Q2 2025 Venture Global Inc Earnings Call

Speaker #1: Good morning, and welcome to the Venture Global Inc. second quarter 2025 earnings call. At this time, I would like to turn the conference call over to Ben Nolan, Senior Vice President, Investor Relations.

Operator: Good morning and welcome to the Venture Global, Inc. second quarter 2025 earnings call. At this time, I would like to turn the conference call over to Ben Nolan, Senior Vice President, Investor Relations.

Speaker #3: Thank you, Operator. Good morning, everyone, and welcome to Venture Global Inc.'s second quarter 2025 earnings call. I'm joined this morning by Michael Sabel, Venture Global's CEO, Executive Co-Chairman, and founder, Jack Thayer, our CFO, and other members of Venture Global's senior management team.

Ben Nolan: Thank you, Operator. Good morning, everyone, and welcome to Venture Global, Inc. second quarter 2025 earnings call. I am joined this morning by Mike Sabel, Venture Global's Chief Executive Officer, Executive Co-Chairman and Founder, Jack Thayer, our Chief Financial Officer, and other members of Venture Global's senior management team. 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. I encourage you to refer to the disclaimers in our earnings presentation, which is available on the Investor section of our website. Additionally, we may include references to certain non-GAAP metrics, such as Consolidated Adjusted EBITDA. A reconciliation of these metrics to the most relevant GAAP measures can be found in the appendix of the earnings presentation posted on our website.

Speaker #3: 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 #3: I encourage you to refer to the disclaimers in our earnings presentation which is available on the Investors section of our website. Additionally, we may include references to certain non-GAAP AP metrics, such as Consolidated Adjusted EBITDA.

Speaker #3: A reconciliation of these metrics to the most relevant GAAP measures can be found in the appendix of the earnings presentation posted on our website.

Speaker #3: Finally, the guidance in this presentation is only effective as of today. In general, we will not update guidance until the following quarter and will not update or affirm guidance other than through broadly disseminated public disclosure.

Ben Nolan: Finally, the guidance in this presentation is only effective as of today. In general, we will not update guidance until the following quarter and will not update or affirm guidance other than through broadly disseminated public disclosure. I will now turn the call over to Mike Sabel.

Speaker #3: I'll now turn the call over to Mike Sabel.

Speaker #4: Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our second quarter 2025 results and update our guidance for 2025, which we believe will be a strong year for Venture Global.

Jack Thayer: Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our Q2 2025 results and update our guidance for 2025, which we believe will be a strong year for Venture Global. I will begin the call with an overview of our Q2 2025 key accomplishments and results before shifting to our LNG projects individually. I will then make some remarks on the LNG industry broadly before turning over the call to Jack, who will provide a more detailed review of our financial results and updated guidance for fiscal year 2025. Following all prepared remarks, we will open the call to Q&A. Turning to page five of the presentation, we are pleased to highlight that the past several months have been especially productive for Venture Global.

Speaker #4: I will begin the call with an overview of our second quarter 2025 key accomplishments and results, before shifting to our L&G projects individually. I'll then make some remarks on the L&G industry broadly before turning over the call to Jack, who will provide a more detailed review of our financial results and updated guidance for fiscal year 2025.

Speaker #4: Following all prepared remarks, we will open the call to Q&A. Turning to page five of the presentation, we are pleased to highlight that the past several months have been especially productive for Venture Global.

Speaker #4: First, we took our final investment decision, or FID, on phase one of our CP2 project, which was the single largest standalone project financing ever.

Jack Thayer: First, we took our Final Investment Decision, or FID, on phase one of our CP2 LNG project, which was the single largest standalone project financing ever. As we will discuss more in a moment, our team is fully deployed and working to safely build our third large-scale LNG production facility. Importantly, we took FID without issuing incremental equity and retaining 100% ownership in the project. Secondly, I am happy to say that the team here delivered on the commitment I made last quarter to sign multiple long-term LNG Sales and Purchase Agreements, or SPAs, in coming quarters. In July, we signed two new 20-year contracts, one with Petronas and one with ENI, and expanded our long-term sales to SEFE in Germany, increasing the total exported volumes under that contract to 3.75 MTPA. We expect our long-term contracting activity to continue through the remainder of this year.

