required permits has been a key to our success to date and is essential to our growth plans for both Corpus and Sabine. Now turn to slide 7, where I'm pleased to cover some highlights of the maintenance program we're executing at both Sabine Pass and Corpus Christi since our last earnings call, and how our execution exemplifies Cheniere's cultural foundations of safety and operational excellence. As I've discussed previously, this year's major maintenance work would look a little different than last year's, and that we wouldn't need extended periods of full outages at either facility. Rather, we would be able to complete our required maintenance programs under shorter outages or while operating at reduced rates with a net impact to the total annual production from maintenance being about the same as a major SPL turnaround in 2023.

Speaker Change: In addition, our LNG platform consist of assets that we believe will operate for many decades.

Speaker Change: Those are exceptional achievements.

Zach: And I'd like to congratulate my senior colleagues at both sites for a job well done.

Speaker Change: Sending any single election cycle.

Speaker Change: Look forward to maintaining our constructive presence and working relationships in Washington, regardless of the outcome in November.

Zach: And finally before turning the call over.

Zach: I'd just like to say a brief word relating to the upcoming presidential election.

Anatol Fagan: To continue being a reliable supplier to our customers and to the overall global energy balances and energy security and with that I'll now hand, the call over to anatomically discuss the LNG markets.

Zach: At Cheniere, we have developed built and operated our assets under multiple administrations across both parties for the last decade plus.

Zach: We believe our business and our product to be bipartisan, helping achieve policy priorities across the political spectrum.

Speaker Change: You all again for your continued support of shipyard.

anatomically: Thanks, Jack and good morning, everyone. Please turn to slide nine.

Speaker Change: With the extreme volatility in prices with 22 now well in the rearview mirror TTM in Pts were down, 24% and 16% respectively year on year in the second quarter.

Zach: Economic impact job creation global de Carbonization energy independence or international trade.

Zach: Cheniere and our LNG deliver on each and scale the.

Speaker Change: However, both benchmarks increased during the quarter due to a series of supply outages as LNG facilities in Australia, and the U S as well as upstream facilities in Norway.

Zach: The numerous and significant benefits of our LNG or proven.

Zach: In addition, our LNG platform consist of assets that we believe will operate for many decades.

Speaker Change: These supply disruptions, coupled with stronger demand pull from Asia due to a hot early summer and restocking efforts led to TGF and Vietnam, helping approximately 25% from April lows to June.

Jack Fusco: Major maintenance was concentrated to Sabine Pass last year, whereas this year, we performed major maintenance across both facilities. In Q2 at Sabine Pass, we conducted a planned major turnaround for trains 3 and 4. At Corpus Christi, we completed a turnaround of train 3 in Q2 and a turnaround of train 2 last month. I'm proud to say these turnarounds were all completed on or ahead of schedule on budget, had 0 reportable environmental incidents, and most importantly, 0 recordable or lost time injuries. To be clear, we will have major maintenance programs to execute at our sites every year. Maintenance turnarounds are part of our normal operations. To have these successes on our major annual programs is critical to maintaining and reinforcing our reputation for safe and reliable operations.

Zach: Sending any single election cycle.

Zach: Look forward to maintaining our constructive presence and working relationships in Washington, regardless of the outcome in November.

Speaker Change: In the U S. Montana, Henry hub settlements average dollars 89, or NAND in the second quarter, but prices strengthened with the June contract settling at $2 49, Btu and July 2016, resets as the domestic market absorbed the impact of price driven production cuts along with strong early summer cooling demand and the return of three <unk>.

Anatol: To continue being a reliable supplier to our customers into the overall global energy balances and energy security and with that I'll now hand, the call over to anatomically discuss the LNG markets.

Zach: You all again for your continued support of <unk>.

Speaker Change: LNG for maintenance.

anatomically: Thanks, Jack and good morning, everyone. Please turn to slide nine.

Speaker Change: Throughout the quarter the supply demand balance remains delicate in the LNG market.

Speaker Change: With the extreme volatility in prices of 22, now well in the rearview mirror TTM at ETF are down, 24% and 16% respectively year on year in the second quarter.

Speaker Change: Looking at the center cards Global LNG trade growth was constrained by minimal supply growth during the quarter with Asia increased demand met by attracting cargo in the Atlantic basin via higher prices.

Speaker Change: However, both benchmarks increased during the quarter due to a series of supply they visit LNG facilities in Australia, and the U S as well as the upstream facilities in Norway.

Speaker Change: This demand pull from Asia is further evidenced by U S. LNG export flows, which continued to shift from Europe to Asia during the quarter.

Zach: These supply disruptions, coupled with stronger demand pull from Asia due to a hot early summer and restocking efforts led to <unk> approximately 25% from April lows to June.

Speaker Change: The growth in global supply was partially offset as Egypt.

Jack Fusco: As many of you know, this is predicted to be a very busy hurricane season, and we have already had a significant storm. Hurricane Beryl made landfall on the Texas Gulf Coast. In advance of the storm, we activated our hurricane preparedness plans at both facilities. These plans provide for operations risk assessment and mitigation before, during, and after a storm event. The storm made landfall south of Houston, right in between Sabine Pass and Corpus Christi. We had uninterrupted, safe, and reliable production of LNG at both facilities throughout the storm. To that point on safety, I'd like to recognize the personnel at both sites for having achieved major safety milestones during the quarter that are worthy of acknowledgement and celebration. Corpus Christi surpassed 6 million man-hours worked without a single lost time incident, and Sabine Pass surpassed the 10 million man-hour mark.

Speaker Change: Back to an LNG importer and other export facilities suffered protracted outages.

Speaker Change: With limited incremental supply is consumption growth was primarily dominated by China, and India, leaving little volume for relatively new market areas, such as Hong Kong, Vietnam, and the Philippines, which actually became our 40th delivery market last week we.

Zach: In the U S more than Henry hub settlements average dollars 89, or NAND in the second quarter, but prices strengthened with the June contract settling at $2 49, Btu and July 2016 reset as the domestic market absorbed the impact of price driven production cuts along with strong early summer cooling demand and the return of three <unk>.

Speaker Change: We expect this seemingly fragile market balance to continue until additional LNG export capacity comes online.

Zach: LNG for maintenance.

Speaker Change: Let's address the regional dynamics in the next page.

Zach: Throughout the quarter the supply demand balance remains delicate in the LNG market.

Speaker Change: And Asia, LNG imports grew 11% or $6 7 million tonnes year on year in the second quarter extreme.

Zach: Looking at the center cards Global LNG trade growth was constrained by minimal supply growth during the quarter with Asia increased demand met by attracting cargo in the Atlantic basin via higher prices.

Speaker Change: Extreme temperatures across the region lifted gas power demand, while relatively lower prices in the first quarter and early second quarter for its spot buying resulting in significant increases throughout the first half of the year.

Zach: This demand pull from Asia is further evidenced by U S. LNG export flows, which continued to shift from Europe to Asia during the quarter.

Speaker Change: <unk> LNG imports grew 16% or $5 2 million tons in the first half of 'twenty four with a lower growth rate in the second quarter as prices strengthen.

Speaker Change: The growth in global supply that partially offset as Egypt.

Zach: Back to an LNG importer and other export facilities suffered protracted outages.

Jack Fusco: Those are exceptional achievements, and I'd like to congratulate my Cheniere colleagues at both sites for a job well done. Finally, before turning the call over, I'd just like to say a brief word relating to the upcoming presidential election. At Cheniere, we have developed, built, and operated our assets under multiple administrations across both parties for the last decade plus. We believe our business and our product to be bipartisan, helping achieve policy priorities across the political spectrum. Economic impact, job creation, global decarbonization, energy independence, or international trade. Cheniere and our LNG deliver on each and scale. The numerous and significant benefits of our LNG are proven. In addition, our LNG platform consists of assets that we believe will operate for many decades, transcending any single election cycle.

Speaker Change: At 10% year on year increase in the country's overall gas demand in the first half of the year underpinned. This LNG import growth, particularly when prices were conducive to LNG spot buying rough.

Speaker Change: With limited incremental supply is consumption growth was primarily dominated by China, and India, leading rental volume for relatively new market areas, such as Hong Kong, Vietnam, and the Philippines, which actually became our 40th delivery market last week we.

Speaker Change: Roughly a quarter of this gas demand growth was met by pipeline imports consistent with the planned ramp up in Russia and gas deliveries through power of Siberia.

Speaker Change: We expect this seemingly fragile market balance to continue until additional LNG export capacity comes online.

Speaker Change: And the remaining 75% of the growth was evenly split between indigenous production and LNG imports.

Speaker Change: Let's address the regional dynamics in the next page.

Speaker Change: Elsewhere in Asia, India's imports reached over 7 million tons in the second quarter a.

Speaker Change: In Asia, LNG imports grew 11% or $6 7 million tonnes year on year in the second quarter extreme.

Speaker Change: 21% increase year on year.

Speaker Change: This growth profile, south and southeast Asian imports to new highs, resulting in $6 4 million tons or 23% of cumulative growth through the first half of the year.

Speaker Change: Extreme temperatures across the region lifted gas power demand, while relatively lower prices in the first quarter and early second quarter spurred spot buying resulting in significant increases throughout the first half of the year.

Speaker Change: Other markets in the region also saw similar optics, including Pakistan, Thailand, as well as Singapore, we saw increased use of LNG and Bunkering operations.

Zach: <unk> LNG imports grew 16% or $5 2 million tons in the first half of 'twenty four with a lower growth rate in the second quarter as prices strengthen.

Speaker Change: This growth in demand resulted in steady competition for cargos among markets across Asia, and sustained <unk> premium or Cts.

Speaker Change: At 10% year on year increase in the country's overall gas demand in the first half of the year underpinned this LNG import growth.

Speaker Change: In Europe imports were lower by about $13 4 million tonnes year on year in the first half.

Jack Fusco: We look forward to maintaining our constructive presence and working relationships in Washington regardless of the outcome in November, and to continue being a reliable supplier to our customers and to the overall global energy balances and energy security. With that, I'll now hand the call over to Anatol to discuss the LNG markets. Thank you all again for your continued support of Cheniere.

Speaker Change: Particularly when prices were conducive to LNG spot buy roughly.

Speaker Change: Roughly a quarter of this gas demand growth was met by pipeline imports consistent with the planned ramp up in Russia and gas deliveries through power of Siberia.

Speaker Change: Despite a modest 5% uptick in industrial sector demand in our six key markets. We track total gas demand in the region remained four 3% below the comparable period last year.

Speaker Change: And the remaining 75% of the growth was evenly split between indigenous production in LNG imports.

Speaker Change: As shown on the chart on the lower right strong seasonal generation from hydropower on wind and healthy nuclear power generation suppressed gas firepower across the key European markets, resulting in an 18% year on year drop in gas burn in the first half of the year.

Speaker Change: Elsewhere in Asia, India's imports reached over 7 million tons in the second quarter, a 21% increase year on year.

Anatol Feygin: Thanks, Jack, and good morning, everyone. Please turn to slide nine. With the extreme volatility in prices of 2022 now well in the rearview mirror, JKM and TTF were down 24% and 16% respectively year-on-year in Q2. However, both benchmarks increased during the quarter due to a series of supply outages at LNG facilities in Australia and the US, as well as upstream facilities in Norway. These supply disruptions, coupled with stronger demand pull from Asia due to a hot early summer and restocking efforts, led to TTF and JKM each jumping approximately 25% from April lows to June.

Speaker Change: This growth propelled south and southeast Asian imports to new highs, resulting in $6 4 million tons or 23% of cumulative growth through the first half of the year.

Speaker Change: In addition, mild temperatures for most of the quarter further limited heating demand.

Speaker Change: These dynamics enabled Europe to refill storage inventories at just above last year's level.

Speaker Change: Other markets in the region also saw similar optics, including Pakistan, Thailand, as well as Singapore, we saw increased use of LNG and Bunkering operations.

Speaker Change: <unk> gas storage stood at approximately 83% full as of July 20th almost meeting the previous record of 84% except for the comparable periods during the pandemic back in 2020.

Speaker Change: This growth in demand resulted in steady competition for cargos among markets across Asia, and sustains a J cam premium over TTM.

Speaker Change: In the absence of weather supported demand in Europe, and and delays in new LNG facility startups.

Speaker Change: In Europe imports were lower by about $13 4 million tonnes year on year in the first half.

Speaker Change: Demand growth trajectory will likely serve as the main factor impacting availability of LNG to Europe and its storage field track.

Anatol Feygin: In the US, month-end Henry Hub settlements averaged $0.89/MMBtu in Q2, but prices strengthened with the June contract settling at $2.49/MMBtu and July at $2.63/MMBtu as the domestic market absorbs the impact of price-driven production cuts, along with strong early summer cooling demand, and the return of Freeport LNG from maintenance. Throughout the quarter, the supply-demand balance remained delicate in the LNG market. Looking at the center charts, global LNG trade growth was constrained by minimal supply growth during the quarter, with Asia's increased demand met by attracting cargoes from the Atlantic basin via higher prices. This demand pull from Asia is further evidenced by US LNG export flows, which continued to shift from Europe to Asia during the quarter.

Speaker Change: Despite a modest 5% uptick in industrial sector demand in our six key markets. We track total gas demand in the region remained four 3% below the comparable period last year.

Speaker Change: Let's move to the next slide for a longer term perspective.

Speaker Change: After nearly two full years of focus on Europe, and its energy crisis.

Speaker Change: As it has in the first half of 'twenty four regained the spotlight in the LNG marketplace.

Speaker Change: We believe this rebound is supportive of our long term market thesis, namely that as the supply curve pushes out into the right and market liquidity continues to increase in the coming years, we will see incremental demand growth in both Europe and Asia.

Speaker Change: In addition, mild temperatures for most of the quarter further limited heating demand.

Speaker Change: Market analysts agree that Asia remains the primary driver of LNG demand growth over the longer term as.

Speaker Change: These dynamics enabled Europe to refill storage inventories adjust above last year's level.

Speaker Change: <unk> gas storage stood at approximately 83% full as of July 20th almost meeting the previous record of 84% except for the comparable periods during the pandemic back in 2020.

