Q1 2025 Cheniere Energy Inc Earnings Call
Randy Bhatia, Vice President of Investor Relations. Please go ahead.
Speaker Change: Thanks, operator, good morning, everyone and welcome to <unk> first quarter 2025 earnings Conference call.
Speaker Change: 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, Sneers, President and CEO, Anatol, Fagan Executive Vice President and Chief Commercial Officer, and Jack Davis, Executive Vice President and CFO.
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.
Speaker Change: In addition, we may include references to certain non-GAAP financial measures such as consolidated adjusted EBITDA and distributable cash flow a.
Speaker Change: A reconciliation of these measures to the most comparable GAAP measure can be found in the appendix a slide presentation.
Speaker Change: As part of our discussion of Cheniere as 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.
Jack: The call agenda is shown on slide three Jack.
Speaker Change: Jack will begin with operating and financial highlights and it'll will then provide an update on the LNG market and Zach will review our financial results in 2025 guidance. After our prepared remarks, we will open the call for Q&A I will now turn the call over to Jack Fusco, <unk>, President and CEO.
Speaker Change: Thank you Randy good morning, everyone. Thanks for joining us today as we review our results from the first quarter of 2025.
Speaker Change: Year is off to an excellent start evidenced by the strong financial results.
Speaker Change: And operational execution and capital allocation milestones that we achieved during the quarter.
Speaker Change: We have much to be proud of from the first quarter and our results and operations only further validate to the market that cheniere is the reliable and disciplined LNG provider of choice in America.
Speaker Change: Our LNG platform and expansion plans are designed to develop new production capacity in pursuit of enabling customers around the world to realize a material benefits of a secure affordable and reliable energy supply like we enjoy here in America.
Speaker Change: That said, we find ourselves in an evolving market landscape characterized by heightened volatility and increasing uncertainty as geopolitical risks shifting global trade dynamics and the competitive landscape continued to dominate the narrative.
Speaker Change: Despite the volatility.
Speaker Change: Lines reciprocal headlines and the other dynamics throughout the quarter, we remained steadfast in our commitment to operational excellence and delivering on our promises to our customers and broader stakeholder base.
Speaker Change: We recognized an income and all time quarterly record amount of LNG for the first quarter and made significant achievements and advancements in both our construction efforts at stage three as well as our development efforts on mid scale trains eight and nine leveraging our brownfield platform in <unk>.
Speaker Change: Solidifying <unk> next phase of accretive growth.
Speaker Change: Please turn to slide five where I'll highlight our results and accomplishments for the first quarter of 2025.
Speaker Change: In the first quarter, we generated consolidated adjusted EBITDA of approximately $1 9 billion distributable cash flow of approximately $1 3 billion and net income of approximately $350 million. Today. We are reconfirming. The full year 2025 guidance, we provided on the last call and are tracking well.
Speaker Change: <unk> to deliver financial results within those ranges.
Speaker Change: During the first quarter, we achieved several significant execution milestones that I'd like to highlight.
Speaker Change: First we achieved substantial completion on the first train of the Corpus Christi stage three project and this was done ahead of schedule and within budget.
Speaker Change: Emission was successfully completed and we took care custody and control of train one from back to one March.
Speaker Change: I'd like to congratulate the Cheniere and bechtel teams for delivering the first train of stage III safely and timely.
Speaker Change: And thereby further building upon the track record of excellence and execution that has consistently demonstrated.
Speaker Change: One train down six to go.
Speaker Change: Bectal has progressed overall project completion to 82, 5% with most of the remaining work being construction as we discussed on the last call procurement for stage three is basically complete effectively eliminating the project's exposure to potential tariffs on equipment and materials.
Speaker Change: I'll discuss this perspective tariff dynamic and more detail on the next slide.
Speaker Change: I continue to expect to have the first three trains reached substantial completion by the end of 2025 in fact recent progress onsite.
Speaker Change: Particularly on trains three and four has increased by confidence in that target as well as the likelihood that we will have train four and commissioning by the end of this year as well.
Speaker Change: Train two is well into the commissioning phase at this point and I expect to achieve first LNG around the end of this month or early next.
Speaker Change: We've been able to deploy significant lessons learned from our commissioning in early operations of train one into train two.
Speaker Change: And expect the subsequent trains to benefit from these learnings and efficiencies as we bring them into operations.
Speaker Change: During the first quarter.
Speaker Change: We received our FERC permit on mid scale trains 891 of the key remaining steps ahead of an expected.
Speaker Change: Later this year trains 89 received a positive environmental assessment from FERC last June. So we were pleased to see FERC Act on this brownfield shovel ready expansion project.
Speaker Change: Cover Trans 89, and the timeline around that project in more detail in a moment.
Speaker Change: On the operations front, we had two major operational milestones during the quarter, which are each achievements worthy of celebration as are.
Speaker Change: The outcome of engineers safety first culture and commitment to operational excellence.
Speaker Change: First.
Speaker Change: I am proud to say, we safely produced and exported our 4000th cargo of LNG in March <unk>.
<unk> is the fastest company to achieve this in the world having done so in just over nine years.
Speaker Change: Also in the first quarter Cheniere marketing, our CMI soldiers thousandth LNG cargo.
Speaker Change: <unk> responsibilities and contributions have evolved considerably since managing the first commissioning cargo at SPL back in February of 2016.
Speaker Change: Today. This essential part of Cheniere manages not only spot cargos and commissioning volumes, but also multiple delivered long term contracts.
Speaker Change: Including our IPM volumes.
Speaker Change: <unk> has a leading position in the LNG shipping market.
Speaker Change: Pmi's capabilities and reliability are a key part of what separates us from our competitors and.
Speaker Change: And we are proud to celebrate this significant milestone.
Speaker Change: Please turn now to slide six where I'll address the evolving landscape around trade and tariffs and how cheniere is positioned.
Speaker Change: Certainly the last few weeks have been marked by volatility and some confusion around tariffs and trade as announcements and proclamations from here and abroad have come in rapid fire succession, the underlying issues and the developing policies to address them have raised questions from our investors customers and other stakeholders.
Speaker Change: Regarding the potential impact on the physical LNG market and the LNG contracting environment as well as the cost of materials and equipment.
Speaker Change: As a result over the last few weeks I've spent significant time in Washington D. C meeting with the leadership of multiple departments and agencies and providing the perspective of Cheniere in the U S LNG industry and policy discussions around those key issues.