Speaker #4: And, as we'll discuss more in a moment, our team is fully deployed and working to safely build our third large-scale L&G production facility. Importantly, we took FID without issuing incremental equity, and retaining 100% ownership in the project.

Speaker #4: Secondly, I'm happy to say that the team here delivered on the commitment I made last quarter, to sign multiple long-term L&G sales and purchase agreements, or SPAs, in coming quarters.

Speaker #4: In July, we signed two new 20-year contracts, one with Petronas and one with ENI. In expanded our long-term sales to Sepe, the Germany increasing the total exported volumes under that contract to 3.75 MTPA.

Speaker #4: We expect our long-term contracting activity to continue through the remainder of this year, and finally, on the capital front, in addition to the $15.1 billion of financing, we completed as part of the CP2 FID, we also raised $6.5 billion in new bonds to refinance construction term debt at Blockman's.

Jack Thayer: Finally, on the capital front, in addition to the $15.1 billion of financing we completed as part of the CP2 FID, we also raised $6.5 billion in new bonds to refinance construction term debt at Plaquemines. Adding to these notable milestones, Venture Global shipped a record 89 cargoes in the Q2 of 2025, which is at the top of the guidance range, as we continued the production ramp-up at Plaquemines. This ramp-up, in combination with stable output from Calcasieu Pass, enabled us to generate $3.1 billion of revenue, $1 billion in operating income, net income attributable to common shareholders of $368 million, and $1.4 billion of Consolidated Adjusted EBITDA representing increases of 180%, 186%, 21%, and 217%, respectively, compared with the Q2 of 2024. Once again, this impressive financial performance and the growth in LNG production are attributable to consistent execution and operational excellence by the Venture Global team.

Speaker #4: Adding to these notable milestones, Venture Global shipped a record 89 cargoes in the second quarter of 2025, which is at the top of the guidance range, as we continued the production ramp-up at Blockman's.

Speaker #4: This ramp-up, in combination with stable output from Kaukashi Pass, enabled us to generate $3.1 billion of revenue, $1 billion in income from operations, net income attributable to common shareholders of $368 million, and $1.4 billion of consolidated adjusted EBITDA, representing increases of 180%, 186%, 21%, and 217%, respectively.

Speaker #4: Compared with the second quarter of 2024, once again, this impressive financial performance and the growth in L&G production are attributable to consistent execution and operational excellence by the Venture Global team.

Speaker #4: As we noted last quarter, changes in natural gas prices both domestic and international could impact our consolidated adjusted EBITDA guidance. While both domestic and international gas prices have fluctuated since our last report, we have continued to lock in future cargo sales and reduce our exposure to pricing variability for the year.

Jack Thayer: As we noted last quarter, changes in natural gas prices, both domestic and international, could impact our Consolidated Adjusted EBITDA guidance. While both domestic and international gas prices have fluctuated since our last report, we have continued to lock in future cargo sales and reduce our exposure to pricing variability for the year. As a result, looking ahead to the remainder of 2025, we are maintaining our guidance for $6.4 to $6.8 billion of Consolidated Adjusted EBITDA for 2025, which reflects a $6 to $7 per MMBtu fixed liquefaction fee range for available cargoes, which is consistent with recent contracting and current TTF and JKM forward price expectations. We will continue to update our guidance each quarter to reflect shifts in market forwards, especially during the commissioning phases of our projects.

Speaker #4: As a result, looking ahead to the remainder of 2025, we are maintaining our guidance for $6.4 to $6.8 billion of consolidated adjusted EBITDA for 2025, which reflects a $6 to $7 per MBTU fixed liquefaction fee range for available cargos, which is consistent with recent contracting and current TTF and JKM forward price expectations.

Speaker #4: We'll continue to update our guidance each quarter to reflect shifts in market forwards, especially during the commissioning phases of our projects. Moving to slide six, following the final investment decision of CP2 Phase One, we thought it would be interesting to take a look at how far Venture Global has come in a short time.