Speaker Change: As you can see from the chart to the left we expect Asian demands to nearly double by 2040, so long the supply availability is not constrained.

Anatol Feygin: The growth in global supply was partially offset as Egypt flipped back to an LNG importer and other export facilities suffered protracted outages. The limited incremental supply. Asia's consumption growth was primarily dominated by China and India, leaving little volume for relatively new market areas such as Hong Kong, Vietnam, and the Philippines, which actually became our 40th delivery market last week. We expect this seemingly fragile market balance to continue until additional LNG export capacity comes online. Let's address the regional dynamics in the next page. In Asia, LNG imports grew 11% or 6.7 million tons year-on-year in Q2. Extreme temperatures across the region lifted gas power demand, while relatively lower prices in Q1 and early Q2 spurred spot buying, resulting in significant increases throughout the first half of the year.

Speaker Change: However, Europe will still need significant volumes of LNG now and in the long term and we will continue to compete with Asia as domestic production and regional pipe imports continued to decline.

Speaker Change: In the absence of weather supported demand in Europe, and and delays in new LNG facility startups.

Speaker Change: Demand growth trajectory will likely serve as the main factor impacting availability of LNG to Europe and its storage field track.

Speaker Change: As Jack highlighted earlier, we signed a new long term SBA with gout, which is expected to extend beyond 2015.

Speaker Change: Let's move to the next slide for a longer term perspective.

Jack Fusco: At the beginning of 'twenty, two we have signed over 5 million tonnes per annum of long term contracts with European Counterparties, who value the reliability and flexibility of our LNG further reinforcing the long term role of LNG in Europe energy mix.

Speaker Change: After nearly two full years of focus on Europe, and its energy crisis.

Speaker Change: As it has in the first half of 'twenty four regained the spotlight in the LNG marketplace.

Jack Fusco: On the right side, we delineate expected growth by region.

Jack Fusco: This highlights the growth in Asia is not driven by China alone, but rather a spread across numerous markets in Asia enhancing the durability of growth in the region over the coming decades.

Speaker Change: Market analysts agree that Asia remains the primary driver of LNG demand growth over the longer term as.

Jack Fusco: On previous calls we have highlighted the significant growth potential of south and southeast Asia markets and believe that these stanford, particularly benefit from the coming increase in LNG supply supporting grid stability and ensuring system flexibility and resilience.

Speaker Change: As you can see from the chart to the left we expect Asian demand to nearly double by 2040, so long the supply availability is not constrained.

Anatol Feygin: China's LNG imports grew 16% or 5.2 million tons in the first half of 2024, with a lower growth rate in Q2 as prices strengthened. A 10% year-on-year increase in the country's overall gas demand in the first half of the year underpinned this LNG import growth, particularly when prices were conducive to LNG spot buying. Roughly a quarter of this gas demand growth was met by pipeline imports, consistent with the planned ramp up in Russian gas deliveries through Power of Siberia, and the remaining 75% of the growth was evenly split between indigenous production and LNG imports. Elsewhere in Asia, India's imports reached over 7 million tons in Q2, a 21% increase year-on-year.

Speaker Change: However, Europe will still need significant volumes of LNG now and in the long term and we'll continue to compete with Asia as domestic production and regional pipe imports continued to decline.

Speaker Change: Head of the supply cycle, we expect the market to continue to balance primarily on the demand side the expectation of growing supply from 2026 onwards should alleviate the constraints on demand growth, especially as moderate prompt LNG and gas prices prevail.

Speaker Change: As Jack highlighted earlier, we signed a new long term SBA with Gal, which is expected to extend beyond 2015.

Jack: At the beginning of 'twenty, two we have signed over 5 million tonnes per annum of long term contracts with European Counterparties, who value the reliability and flexibility of our LNG further reinforcing the long term role of LNG in Europe energy mix.

Speaker Change: This would help both Europe and Asia equally and realizing security supply as Europe will be better able to meet its requirements to replace oil and gas while backstopping growth in renewables and Asia will be better equipped to displace coal and offset regional production declines while underpinning investments in gas infrastructure in high growth developing.

Jack: On the right side, we delineate expected growth by region.

Speaker Change: This highlights the growth in Asia is not driven by China alone, but rather a spread across numerous markets in Asia enhancing the durability of growth in the region over the coming decades.

Speaker Change: <unk>.

Speaker Change: I'll turn the call over to Zach to review, our financial results and guidance.

Anatol Feygin: This growth propelled South and Southeast Asian imports to new highs, resulting in 6.4 million tons or 23% of cumulative growth through the first half of the year. Other markets in the region also saw similar upticks, including Pakistan, Thailand, as well as Singapore, which saw increased use of LNG in bunkering operations. This growth in demand resulted in steady competition for cargoes among markets across Asia and sustained a JKM premium over TTF. In Europe, imports were lower by about 13.4 million tons year-on-year in the first half. Despite a modest 5% uptick in industrial sector demand in the six key markets we track, total gas demand in the region remained 4.3% below the comparable period last year.

Zach: Thanks, Anatol and good morning, everyone I'm.

Speaker Change: On previous calls we have highlighted the significant growth potential of south and southeast Asia markets and believe that these stanford, particularly benefit from the coming increase in LNG supply supporting grid stability and ensuring system flexibility and resilience.

Zach: I'm pleased to be here today to review, our second quarter 2024 results Ethan ample accomplishment and increased guidance for the year.

Zach: Turning to slide 13.

Zach: For the second quarter 2024, we generated net income of approximately $880 million consolidated adjusted EBITDA by approximately $1 3 billion.

Speaker Change: Total capital of approximately $700 million.

Speaker Change: With these second quarter results. We have now reported positive net income on a quarterly and cumulative trailing four quarter basis seven quarters in a row.

Speaker Change: This would help both Europe and Asia equally and realizing security of supply as Europe will be better able to meet its requirements to replace oil and gas while backstopping growth in renewables and Asia will be better equipped to displace coal and offset regional production declines while underpinning investments in gas infrastructure in high growth developing.

Speaker Change: Compared to last year.

Speaker Change: Quarter 2024 results reflect a higher proportion of our LNG being sold under long term contracts as well as further moderation of international gas prices relative to last year.

Anatol Feygin: As shown on the chart on the lower right, strong seasonal generation from hydropower, wind, and healthy nuclear power generation suppressed gas-fired power across the key European markets, resulting in an 18% year-on-year drop in gas burn in the first half of the year. In addition, mild temperatures for most of the quarter further limited heating demand. These dynamics enabled Europe to refill storage inventories at just above last year's level. EU gas storage stood at approximately 83% full as of 20 July 2024, almost meeting the previous record of 84% set for the comparable periods during the pandemic back in 2020. In the absence of weather-supported demand in Europe and amid delays in new LNG facility startups, even as demand growth trajectory will likely serve as the main factor impacting availability of LNG to Europe and its storage fill track.

Speaker Change: <unk>.

Speaker Change: I'll turn the call over to Zach to review, our financial results and guidance.

Speaker Change: Compared to the first quarter. This year, our production was lower in the second quarter due to the planned maintenance at both Sabine pass and Corpus Christi with Scott detailed.

Zach: Thanks, Anatol and good morning, everyone I'm.

Zach: I'm pleased to be here today to review, our second quarter 2024 results Ethernet the accomplishments and increased guidance for the year.

Speaker Change: Well as warmer ambient temperatures at Sabine.

Speaker Change: During the second quarter, we recognized an income 552 T Btu, a physical LNG all of which was produced by our facilities.

Zach: Turning to slide 13.

Speaker Change: For the second quarter 2024, we generated net income of approximately $880 million consolidated adjusted EBITDA by approximately $1 3 billion.

Speaker Change: <unk>, 93% of these LNG volumes recognized in income were sold under long term SBA or IPM agreements with initial terms greater than 10 years.

Speaker Change: <unk> capital of approximately $700 million.

Speaker Change: With these second quarter results. We have now reported positive net income on a quarterly and cumulative trailing four quarter basis seven quarters in a row.

Speaker Change: Which makes this past quarter, our most contracted quarter to date.

Speaker Change: Thanks to the team's focus on execution and operational excellence, we have generated over $3 billion of consolidated adjusted EBITDA and nearly $2 billion of distributable cash flow in the first half of 2024.

Anatol Feygin: Let's move to the next slide for a longer-term perspective. After nearly two full years of focus on Europe and its energy crisis, Asia has, in the first half of 2024, regained the spotlight in the LNG marketplace. We believe this rebound is supportive of our long-term market thesis, namely that as the supply curve pushes out into the right and market liquidity continues to increase in the coming years, we will see incremental demand growth in both Europe and Asia. Market analysts agree that Asia remains the primary driver of LNG demand growth over the longer term. As you can see from the chart to the left, we expect Asian demand to nearly double by 2040, so long as supply availability is not constrained.

Speaker Change: Compared to last year.

Speaker Change: Quarter 2024 results reflect a higher proportion of our LNG being sold under long term contracts as well as further moderation of international gas prices relative to last year.

Speaker Change: Boosting our confidence and the increased forecast for the remainder of the year, which I'll address further on the next slide.

Scott: Compared to the first quarter. This year, our production was lower in the second quarter due to the planned maintenance at both Sabine pass and Corpus Christi and Scott detailed.

Speaker Change: <unk> financial results enabled us to deploy another approximately $1 2 billion under our comprehensive capital allocation plan towards shareholder return balance sheet management and accretive growth during the second quarter alone.

Scott: Well as warmer ambient temperatures at Sabine.

Speaker Change: During the second quarter, we recognized an income 552 T Btu, a physical LNG all of which was produced by our facilities.

Speaker Change: Bringing total cash deployed towards our 2020 vision to over $11 billion with over $3 billion in the first half of 2024.

Speaker Change: <unk>, 93% of these LNG volumes recognized in income were sold under long term SBA or IPM agreements with initial terms greater than 10 years.

Anatol Feygin: However, Europe will still need significant volumes of LNG now and in the long term, and it will continue to compete with Asia as domestic production and regional pipe imports continue to decline. As Jack highlighted earlier, we signed a new long-term SPA with Galp, which is expected to extend beyond 2050. Since the beginning of 2022, we have signed over 5 million tons per annum of long-term contracts with European counterparties who value the reliability and flexibility of our LNG, further reinforcing the long-term role of LNG in Europe's energy mix. On the right side, we delineate expected growth by region. This highlights that growth in Asia is not driven by China alone, but rather is spread across numerous markets in Asia, enhancing the durability of growth in the region over the coming decades.

Speaker Change: This accelerated progress prompted us to increase <unk> share repurchase authorization by another $4 billion through 2027, along with plans to increase our quarterly dividend by 15% next quarter to $2 per share annualized.

Speaker Change: Which makes this past quarter, our most contracted quarter today.

Speaker Change: As well as extend the dividend annual growth target going forward by 10% through the decade.

Speaker Change: These announcements demonstrate continued follow through of our stated objective to deploy at least 20 billion.

Speaker Change: Boosting our confidence and the increased forecast for the remainder of the year, which I'll address further on the next slide <unk>.

Speaker Change: The reduced share count and enhanced capital returns, while retaining financial flexibility to fund accretive growth in order to generate over $20 per share of run rate distributable cash flow for our shareholders. Later this decade.

Speaker Change: Our strong financial results enabled us to deploy another approximately $1 2 billion under our comprehensive capital allocation plan towards shareholder return balance sheet management and accretive growth during the second quarter alone.

Speaker Change: The capital allocation update in June with a powerful statement about performance capital allocation today, and our outlook to grow past brokers there in the future.

Anatol Feygin: On previous calls, we have highlighted the significant growth potential of South and Southeast Asia markets and believe that these stand to particularly benefit from the coming increase in LNG supply, supporting grid stability and ensuring system flexibility and resilience. Ahead of this supply cycle, we expect the market to continue to balance primarily on the demand side. The expectation of growing supply from 2026 onwards should alleviate the constraints on demand growth, especially as moderate prompt LNG and gas prices prevail. This should help both Europe and Asia equally in realizing security of supply, as Europe will be better able to meet its requirements to replace Russian gas while backstopping growth and renewables. Asia will be better equipped to displace coal and offset regional production declines while underpinning investments in gas infrastructure in high-growth developing economies.

Speaker Change: Bringing total cash deployed towards our 2020 vision to over $11 billion with over 3 billion in the first half of 2024.

Speaker Change: At the foundation of our 2020 plan is a multi decade fixed fee contracts with investment grade customers couple.

Speaker Change: This accelerated progress prompted us to increase that share repurchase authorization by another $4 billion through 2027, along with plans to increase our quarterly dividend by 15% next quarter to $2 per share annualized.

Speaker Change: Coupled with our excellence in LNG operations.

Speaker Change: Which gives us significant visibility into the billions of dollars of annual cash flow for the long term.

Speaker Change: Perhaps just as important as visibility and flexibility.

Speaker Change: As well as extend the dividend annual growth target going forward, a 10% through the decade.

Speaker Change: Maintaining and enhancing our IV ratings and steadily growing the dividend to a reasonable payout overtime provide ideal financial flexibility, which enables us to maintain a robust buyback plan, while simultaneously funding accretive brownfield growth within cash flow with.

Speaker Change: These announcements demonstrate continued follow through of our stated objective to deploy at least 20 billion.

Speaker Change: Further reduce share count and enhanced capital returns, while retaining financial flexibility to fund accretive growth.

Speaker Change: Which will improve both the numerator and denominator of a run rate DCF per share goals.

Speaker Change: I'd like to generate over $20 per share of run rate distributable cash flow for our shareholders. Later this decade.

Speaker Change: As Jack mentioned the capital allocation plan is designed to provide investors with the framework, which they can take confidence thanks to our cash flow visibility and financial flexibility to enable sustainable long term value creation during.

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

Speaker Change: The capital allocation updated June with a powerful statement about premier performance capital allocation today, and our outlook to grow cash flow per share in the future.