Speaker Change: From these meetings it is clear that the administration is strongly supports our industry and they understand the significant role LNG can play and the support of the administrations energy dominance agenda and trade priorities and the importance and durability of our permits long term.
Speaker Change: With regard to the physical market.
Speaker Change: Destination flexibility inherent in U S. LNG contracts with Cheniere pioneered is a significant mitigate of impacts to physical flows of volume.
Speaker Change: Even so we are uniquely insulated from volatility in the short term market via our highly contracted business model.
Speaker Change: The overwhelming majority of which is F O b.
Speaker Change: Any potential impact is further mitigated by the depth and the physical liquidity of the LNG market today with well over 40 importing markets and Regasification capacity.
Speaker Change: Continues to grow well in excess of supply.
Speaker Change: LNG volumes can respond to signals and reached the markets, whereas most economic.
Speaker Change: On the contracting front Anatol will touch on this in his remarks in a few minutes, but first and foremost our long term LNG demand outlook remains unchanged.
Speaker Change: Current trade tariff dynamics have not altered the structural shift to natural gas.
Speaker Change: Or the many advantages that U S. LNG provides our long term customers.
Speaker Change: As they construct.
Speaker Change: Diverse reliable and secure long term energy portfolios and for our country as we think about trade balances.
Speaker Change: And finally on materials and equipment costs, we have significantly mitigated the risk both for stage three and mid scale trains 89 on stage three procurement is effectively complete and materials and equipment have been delivered to the site. So the risk of tariffs impacting the cost of the project has been substantially.
Speaker Change: Taken care of with.
Speaker Change: With respect to mid scale trains eight nine as mentioned previously we have issued LNG piece to backfill, which help lock in costs and schedule ahead of FY <unk>.
Speaker Change: Worth over $500 million.
Speaker Change: With the majority of the total cost of trains eight nine expected to be labor and a fair amount of equipment and materials source domestically, we don't anticipate a material impact on the cost of mid scale trains 809 in any of our scenario modeling.
Speaker Change: The recent focus on trade balances and tariffs have highlighted the outsized impact.
Speaker Change: That LNG contracts can have on those dynamics given the absolute dollar magnitude in the tenure of our agreements as well as the fact that we have signed contracts with companies and nearly 20 different countries.
Speaker Change: We believe that reality only further improves.
Speaker Change: The backdrop for constructive dialogue with LNG buyers around the world.
Speaker Change: Turn now to slide seven where I'll cover mid scale trains 89, and our expected path to F.
Speaker Change: <unk>.
Speaker Change: We're progressing trains eight nine towards Friday, which I.
Speaker Change: With increasing confidence and visibility to occur in the coming months.
Speaker Change: Together with identified Debottlenecking opportunities across all trains we expect trains eight nine to add up to approximately 5 million tonnes of volume to our platform at Corpus Christi, increasing our overall capacity to approximately 60 million tonnes per annum.
Speaker Change: We've received our FERC permit in March.
Speaker Change: Which had no request for rehearing and in May we received authorization from FERC to begin site work. So we're very close to having the necessary regulatory approvals to move forward in the coming months.
Speaker Change: With respect to other remaining necessary steps. We're currently working together with <unk> to finalize the EPC agreement, which we expect to execute in the near term as well as other remaining project development pieces falling into place ensuring the project meets or exceeds.
Speaker Change: Our disciplined capital investment parameters and return requirements.
Speaker Change: These actions are evidence that we are in very late stages of development on trains eight nine and we're excited to bring this brownfield expansion project.
Speaker Change: Soon.
Speaker Change: The project is designed to maximize our in place infrastructure and leverage the ongoing execution on stage three in order to deliver much needed volume to the market and market leading risk adjusted returns to our shareholders.
Speaker Change: With that I'll now hand, it over to Anatol to discuss the LNG market. Thank.
Speaker Change: Thank you all for your continued support of Cheniere.
Anatol: Thanks, Jack and good morning, everyone. Please turn to slide nine.
Anatol: First quarter saw another relatively tight LNG market on the back of a largely normal winter weather season, and no meaningful LNG supply growth.
Anatol: However, after reaching 15 month highs in early February we saw spot prices dropped sharply thereafter, albeit still above the levels. We saw this time last year.
Anatol: Following several years of tepid growth, we're now seeing gas supply into U S. LNG facilities ramping up feed gas for U S. Exports is averaging approximately 16 Bcf a day lately and we expect this to continue to grow as new projects currently under construction commenced service.
Speaker Change: Yes projects, including of course engineers are expected to contribute over 80 million tons of incremental liquefaction capacity to the market by 2029.
Speaker Change: In this upcoming supply cycle, which we've been highlighting for a while now the growth increments are expected to be significant in absolute terms, but as we've detailed before the market. They will enter is markedly different than that of a decade ago with respect to depth liquidity and sophistication.
Speaker Change: We expect this growth to serve as a relief valve to help rebalance the global market, enabling some of the price elastic demand to reenter the market and reinforce the affordability of LNG as a key rationale to drive further long life gas infrastructure investments globally.
Speaker Change: While we see 25% and 26% as pivotal years for supply growth. There are multitude of factors that continue to inject uncertainty into the market affecting overall sentiment.
Speaker Change: The geopolitical and trade issues and their related news coverage plus sharp movements in prices throughout the first quarter and continued to present risks to both the upside and the downside going forward, particularly in the short end of the curve.
Speaker Change: Cold weather and the cessation of Ukrainian gas flows drove daily TGF month ahead prices upwards early in Q1 steadily in January at nearly $16 Btu.
Speaker Change: Since then prices have moderated in part due to the proposed relaxation of storage refill targets as well as announced tariffs and reciprocal tariffs with China.
Speaker Change: CTF and Jacob settle March at $13 80 of them and $14 95, and then respectively.
Speaker Change: Lower LNG demand in China, coupled with uncertainties surrounding tariffs and their impact on the global economy accelerated downward momentum as we enter the shoulder season with Tcf and Jacob currently trading below $12 in them.
Speaker Change: This price moderation persist despite the fact that European storage levels are at multiyear lows natural gas flows from Russia to Ukraine have ceased and Ukraine itself has historically low storage levels.
Speaker Change: So, let's turn to the next page to address the regions in further detail.
Speaker Change: LNG market fundamentals reversed in Q1 compared to last year, when Asia was pulling cargos amid lower European demand. This.