Jack Thayer: Moving to slide six, following the Final Investment Decision of CP2 LNG project phase one, we thought it would be interesting to take a look at how far Venture Global has come in a short time. Six years ago, this month, we took FID on our first facility, Calcasieu Pass. Now, based on our three projects in operation, exporting, or under construction, totaling approximately 67 MTPA, we would be the largest LNG producer in North America and the second largest in the world, and with $46.5 billion of assets as of June 30th. We have an average remaining contract duration of 19 years now relative to nameplate capacity, and we expect to have 17 MTPA of excess production capacity from our first three facilities before including brownfield expansions.

Speaker #4: Six years ago, this month, we took FID on our first facility, Kaukashi Pass. Now, based on our three projects in operation, exporting or under construction, totaling approximately $67 MTPA, we would be the largest L&G producer in North America and the second largest in the world, and with 46.5 billion of assets as of June 30th.

Speaker #4: We have an average remaining contract duration of 19 years now, relative to nameplate capacity, and we expect to have 17 MTPA of excess production capacity from our first three facilities before including brownfield expansions.

Speaker #4: And we believe we are on track to meet our goal of $100 million tons or more of production online or under construction by 2030.

Jack Thayer: We believe we are on track to meet our goal of 100 million tons or more of production online or under construction by 2030. As I mentioned, but I think it is worth reiterating, we have not needed to sell any equity interest in either Plaquemines or CP2 LNG project to support our financings and retain 100% ownership with our shareholders in both projects. Our facilities will significantly improve the U.S. balance of trade with potentially more than $1 trillion of export value for the United States over coming decades. I am also extremely proud to continue our industry-leading safety record as Venture Global's top priority is making sure that our hardworking people make it home safely each day. Lastly, Venture Global is continuing to support thousands of jobs in Louisiana and across the country and making a positive impact on the communities in which we operate.

Speaker #4: As I mentioned, but I think it's worth reiterating, we have not needed to sell any equity interest in either Blockman's or CP2 to support our financings and retain 100% ownership with our shareholders in both projects.

Speaker #4: Our facilities will significantly improve U.S. balance of trade with potentially more than $1 trillion of export value for the United States over coming decades.

Speaker #4: I'm also extremely proud to continue our industry-leading safety record as Venture Global's top priority is making sure that our hardworking people make it home safely each day.

Speaker #4: Lastly, Venture Global is continuing to support thousands of jobs in Louisiana and across the country, and making a positive impact on the communities in which we operate.

Speaker #4: Turn to page eight, and we'll dive a little deeper into the projects. As you know, we announced the FID for CP2 phase one on July 28th.

Jack Thayer: Turn to page eight, and we will dive a little deeper into the projects. As you know, we announced the FID for CP2 phase one on July 28th. Phase one is a nameplate capacity of 14.4 MTPA, but following the improvements we have made as a result of our ongoing optimization efforts, we believe the peak run rate production level of phase one should be closer to 20 MTPA. Including phase two, which we expect to FID in 2026, the 36 factory-built liquefaction trains from both phases should be capable of production of 28 MTPA once completed and commissioned. We expect first LNG before the end of 2027 and continue to estimate more than 550 cargoes will be exported during the construction and commissioning of the project's two phases.

Speaker #4: Phase one is a nameplate capacity of 14.4 MTPA, but following the improvements we have made as a result of our ongoing optimization efforts, we believe the peak run rate production level of phase one should be closer to 20 MTPA.

Speaker #4: Including phase two, which we expect the FID in 2026, the 36 factory-built liquefaction trains from both phases should be capable of production of 28 MTPA once completed, and commissioned.

Speaker #4: We expect first L&G before the end of 2027, and continue to estimate more than 550 cargoes will be exported during the construction and commissioning of the project's two phases.

Speaker #4: On June 3rd, our team fully mobilized and started site work at CP2 following final approval and notices to proceed from FERC. As well as our receipt of the conditional non-FDA export authorization from the U.S.