Zach Davis: Thanks, Anatol, and good morning, everyone. I'm pleased to be here today to review our Q2 2024 results, key financial accomplishments, and increased guidance for the year. Turn to slide 13. For the Q2 2024, we generated net income of approximately $880 million, consolidated adjusted EBITDA of approximately $1.3 billion, and distributable cash flow of approximately $700 million. With these second quarter results, we have now reported positive net income on a quarterly and cumulative trailing 4-quarter basis 7 quarters in a row. Compared to last year, our Q2 2024 results reflect a higher proportion of our LNG being sold under long-term contracts, as well as further moderation of international gas prices relative to last year.

Jack Fusco: During the second quarter, we repurchased over three 1 million shares for approximately $500 million.

Speaker Change: At the foundation of our 2020 plan is a multi decade fixed fee contracts with investment grade customers.

Jack Fusco: Helping bring our total shares outstanding to approximately $226 million today.

Speaker Change: Coupled with our excellence in LNG operations.

Speaker Change: Which gives us significant visibility into the billions of dollars of annual cash flow for the long term.

Jack Fusco: The buyback program continues to work as designed deploying allocated capital into the stock, which can increase significantly in periods of sustained dislocation as we saw in the first half.

Speaker Change: Perhaps just as important as visibility and flexibility.

Speaker Change: While the amount of shares repurchased in the second quarter trails that of the first quarter. It's important to remember that the first quarter with nearly $1 $2 billion of share repurchases with enabled in part by the accumulate some cash in the plan over the preceding several quarters, which was unlocked as the stock underperformed in Q1.

Speaker Change: Which will improve both the numerator and denominator of a run rate DCF per share goals.

Speaker Change: And into Q2.

Zach Davis: Compared to Q1 this year, our production was lower in Q2 due to the planned maintenance at both Sabine Pass and Corpus Christi, which Jack detailed, as well as warmer ambient temperatures at Sabine. During Q2, we recognized in income 552 TBtu of physical LNG, all of which was produced by our facilities. Approximately 93% of these LNG volumes recognized in income were sold under long-term SPA or IPM agreements with initial terms greater than 10 years, which makes this past quarter our most contracted quarter to date.

Speaker Change: With the Upsized share repurchase authorization commencing at the start of the third quarter, we remain committed and on track to reach our goal of approximately 200 million shares outstanding later this decade and.

Jack: During the second quarter, we repurchased over three 1 million shares for approximately $500 million.

Speaker Change: And Opportunistically can price the Upsized $4 billion buyback program by 2027.

Speaker Change: Helping bring our total shares outstanding to approximately $226 million today.

Speaker Change: Moving to the balance sheet, we issued our second investment grade bond at <unk> in May and in June we used the $1 2 billion of proceeds from the 575% senior notes to redeem approximately $1 2 billion.

Speaker Change: The buyback program continues to work as designed deploying allocated capital into the stock, which can increase significantly in periods of sustained dislocation as we saw in the first half.

Speaker Change: $5, 65% senior secured notes at SPL due 2025.

Speaker Change: While the amount of shares repurchased in the second quarter trails that of the first quarter. It's important to remember that the first quarter with nearly $1 $2 billion of share repurchases with enabled in part by the accumulation of some gas in the plan over the preceding several quarters, which was unlocked at stock underperformed in Q1.

Zach Davis: Thanks to the team's focus on execution and operational excellence, we have generated over $3 billion of consolidated adjusted EBITDA and nearly $2 billion of distributable cash flow in the first half of 2024, boosting our confidence in the increased forecast for the remainder of the year, which I'll address further on the next slide. The strong financial results enabled our team to deploy another approximately $1.2 billion under our comprehensive capital allocation plan towards shareholder returns, balance sheet management, and accretive growth during the Q2 alone, bringing total cash deployed towards our 20/20 Vision to over $11 billion, with over $3 billion in the first half of 2024.

Speaker Change: Consistent with prior influences. This transaction extends our maturity profile, while further securing Andy subordinating, our consolidated balance sheet by moving secured project debt from SPL, two unsecured corporate debt at CGP.

Speaker Change: During the quarter. We also fully retired for 'twenty for SPL notes repaying the remaining approximately $150 million.

Speaker Change: And into Q2.

Speaker Change: Standing principle with cash on hand.

Speaker Change: Over the next few quarters, we'll focus on our debt Paydown on the remaining outstanding principal of the Spi 2025 minutes after which point, we will not have any debt maturing until the middle of 2026.

Speaker Change: And Opportunistically can pretty Upsized $4 billion buyback program by 2027.

Speaker Change: The rating agencies continue to recognize our progress on the balance sheet.

Zach Davis: This accelerated progress prompted us to increase our share repurchase authorization by another $4 billion through 2027, along with plans to increase our quarterly dividend by 15% next quarter to $2 per share annualized, as well as extend the dividend's annual growth target going forward of 10% through the decade. These announcements demonstrate continued follow-through of our stated objective to deploy at least $20 billion to further reduce share count and enhance capital returns while retaining financial flexibility to fund accretive growth in order to generate over $20 per share of run rate distributable cash flow for our shareholders later this decade. The capital allocation update in June was a powerful statement about Premier's performance, capital allocation to date, and our outlook to grow cash flow per share in the future.

Speaker Change: In may in conjunction with the CCP issuance Moody's upgraded the CGP and SPL, two <unk>, two and <unk> one respectively.

Speaker Change: $5, 65% senior secured notes at SPL due 2025.

Speaker Change: Representing a double upgrade at <unk>.

Speaker Change: Consistent with prior influences. This transaction extends our maturity profile, while further securing an D. Subordinating, our consolidated balance sheet by moving secured project debt from SPL, two unsecured corporate debt at CGP.

Speaker Change: And in July Fitch upgraded CCH to Triple B plus.

Speaker Change: These positive ratings actions reflect our balance sheet management to date, and our commitment to opportunistically delever and decent coordinate going forward as we target long term leverage of under four times run rate EBITDA and Triple B corporate credit ratings at both LNG and <unk>.

Jack: During the quarter. We also fully retired for 'twenty for SPL notes repaying the remaining approximately $150 million.

Speaker Change: Corpus upgrade specifically is also a recognition of the significant progress achieved at stage III today.

Jack: Standing principle with cash on hand.

Speaker Change: Over the next few quarters, we're focused on our debt pay down on the remaining outstanding principal of the Spi 2025 minutes after which point, we will not have any debt maturing until the middle of 2026.

Speaker Change: For the second quarter, we have maintained a dividend of $43.05 per common share.

Speaker Change: As announced in June we plan to increase the dividend by 15% to $2 annualized next quarter.

Zach Davis: At the foundation of our 20/20 Vision plan is our multi-decade fixed-fee contracts with investment-grade customers, coupled with our excellence in LNG operations, which gives us significant visibility into the billions of dollars of annual cash flow for the long term. Perhaps just as important as visibility is flexibility. Maintaining and enhancing our IG ratings and steadily growing the dividend to a reasonable payout over time provide ideal financial flexibility, which enables us to maintain a robust buyback plan while simultaneously funding accretive brownfield growth within cash flow, which will improve both the numerator and denominator of our run rate DCF per share goals.

Speaker Change: The rating agencies continue to recognize our progress on the balance sheet.

Speaker Change: Beyond this year, we remain committed to our guidance of growing our dividend by approximately 10% annually not just through 2026, but through the decade at which point, we'll be in a payout ratio of only about 20%, enabling us to maintain the financial flexibility are central to our comprehensive and balanced long term capital allocation plan.

Speaker Change: In may in conjunction with the CCP issuance Moody's upgraded the CGP and SPL, two <unk>, two and <unk> one respectively.

Speaker Change: Representing a double upgrade at <unk>.

Speaker Change: And in July Fitch upgraded CCH to Triple B plus.

Speaker Change: <unk> and growth objectives with investment grade metrics and internally generated cash flow funding at both Sabine and corpus.

Speaker Change: These positive ratings actions reflect our balance sheet management to date, and our commitment to Opportunistically delever and decent bartonite going forward as we target long term leverage of under four times run rate EBITDA and Triple B corporate credit ratings at both LNG and <unk>.

Speaker Change: During the quarter, we funded approximately $400 million of Capex on stage three bringing total unlevered spend on the project to approximately $3 8 billion.

Speaker Change: Corpus upgrades, specifically is also a recognition of the significant progress achieved at stage three to date.

Zach Davis: As Jack mentioned, the capital allocation plan is designed to provide investors with the framework which they can take confidence, thanks to our cash flow visibility and financial flexibility, to enable sustainable long-term value creation. During Q2, we repurchased over 3.1 million shares for approximately $500 million, helping bring our total shares outstanding to approximately 226 million today. The buyback program continues to work as designed, deploying allocated capital into the stock, which can increase significantly in periods of sustained dislocation, as we saw in the first half.

Speaker Change: Frontloading the equity spend has enabled considerable interest savings and we still have over $3 billion available on our CCH term loan as additional liquidity for cei in the coming years to do construction.

Speaker Change: For the second quarter, we have maintained a dividend of $43.05 per common share.

Speaker Change: As announced in June we plan to increase the dividend by 15% to $2 annualized next quarter.

Speaker Change: Expect to spend between one $5 billion to $2 billion in stage III Capex. This year before accounting for any draws on the CCH term loan.

Speaker Change: Beyond this year, we remain committed to our guidance of growing our dividend by approximately 10% annually not just through 2026 through the decade at which point, we'll be in a payout ratio of only about 20%, enabling us to maintain the financial flexibility essential to a comprehensive and balanced long term capital allocation.

Speaker Change: We maintained significant total liquidity in addition to our DCF forecast and therefore flexibility.

Speaker Change: With almost $3 billion of cash on hand, plus over $3 billion of available term loan at CCH as well as open revolvers across the Cheniere complex.

Speaker Change: Turning now to slide 14, where I will discuss our upwardly revised 2020 for guidance.

Speaker Change: Land and growth objectives with investment grade metrics and internally generated cash flow funding at both Sabine and corpus.

Zach Davis: While the amount of shares repurchased in Q2 trailed that of Q1, it's important to remember that Q1's nearly $1.2 billion of share repurchases was enabled in part by the accumulation of some cash in the plan over the preceding several quarters, which was unlocked as the stock underperformed in Q1 and into Q2. With the upsized share repurchase authorization commencing at the start of Q3, we remain committed and on track to reach our goal of approximately 200 million shares outstanding later this decade and opportunistically complete the upsized $4 billion buyback program by 2027.

Speaker Change: Today, we are raising and tightening our full year 2024 guidance ranges to five 7% to $6 1 billion and consolidated adjusted EBITDA from five 5% to $6 billion.

Speaker Change: During the quarter, we funded approximately $400 million of Capex on stage three bringing total unlevered spend on the project to approximately $3 8 billion.

Speaker Change: And three 1% to $3 5 billion and distributable cash flow from two 9% to $3 4 billion.

Speaker Change: Several factors contributed to our improved forecast for the year, primarily from additional production layered into the forecast post our turnarounds as well as optimization activities achieved upstream and downstream of our facilities since the last call.

Speaker Change: Expect to spend between one $5 billion to $2 billion in stage III Capex. This year before accounting for any draws on the CCH term loan.

Zach Davis: Moving to the balance sheet, we issued our second investment-grade bond at CQP in May, and in June, we used the $1.2 billion of proceeds from the 5.75% senior notes to redeem approximately $1.2 billion of the 5.625% senior secured notes at SPL due 2025. Consistent with prior issuances, this transaction extends our maturity profile while further desecuring and desubordinating our consolidated balance sheet by moving secured project debt from SPL to unsecured corporate debt at CQP. During the quarter, we also fully retired the 2024 SPL notes, repaying the remaining approximately $150 million of outstanding principal with cash on hand.

Speaker Change: As Jack noted our maintenance programs not only minimize production impacts to both sites, but also unlocked efficiencies at CCM that should offset the impacts to production from the winter storm, we experienced in the first quarter into the second half of this year.

Speaker Change: We maintain significant total liquidity in addition to our DCF forecast and therefore flexibility with.

Speaker Change: With almost $3 billion of cash on hand, plus over 3 billion of available term loan at CCH as well as opening revolvers across the Cheniere complex.

Speaker Change: Of course, we're still in hurricane season on the Gulf Coast, While we had no impacts to our production from Hurricane barrel last month, we keep a very close eye on potential hurricane impacts as our expected results could be impacted by future weather events at our sites.

Speaker Change: Turning now to slide 14, where I will discuss our upwardly revised 2020 for guidance.

Speaker Change: Today, we are raising and tightening our full year 2024 guidance ranges to five 7% to $6 1 billion and consolidated.

Speaker Change: <unk> adjusted EBITDA from five 5% to $6 billion.

Speaker Change: However, we decided to tighten the guidance considering we are now more than halfway through the year. We've completed our major maintenance at both sites and a decent portion of the optimization has been locked in on top of this being our most contracted year ever on a percentage basis.

Speaker Change: And three 1% to $3 5 billion and distributable cash flow from two 9% to $3 4 billion.

Zach Davis: Over the next few quarters, we'll focus on our debt paydown on the remaining outstanding principal of the SPL 2025 notes, after which point we will not have any debt maturing until the middle of 2026. The rating agencies continue to recognize our progress on the balance sheet. In May, in conjunction with the CQP issuance, Moody's upgraded both CQP and SPL to Baa2 and Baa1 respectively, representing a double upgrade at CQP. In July, Fitch upgraded CCH to BBB+. These positive rating actions reflect our balance sheet management to date and our commitment to opportunistically delever and desubordinate going forward as we target long-term leverage of under 4x run rate EBITDA and BBB corporate credit ratings at both LNG and CQP. The CCH upgrade specifically is also a recognition of the significant progress achieved at Stage 3 to date.

Speaker Change: We still expect to produce approximately 45 million tonnes of LNG. This year inclusive of the planned maintenance downtime at both sites and our guidance continues to reflect only contributions from completed are locked in portfolio optimization activities as we do not forecast potential contributions from future optimization opportunities.

Speaker Change: As Jack noted our maintenance programs not only minimize production impacts to both sites, but also unlocked efficiencies at CCL that should offset the impacts to production from the winter storm, we experienced in the first quarter into the second half of this year.

Speaker Change: And of course, our results could be impacted by the timing of certain cargos around year end.