Speaker Change: This year following the cessation of Russian flows through Ukraine, and with Europe's storage depleted Europe's call in LNG was strong amid amid cooler winter temps.
Speaker Change: LNG imports into Europe, rose, 23% or $6 7 million tonnes year on year in the first quarter to 36 million tonnes with deliveries from the U S, increasing 34% up $5 2 million tons to $20 5 million tonnes.
Speaker Change: Higher gas burn and power, which was up 11% or 19 terawatt hours due to lower wind output coupled with an increase in heating demand supported LNG demand during the quarter.
Speaker Change: The steady supply of U S. LNG imports contributed to the rise in storage levels and stabilization of prices.
Speaker Change: LNG from the U S represented 57% of Europe's total imports during the quarter.
Speaker Change: Non Russian pipe gas into Europe fell two 5% down 0.9 bcm in Q1 as outages in Norway, and lower flows from Azerbaijan, offset a 9% increase in North African pipeline supplies.
Speaker Change: With cargoes being pulled to the Atlantic Basin.
Speaker Change: LNG imports into Asia declined relative to last year.
Speaker Change: During the quarter, China's imports declined 25% year on year to $15 1 million tons.
Speaker Change: Total gas demand was nearly flat year on year, a small increases in the residential and chemical sectors were offset by a decline in output from heavy gas consumption sectors, such as certain manufacturing and refining leading to a notable one five bcm drop in gas demand from the industrial sector.
Speaker Change: LNG imports into China were further pressured by stronger domestic natural gas production as well as increased pipe gas imports.
Speaker Change: As expected for contract ramp up gas imports into China via the power of Siberia, one pipeline.
Speaker Change: <unk> reached six eight bcm in January and February, which was an increase of $1 nine bcm year on year.
Speaker Change: In the <unk> region Cold weather combined with lower coal generation in South Korea, and the decommissioning of nuclear generation in Taiwan helps support LNG demand in the region.
Speaker Change: This month, we will see the last nuclear generation unit decommissioned in Taiwan, just as its third LNG import terminal is being commissioned with plans for a fourth terminal.
Speaker Change: Taiwan is important capacity is set to significantly increase from the current 16 5 million tons last year to up to 37 million tons. Once the fourth facility and other expansions enter service in the coming years.
Speaker Change: In South Korea, cooler temps and higher gas fired power generation contributed to storage withdrawals, leading to a 14% increase in LNG imports in March.
Speaker Change: <unk> gas fired power generation was up 7% year on year or two terawatt hours in January through February a trend that we expect to continue as the country furthers its efforts to phase out coal generation.
Speaker Change: Let's move to the next slide for some perspectives on the latest trade policy developments in the context of the LNG market.
Speaker Change: The rapid escalation and global trade policy developments in recent months as cost concern over the impact this could have on LNG trade and sales, particularly between U S and China.
Speaker Change: The U S led by Cheniere has become the world's largest LNG producer, while China has become the world's largest LNG consumer.
Speaker Change: So this trade relationship is important to the industry. However.
Speaker Change: However, managing tariffs between the U S and China is actually well charter territory for Cheniere as we had a long term foundation customer contract with the Chinese buyer in place doing President Trump's first term.
Speaker Change: While those tariffs resulted in de Minimis U S. LNG cargoes delivered into China's terminals during that time, we performed on our contract and there was no impact to the growth in U S. LNG output nor in overall market growth as the volumes loaded by Chinese customers were redirected to other markets.
Speaker Change: Since that time, the sophistication agility and capability of market participants, including Chinese buyers has been enhanced in large part due to the growth in flexible volumes and the resulting liquidity those volumes bring to the market.
Speaker Change: With the flexibility inherent in U S contract and the increased sophistication of market players. We're confident today's market is even better equipped to navigate the evolving dynamics in global trade policy than it was in 2018 and 19.
Looking ahead, there are significant volumes of U S. China long term LNG contracts set to start over the next few years.
Speaker Change: But even when these reached their peak of roughly 25 million tons. These contracts will only represent about 4% of total LNG trade.
Speaker Change: Assuming these volumes are redirected the market should be able to absorb the supply and optimize around these trade constraints as LNG demand continues to grow across the rest of the world.
Speaker Change: It's important to note that the Atlantic route between the U S and China takes U S cargoes past, Europe, India, and southeast Asia, providing ample logistical opportunities to arbitrage these cargoes into other markets.
Speaker Change: Finally, as you can see in the chart to the right market commentators expect LNG to remain critical to China's energy mix, maintaining a quarter of total gas supply through at least 2040.
Speaker Change: China's commitment to natural gas appears unwavering and we fully expect China to remain one of the three main nodes of LNG demand growth for decades to come.
Speaker Change: With that I'll turn the call over to Zach to review, our financial results and guidance.
Zach: Thanks, Anatol and good morning, everyone.
Zach: I am pleased to be here today to review, our first quarter 2025 results and key financial accomplishments and to discuss our financial guidance for 2025.
Zach: Turning to slide 13.
Zach: For the first quarter 2025, we generated net income of approximately $350 million.
Zach: Consolidated adjusted EBITDA of approximately $1 9 billion and distributable cash flow of approximately $1 3 billion.
Zach: Compared to the first quarter of 2024 or 2025 results reflect higher total margins as a result of higher international gas prices optimization downstream of our facilities that freed up incremental SPL and CCL source cargos for CMI to sell in the spot market.
Zach: And the timing of certain cargos during the quarter, leading to a lower proportion of our LNG being sold under long term contracts.
Zach: During the first quarter, we recognized an income 616 <unk> of physical LNG, which included 690 Btu from our projects and 70 Btu sourced from third parties respectively.
Zach: Approximately 90% of our LNG volumes recognized were sold in relation to term SBA or IPM agreements.
Zach: During the quarter. We also produced and sold approximately six <unk> of LNG attributable to the commissioning of train one of the stage three project.
Zach: The net margin of which and adherence to gap is not recognized in income nor our EBITDA and DCF results, but rather as an offset to our overall capex spend on the project.
Zach: Our team continued to execute on our updated 2020 vision capital allocation plan throughout the first quarter deploying over $1 3 billion towards shareholder returns balance sheet management and disciplined growth.
Zach: We've now allocated approximately $15 billion of our initial target of $20 billion by 2026, as we continued to reduce our share count and enhance our capital returns, while retaining financial strength and flexibility to self fund accretive growth across our platform.