Jack Thayer: On June 3rd, our team fully mobilized and started site work at CP2 following final approval and notices to proceed from FERC, as well as our receipt of the conditional non-FDA export authorization from the U.S. Department of Energy. There are now over 1,200 people and more than 500 major pieces of construction equipment on site. Key on-site activities include early site preparation, logistics, establishing roads, installing silt fencing, dewatering and drainage, cut and fill soil stabilization, and establishing pile test pads. Key accomplishments include the placement of over 13,000 loads of soil and aggregate, the placement and consumption of over 26,000 tons of cement, the dredging of over 650,000 cubic yards, and the clearing of over 700 acres, including 100% silt fencing. Lastly, we have begun full mobilization, including crane delivery and erection for the storm surge wall construction and the tank construction.

Speaker #4: Department of Energy. There are now over 1,200 people in more than 500 major pieces of construction equipment on site. Key on-site activities include early site preparation, logistics establishing roads, installing silt fencing, dewatering and drainage, cut and fill soil stabilization, and establishing pile test pads.

Speaker #4: Key accomplishments include the placement of over 13,000 loads of soil and aggregate, the placement and consumption of over 26,000 tons of cement, the dredging of over 650,000 cubic yards, and the clearing of over 700 acres, including 100% silt fencing.

Speaker #4: Lastly, we have begun full mobilization including crane delivery and erection for the storm surge wall construction and the tank construction. Tank one soil stabilization final grade and test pile program is now complete, and transferred over for construction.

Jack Thayer: Tank one soil stabilization, final grade, and test pile program is now complete and transferred over for construction. All of this work is being executed in parallel with our offsite procurement and fabrication activities. In particular, I would highlight that Baker Hughes has completed the first two liquefaction trains, which are currently being stored at its fabrication facility in Italy. Incidentally, we have included a number of pictures in the appendix showing site progress, equipment under construction, and a number of long lead-time items like gas turbines and pipes that have already been delivered and are in storage awaiting construction. The Final Investment Decision of phase one was made possible by the support of 29 banks lending $15.1 billion, including the refinancing of the $3 billion pre-FID bridge loan we discussed on the last call. We appreciate the support of our lending partners.

Speaker #4: Of course, all of this work is being executed in parallel with our off-site procurement and fabrication activities. In particular, I'd highlight that Baker Hughes has completed the first two liquefaction trains, which are currently being stored at its fabrication facility in Italy.

Speaker #4: Incidentally, we have included a number of pictures in the appendix showing site progress, equipment under construction, and a number of long lead time items like gas turbines and pipes that have already been delivered and are in storage awaiting construction.

Speaker #4: The final investment decision of phase one was made possible by the support of 29 banks, lending $15.1 billion, including the refinancing of the $3 billion pre-FID bridge loan we discussed on the last call.

Speaker #4: We appreciate the support of our lending partners, and I'm happy to report the project financing was nearly three times oversubscribed, despite already being the largest standalone project financing in history.

Jack Thayer: I am happy to report the project financing was nearly three times oversubscribed despite already being the largest standalone project financing in history. With financing in place, a solid start to both onsite work and on the construction of our numerous project components. The project is progressing smoothly, and we believe our early preparation will enable CP2 LNG project to potentially reach first LNG production on pace with or even faster than our first two projects. Commercially, we signed two new 20-year offtake agreements last month with Petronas and ENI, respectively, and expanded our sales commitments under an existing SPA with SEFE, increasing their total LNG volumes to 3.75 MTPA of LNG. Importantly, ENI's two MTPA contract with CP2 LNG project was its first-ever long-term offtake agreements with a U.S. LNG producer. Collectively, these three new commitments bring the total contracted volume for CP2 LNG project up to 13.5 MTPA.

Speaker #4: With financing in place, a solid start to both on-site work and on the construction of our numerous project components. The project is progressing smoothly, and we believe our early preparation will enable CP2 to potentially reach first L&G production on pace with or even faster than our first two projects.

Speaker #4: Commercially, we signed two new 20-year offtake agreements last month with Petronas and ENI, respectively, and expanded our sales commitments under an existing SPA with Sepe, increasing their total L&G volumes to $3.7 MTPA of L&G.

Speaker #4: Importantly, ENI's two MTPA contract with CP2 was its first ever long-term offtake agreements with a U.S. L&G producer. Collectively, these three new commitments bring the total contracted volume for CP2 up to $13.5 MTPA.