Speaker Change: Our DCF for 2024 could also be affected by changes in the tax code I have noted on prior calls we qualified for the corporate alternative minimum taxes here, however, upcoming guidance related to the implementation of this tax which is expected later this year, specifically regarding the taxing of unrealized derivatives could impact that.

Speaker Change: However, we decided to tighten the guidance considering we are now more than halfway through the year. We've completed our major maintenance at both sites and a decent portion of the optimization has been locked in on top of it as being our most contracted year ever on a percentage basis.

Speaker Change: Mining and amount of our cash tax payments this year and going forward.

Speaker Change: We would expect any impacts to primarily be a matter of timing and should not impact our ability to generate over 20 billion of available cash through 2026.

Speaker Change: We still expect to produce approximately 45 million tonnes of LNG this year.

Speaker Change: We do not forecast any contribution to revenues or EBITDA from stage three volumes this year.

Zach Davis: For Q2, we've maintained a dividend of $0.435 per common share. As announced in June, we plan to increase the dividend by 15% to $2 annualized next quarter. Beyond this year, we remain committed to our guidance of growing our dividend by approximately 10% annually, not just through 2026, but through the decade, at which point we'll be at a payout ratio of only about 20%, enabling us to maintain the financial flexibility essential to our comprehensive and balanced long-term capital allocation plan and growth objectives with investment-grade metrics and internally generated cash flow funding at both Sabine and Corpus. During the quarter, we funded approximately $400 million of CapEx on Stage 3, bringing total unlevered spend on the project to approximately $3.8 billion.

Speaker Change: Lucid above the planned maintenance downtime at both sites and our guidance continues to reflect only contributions from completed are locked in portfolio optimization activities as we do not forecast potential contributions from future optimization opportunities.

Speaker Change: We look forward to updating you on our 2025 volume projections inclusive of stage II contributions on our Q3 call.

Speaker Change: We continue to target first LNG at the end of the year and the first two or three change to reach substantial completion by the end of 2025 Green.

Speaker Change: And of course, our results could be impacted by the timing of certain cargos around year end.

Speaker Change: Reinforcing our view that 2024 is expected to be a trough year in 2025, we'll begin the step up of our run rate production above the nine trained 45 M Tpa.

Speaker Change: Our DCF for 2024 and could also be affected by changes in the tax code as noted on prior calls we qualified for the corporate alternative minimum taxes here, however, upcoming guidance related to the implementation of this tax which is expected later this year, specifically regarding the taxing of unrealized derivatives could impact that.

Speaker Change: As we look out beyond the next few years, our conviction in the long term role of our LNG in global energy markets engineers position in it have only strengthened.

Speaker Change: Afternoon, we lead with our safety track record operational and commercial reputation and financial discipline to generate and deploy accretively and billions of dollars to cash flow year after year.

Speaker Change: Timing and amount of our cash tax payments this year and going forward.

Speaker Change: Wed expect any impacts to primarily be a matter of timing and should not impact our ability to generate over $20 billion of available cash through 2026.

Zach Davis: Front-loading the equity spend has enabled considerable interest savings, and we still have over $3 billion available on our CCH term loan as additional liquidity for CEI in the coming years through construction. We expect to spend between $1.5 to 2 billion in stage three CapEx this year before accounting for any draws on the CCH term loan. We maintain significant total liquidity in addition to our DCF forecasts, and therefore flexibility with almost $3 billion of cash on hand, plus over $3 billion of available term loan at CCH, as well as open revolvers across the Cheniere complex. Turn now to slide 14, where I will discuss our upwardly revised 2024 guidance.

Speaker Change: We are leveraging all of those advantages to continue to create sustainable and growing long term value for our shareholders and supply our global customer base with our flexible reliable and affordable LNG for decades to come.

Speaker Change: We do not forecast any contribution to revenues or EBITDA from stage three volumes this year.

Speaker Change: We look forward to updating you on our 2025 volume projections inclusive of stage II contributions on our Q3 call.

Speaker Change: That concludes our prepared remarks. Thank you for your time and your interest engineer operator, we are ready to open the line for questions.

Speaker Change: We continue to target first LNG at the end of the year and the first two or three change to reach substantial completion by the end of 2025 Green.

Speaker Change: Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment and.

Speaker Change: Reinforcing our view that 2024 is expected to be a trough year in 2025, we'll begin the step up of our run rate production above the nine trained 45 M Tpa.

Speaker Change: In order to ensure everyone has a chance to interact with todays speakers. We ask that you limit yourself to one question with one follow up question. If you have more than one question you may signal to rejoin the queue.

Speaker Change: As we look out beyond the next few years, our conviction in the long term role of our LNG in global energy markets engineers position in it have only strengthened.

Zach Davis: Today, we are raising and tightening our full-year 2024 guidance ranges to $5.7 to 6.1 billion in consolidated adjusted EBITDA from $5.5 to 6 billion and $3.1 to 3.5 billion in distributable cash flow from $2.9 to 3.4 billion. Several factors contributed to our improved forecast for the year, primarily from additional production layered into the forecast post our turnarounds, as well as optimization activities achieved upstream and downstream of our facilities since the last call. As Jack noted, our maintenance programs not only minimize production impacts to both sites, but also unlocked efficiencies at CCL that should offset the impacts to production from the winter storm we experienced in Q1 into the second half of this year.

Speaker Change: And our first question comes from Theresa Chen with Barclays. Please go ahead. Your line is open.

Theresa Chen: Good morning.

Theresa Chen: With the progress we've made year to date and would you be able to provide any additional color on the drivers that underlie the low versus high end of the updated guidance range.

Theresa Chen: Sure. Thanks Theresa this is zach.

Speaker Change: Going into the last call, we're already tracking to the upper half.

Speaker Change: That concludes our prepared remarks. Thank you for your time and your interest engineer operator, we are ready to open the line for questions.

Zach: The range that we were in good position and now we're able to not only raise it but tightening it by $200 million on the low end. So at this point.

Zach: We're comfortably in the middle of the range, if not better and the reason for that is that there was probably another incremental $100 million added to the EBITDA. Thanks to our production going up post the major maintenance at corpus, helping corpus catch up.

Zach Davis: Of course, we are still in hurricane season on the Gulf Coast. While we had no impacts to our production from Hurricane Beryl last month, we keep a very close eye on potential hurricane impacts as our expected results could be impacted by future weather events at our sites. However, we decided to tighten the guidance considering we are now more than halfway through the year, we've completed our major maintenance at both sites, and a decent portion of the optimization has been locked in. On top of this being our most constructive year ever on a percentage basis. We still expect to produce approximately 45 million tons of LNG this year, inclusive of the planned maintenance downtime at both sites. Our guidance continues to reflect only contributions from completed or locked-in portfolio optimization activities, as we do not forecast potential contributions from future optimization opportunities.

Speaker Change: And our first question comes from Theresa Chen with Barclays. Please go ahead. Your line is open.

Zach: For FEMSA in the feed gas quality issues that it had in Q1, and then just more optimization across the board from upstream and downstream.

Theresa Chen: Good morning.

Theresa Chen: With the progress we've made year to date and would you be able to provide any additional color on the drivers that underlie the low versus high end of the updated guidance range.

Zach: <unk> chartering.

Zach: So to go from there there is still a little variability we won't account for most of the optimization that could happen in the second half of the year and in particular on the upstream side on basis differentials.

Speaker Change: Sure. Thanks Theresa this is zach.

Speaker Change: Going into the last call, we're already tracking to the upper half.

Speaker Change: And then Henry hub is a variable just on lifting margin every 50 cent move in Henry hub, probably affects our lifting margin and EBITDA by about $30 million still for the rest of the year.

Zach: The range that we were in good position and now we're able to not only raise it but tightening it by $200 million on the low end. So at this point.

Zach: And then we're still in a hurricane season, so weather.

Zach Davis: Of course, our results could be impacted by the timing of certain cargoes around year-end. Our DCF for 2024 could also be affected by changes in the tax code. As noted on prior calls, we qualify for the corporate alternative minimum tax this year. However, upcoming guidance related to the implementation of this tax, which is expected later this year, specifically regarding the taxing of unrealized derivatives, could impact the timing and amount of our cash tax payments this year and going forward. We would expect any impact to primarily be a matter of timing and should not impact our ability to generate over $20 billion of available cash through 2026. We do not forecast any contribution to revenues or EBITDA from Stage 3 volumes this year.

Speaker Change: We're comfortably in the middle of the range, if not better and the reason for that is that there was probably another incremental $100 million added to the EBITDA. Thanks to our production going up post the major maintenance at corpus, helping corpus catch up.

Speaker Change: Permitting if things go as smoothly as smoothly as they have gone to date.

Zach: Maybe there'll be some incremental production.

Zach: And if not we can also lose some production if we have incremental downtime above and beyond what we normally budget or give ourselves coverage for it.

Speaker Change: From from solar feed gas quality issues that it had in Q1, and then just more optimization across the board from upstream and downstream.

Zach: And then there's a little variability at the end of the year just on year end timing of deliveries.

Speaker Change: And sub chartering.

Zach: We don't bake into the forecasts are late late deliveries in the year, so that might add out of it but.

Speaker Change: So to go from there there is still a little variability we won't account for most of the optimization that could happen in the second half of the year and in particular on the upstream side on basis differentials.

Zach: Materially affect us on the downside so things are pretty baked this year as it was already our most contracted you're ever.

Speaker Change: Thank you for that detailed answer and maybe Troon in GB.

Zach Davis: We look forward to updating you on our 2025 volume projections inclusive of Stage 3 contributions on our Q3 call. We continue to target first LNG at the end of the year and the first three trains to reach substantial completion by the end of 2025, reinforcing our view that 2024 is expected to be a trough year and 2025 will begin the step-up of our run rate production above the 9-train 45 MTPA. As we look out beyond the next few years, our conviction in the long-term role of our LNG in global energy markets and Cheniere's position in it have only strengthened. At Cheniere, we lead with our safety track record, operational and commercial reputation, and financial discipline to generate and deploy accretively the billions of dollars of cash flow year after year.

Speaker Change: Permitting side would love to get your updated view on the regulatory and permitting landscape and specifically what industry read through if any are there to glean from the ITC case, we can decision to vacate FERC permit that.

Speaker Change: And then we're still in hurricane season so.

Speaker Change: Weather permitting if things go as smoothly as smoothly as they have gone to date.

Speaker Change: Of competitor project.

Speaker Change: There'll be some incremental production and.

Speaker Change: And the environmental opposition and what is your view on the permitting process for your own your own expansion projects.

Speaker Change: If not we can also lose some production if we have incremental downtime above and beyond what we normally budget or give ourselves coverage for <unk>.

Speaker Change: Thanks Theresa this is Jack.

Speaker Change: And then there's a little variability at the end of the year just on year end timing of deliveries.

Speaker Change: I'll take a crack at that one.

Speaker Change: First.

Zach: A similar outcome can't happen.

Speaker Change: We don't bake into the forecast late late deliveries in the year, so that might add out of it but.

Speaker Change: With our permits at SPL trains went through six or CCL went through three including stage III at CCL, because all of our permits are no longer subject to appeal.

Speaker Change: Shouldn't materially affect us on the downside so things are pretty baked this year as it was already our most contracted you're ever.

Zach Davis: We are leveraging all of those advantages to continue to create sustainable and growing long-term value for our shareholders and supply our global customer base with our flexible, reliable, and affordable LNG for decades to come. That concludes our prepared remarks. Thank you for your time and your interest in Cheniere. Operator, we are ready to open the line for questions.

Zach: On our expansion projects, which is C C L.

Speaker Change: Thank you for that detailed answer and maybe turn it to be on.

Zach: Eight nine SPL stage five.

Zach: As you all know we dedicate a significant amount of time and resources, just developing our projects and associated permit applications in a manner that we feel satisfies federal state local regulatory requirements.

Operator: Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. In order to ensure everyone has a chance to interact with today's speakers, we ask that you limit yourself to one question with one follow-up question. If you have more than one question, you may signal to rejoin the queue. Our first question comes from Theresa Chen with Barclays. Please go ahead. Your line is open.

Zach: And we've done this over the course of more than a decade through multiple administrations and.

Speaker Change: What is your view on the permitting process for your own your own expansion projects.

Zach: And we feel very confident in our ability to continue to perform that way.

Speaker Change: Thanks Theresa this is Jack.

Jack: I'll take a crack at that one so first.

Zach: There was a significant.

Zach: Quint amount of work that we do with our regulators to ensure that we have a robust record underpinning all of our permits and we're thoughtful and accurately responding to their information requests.

Jack: A similar outcome can't happen.

Jack: With our permits at SPL trains one through six or CCL went through three including stage III at CCL, because all of our permits are no longer subject to appeal.

Theresa Chen: Morning. With the progress you've made year-to-date, would you be able to provide any additional color on the drivers that underlie the low versus high end of the updated guidance range?

Zach: As well as comments from affected stakeholders.

Zach: And that's what you see happening right now for eight nine.

Speaker Change: On our expansion projects, which is C C L.

Zach: With all of our public hearings.

Zach Davis: Sure. Thanks, Theresa. This is Zach. I'd say going into the last call, we were already tracking to the upper half of the range, so we were in good position. Now we're able to not only raise it but tighten it by $200 million on the low end. At this point, we're comfortably in the middle of the range, if not better. The reason for that is that there was probably another incremental $100 million added to the EBITDA thanks to production going up post the major maintenance at Corpus, helping Corpus catch up from some of the feed gas quality issues that it had in Q1, and then just more optimization across the board from upstream and downstream and sub-chartering.

Speaker Change: Eight nine SPL stage five.

Zach: We listened to the neighborhood.

Zach: We listen to their concerns with EJ or air quality and will respond appropriately.

Speaker Change: As you all know we dedicate a significant amount of time and resources, just developing our projects and associated permit applications in a manner that we feel satisfies federal state local regulatory requirements.

Speaker Change: To those concerns so I feel very good about our position versus what we saw transpire.

Speaker Change: With some of the other folks in the LNG industry.

Speaker Change: And we've done this over the course of more than a decade through multiple administrations and.

Speaker Change: Thank you very much.

Speaker Change: And we feel very confident in our ability to continue to perform that way.