Zach: All of which positions us well to achieve our target of generating over $20 per share of run rate distributable cash flow for our shareholders.
Zach: During the first quarter, we repurchased approximately one 6 million shares for approximately $350 million, leaving approximately $3 5 billion remaining on our current buyback authorization through 2027 as of quarter end.
Zach: The market volatility post quarter, especially in early April enabled the plan to be more active and deploy over $200 million for over 1 million shares just in the month of April as our financial position along with our heavily contracted cash flow guidance gives us the ability to be opportunistic on the buyback during times like these.
Zach: With less than 222 million shares outstanding as of last week, we continue to methodically make meaningful yet opportunistic progress towards our initial target of 200 million shares outstanding.
Zach: We also declared a dividend of <unk> 50 per common share for the first quarter last week, and we remain committed to our guidance of growing our dividend by approximately 10% annually through the end of this decade targeting a payout ratio of approximately 20% over time.
Zach: Even with increasing our dividend by over 50% since its initiation in 2021, our dividend and payout ratio are designed to enable the financial flexibility is essential to our comprehensive and balanced long term capital allocation plan and disciplined self funded and accretive growth objectives. During the first quarter, we repaid.
Zach: $300 million of outstanding long term indebtedness.
Zach: Repaying the remaining balance of the $2 billion of SPL 2025 notes due in March.
Zach: Looking ahead. Our next maturity also at SPL is not until the middle of next year, which we expect to address with a mix of debt paydown and opportunistic refinancing in order to extend our maturity profile and reduce our interest expense all while further securing and decent burdening our balance sheet strength.
Zach: Turning our investment grade ratings throughout our corporate structure.
Zach: The focus of our 2025 debt Paydown remains within the <unk> complex in preparation for financing the SPL expansion project, while cei and maintains its prioritization of shareholder returns funding stage, III and readying Midscale eight and nine for <unk>.
Zach: In February we received our 'twenty three and 'twenty four credit rating upgrades since 2021, when Fitch upgraded both cei and CQ P from Triple B minus to Triple B, our first triple B unsecured rating at Cei and second Etsy QP.
Zach: This further sets us apart in the U S LNG space and solidifies our investment grade ratings, while reflecting the robust credit metrics enabled through operational excellence and our focus on balance sheet management and capital investment discipline. These past few years.
Zach: With a positive outlook on our Triple B project rating by S&P of Corpus. We are optimistic for further upgrades to comment corpus and cei as we continue to progress through stage III construction.
Zach: During the first quarter, we funded approximately $325 million of Capex on stage III.
Zach: Bringing total spend on the project to over $4 8 billion.
Zach: We also deployed approximately $230 million in the first quarter towards future growth and debottlenecking, including procurement of certain equipment for mid scale trains eight and nine and continued development capital to progress the SPL expansion project.
Speaker Change: As Jack noted is locked in over $500 million of costs for mid scale trains eight to nine and related infrastructure as we prepare for <unk> later this year.
Speaker Change: Our proactive procurement efforts helped mitigate the risks around inflation for steel aluminum and other materials and equipment.
Speaker Change: With nearly $3 billion in consolidated cash and ample undrawn revolver and term loan liquidity throughout this generic complex. We expect to continue equity funding the stage III capex preserving the financial flexibility to utilize the three plus billion of Undrawn capacity on the stage three term loan later this year.
Speaker Change: Which would include for funding Midscale 89.
Speaker Change: All while remaining active on our opportunistic buyback program as we continue to manage our cash balances efficiently.
Speaker Change: Turning now to slide 14, where I will discuss our 2025 guidance and outlook for the remainder of the year.
Speaker Change: Today, we are reconfirming, our full year 2025 guidance ranges of six $5 billion to $7 billion and consolidated adjusted EBITDA and four 1% to $4 6 billion.
Speaker Change: And distributable cash flow.
Speaker Change: And $3 25 to $3 35 per common unit of distributions from <unk>.
Speaker Change: These ranges continued to reflect our production forecast of 47 to 48 million tons of LNG in 2025.
Speaker Change: Which contemplates our existing nine train platform plus our outlook for production from the first three trains at Corpus Christi stage three this year with.
Speaker Change: With the substantial completion of train one in March and the progress Jack highlighted earlier on trains two to four we are on track to achieve our goal of completing the first three trains at stage III This year.
Speaker Change: The 2025 production forecast also takes into account the major maintenance on trains three and four at Sabine pass that we will execute over the course of several weeks this summer.
Speaker Change: Looking at curves today net backs have come down recently and are hovering around five to $6 for the balance of 2025.
Speaker Change: Fortunately our team was able to opportunistically sell into the market are locked in via financially hedging another half a million tons of our remaining open capacity prior to the recent pullback.
Speaker Change: Which when combined with our optimization efforts largely offset the mark to market of our remaining open CMI volumes for the year since the last call.
Speaker Change: For perspective, today's net backs are still well above the $2 to $2 50 margin contemplated in our run rate guidance.
Speaker Change: Since our last call our team was able to lock in another $100 million of incremental margin from optimization for the year, both upstream and downstream of our facilities.
Speaker Change: The majority of which came from our downstream optimization efforts.
Speaker Change: Given the successful startup of train one at stage three and that the CMI team has sold another half a million tons of open volumes for this year. We are left with only 50 to 75 TVT remaining unsold for the balance of 2025.
Speaker Change: Most of which is contingent on the timing and ramp up of trains two and three of stage three.
Speaker Change: Given this exposure, we forecast that a $1 change in market margin would impact EBITDA by approximately $50 million to $75 million for the full year.
Speaker Change: As always our results could be impacted by the timing of certain cargos around year end and as noted on prior calls our DCF could be affected positively or negatively by changes in the tax code, including any coming tax reform, particularly around bonus depreciation the IRS transition guidance in the final rule.
Speaker Change: <unk> of the corporate alternative minimum tax.
Speaker Change: These changes can impact the timing and amount of our cash tax payments this year and going forward, but should be immaterial on an NPV basis, and not impact our ability to generate over $20 billion of available cash through 2026 to.
Speaker Change: To confirm we do not expect the changes in trade policy to impact our 2025 financial guidance as our highly contracted platform largely insulates us from market volatility as we are first and foremost contracted infrastructure company.