Speaker #4: At this point, we are contracting for Phase Two, which has 5.6 million tonnes per annum (MTPA) of nameplate capacity, with expected peak production capacity of about 8 MTPA.

Jack Thayer: At this point, we are contracting for phase two, which has 5.6 MTPA of nameplate capacity, with expected peak production capacity of about 8 MTPA. Following several additional offtake agreements, we anticipate phase two FID at some point next year, funded by internally generated cash flow and project financing similar to what we executed for phase one. Next, I would like to focus on Plaquemines Pass, which is covered by page nine of the presentation. During the second quarter of 2025, Plaquemines Pass was able to export 38 cargoes and realized a weighted average fixed liquefaction fee of $2.66 per MMBtu in the second quarter. The cargoes were a blend of commissioning cargoes sold prior to April 15, 2025, COD date, and cargoes sold under our long-term SPAs. The lender's reliability test was completed in May, and production levels have stabilized.

Speaker #4: Following several additional offtake agreements, we anticipate phase two FID at some point next year, funded by internally generated cash flow and project financing similar to what we executed for phase one.

Speaker #4: Next, I'd like to focus on Kaukashi Pass. Which is covered by page nine of the presentation. During the second quarter of 2025, Kaukashi Pass was able to export 38 cargos and realized a weighted average fixed liquefaction fee of $2.66 per MBTU in the second quarter.

Speaker #4: The cargoes were a blend of commissioning cargoes sold prior to April 15th, 2025, COD date, and cargoes sold under our long-term SPAs. The lenders' reliability test was completed in May, and production levels have stabilized.

Speaker #4: For the third and fourth quarters of 2025, based on liquefaction fees achieved from cargoes sold on a forward basis to date, we anticipate capturing a weighted average liquefaction fee of $1.95 per MMBtu across all forward-sold Kaukashi Pass production.

Jack Thayer: For the third and fourth quarters of 2025, based on liquefaction fees achieved from cargoes sold on a forward basis to date, we anticipate capturing a weighted average liquefaction fee of $1.95 per MMBtu across all forward sold Plaquemines Pass production, which reflects contracted sales under our long-term SPAs, plus a small number of excess cargoes. Including the 72 cargoes exported from the facility in the first half, we now anticipate exporting between 144 and 149 cargoes by the end of the year, a single cargo decrease in cargoes from our previously reported range due to minor maintenance scheduled for Q3. On August 4, Kaukasus Pass received approval from the Department of Energy to export an additional 0.4 MTPA to non-FDA countries, bringing total DOE export approval for the project to 12.4 MTPA.

Speaker #4: Which reflects contracted sales under our long-term SPAs, plus a small number of excess cargos. Including the 72 cargoes exported from the facility in the first half, we now anticipate exporting between 144 and 149 cargos by the end of the year.

Speaker #4: A single cargo decrease in cargos from our previously reported range due to minor maintenance scheduled for Q3. On August 4th, Kaukashi Pass received approval from the Department of Energy to export an additional 0.4 MTPA to non-FDA countries, bringing total DOE export approval for the project to $12.4 MTPA.

Speaker #4: Moving on to Blockman's and flipping to page 10 in the presentation, construction and commissioning continues to progress nicely for phases one and two. Since the start of the second quarter of 2025, the Venture Global team added six safe startups of liquefaction trains, bringing the total to 28 trains now in operation, with eight more scheduled over the next months.

Jack Thayer: Moving on to Plaquemines and flipping to page 10 in the presentation, construction and commissioning continues to progress nicely for phases one and two. Since the start of the second quarter of 2025, the Venture Global team added six safe startups of liquefaction trains, bringing the total to 28 trains now in operation, with eight more scheduled over the next months. The continued progress enabled Plaquemines to export 51 commissioning cargoes during the second quarter, surpassing the high end of our previously projected range by one cargo. The facility realized a weighted average fixed liquefaction fee of $7.09 per MMBtu on these cargoes. As we have discussed in prior reports, Plaquemines has engineered, permitted, procured, and installed approximately 400 megawatts of temporary power at the facility. This proactive measure has enabled Plaquemines to mitigate contracted delays, especially with respect to the power island, and continue progressing commissioning and startup activities.