Speaker Change: And we'll take our next question from Jeremy Tonet with J P. Morgan. Please go ahead.

Speaker Change: There's a significant amount of work that we do with our regulators to ensure that we have.

Zach: Hi, it's Jeremy Tonet from JP Morgan Good morning Hall.

Speaker Change: Robust record underpinning all of our permits.

Speaker Change: And we're thoughtful and accurately responding to their information requests.

Hall: Hey, Jeremy.

Zach Davis: To go from there's still a little variability. We won't account for most of the optimization that could happen in the second half of the year, in particular on the upstream side on basis differentials. Henry Hub is a variable just on lifting margin. Every 50-cent move in Henry Hub probably affects our lifting margin and EBITDA by about $30 million still for the rest of the year. We're still in hurricane season. Weather permitting, if things go as smoothly as they've gone to date, maybe there'll be some incremental production. If not, we could also lose some production if we have incremental downtime above and beyond what we normally budget or give ourselves coverage for.

Jeremy Tonet: Just wanted to.

Speaker Change: As well as comments from affected stakeholders.

Speaker Change: Touch on commercial discussions great to see the Gallup contract earlier.

Speaker Change: And that's what you see happening right now for eight nine with all of our public hearings that we listen to the neighborhood.

Speaker Change: Got it and just wanted to see I guess, you know how the state of commercial discussions are going with customers right now given changes in the LNG market and especially the impact of competitive delays out there.

Speaker Change: We listen to their concerns with EJ or air quality and will respond appropriately.

Speaker Change: Pause election uncertainty just wondering how these things all come together to impact I guess commercial discussions for SPL expansion at this point.

Speaker Change: To those concerns so I feel very good about our position versus what we saw transpire.

Speaker Change: With some of the other folks in the LNG industry.

Speaker Change: Hey, Jeremy its Ed Thanks for the question.

Speaker Change: No great fireworks are very similar answer to the last few quarters. Obviously after 'twenty two 'twenty three there is a period of reassessing digesting thinking through portfolios, but but in your question and partially in Jackson Zacks answers.

Speaker Change: Thank you very much.

Speaker Change: And we'll take our next question from Jeremy Tonet with J P. Morgan. Please go ahead.

Speaker Change: Hi, it's Jeremy Tonet from JP Morgan Good morning Hall.

Zach Davis: There's a little variability at the end of the year just on year-end timing of deliveries. We don't bake into the forecast late deliveries in the year. That might add a bit, but shouldn't materially affect us on the downside. Things are pretty baked this year, as it was already our most contracted year ever.

Speaker Change: We have continued to differentiate ourselves from a reliability standpoint from a commercial behavior standpoint, and as we've said we.

Hall: Hey, Jeremy.

Jeremy Tonet: Just wanted to.

Speaker Change: Touch on commercial discussions great to see the Gallup contract earlier.

Speaker Change: We expect the engagements to bear fruit that very much rhymes with what <unk> seen in the past I cannot tell you even with TGF rallying back into the 40 Euro range kind of highest levels year to date I still don't expect a rush of European long term Counterparties, we've always said that there will be.

Theresa Chen: Thank you for that detailed answer. Maybe turning to the permitting side. I'd love to get your updated view on the regulatory and permitting landscape. Specifically, what industry read-throughs, if any, are there to glean from the D.C. Circuit's recent decision to vacate FERC permits at a couple of competitor projects amid environmental opposition? What is your view on the permitting process for your own expansion projects?

Speaker Change: Pause election uncertainty just wondering how these things all come together to impact I guess commercial discussions for SPL expansion at this point.

Speaker Change: Opportunities 5 million tons that we've done to date, including gout, but the drivers will continue to be Asian demand growth and our north American production growth and those discussions are are healthy. They appreciate the differentiation. They appreciate the to <unk> question on how we.

Ed: Hey, Jeremy its Ed. Thanks for the question I know great fireworks are very similar answer to the last few quarters. Obviously after 'twenty two 'twenty three there's a period of reassessing digesting thinking through portfolios, but but in your question and partially in Jack.

Speaker Change: Navigate various uncertainties and I think all of those are <unk> four for the commercial team.

Zach Davis: Thanks, Teresa. This is Jack. I'll take a crack at that one. First, a similar outcome can't happen with our permits at SPL on trains 1 through 6 or CCL 1 through 3, including Stage 3 at CCL. 'Cause all of our permits are no longer subject to appeal. On our expansion projects, which is CCL.

Jack Fusco: Thanks, Teresa. This is Jack. I'll take a crack at that one. First, a similar outcome can't happen with our permits at SPL on trains 1 through 6 or CCL 1 through 3, including Stage 3 at CCL. 'Cause all of our permits are no longer subject to appeal. On our expansion projects, which is CCL.

Speaker Change: <unk> answers.

Speaker Change: Got it that's very helpful. There and.

Speaker Change: We have continued to differentiate ourselves from a reliability standpoint from a commercial behavior standpoint, and as we've said.

Speaker Change: I was wondering if we could turn to capital allocation for a minute and it's good to see the dividend increase there.

Speaker Change: We expect the engagements to bear fruit that very much rhymes with what you've seen in the past.

Speaker Change: I was just wondering if you could talk a bit more I guess on the size of the step up at that at that point.

Speaker Change: I cannot tell you even with TGF rallied back into the 40 Euro range kind of highest levels year to date I still don't expect a rush of European long term Counterparties. We've always said that there will be opportunities 5 million tons that we've done to date, including Gal, but the drivers will continue to be.

Speaker Change: Versus more versus less and how that influences your thought process going forward.

Jack Fusco: 8 and 9 and SPL Stage 5. As you all know, we dedicate a significant amount of time and resources just developing our projects and associated permit applications in a manner that we feel satisfies federal, state, and local regulatory requirements. We've done this over the course of more than a decade through multiple administrations, and we feel very confident in our ability to continue to perform that way. There's a significant amount of work that we do with the regulators to ensure that we have a robust record underpinning all of our permits, and we're thoughtful in accurately responding to their information requests as well as comments from affected stakeholders.

Speaker Change: Sure. This is zac and obviously everything we do needs to go through and be approved by the board before we announce it but but let's put it this way 4 billion isn't going to be it and 200 million shares outstanding is our final target.

Speaker Change: Asian demand growth and North American production growth and those discussions are are healthy. They appreciate the differentiation. They appreciate the <unk> question on how are you.

Zach: So we're going to just continue to work it down and we need a desk right now and follow through on the 2020 vision and getting to that point, where on a run rate sustainable basis, even at $2 margins not like the $7 $8 margins, we're seeing on the screen for the next year and a half.

Speaker Change: Navigate various uncertainties and I think all of those are <unk> four for the commercial team.

Speaker Change: Got it that's very helpful. There and.

Zach: We're comfortably in the in the twenties on DCF per share, but how we look at it that $4 billion should get us pretty close to 200 million shares really just depends on share price and then we look at our cash flow forecast and ensure that we can meet those commitments of finishing up.

Speaker Change: I was wondering if we could turn to capital allocation for a minute and it's good to see the dividend increase there.

Speaker Change: I was just wondering if you could talk a bit more I guess on the size of the step up at that at that point.

Speaker Change: Versus more versus less and how that influences your thought process going forward.

Jack Fusco: That's what you see happening right now for 8 and 9 with all of our public hearings, that we listen to the neighborhood, we listen to their concerns with EJ or air quality, and we respond appropriately to those concerns. I feel very good about our position versus what we saw transpire with some of the other folks in the LNG industry.

Zach: $4 billion incremental buyback program by 2027 or sooner with on top of that being balanced in our capital allocation and achieving all of the other goals, we want to achieve which is not just finishing up stage, three and 25 and 26, but gain the expansion there in getting Sabine ready, having the balance sheet get.

Speaker Change: Sure. This is Jack and obviously everything we do needs to go through and be approved by the board before we announce it but.

Speaker Change: But let's put it this way 4 billion isn't going to be it and 200 million shares outstanding is our final target. So so we're going to just continue to work it down and we need a desk right now a follow through on the 2020 vision and getting to that point, where on a run rate sustainable basis, even at <unk>.

Zach: To triple B across the board by being proactive on that and obviously, we increased the dividend by 15% and committed to a 10% growth rate for the rest of the decade, so about a balance of all of that.

John Mackay: Thank you very much.

Theresa Chen: Thank you very much.

Speaker Change: $2 margins not like the $708 margins, we're seeing on the screen for the next year and a half.

Speaker Change: How we got to $4 billion, but I.

Operator: We'll take our next question from Jeremy Tonet with J.P. Morgan. Please go ahead.

Speaker Change: I wouldn't think too much about that because we've been known to increase it over time.

Speaker Change: We're comfortably in the in the twenties on DCF per share, but how we look at it that $4 billion should get us pretty close to 200 million shares really just depends on share price and then we look at our cash flow forecast and ensure that we can meet those commitments of finishing or for bill.

Jeremy Tonet: Hi, it's Jeremy Tonet from JP Morgan. Good morning, all.

Speaker Change: Got it that's helpful. Thank you for that.

Jack Fusco: Jeremy. Hey, Jeremy.

Speaker Change: And our next question comes from John Mackay with Goldman Sachs. Please go ahead. Your line is open.

Jeremy Tonet: Just wanted to touch on commercial discussions. Great to see the Galp contract earlier. Just wanted to see, I guess, you know, how the state of commercial discussions are going with customers right now, given changes in the LNG market, and especially the impact of competitor delays out there, you know, the pause, election uncertainty. Just wondering how, you know, these things all come together to impact, I guess, commercial discussions for SPL expansion at this point.

John Mackay: Hey, Thanks for the time. This is probably one for for Anatol you guys have been pretty positive on the demand picture for awhile now I'd just be curious to hear a little more from you on if we're looking at your outlook for Asia demand.

Speaker Change: Incremental buyback program by 2027 or sooner with on top of that being balanced in our capital allocation and achieving all the other goals, we want to achieve which is not just finishing up stage, three and 25 and 26, but S gain the expansion there in getting Sabine ready, having the balance sheet get to trip.

Speaker Change: How sensitive is this could be to kind of like the broader macro cycle, we've seen China, a little slower recently.

John Mackay: Maybe just a little sensitivity there versus I think your argument on a lot of this is kind of baked in growth at this point. Thanks.

Speaker Change: It will be across the board by being proactive on that and obviously, we increased the dividend by 15% and committed to a 10% growth rate for the rest of the decade, so about a balance of all of that.

Jack Fusco: Hey, Jeremy, it's Anatol. Thanks for the question. No great fireworks. A very similar answer to last few quarters. Obviously, after 2022, 2023, there's a period of reassessing, digesting, thinking through portfolios. In your question and partially in Jack and Zach's answers, you know, we have continued to differentiate ourselves from a reliability standpoint, from a commercial behavior standpoint. As we've said, we expect the engagements to bear fruit that very much rhymes with what you've seen in the past. I cannot tell you, even with, you know, TTF rallying back into the EUR 40 range, kind of highest levels year to date, I still don't expect a rush of European long-term counterparties.

Anatol Feygin: Hey, Jeremy, it's Anatol. Thanks for the question. No great fireworks. A very similar answer to last few quarters. Obviously, after 2022, 2023, there's a period of reassessing, digesting, thinking through portfolios. In your question and partially in Jack and Zach's answers, you know, we have continued to differentiate ourselves from a reliability standpoint, from a commercial behavior standpoint. As we've said, we expect the engagements to bear fruit that very much rhymes with what you've seen in the past. I cannot tell you, even with, you know, TTF rallying back into the EUR 40 range, kind of highest levels year to date, I still don't expect a rush of European long-term counterparties.

John Mackay: Thanks, John.

Anatol Fagan: Again, very boring really hasn't that hasn't changed much we see.

Speaker Change: Is how we got to $4 billion, but.

Speaker Change: The dedication to gas writ large.

Speaker Change: I wouldn't think too much about that because we've been known to increase it over time.

Anatol Fagan: Being very sustained and durable across Asia.

Zach: And across Europe, and Sac right. The investments that are that are being made to the Delaware.

Speaker Change: Got it that's helpful. Thank you for that.

Zach: Going to approach something like 500 million tons of regas capacity by the time, all is said and done and yes. There is some price sensitivity in some markets, but actually we've been pleasantly surprised.

Speaker Change: And our next question comes from John Mackay with Goldman Sachs. Please go ahead. Your line is open.

John Mackay: Hey, Thanks for the time this is probably one for for Anatol.

John Mackay: You guys have been pretty positive on the demand picture for awhile now I'd just be curious to hear a little more from you on if we're looking at your outlook for Asia demand.

Anatol Fagan: At what levels and B, how much seemingly price inelastic demand in the short term is is manifesting itself. So we see these emerging markets in south and Southeast Asia has been very hungry for gas that it still is going to be a very small piece of their primary energy mix and will perform a lot of.

Speaker Change: How sensitive this could be to kind of like the broader macro cycle, we've seen China, a little slower recently.

Jack Fusco: We've always said that there will be opportunities, 5 million tons that we've done to date, including Galp, but the drivers will continue to be Asian demand growth and North American production growth. Those discussions are healthy. They appreciate the differentiation. They appreciate the Theresa's question on how we navigate various uncertainties. I think all of those are tailwinds for the commercial team.

Anatol Feygin: We've always said that there will be opportunities, 5 million tons that we've done to date, including Galp, but the drivers will continue to be Asian demand growth and North American production growth. Those discussions are healthy. They appreciate the differentiation. They appreciate the Theresa's question on how we navigate various uncertainties. I think all of those are tailwinds for the commercial team.

Speaker Change: Maybe just a little sensitivity there versus I think your argument on a lot of this is kind of baked in growth at this point. Thanks.

Anatol Fagan: Grid reliability and balancing functions that that modern modern grids expect so.

Speaker Change: <unk> continued to be justice constructive in fact, what we're seeing now as we touched on is a is a supply constrained market and everything we've seen play out in North America and the rest of the world.

John Mackay: Thanks, John.

Speaker Change: Again, very boring really hasn't that hasn't changed much we see the dedication to gas writ large being very sustained and durable across Asia.