Speaker Change: More importantly demand for our product long term remains as strong as ever as the uncertainty around global trade further highlights the value of the commercial flexibility inherent in our product as well as our track record of reliability for our customers.
Speaker Change: As Jack enhance all have noted today, while news of tariffs and other development certainly create some variability in the market. We have successfully navigated similar trade dynamics in the past and continue to do so today in terms of commercial execution project development and financial opportunity.
Speaker Change: While we continue to advance brownfield expansions across both Sabine pass and Corpus Christi, the rigor with which we evaluate further growth is unwavering as every dollar of capital competes and if we can't deliver the risk adjusted returns we are accustomed to at the same standards as we've done to date with lump sum turnkey EPC contract.
Speaker Change: <unk> and creditworthy long term SBA, we will remain disciplined and maintain a strong investment grade balance sheet and continued to operate Tunis stickley buyback shares that we can all loan more and more of our existing world class infrastructure platform over time.
Speaker Change: Our longer term outlook for LNG demand growth is unchanged as U S. LNG remains essential for global growth and we will continue to supply the world for decades to come with a reliable flexible and cleaner burning LNG.
Speaker Change: That concludes our prepared remarks.
Speaker Change: For your time and your interest engineering, operator, we are ready to open the line for questions.
Speaker Change: Thank you if you are dialed in via the telephone and we'd like to ask a question. Please signal by pressing star one on your telephone keypad.
Speaker Change: Speaker phone. Please make sure your mute function is turned off to lighter signal tree charter equipment again press star one to ask a question. Please limit yourself to one question and one follow up.
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Speaker Change: We will go to our first question from Jeremy Tonet with J P. Morgan.
Jeremy Tonet: Hi, good morning.
Speaker Change: Good morning, Jeremy.
Jeremy Tonet: Alright, thanks for all the details in the prepared remarks here I wanted to maybe expand a bit on the current contracting market out there a lot of talk about.
Jeremy Tonet: Trade agreements between the U S and others in LNG seems to be a prime vehicle to participate in balancing.
Jeremy Tonet: Trade just wondering how if you could expand a bit more how that's impacted I guess the contracting discussion out there how you see your opportunity set at this current point.
Jeremy Tonet: Alright.
Speaker Change: Hey, Jeremy Thanks for the question.
Speaker Change: It's a enviable position to be and we have the obviously the reputation of the business model the track record.
Speaker Change: Fortuitous position of LNG being the I believe the second largest contributor to the trade balance. So we are we're delta very good hand, we have a very robust commercial engagements and.
Speaker Change: And those commercial engagements we are.
Speaker Change: Have the luxury of being very selective of with whom we partner to capture the premium that we expect in the market working with customers that value, our our proposition and and as you know.
Speaker Change: A very high percentage of repeat customers as a result so.
It is it is a tailwind it's a tailwind that contributes to the position that we have been in for years now given our track record and our performance.
Speaker Change: I'll just got it thank you.
Speaker Change: I will just add Jeremy our conviction on long term contracting being 90% plus contracted on the infrastructure as we underwrite future I'd.
Speaker Change: That conviction is stronger than ever.
Speaker Change: And do we just have a great position with $50 billion of infrastructure in the ground due to this on a brownfield basis via the contracted level and get those six to seven times capex to EBITDA levels, So really promising but with NFL is working on and optimistic not just for Midscale eight and nine.
Speaker Change: I'll have economic first phases of Sabine and corpus beyond that later this decade.
Speaker Change: Got it that's very helpful. Thanks, and maybe I'll just pick it up on a point you put out there.
Speaker Change: Lot of competitors going after the same business. That's in focus right now and just wondering if you could expand a bit more I guess, how cheniere is viewed in the marketplace and what type of.
Speaker Change: Competitive advantages that you believe your present and how that is.
Speaker Change: Resonating with customers.
Speaker Change: Yes, Thanks Jeremy.
Speaker Change: We've said to you and everyone else that we don't compete with a very credible supplier like Qatar for example, it's a different product in the market.
Speaker Change: And while very well respected in regard to it it's not something.
Speaker Change: We view as competition, we think of other Gulf of America projects in kind of a similar vein, we're not in the Commoditized.
Speaker Change: The <unk> business that we pioneered a decade plus ago, we look for a differentiated opportunities and those are again customer relationships.
Speaker Change: Counterparties that value our commitment to performance, our safety and reliability and engagements where again, we have this a symbiotic relationship of credit worthy long term buyers that we will that we will support in their endeavors and not and not participate in and what you can describe.
Speaker Change: Fiber is a race to the bottom for the Commoditized Gulf of America product.
Speaker Change: Got it that's helpful I'll leave it there thanks.
Theresa Chen: We'll go next to Theresa Chen with Barclays.
Theresa Chen: Good morning.
Theresa Chen: Wanted to touch on the permitting side and to an earlier discussion about the durability of permits long Tommy.
Speaker Change: Some key learnings so far either from your ongoing permitting process from niche scale eight nine or your conversations with the current administration that should translate translate well to permitting for future projects.
Jack: So this is Jack I can after spending most of last week in Washington D. C. I can tell you that permitting reform is front and center on anything the administration is trying to do they understand that.
Jack: Because of the pause and some other things that there are quite a few projects here in America that have been sitting in Q4.
Jack: Years and.
Jack: Our first round of permits at Cheniere, we achieved.
Jack: A little under two years.
Jack: It went to four years and then in some cases never so it is a major focus for the administration to get to get permitting under control. That's a long process. So the Doe.
Jack: Needs to complete its study on.
Jack: The need for LNG exports, we think that will get done relatively soon.
Jack: We need a circa two put out some policy reforms and changes.
Jack: On how they.
Jack: <unk>.
Jack: We'll we'll review those permits but I think all of that stuff is in the works.
Jack: On specifically on eight and nine.
Jack: We received our <unk> permit we had no request for rehearing.
Jack: Which was really positive in our first so.
Jack: So I feel good that we're moving ahead forward, but theres a lot of work in America. So we can get things built.
Jack: Thank you for that detailed answer Jack.
Jack: And taking a step back looking at the <unk>.
Jack: Supply and demand picture.
Jack: For this year.
Jack: <unk> do you think 2025 in Q LNG supply shocks, given where European inventories are currently and it's still a relatively limited amount of incremental supply coming online globally. This year.
Jack: Yes, Thanks, Teresa I'll, maybe I'll chime in is that at all.