Speaker Change: Just like in previous cycles continue to move that supply constrained further and further out and are you seeing kind of 'twenty six 'twenty seven now being the period of that supply entering the market as opposed to a year ago. When most who are penciling. It in 12 to 18 months earlier so.

Speaker Change: And across Europe in fact, right. The investments that are that are being made to the.

Jeremy Tonet: Got it. That's very helpful there. I was wondering if we could turn to capital allocation for a minute and, you know, it was good to see the dividend increase there. I was just wondering if you could talk a bit more, I guess, on the size of the step-up at that, you know, at that point, you know, versus more versus less and, you know, how that influences your thought process going forward.

Speaker Change: We're going to approach something like 500 million tons of regas capacity by the time, all is said and done and yes. There is some price sensitivity in some markets, but actually we've been pleasantly surprised at.

Zach: We think as that supply comes in you'll see some very dramatic growth numbers.

Speaker Change: What levels and B, how much seemingly price an elastic demand in the short term is is manifesting itself. So.

Zach: As various economies avail themselves of this moderately priced and and reliable resource.

Speaker Change: Okay. That's fair I appreciate that maybe just for my second one with the golf deal announced and you guys kind of continuing to make progress on some of the expansion projects.

Speaker Change: We see these emerging markets in South and Southeast Asia has been very hungry for gas that it still is going to be a very small piece of their primary energy mix and we will perform a lot of our grid reliability and balancing functions that that modern a modern grid to expect so that.

Jack Fusco: Sure. This is Zach. Obviously, everything we do needs to go through and be approved by the board before we announce it. Let's just put it this way, $4 billion isn't going to be it, and 200 million shares outstanding isn't our final target. We're gonna just continue to work it down. We need to just right now follow through on the 20/20 Vision and getting to that point where on a run rate sustainable basis, even at $2 margins, not like the $7, $8 margins we're seeing on the screen for the next year and a half, we're comfortably in the 20s on DCF per share. How we look at it, that $4 billion should get us pretty close to 200 million shares.

Zach Davis: Sure. This is Zach. Obviously, everything we do needs to go through and be approved by the board before we announce it. Let's just put it this way, $4 billion isn't going to be it, and 200 million shares outstanding isn't our final target. We're gonna just continue to work it down. We need to just right now follow through on the 20/20 Vision and getting to that point where on a run rate sustainable basis, even at $2 margins, not like the $7, $8 margins we're seeing on the screen for the next year and a half, we're comfortably in the 20s on DCF per share. How we look at it, that $4 billion should get us pretty close to 200 million shares.

Speaker Change: Can you just remind us kind of what you're thinking about in terms of what you have now and targets you'd like to get to for the two incremental corpus trains and then the broader Sabine expansion.

Speaker Change: Continued to be justice constructive in fact, what we're seeing now as we touched on is a is a supply constrained market and everything we've seen play out in North America and the rest of the World again, just like in previous cycles continue to move that supply constrained further and further out and are you seeing kind of 'twenty six 'twenty seven now.

Speaker Change: Yeah, maybe I'll start and and tag team was asked but in terms of quantum of of commercial support we're right around 10 million tons. We've got about just under 3 million tonnes with three customers that are <unk> to the mid scale expansion and with Gallup.

Speaker Change: Being the period of that supply entering the market as opposed to a year ago. When most who are penciling. It in 12 to 18 months earlier so.

Speaker Change: Seven are kind of beyond that so as always we're we're navigating all of the levers are commercial of course being one of them to two.

Jack Fusco: Really just depends on share price. Then we look at our cash flow forecast and ensure that we can meet those commitments of finishing a $4 billion incremental buyback program by 2027 or sooner. With on top of that, being balanced on our capital allocation and achieving all the other goals we want to achieve, which is not just finishing up stage three in 2025 and 2026, but FID-ing the expansion there and getting Sabine ready, having the balance sheet get to triple B across the board by being proactive on that. Obviously, we increased the dividend by 15% and committed to a 10% growth rate for the rest of the decade. A balance of all of that is how we got to $4 billion.

Zach Davis: Really just depends on share price. Then we look at our cash flow forecast and ensure that we can meet those commitments of finishing a $4 billion incremental buyback program by 2027 or sooner. With on top of that, being balanced on our capital allocation and achieving all the other goals we want to achieve, which is not just finishing up stage three in 2025 and 2026, but FID-ing the expansion there and getting Sabine ready, having the balance sheet get to triple B across the board by being proactive on that. Obviously, we increased the dividend by 15% and committed to a 10% growth rate for the rest of the decade. A balance of all of that is how we got to $4 billion.

Speaker Change: We think as that supply comes in you'll see some very dramatic growth numbers.

Speaker Change: As various economies avail themselves of this moderately priced and and reliable resource.

Zach: Think about what the right way to get to the appropriate project is.

Speaker Change: And I'll just add with all of the success of the team.

Speaker Change: Okay. That's great appreciate that maybe just for my second one.

Zach: The origination team has had in the last year or two.

Speaker Change: With the golf deal announced and you guys kind of continuing to make progress on some of the expansion projects.

Zach: If we wanted it to be we could be 100% contracted even with the midscale expansion of eight to nine and Debottlenecking. That's how many contracts. We have so we're in a really good spot. We're now at the end at Corpus for Midscale and nine targeting FID next year once we have.

Speaker Change: Yeah, maybe I'll start and and Tech team was asked but in terms of quantum of of commercial support we're right around 10 million tons. We've got about just under 3 million tonnes with three customers that are <unk> to the mid scale expansion and with Gallup.

Zach: The permits and we can make that fully contracted and with the contract at Gallup and everything else that we've signed tied to train seven or train eight.

Jack Fusco: I wouldn't think too much about that because we've been known to increase it over time.

Zach Davis: I wouldn't think too much about that because we've been known to increase it over time.

Zach: We have more than enough to even in.

Jeremy Tonet: Got it. That's helpful. Thank you for that.

Speaker Change: Seven are kind of beyond that so as always we're we're navigating all of the levers commercial of course being one of them to two.

Zach: And a couple of years or so.

Zach: Our first phase of a surplus of being expansion. So so so that that's in line two as we continue to do value engineering, there and work on it with our with Bechtel.

Operator: Our next question comes from John Mackay with Goldman Sachs. Please go ahead. Your line is open.

Speaker Change: Think about what the right way to get to the appropriate project is.

John Mackay: Hey, thanks for the time. This is probably one for Anatol. You guys have been pretty positive on the demand picture for a while now. I'd just be curious to hear a little more from you on if we're looking at your outlook for Asia demand. How sensitive this could be to kind of like the broader macro cycle. We've seen China a little slower recently. Maybe just a little sensitivity there versus, I think, your argument on a lot of this is kind of baked in growth at this point. Thanks.

Speaker Change: And I'll just add with all the success that the team.

Zach: Alright I appreciate the time thank you.

Speaker Change: And we'll move to our next caller.

Speaker Change: The origination team has had in the last year or two.

Zach: Ben Nolan with Stifel. Please go ahead, Sir your line is open.

Speaker Change: If we wanted it to be we could be 100% contracted even with the mid scale expansion of eight to nine and Debottlenecking. That's how many contracts. We have so we're in a really good spot. We're now at the end at Corpus for Midscale and nine targeting FID next year once we have.

Ben Nolan: Yeah I appreciate it thanks.

Ben Nolan: I wanted to maybe start with <unk>.

Speaker Change: On the cost side, we saw I guess earlier this week Victor come out with a.

Speaker Change: The new EPC contract and appreciating that it's there's probably some differences but.

Anatol Feygin: Thanks, John. You know, again, very boring. Really hasn't changed much. We see the dedication to gas writ large being very sustained and durable across Asia and across Europe, in fact, right? The investments that are being made, you know, we're going to approach something like 1,500 million tons of regas capacity by the time all is said and done. Yes, there's some price sensitivity in some markets, but actually we've been pleasantly surprised, A, at what levels, and B, how much seemingly price inelastic demand in the short term is manifesting itself. We see these emerging markets in South and Southeast Asia as being very hungry for gas.

Speaker Change: I was curious if that sort of came in line with how you're thinking about.

Speaker Change: The permits and we can make that fully contracted and with the contract at Gallup and everything else that we've signed tied to train seven or train eight.

Speaker Change: The expansions that you're working on in and contemplated with the pricing of the gas that you've sold.

Speaker Change: We have more than enough to even in.

Speaker Change: And a couple of years or so.

Speaker Change: Our first phase of a surface Sabine expansion. So so so that that's in line two as we continue to do value engineering, there and work on it with our with with Bechtel.

Speaker Change: I'll answer that and we can't speak for what's going on at these other projects, obviously and it doesn't really matter because if we're not going to hit our financial standard.

Speaker Change: Alright I appreciate the time thank you.

Speaker Change: Why are we gonna take undue risk and dilute the returns that we're already providing all of our shareholders that we can easily get by just buying back more stock and letting investors own more of Sabine and corpus already in place.

Speaker Change: And we'll move to our next caller.

Speaker Change: Ben Nolan with Stifel. Please go ahead, Sir your line is open.

Ben Nolan: Yeah I appreciate it thanks.

Ben Nolan: I wanted to maybe start with the.

Anatol Feygin: It still is going to be a very small piece of their primary energy mix and will perform a lot of grid reliability and balancing functions that modern grids expect. Continue to be just as constructive. In fact, what we're seeing now, as we touched on, is a supply-constrained market. Everything we've seen play out in North America and the rest of the world, again, just like in previous cycles, continues to move that supply constraint further and further out. You know, you're seeing kind of 2026, 2027 now being the period of that supply entering the market as opposed to a year ago when most were penciling it in 12 to 18 months earlier.

Speaker Change: On the cost side, we saw I guess earlier this week picked will come out with.

Speaker Change: So that's.

Speaker Change: That's their brownfield like best I guess and that's for them to figure out whereas for us.

Speaker Change: The new EPC contract and appreciating that it's there's probably some differences but.

Zach: We think we can do even better and that will allow us to achieve seven times capex to EBITDA, 10% Unlevered returns and Thats just contracted nothing more than 225 on CMI and are fully wrapped EPC.

Speaker Change: I was curious if that sort of came in line with how you're thinking about the.

Speaker Change: The expansions that you're working on in and contemplated with the pricing of the Oh, the gas that you've sold.

Zach: Anything beyond that in terms of our early completion higher CMI levels optimization that that's just upside to us all.

Speaker Change: I'll answer that and we can't speak for what's going on at these other projects obviously.

Zach: But never baked in when we <unk> these projects.

Speaker Change: Okay, well, maybe another way to ask that is to the extent that you got similar pricing the masterworks fine Mike.

Anatol Feygin: We think as that supply comes in, you'll see some very dramatic growth numbers as various economies avail themselves of this moderately priced and reliable resource.

Speaker Change: And it doesn't really matter because if we're not going to hit our financial standard, but why are we gonna take undue risk and.

Speaker Change: Is that.

Speaker Change: Maybe in a different way to get to the same place.

Speaker Change: Diluted the returns that we're already providing all of our shareholders that we can easily get by just buying back more stock and letting investors own more of Sabine and corpus already in place so.

John Mackay: All right. That's great. Appreciate that. Maybe, just for my second one, with the Galp deal announced and you guys kind of continuing to make progress on some of the expansion projects, could you just remind us kind of what you're thinking about in terms of what you have now and targets you'd like to get to for the two incremental Corpus trains and then the broader Sabine expansion?

Speaker Change: Working with Bechtel.

Speaker Change: Clearly now thinking about limited notices to proceed even later this year and then to be in a position to have full notice to proceed next year, we have a decent sense of.

Speaker Change: That's their brownfield like best I guess and that's for them to figure out whereas for us.

Speaker Change: Where pricing is shaking out.

Speaker Change: Especially for benign and its all looking good.

Speaker Change: We think we can do even better and that will allow us to achieve seven times capex to EBITDA, 10% Unlevered returns and that's just contracted nothing more than $2 25 on CMI and are fully wrapped EPC.

Speaker Change: Perfect.

Speaker Change: And then.

Anatol Feygin: Yeah. Maybe I'll start and tag team with Zach. You know, in terms of quantum of commercial support, we're right around 10 million tons. We've got about just under 3 million tons with three customers that are CP'd to the mid-scale expansion, and with Galp about 7 kind of beyond that. As always, we're navigating all of the levers, commercial of course being one of them to think about what the right way to get to the appropriate project is.

Speaker Change: Sort of a follow up or a second question the <unk>.

Speaker Change: I appreciate your comments on <unk>.

Speaker Change: Yeah.

Speaker Change: The FERC.

Speaker Change: Anything beyond that in terms of early completion higher CMI levels optimization that that's just upside to us all.

Speaker Change: Things going on but as.

Speaker Change: As you're getting closer to Corpus Christi any updated thoughts on the D O E. Non.

Speaker Change: But never baked in when we get these projects.

Speaker Change: Non FTA any any sense as to if we're getting closer to and on pause there.

Speaker Change: Okay, well, maybe another way to ask that is to the extent that you got similar pricing the masterworks fine Mike.

Speaker Change: No I think you've been you probably have seen that they filed an appeal.

Speaker Change: Is it.

Speaker Change: Maybe in a different way to get to the same place.

Speaker Change: On the band the band.

Zach Davis: I'll just add, with all the success that the team, that the origination team has had in the last year or two, if we wanted to be, we could be 100% contracted, even with the mid-scale expansion of eight and nine and debottlenecking. That's how many contracts we have. We're in a really good spot. We're now with the EA at Corpus for mid-scale eight and nine, targeting FID next year once we have the permits, and we can make that fully contracted. With the contract at Galp and everything else that we've signed tied to train seven or train eight, we have more than enough to even FID in a couple years or so, a first phase of a Sabine expansion.

Speaker Change: I think again.

Speaker Change: Working with Bechtel.

Speaker Change: This probably is not going to get settled until after November.

Speaker Change: Clearly now thinking about limited notices to proceed even later this year and then to be in a position to have full notice to proceed next year, we have a decent sense of where pricing is shaking out.

Speaker Change: But it's not going to impact.

Speaker Change: We do here at Cheniere.

Speaker Change: Gotcha, Alright, I appreciate it thank you.

Speaker Change: Especially for benign.