Speaker Change: I agree with you and your premise that Europe is vulnerable. It really is at this point a country by country issue, but yes, Germany. For example in the first quarter imported less than 1 million tons. As you well know inventories are well below recent years, there are about 10 percentage points below.
Speaker Change: The historical average there over 20 percentage points below where they were in 2003 and 2004, so quite a vulnerable position. This idea that that's targets will be reduced.
Speaker Change: We think is actually counterproductive, it's leading to a very flat curve for European gas, which does not incentivize inventories and I think what what people also forget is that without the flow through Ukraine of about 15 Bcf. That's another almost 20 percentage points equivalent of storage.
Speaker Change: For rough math, 8% is 10 cargos so.
Speaker Change: Europe is once again, putting itself, especially certain countries are putting themselves into a difficult position.
Speaker Change: And we may find ourselves in a position to to help out once again first quarter Cheniere sent the most cargoes to Europe.
Speaker Change: Since 2003.
Speaker Change: And if things work out the way, we hope by the fourth quarter May may very much wrong with that.
Speaker Change: Thank you.
Spiro: We will go next to Spiro <unk> with Citi.
Spiro: Thanks, operator, good morning team.
Speaker Change: First question on the 2020 vision.
Speaker Change: Does that kind of you got over $15 billion deployed now so just sort of hoping you level set us on how that is.
Speaker Change: Tracking against the allocation buckets.
Speaker Change: And I hate to say it but how much time, you think you've got until maybe we need another capital allocation update.
Speaker Change: Hillman already.
Speaker Change: Well the 2020 vision, we still got some work to do.
Speaker Change: But but.
Speaker Change: We're getting there.
Speaker Change: Basically the next next big step is.
Speaker Change: <unk> of Midscale, eight or nine ideally in the coming months.
Speaker Change: And that will kind of lock in the EBITDA and the DCF and then we will keep on working down the share count and paying down a bit more debt, but at this point having done.
Speaker Change: Basically $5 billion of.
Speaker Change: Debt pay down $5 billion of buybacks in <unk>.
Speaker Change: <unk> billion dollars Capex.
Speaker Change: We're tracking well ahead of completing that $20 billion.
Speaker Change: For 2026.
Speaker Change: Give us a little more time, but for sure before the end of 2026, we'll have surpassed easily that $20 billion mark of deployment in and we'll come up with something new for you.
Speaker Change: Got it okay, that's great to hear.
Speaker Change: Second one is that going to be sticking with you just around the guidance just pulling together some of the things you said it sounds like potential for train four to sneak into 'twenty five.
Speaker Change: That's not a huge contributor to EBIT per se, but I think it would imply that the train three maybe becomes a bigger contributor I think you heard you say optimization still pretty strong another $100 million in the hopper. So I think last quarter. You said you were comfortable with the midpoint of the range, where you're kind of leaning right now with that backdrop.
Speaker Change: I think it's a testament to our execution not just operationally which is like.
Speaker Change: Second to none.
Speaker Change: But commercially.
Speaker Change: That.
Speaker Change: Margins basically came off since the last call from over $8 to under $6.
Speaker Change: <unk>.
Speaker Change: And if the team wasn't as proactive as it had been locked.
Speaker Change: Locking in cargos honestly in the nine plus dollar range.
Speaker Change: <unk>.
Speaker Change: In the middle of the quarter, we might not be as convinced that we are rock solid in the middle of the range if not better.
Speaker Change: And we just in terms of our cadence annually. It's just too soon in the year to start tightening are raising that guidance materially but.
Things are progressing in the right direction there.
Speaker Change: Thanks to locking in those cargos, thanks to optimization coming through mainly downstream third party sourcing allowed us to produce to produce a few more cargoes at those sites that were sold into the spot market as well as we actually did some sub chartering in and made some extra money on the lifting margin through basis differentials.
Speaker Change: Those things altogether, basically offset if not more.
Speaker Change: The margin compression and when you think about $47 48 million tons and $50 million to $75 million at TVT is still open.
Speaker Change: It's minimal.
Speaker Change: Train four coming into this year, that's basically at this point forecast to be commissioning. So it won't really move the needle, but yes, we're optimistic train two and three are progressing well hope for first LNG in the next month or so on train two and then for train three to come in the fall.
Speaker Change: But really we have to focus on the 45 million tons of existing nine trains.
Speaker Change: Get through the major maintenance this summer get through Hurricane season, and then we'll feel better about if we got to the higher end of that range or not.
Speaker Change: Great I'll leave it there thanks, everyone.
Speaker Change: Okay.
Speaker Change: We'll go next to Michael Blum with Wells Fargo.
Michael Blum: Thanks, Doug good morning, everyone.
Michael Blum: I appreciate the comments on the China market and the market flexibility.
Michael Blum: But you've always told us that China is really a key market for U S. LNG. So I'm just wondering how you're thinking of that in light of the potential for a broader patel.
Michael Blum: Potentially more permanent realignment of global trade and how this impacts your future contracting strategy.
Michael Blum: Hey, Michael Thanks, Yes, so a nuanced answer so China is very important for the LNG market in China is very important for Cheniere Chinese Counterparties are very important for Cheniere. We've told you over the years.
Michael Blum: That we expected to be about 10% of our contracted portfolio that has a very substantial number of also told you that if we chose to release that constraint that percentage could go much higher but those Chinese counterparties that we are proud to have four of them in our portfolio are very capable of market participants.
Michael Blum: The larger ones have hundreds of people that are involved in the same LNG optimization business that we're in and as you know we are agnostic, where what they do with air cargo. So when the arb from the Atlantic is close to China.
Michael Blum: I would've cargo bypass a lot of other premium markets, even though it is controlled by a Chinese counterparties. So China is very important to the LNG market.
Michael Blum: Critical partner option years, as we continue to to grow and fortify our business, but but U S volume cheniere volumes going to China is not important to us in the slightest.
Michael Blum: Great. Thanks for that that's all I have today.
Bob Brackett: We'll go next to Bob Brackett with Bernstein research.
Bob Brackett: Hey, good morning, if I look at your <unk> consolidated adjusted EBITDA, and just annualize that foolishly I get to 75 billion or so and clearly the full year guide six five to seven and then if I kind of look at the key drivers that you allude to.
Bob Brackett: Looking for things that could cause the deceleration, but sort of pop up or the turnaround obviously and then a bit on the the potential tax reform could you give a little more color on those two issues and some of the milestones to watch for.
Bob Brackett: Alright. Thanks for that question first off on the tax reform that may affect DCF.
Bob Brackett: But thats not going to affect EBITDA at all.
Bob Brackett: But in terms of the EBITDA.
Bob Brackett: We clearly noticed that we beat consensus by $200 million for the quarter, even though we didn't move guidance and this is literally the third year in a row. This has happened where we believe people are still dividing our annual guidance by four instead of.
Bob Brackett: Noticing that there is truly seasonal.
Bob Brackett: Production differences between the colder quarters versus the warmer quarters. So we produce the most in Q1 and Q4. So you would expect those.
Bob Brackett: Those two quarters to have higher EBITDA than than the middle of the year, which has the shoulder shoulder months and the warmest quarters of the year in.
Bob Brackett: In addition margins were over eight box.
Bob Brackett: In Q1, and now for the rest of the year, we see them closer to $5 to $6.
Bob Brackett: Add on to that the major maintenance will start later this quarter at trains three and four that will be over three weeks.
Bob Brackett: Those trains being down.
Bob Brackett: So you have that in addition page.
Bob Brackett: Page three only has one train up and running at this point. So we expect more and more trains to be online by the second half of the year versus versus Q2, So I would expect our lowest production quarter to the Q2 and there to be some variability quarter to quarter on EBITDA.
Doug: Yes, Doug.
Speaker Change: Want to plague Q1 by four because.
Doug: That's clearly not what we're seeing in the forecast.
Doug: Very clear thanks for that.
Speaker Change: We'll go next to Jean Ann Salisbury with Bank of America.
Speaker Change: Hey, good morning, and Jack as you referenced there has been a burst of activity on the U S LNG front.
Speaker Change: Okay.
Speaker Change: I guess my question is if you use the most of this activity as it related to tariffs and countries wanting to reduce trade deficits, which would likely continue or if this is more just like bill type activity I guess waiting for the LNG band can be left Ed Barb on one off.
Speaker Change: Okay.
Speaker Change: Oh boy.
Speaker Change: Jean Ann I think Theres, just so much.
Speaker Change: Activity and as you know it was the President's first executive order was energy dominance.
Speaker Change: During the Trump one point.
Speaker Change: Administration. They were some of our best salesman for U S. LNG and Thats continued during the President's current administration.
Speaker Change: There's a big push by the administration to get to energy dominance and to get our exports in line and and I think youre seeing the.
Speaker Change: Byproduct of that excitement.
Speaker Change: Okay that makes sense and then I think my follow ups probably for Anatol.
Speaker Change: It seems like recently more U S projects that have.
Speaker Change: Just very recently are close to have much less firm third party contracts than in the past and is that your view as well and does that kind of long term change your view of mid cycle margin.
Speaker Change: Well I guess first I will just reiterate my bosses tagline of we're not in the business and my CFO partners tagline of we will use the biggest impediments to moving forward towards the discipline that we that we applied to deploying capital so.
Speaker Change: Don't expect us to change our stripes as we said that we still plan our business we.
Speaker Change: We don't have anything, but we plan our business on a mid $2 margin as we said to you before we see that for certainly for the Cheniere product as as.
Speaker Change: Something that today is the bottom of the range, where we would expect to to transact. So we'll stay just as disciplined the market will remain volatile. This is a long cycle business.
Speaker Change: Your question to Jack earlier.
Speaker Change: We saw the first fit in into year skier.
Speaker Change: Very little commercial activity underpin that to your point. So we'll we're not changing our stripes will stay disciplined we will move forward with with 90% plus contractive projects that meet our hurdles and the market will remain volatile in terms of margins destinations in and we will support it with our reliability and and.
Speaker Change: <unk> continued to deliver to our customers without without fail.
Speaker Change: Great. Thanks Anatol.
Moderator: We'll go next to John Mckay with Goldman Sachs.
John McKay: Hey, thanks for the time.
Speaker Change: Buffer for Anatol just on that on that last point, we are seeing a lot of this capacity coming online out of the U S. Anyway, I guess would you expect U S export utilization to kind of fall over the next couple of years as the market absorbs this incremental capacity.
John McKay: Hey, John Thanks.
John McKay: The market will see a lot of volume entering the market, but as you can see in our slides we've kind of made the same point. We've made a number of times like this is not unusual for the LNG market in terms of in terms of percentage. So it's it's.
John McKay: In that 7%, 8% per annum range the market has absorbed.
John McKay: Percentages north of 10, and I put to you that the market is much more sophisticated the players are much more capable and as we've harped on over the years the amount of infrastructure that can that can accept these volumes is has grown much faster than liquefaction.
John McKay: So what we're haggling about is the clearing price and how quickly the price elastic markets will absorb these volumes, which cheniere as you know is largely agnostic to with 95% plus contracted levels for the next decade plus so.
John McKay: We will see the market.
John McKay: Work to absorb these volumes.
John McKay: <unk> and we've discussed this before I don't see the mechanism of U S cancellations as being a very effective one.
John McKay: You have to be notified two months in advance and the curves have only priced in such a decision only during COVID-19. So I think it's going to be much more a price elastic demand question than a price elastic supply question.
Speaker Change: I appreciate that thank you and then second quick one for you.
John McKay: And our Asian export imports have been pretty weak so far to start the year.
Speaker Change: Would you say most of that is just the fact, we are coming out of a kind of a warmer winter and relatively higher stocks going in are you guys seeing any signs of kind of underlying demand weakness tied to <unk>.
John McKay: Industrial our economic activity.
John McKay: So it is mostly overwhelmingly China the rest of the <unk> market has been has been fairly reasonable to a little bit stronger part of it is weather part of it is healthy domestic production growth in China, and the ramp up of power Siberia, one so.
John McKay: Ebbs and flows structurally we do continue to see very healthy growth as I mentioned, even Taiwan Korea. These mature markets large mature markets, we expect to continue to grow quarter over quarter.
John McKay: There is a farming aspect to it as Jack always says and that is part of what we saw in certainly in northeast Asia.
I appreciate that thank you.
Speaker Change: We'll go next to Brandon Bingham Westcott with Deutsche Bank.
Speaker Change: Alright, thanks for taking the questions just wanted to go back to the topic of European vulnerability and maybe kind of loop that into.