Speaker Change: Benign and its all looking good.

Speaker Change: And we will move to our next question from Keith Stanley with Wolfe Research go ahead Sir.

Speaker Change: Perfect.

Speaker Change: And then.

Keith Stanley: Hi, Good morning, just just one question.

Speaker Change: Sort of a follow up or a second question.

Speaker Change: I appreciate your comments on <unk>.

Keith Stanley: Can you touch on potential plans to add gas power plant capacity with your old friends at Calpine under the Texas loan program, just strategic rationale for that cost and what you are hoping to achieve.

Speaker Change: <unk>.

Speaker Change: Things going on but.

Speaker Change: As you're getting closer to Corpus Christi any updated thoughts on the D O E.

Speaker Change: Non FTA any any sense as to if we're getting closer to and on pause there.

Speaker Change: Thanks Keith.

Speaker Change: So as you know with our stage three increase at Corpus.

Zach Davis: That's in mind too as we continue to do value engineering there and work on it with Bechtel.

Speaker Change: No I think you've been you probably have seen that they filed an appeal.

Speaker Change: Our demand for electricity increases dramatically because those are electric compression not gas compressors.

Speaker Change: On the band of the band.

Speaker Change: I think again.

John Mackay: All right. Appreciate the time. Thank you.

Speaker Change: So we wanted to manage that risk.

Speaker Change: This probably is not going to get settled until after November.

Operator: We'll move to our next caller, Ben Nolan with Stifel. Please go ahead, sir. Your line is open.

Speaker Change: We were able to do that very efficiently and effectively and cheaply by buying an existing power plant.

Speaker Change: But it's not going to impact.

Speaker Change: We do here at Cheniere.

Ben Nolan: Yeah, I appreciate it. Thanks. I wanted to maybe start with the cost side. We saw, I guess earlier this week, Bechtel come out with a new EPC contract and appreciating that there's probably some differences. I was curious if that's sort of came in line with how you're thinking about the expansions that you're working on and contemplated with the pricing of the gas that you've sold.

Benjamin Nolan: Yeah, I appreciate it. Thanks. I wanted to maybe start with the cost side. We saw, I guess earlier this week, Bechtel come out with a new EPC contract and appreciating that there's probably some differences. I was curious if that's sort of came in line with how you're thinking about the expansions that you're working on and contemplated with the pricing of the gas that you've sold.

Speaker Change: That was on the outskirts of our site let's.

Speaker Change: Gotcha, Alright, I appreciate it thank you.

Speaker Change: Let's see old GPP plant.

Speaker Change: And we'll move to our next question from Keith Stanley with Wolfe Research go ahead Sir.

Speaker Change: And where we.

Speaker Change: Yes.

Speaker Change: We have partnered with Calpine to make that a reliable combined cycle power plant, which they've done a very good job at to date. The plant has run almost every day since we bought it last year.

Keith Stanley: Hi, Good morning, just just one question.

Speaker Change: Very very efficiently and reliably, but it's our intent to grow that facility to match our demand profile and then that way it'll be a a financial hedge to our power exposure at Corpus Christi. So that's the intent of the relationship.

Speaker Change: Thanks Keith.

Speaker Change: So as you know with our stage three increase at Corpus.

Zach Davis: I'll answer that. We can't speak for what's going on at these other projects, obviously. It doesn't really matter because if we're not gonna hit our financial standard, why are we gonna take on new risk and dilute the returns that we're already providing all our shareholders that we can easily get by just buying back more stock and letting investors own more of Sabine and Corpus already in place? That's their brownfield, like, best, I guess, and that's for them to figure out. Whereas for us, we think we can do even better, and that'll allow us to achieve 7x CapEx to EBITDA, 10% unlevered returns. That's just contracted nothing more than 2.25 on CMI and a fully wrapped EPC.

Speaker Change: Our demand for electricity increases dramatically because those are electric compression not gas compressors.

Speaker Change: With Calpine in our ownership and that power plant and as you also know we own our own power plant at Sabine pass that's not connected to the grid.

Speaker Change: So we wanted to manage that risk.

Speaker Change: We were able to do that very efficiently and effectively and cheaply by buying an existing power plant.

Speaker Change: But but.

Speaker Change:

Speaker Change: That was on the outskirts of our site let's.

Speaker Change: We have power generating facilities are already so we're perfectly comfortable with owning and operating those facilities.

Speaker Change: Let's see old GPP plant.

Speaker Change: And where we.

Speaker Change: Yes.

Speaker Change: That makes sense. Thank you.

Speaker Change: And our next question comes from Craig Shere with Tuohy Brothers. Please go ahead. Your line is open.

Speaker Change: Yeah.

Craig Shere: Alright, thanks for taking the question.

Craig Shere: Just one for me.

Speaker Change: Very very efficiently and reliably, but it's our intent to grow that facility to match our demand profile and then that way it'll be a a five.

Craig Shere: Sounds like Youre Debottlenecking is making a lot more progress. It's obviously been going on for years barring a hurricane risk is it fair to say that your average multiyear legacy train output is already notably and systemically over five and Tpa at this point and what would it take for you to guide to.

Zach Davis: Anything beyond that in terms of early completion, higher CMI levels, optimization, that's just upside to us all, but never baked in when we FID these projects.

Speaker Change: Financial hedge to our power exposure at Corpus Christi. So that's the intent of the relationship with Calpine in our ownership and that power plant and as you also know we own our own power plant at Sabine pass that's not connected to the grid.

Ben Nolan: Okay. Well, maybe another way to ask that is, to the extent that you got similar pricing, the math still works fine. Is that maybe in a different way to get to the same place?

Benjamin Nolan: Okay. Well, maybe another way to ask that is, to the extent that you got similar pricing, the math still works fine. Is that maybe in a different way to get to the same place?

Craig Shere: Two.

Speaker Change: Something higher in the coming quarters.

Speaker Change: Yeah.

Zach Davis: Working with Bechtel, clearly now thinking about limited notices to proceed even later this year and then to be in a position to have full notice to proceed next year. We have a decent sense of where pricing is shaking out, especially for nine, and it's all looking good.

Speaker Change: I guess, we should have expected that question from you.

Speaker Change: But.

Speaker Change:

Speaker Change: But I'll just say.

Speaker Change: We have power generating facilities are already so we're perfectly comfortable with owning and operating those facilities.

Speaker Change: We've been at around 5 million tons per train on the first nine trains for a while and now we are still at 5 million tons per train.

Speaker Change: That makes sense. Thank you.

Speaker Change: And we're doing major maintenance every year.

Speaker Change: And our next question comes from Craig Shere with Tuohy Brothers. Please go ahead. Your line is open.

Speaker Change: So.

Jack Fusco: Perfect. As sort of a follow-up or second question, appreciate your comments on the FERC things going on. As you're getting closer to Corpus Christi, any updated thoughts on the DOE non-FTA? Any sense as to if we're getting closer to an unpause there?

Benjamin Nolan: Perfect. As sort of a follow-up or second question, appreciate your comments on the FERC things going on. As you're getting closer to Corpus Christi, any updated thoughts on the DOE non-FTA? Any sense as to if we're getting closer to an unpause there?

Speaker Change: For the next few years hard to it's hard to see that moving material up but we are making the investments we've mentioned before things like a fin fans that should eventually help us get closer to the higher end of that range.

Speaker Change: Okay.

Craig Shere: Alright, thanks for taking the question.

Craig Shere: Just one for me.

Craig Shere: Sounds like Youre Debottlenecking is making a lot more progress, it's obviously been going on for years.

Speaker Change: But not yet.

Speaker Change: Barring a hurricane risk is it fair to say that your average multiyear legacy train output is already notably and systemically over fire them Tpa at this point and what would it take for you to guide to.

Speaker Change: We're not in the business of OMA over promising on this.

Speaker Change: Greg I was going to say as soon as we get comfortable that we can reliably meet.

Greg: Production numbers or.

Jack Fusco: No, I think, Ben, you probably have seen that they filed an appeal on the ban of the ban. I think again, this probably is not gonna get settled until after November. It's not gonna impact what we do here at Cheniere.

Greg: A 20 year period.

Speaker Change: Something higher in the coming quarters.

Greg: We'll let you know.

Speaker Change: Yeah.

Greg: Great. Thank you.

Speaker Change: I guess, we should have expected that question for me.

Speaker Change: And our next question comes from Zach <unk> with T. P. H. Please go ahead your line is open.

Speaker Change: But I'll just say.

Speaker Change: We've been at around 5 million tons per train on the first nine trains for awhile and now we're still at 5 million tons per train.

Zach: Hey, guys. Thanks for taking my question, maybe just to start on the global demand outlook I know you talked about it on the last call around data centers internationally, we've seen some positive developments here in the U S. On the midstream side has anything come up or anything changed there as far as conversations with potential customers.

Jack Fusco: Got you. All right. I appreciate it. Thank you.

Benjamin Nolan: Got you. All right. I appreciate it. Thank you.

Speaker Change: And we're doing major maintenance every year.

Operator: We'll move to our next question from Keith Stanley with Wolfe Research. Go ahead, sir.

Speaker Change: So.

Speaker Change: For the next few years hard to its hard to see that moving material up.

Keith Stanley: Hi. Good morning. Just one question. Can you touch on potential plans to add gas power plant capacity with your old friends at Calpine under the Texas LOAN Program? Just strategic rationale for that cost and what you're hoping to achieve.

Speaker Change: But we are making the investments we've mentioned before things like fin fans that should eventually help us get closer to the higher end of that range.

Speaker Change: This increased demand from the global kind of AI data center demand ramp.

Speaker Change: Yes, thats exactly to have it all yeah. There are let's say roughly two steps away from that but but clearly this is a very nice tailwind for that Asian story as well, we see a dedicated kind of hyper scaler commitments to <unk>.

Speaker Change: But not yet.

Speaker Change: We're not in.

Speaker Change: The business of over over promising on this.

Jack Fusco: Thanks, Keith. As you know, with our stage three increase at Corpus, our demand for electricity increases dramatically 'cause those are electric compressors, not gas compressors. We wanted to manage that risk. We were able to do that very efficiently, effectively, and cheaply by buying an existing power plant that was on the outskirts of our site. That's the old GPP plant. We have partnered with Calpine to make that a reliable combined cycle power plant, which they've done a very good job at. To date, the plant has run almost every day since we bought it last year, very efficiently and reliably. It's our intent to grow that facility to match our demand profile.

Speaker Change: Greg I was going to say as soon as we get comfortable that we can reliably meet.

Greg: The production numbers over a 20 year period, we will let you know.

Speaker Change: Poor, Malaysia, Japan, or other markets, where we are where we are working with our counterparts, who will ultimately be supplying into that demand. So it is another component of the electrification and the reliability that our that the grids need that will be driven by this additional gas supply.

Greg: Great. Thank you.

Speaker Change: And our next question comes from Zach <unk> with T. P. H. Please go ahead your line is open.

Zach <unk>: Hey, guys. Thanks for taking my question, maybe just to star on the global demand outlook I know you talked about it on the last call around data centers internationally, we've seen some positive developments here in the U S. On the midstream side has anything come up or anything changed there as far as conversations with potential customers.

Speaker Change: And it is a it is a component in the in the global story, but again, we are not the load serving entity right. So we're we're a step or two removed from that.

Speaker Change: Or just increased demand from the global kind of AI data center demand ramp.

Speaker Change: Got you that makes sense and then maybe one on the U S kind of gas macro side, you mentioned that stage three will start taking feed gas in next few months can you give an idea of the volumes. There is a couple of hundred Mcf, a day or a little bit less than that as you start to commission that first train.

Speaker Change: Yeah, Thanks, Hey, I could stand at all.

Speaker Change: There are let's say roughly two steps away from that but but clearly this is a very nice tailwind for that Asian story as well, we see a dedicated kind of hyper scaler commitments to Singapore, Malaysia, Japan or other markets, where we are.

Jack Fusco: In that way it'll be a financial hedge to our power exposure at Corpus Christi. That's the intent of the relationship with Calpine and our ownership in that power plant. As you also know, we own our own power plant at Sabine Pass that's not connected to the grid. We have power generating facilities there already, so we're perfectly comfortable with owning and operating those facilities.

Speaker Change: Yes. It is.

Speaker Change: The way that works is it will be small first as we dry out the internal piping and the compression and we continue to test things and then it will grow.

Speaker Change: Where we are working with our counterparts, who will ultimately be supplying into that demand. So it is another component of the electrification and the reliability that our that the grids need that will be driven by this additional gas supply and a it is a it is a component in the in the glow.

Speaker Change: Should grow.

Speaker Change: Significantly after that.

Speaker Change: And are the pipeline that that provides the gas from Aqua don't say into stage three is already in operations.

Speaker Change: That makes sense I appreciate the time guys. Thanks.

Speaker Change: <unk> story.

Speaker Change: But again, we are not the load serving entity right. So we're a step or two removed from that.

Keith Stanley: That makes sense. Thank you.

Speaker Change: And our next question comes from Michael Blum with Wells Fargo. Please go ahead. Your line is open.

Operator: Our next question comes from Craig Shearer with Tuohy Brothers. Please go ahead. Your line is open.

Operator: Our next question comes from Craig Shere with Tuohy Brothers. Please go ahead. Your line is open.

Speaker Change: Got you that makes sense and then maybe one on the U S kind of gas macro side, you mentioned that stage three will start taking feed gas for the next few months can you give an idea of the volumes. There is a couple of hundred Mcf, a day or a little bit less than that as you start to commission that first train.

Michael Blum: Thanks, Thanks for squeezing me in here I just had one question left here just in terms of the operational enhancements you talked about which led to your increased 24 guidance.

Craig Shere: Hi. Thanks for taking the question. Just one for me. Sounds like your debottlenecking is making a lot more progress. It's obviously been going on for years. Barring a hurricane risk, is it fair to say that your average multi-year legacy train output is already notably and systemically over 5 MTPA at this point? What would it take for you to guide to, you know, something higher in the coming quarters?

Michael Blum: Just wanted to confirm that these carry forward to future years or is there anything kind of onetime in nature to the second half boost in production. Thanks.

Speaker Change: Yes.