Speaker Change: The discussions around possible resumption of flows from Russia to Europe, and just if you have any thoughts on potential impacts there or probability of that happening now in light of everything happening in.
Speaker Change: Just kind of maybe the knock on impacts of Russian loans to other countries now that might be directed back should those fluids resumed to Europe.
Speaker Change: Yes.
Speaker Change: Thanks, Brian.
Speaker Change: So in the immediate future at what we think we will see is Brussels moving forward with its proposal to ban Russian gas into Europe, which actually grew.
Speaker Change: 24 over 23, obviously, driven by LNG, and obviously will be down this year because of the cessation of flows through through the Ukraine.
Speaker Change: We have an assumption over the years of some resumption of pipeline flows we think it'll be it'll be part of a grand bargain. When that happens is anyone's guess, we can spend a lot of time on what is feasible from an infrastructure standpoint.
Speaker Change: And then there are legal challenges and.
Speaker Change: And all kinds of arbitrations and regulatory issues that would have to play out, but we don't expect that that Gazprom will never flow into continental Europe again via pipeline when that happens is anyone's guess and the best the best solution for that is having the infrastructure to address these issues and having the diversity of supply that a lot of.
Speaker Change: Our European Counterparties have to deal with these uncertainties when it happens what quantum again happy to give you our guests, but thats not of great consequence to the Cheniere model and we think the market will absorb that fairly easily.
Speaker Change: Great. Thanks, and then maybe just I know, it's early days here, but based on the current forward pricing and the moves you've you've discussed already how are you.
Speaker Change: Are you guys thinking about the UN contracted capacity for next year. If you may be locked in some of that with forward sales agreements already or just kind of how we should think about that moving forward.
Speaker Change: So we're already thinking about that a bit, especially our net next winter.
Speaker Change: It's less than a year away.
Speaker Change: Next year, we'll have a step up again in our long term contracting around 43 million tons that we've had this year and last year to closer to like 46% to 47 million tons. However.
Speaker Change: However, with the trains coming online at stage III will be over 50 million tons of production most likely.
Speaker Change: So we will still have a healthy amount of open capacity.
Speaker Change: Margins next year is still around $5, but youll see us steadily this year.
Speaker Change: <unk> put some of that away opportunistically and by the time, we give production guidance likely in.
Speaker Change: In November.
Speaker Change: Yes.
Speaker Change: A derisked that a bit so we're already thinking about that especially with the progress we're making on stage III.
Speaker Change: Great. Thanks.
Speaker Change: We will take our last question from Jason gave Ullman with TD Cowen.
Speaker Change: Hey, good morning, good afternoon, thanks for taking my questions.
Speaker Change: I wanted to touch on the expansion projects you mentioned it sounds like the main.
Speaker Change: Item left.
Speaker Change: D.
Speaker Change: The mid scale trains is bechtel EPC, but you did note other items so wondering.
Speaker Change: If any of those other items.
Speaker Change: What they are and they are significant and then Oh.
Speaker Change: Also.
Speaker Change: <unk>.
Speaker Change: Outlook for timeline on the Sabine expansion, if thats changed at all in the past few months.
Speaker Change: Hi, Jason This is Jeff first I'll talk about trains eight nine we have.
Speaker Change: Youre right.
Speaker Change: Probably the biggest.
Speaker Change: Thing is waiting for our final permits to actually get papered and posted.
Speaker Change: The FERC permit that.
Speaker Change: Permits for.
Speaker Change: FTA non FTA and it's it's also the air permit the title five air permit and then after that I would say the backfill EPC contracts, but we're moving right along I don't see any issues with any of those and I think like I said in my prepared remarks that over the next.
Speaker Change: Coming months.
Speaker Change: We'll be <unk> that expansion project.
Speaker Change: And then on the Sabine expansion, we're in the process of optimizing that project, we're going to take advantage of this permitting window as best we can at both sites.
Speaker Change: And get permits for.
Speaker Change: Large expansions at both Sabine and corpus.
Speaker Change: And in particular at Sabine Theres likely a.
Speaker Change: Train put some debottlenecking and boil off gas liquefaction that can get us.
Speaker Change: Five to six plus.
Speaker Change: Ton project, and we'd hope to be able to add that in late 2006 or early 2027 really the goal right now is permit what we can but we're going to stay true to how measured we've been in the parameters that if it doesn't fit.
Speaker Change: Of that six to seven times Capex to EBITDA.
Speaker Change: We're just going to buy back the stock, but we have a lot of optimism right now in the permitting process will go rather smoothly.
Speaker Change: Costs will come in for this attractive brownfield phase, one and Anatol will show up with.
Speaker Change: Pushing the market on long term SBA.
Speaker Change: Great. Thanks, and my follow up is just the funding outlook for this year it sounded like last call your growth capital funding would all be.
Speaker Change: From equity and now.
Speaker Change: I don't know if it was intentional but it sounded like a bit of a shift where you may actually tap some of that credit facility. So I'm wondering if there was a shift in thinking on funding.
Speaker Change: Sources for this year and if so what drove that thanks.
Speaker Change: No shift in thinking.
Speaker Change: If anything.
Speaker Change: We're going to be drawing on that term loan a little later than we even forecast. It all comes down to the fact that <unk>.
Speaker Change: <unk> quarter out we show up with almost $3 billion of cash.
Speaker Change: Thanks to the success.
Speaker Change: The operating business.
Speaker Change: But when I think about the capital that's still needed to be deployed.
Speaker Change: It's probably.
Speaker Change: A little over $2 billion at this point of Capex still to fund this year and that's over $1 billion or for stage three but also almost $1 billion for <unk> as we get that thing going.
Speaker Change: But we're in such a good liquidity position considering if you add up say that two plus billion dollars less per stage III add up a little less than $3 billion now for Midscale eight nine considering we're already spending some money on marketing and long lead items.
Speaker Change: $5 billion, and we still have that $3 3 billion term loan available to us for both projects.
Speaker Change: So.
Speaker Change: That's not going to eat into too much of the cash flow and why I mentioned before to Spiro.
Speaker Change: Going to easily surpassed the 20 plus billion of deployment by 2026.
Speaker Change: Yep.
Speaker Change: Understood that's very clear thanks for the time.
Speaker Change: I want to thank you all for your support of Cheniere and please be safe.
Speaker Change: This does conclude today's conference we thank you for your participation.
Speaker Change: Okay.
Speaker Change: [music].