Speaker Change: Is that the way that works is it'll be small first as we dry out.

Speaker Change: I would say no commitment yet for the future years.

Speaker Change: The internal piping and the compression and we continue to test things and then it will grow.

Speaker Change: If we go back to the May call.

Speaker Change: We basically said that production was a little light compared to forecast because after the freeze we had some feed gas quality issues at corpus, but we more than made up with it with the optimization that we were able to do upstream and downstream of the plant.

Speaker Change: Should grow significantly after that.

Jack Fusco: I guess we should have expected that question from you. I'll just say we've been at around 5 million tons per train on the first 9 trains, for a while, and now we're still at 5 million tons per train, and we're doing major maintenance every year. For the next few years, hard to see that moving material up. We are making investments, we've mentioned before, things like fin fans that should eventually help us get closer to the higher end of that range. Not yet. We're not in the business of overpromising on this.

Speaker Change: And are the pipeline that that provides the gas from Aqua does say into stage three is already in operations.

Speaker Change: That makes sense I appreciate the time guys. Thanks.

Speaker Change: We have more upstream in optum.

Speaker Change: More upstream and downstream of optimization and sub chartering.

Speaker Change: And our next question comes from Michael Blum with Wells Fargo. Please go ahead. Your line is open.

Speaker Change: Added to the forecast at this time around but on top of that we're catching back up to where we thought we'd be in closer to target for the full year.

Michael Blum: Thanks, Thanks for squeezing me in here I just had one question left here just in terms of the operational enhancements you talked about which led to your increased 24 guidance I just wanted to confirm that these carried forward to future years or is there anything kind of onetime in nature to the second half.

Speaker Change: Hard to say that this is gonna be a benefit for the future, but maybe more.

Speaker Change: To allow us to be more solid on our forecast going forward.

Speaker Change: Thank you.

Speaker Change: Boost in production thanks.

Jack Fusco: Craig, I was gonna say, as soon as we get comfortable that we can reliably meet the production numbers over a 20-year period, we will let you know.

Speaker Change: And we'll move to our next question from Manav Gupta with UBS. Please go ahead. Your line is open.

Speaker Change: I would say no commitment yet for the future years.

Manav Gupta: Thank you for squeezing me in I have one quick question Ccs CHP is about 62, 4% complete for them I think 55, 9% last quarter is that a good run rate that is how should we should think it comes online or they can get very lumpy because of the construction phase kicking in thank you.

Speaker Change: If we go back to the May call.

Craig Shere: Great. Thank you.

Speaker Change: We basically said that production was a little light compared to forecast because after the freeze we had some feed gas quality issue that at corpus, but we more than made up with it with the optimization that we were able to do upstream and downstream of the plant.

Operator: Our next question comes from Zach Van Everen with TPH. Please go ahead. Your line is open.

Speaker 14: Hey, guys. Thanks for taking my question. Maybe just to start on the global demand outlook. I know you talked about it on the last call around data centers internationally. We've seen some positive developments here in the US on the midstream side. Has anything come up or anything changed there as far as conversations with potential customers or just increased demand from the global kind of AI data center demand ramp?

Zach Van Everen: Hey, guys. Thanks for taking my question. Maybe just to start on the global demand outlook. I know you talked about it on the last call around data centers internationally. We've seen some positive developments here in the US on the midstream side. Has anything come up or anything changed there as far as conversations with potential customers or just increased demand from the global kind of AI data center demand ramp?

Speaker Change: Yes, so there's really.

Speaker Change: We have more upstream in optum.

Speaker Change: More upstream and downstream of optimization and sub chartering.

Speaker Change: That's an overall construction completion date.

Speaker Change: Added to the forecast at this time around but on top of that we're catching back up to where we thought we'd be in closer to target for the full year. So hard to say that this is going to be a benefit for the future, but maybe more.

Speaker Change: <unk> percentage and what I like to look at is trains one and two and three.

Speaker Change: And those numbers are significantly different as you could see from the photos.

Speaker Change: That we've provided you, but theres really three things that I look at one is supply chain do we have all the parts that we need at least for the initial three to five trains and yes, and so we don't I'm not worried about supply chain Messing me up.

Jack Fusco: Yeah. Thanks, Zach. It's Anatol. Yeah, we're, let's say, roughly two steps away from that. But clearly this is a very nice tailwind for that Asian story as well. We see dedicated kind of hyperscaler commitments to Singapore, Malaysia, Japan, other markets where we are working with our counterparts who will ultimately be supplying into that demand. So it is another component of the electrification and the reliability that the grids need that will be driven by this additional gas supply. It is a component in the global story. But again, we are not the load-serving entity, right? So we're a step or two removed from that.

Anatol Feygin: Yeah. Thanks, Zach. It's Anatol. Yeah, we're, let's say, roughly two steps away from that. But clearly this is a very nice tailwind for that Asian story as well. We see dedicated kind of hyperscaler commitments to Singapore, Malaysia, Japan, other markets where we are working with our counterparts who will ultimately be supplying into that demand. So it is another component of the electrification and the reliability that the grids need that will be driven by this additional gas supply. It is a component in the global story. But again, we are not the load-serving entity, right? So we're a step or two removed from that.

Speaker Change: Allow us to be more solid on the forecast going forward.

Speaker Change: Thank you.

Speaker Change: And we'll move to our next question from Manav Gupta with UBS. Please go ahead. Your line is open.

Speaker Change: The next thing is as we look at worker mobility, and if if are we adding the workforce that we need with the right skills that we need to hit the critical path of the schedule and we are and then thirdly I look at commissioning activities are we turning over systems.

Manav Gupta: Thank you for squeezing me in I have one quick question Ccs Ht is about 62, 4% complete for them I think 55, 9% last quarter is that a good run rate. That's how should we should think it comes online or they can get very lumpy because of the construction phase kicking it. Thank you.

Speaker Change: From E&C construction to commissioning and getting those systems started up and how many.

Speaker Change: Yes, so there's really.

Speaker Change: That's an overall construction completion date or percentage and what I like to look at is trains one and two and three and those numbers are significantly different as you can see from the photos.

Speaker Change: How many employees operations employees have been so kind of tobacco.

Speaker Change: We have at this point, we have about 58 operators that are <unk> that are doing commissioning activities. Those are all really positive signs to me that stage three trains one two and three are really moving along very well.

Speaker 14: Gotcha. That makes sense. Maybe one on the US kind of gas macro side. You mentioned that Stage 3 will start taking feed gas the next few months. Can you give an idea of the volumes there? Is it a couple hundred MMcf a day or a little bit less than that as you start to commission that first train?

Zach Van Everen: Gotcha. That makes sense. Maybe one on the US kind of gas macro side. You mentioned that Stage 3 will start taking feed gas the next few months. Can you give an idea of the volumes there? Is it a couple hundred MMcf a day or a little bit less than that as you start to commission that first train?

Speaker Change: We've provided you that theres really three things that I look at one is supply chain do we have all the parts that we need at least for the initial three to five trains and yes, and so we don't I'm not worried about supply chain Messing me up.

Speaker Change: Thank you so much.

Speaker Change: And our last question comes from Alexander Bidwell from Webber Research. Please go ahead. Your line is open.

Speaker Change: Good morning. This is Alex Bidwell on for Greg This quarter. Thanks for taking my question.

Speaker Change: The next thing is that as we look at worker mobility and if if are we adding the workforce that we need with the right skills that we need to hit the critical path of the schedule and we are and then thirdly I look at commissioning activities are we turning over systems.

Jack Fusco: Yeah, Zach, the way that works is it'll be small first as we dry out the internal piping and the compression, and we continue to test things, and then it will grow, should grow significantly after that. The pipeline that provides the gas from Agua Dulce into Stage 3 is already in operations.

Alexander Bidwell: I'm looking at CCL stage, three so first LNG on Q1 is coming or is expected at the end of the year can you guys define first LNG are we talking a substantial volume or a small volumes say are a.

Speaker Change: From E&C construction to commissioning and getting those systems started up and how many.

Speaker Change: A few cubic meters.

Speaker Change: Okay.

Speaker Change: We're not in is to play games.

Speaker Change: How many employees operations employees have been 600 tobacco, we have at this point, we have about 58 operators that are <unk> that are doing commissioning activities. Those are all really positive signs to me that stage three trains.

Speaker Change: We're in it to run a real business.

Speaker 14: Got it. That makes sense. Well, I appreciate the time, guys. Thanks.

Zach Van Everen: Got it. That makes sense. Well, I appreciate the time, guys. Thanks.

Speaker Change: And when we when we tell you we've achieved first LNG.

Operator: Our next question comes from Michael Blum with Wells Fargo. Please go ahead. Your line is open.

Speaker Change: Hopefully after after a decade of doing this in 3700 tankers under my belt that you all believe us.

Speaker 15: Thanks. Thanks for squeezing me in here. I just had one question left here. Just in terms of the operational enhancements you talked about, which led to your increased 2024 guidance. I just wanted to confirm that these carry forward to future years. Or is there anything kind of one time in nature to the second half boost in production? Thanks.

Michael Blum: Thanks. Thanks for squeezing me in here. I just had one question left here. Just in terms of the operational enhancements you talked about, which led to your increased 2024 guidance. I just wanted to confirm that these carry forward to future years. Or is there anything kind of one time in nature to the second half boost in production? Thanks.

Speaker Change: One two and three are really moving along very well.

Speaker Change: We're where theyre, making LNG, so I'm not going to try to define it.

Speaker Change: Thank you so much.

Alexander <unk>: And our last question comes from Alexander <unk> from Webber Research. Please go ahead. Your line is open.

Speaker Change: I hope that Ive heard some credibility.

Speaker Change: With all of you over at least my last eight years Engineers last 10.

Alex: Good morning. This is Alex <unk> on for Greg This quarter. Thanks for taking my question I'm looking at CCL stage three so first LNG on Q1 is coming or is expected at the end of the year can you guys define first LNG are we talking a substantial volume or a small volume say.

Zach Davis: I would say no commitment yet for the future years. If we go back to the May call, we basically said that production was a little light compared to forecasts because after the freeze, we had some feed gas quality issues at Corpus, but we more than made up with it. With the optimization, we were able to do upstream and downstream of the plant. We have more upstream and downstream optimization and sub-chartering added to the forecast this time around. On top of that, we're catching back up to where we thought we would be and closer to target for the full year.

Speaker Change: Alright, thank you.

Speaker Change: And ladies and gentlemen, this concludes our Q&A session on today's call I will now turn the call back to the Cheniere team.

Speaker Change: Thank you all very much for your support and please be safe out there.

Speaker Change: A few cubic meters.

Speaker Change: Yeah.

Speaker Change:

Speaker Change: We're not in is to play games.

Speaker Change: Where we're in nature to run a real business.

Speaker Change: And when we when we tell you we've achieved first LNG.

Speaker Change: Hopefully after after a decade of doing this in 3700 tankers under my belt that you all believe us that we're where they're making LNG, so I'm not going to try to define it.

Zach Davis: Hard to say that this is gonna be a benefit for the future, but maybe more allow us to be more solid on the forecast going forward.

Speaker Change: I hope that Ive heard some credibility with with all of you over at least my last eight years Engineers last 10.

Speaker 15: Thank you.

Michael Blum: Thank you.

Operator: We'll move to our next question from Manav Gupta with UBS. Please go ahead. Your line is open.

Speaker Change: Alright, thank you.

Manav Gupta: Thank you for squeezing me in. I have one quick question. CCL Stage 3 is about 62.4% complete. It was about, I think, 55.9% last quarter. Is that a good run rate? That's how we should think it comes online? Or it can get very lumpy because of the construction phase kicking in. Thank you.

Speaker Change: And ladies and gentlemen, this concludes our Q&A session on today's call I will now turn the call back to the Cheniere team.

Speaker Change: Thank you all very much for your support and please be safe out there.

Speaker Change: And this concludes today's call. Thank you for your participation you may now disconnect.

Jack Fusco: Yeah. So there's really that's an overall construction completion date or percentage. What I like to look at is trains one, two, and three. Those numbers are significantly different, as you can see from the photos that we've provided you. But there's really three things that I look at. One is supply chain. Do we have all the parts that we need, at least for the initial three to five trains? Yes. I'm not worried about supply chain messing me up. The next thing is we look at worker availability. If we are adding the workforce that we need with the right skills that we need to hit the critical path of the schedule, and we are. Thirdly, I look at commissioning activities.

Speaker Change: Have a great day.

Speaker Change: [music].

Jack Fusco: Are we turning over systems, you know, from E&C construction to commissioning and getting those systems started up? How many employees, operations employees have been seconded to Bechtel? We have at this point about 50 operators that are seconded that are doing commissioning activities. Those are all really positive signs to me that Stage 3 trains, you know, 1, 2, and 3 are really moving along very well.

Manav Gupta: Thank you so much.

Operator: Our last question comes from Alex Bidwell from Webber Research. Please go ahead. Your line is open.

Speaker 14: Good morning. This is Alex Bidwell on for Greg this quarter. Thanks for taking my question. Looking at CCL Stage 3, first LNG on Q1 is coming or is expected at the end of the year. Can you guys define first LNG? Are we talking a substantial volume or a small volume, say a few cubic meters?

Alexander Bidwell: Good morning. This is Alex Bidwell on for Greg this quarter. Thanks for taking my question. Looking at CCL Stage 3, first LNG on Q1 is coming or is expected at the end of the year. Can you guys define first LNG? Are we talking a substantial volume or a small volume, say a few cubic meters?

Jack Fusco: We're not in this to play games. We're in it to run a real business. When we tell you we've achieved first LNG, hopefully after a decade of doing this and 3,700 tankers under my belt, that you all believe us that we're there making LNG. I'm not gonna try to define it. I hope that I've earned some credibility with all of you over at least my last eight years and Cheniere's last 10.

Speaker 14: All right. Thank you.

Alexander Bidwell: All right. Thank you.

Operator: Ladies and gentlemen, this concludes our Q&A session on today's call. I will now turn the call back to the Cheniere team.

Jack Fusco: Thank you all very much for your support, and please be safe out there.

Q2 2024 Cheniere Energy Partners LP Earnings Call

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