Speaker #4: The continued progress enabled Blockman's to export 51 commissioning cargos during the second quarter, surpassing the high end of our previously projected range by one cargo.

Speaker #4: The facility realized a weighted average fixed liquefaction fee of $7.09 per MBTU on these cargos. As we have discussed in prior reports, Blockman's is engineered permitted procured and installed approximately 400 megawatts of temporary power at the facility.

Speaker #4: This proactive measure has enabled Blockman's to mitigate contracted delays, especially with respect to the power island, and continue progressing commissioning and startup activities. We expect to be able to transition from these temporary power units to our permanent power island capacity in the fourth quarter of 2025.

Jack Thayer: We expect to be able to transition from these temporary power units to our permanent power island capacity in the fourth quarter of 2025. Including the 80 cargoes exported from Plaquemines in the first half of the year, we now anticipate the facility exporting between 227 and 240 cargoes by the end of the year, which represents a six-cargo increase to the lower end and a one-cargo increase to the high end of our previously reported range. For the second half of the year, Plaquemines has contracted 102 or 64% of the remaining cargoes, capturing a weighted average fixed liquefaction fee of $7.04 per MMBtu on those contracted cargoes.

Speaker #4: Including the 80 cargos exported from Blockman's in the first half of the year, we now anticipate the facility exporting between 227 and 240 cargos by the end of the year.

Speaker #4: Which represents a six cargo increase to the lower end and a one cargo increase to the high end of our previously reported range. For the second half of the year, Blockman's is contracted 102 or 64% of the remaining cargos.

Speaker #4: Capturing a weighted average fixed liquefaction fee of $7.04 per MBTU on those contracted cargos. Collectively, across Kaukashi Pass and Blockman's, we contracted 59 more cargos for export in the second half of 2025 since our prior report.

Jack Thayer: Collectively, across Kaukasus Pass and Plaquemines, we contracted 59 more cargoes for export in the second half of 2025 since our prior report and have contracted 198 of a potential 326 cargoes, or roughly 74% of our total Q3 to Q4 2025 production. We believe this strategy allows us to de-risk our LNG production and reduce sensitivity to movement and market prices. Additionally, we have added to the number of cargoes sold for 2026, with a total of 57 commissioning cargoes booked. For the first two quarters of next year, we have 34 cargoes, or 19% of the potential cargoes now contracted, with a weighted average fixed liquefaction fee of $5.41 per MMBtu. Turning to page 12 in LNG industry broadly, we remain optimistic on the outlook for both growth of the global LNG market and continued stability of LNG prices.

Speaker #4: And have contracted 198 of a potential 326 cargos, or roughly 74% of our total Q3 to Q4 2025 production. We believe this strategy allows us to de-risk our L&G production and reduce sensitivity to movement and market prices.

Speaker #4: Additionally, we have added to the number of cargos sold for 2026 with a total of 57 commissioning cargos booked. For the first two quarters of next year, we have 34 cargos or 19% of the potential cargos now contracted with a weighted average fixed liquefaction fee of $5.41.

Speaker #4: Per MBTU. Turning to page 12, in L&G industry broadly, we remain optimistic on the outlook for both growth of the global L&G market and continued stability of L&G prices.

Speaker #4: As you see on the left, the forward curve reflects the market's expectation for largely stable pricing of L&G in both Asia and Europe, driving healthy spreads above the Henry Hub.

Jack Thayer: As you see on the left, the forward curve reflects the market's expectation for largely stable pricing of LNG in both Asia and Europe, driving healthy spreads above the Henry Hub. Flipping to page 13, we also have confidence that LNG markets will continue to grow and prices should remain relatively stable. The chart on the left shows 20 years of LNG production growth, which has averaged 5.5% per year. Based only on projects which have made FID, the supply growth rate to the end of the decade would be 7.4%, but that assumes no delays in project timing, which historically has been the case in most new facilities. Yet, as you can see on the right side of the page, meaningful LNG growth has already occurred in the first half of 2025, with Europe in particular stepping up buying actively. As a result, price levels remain unchanged.

Speaker #4: Flipping to page 13, we also have confidence that L&G markets will continue to grow and prices should remain relatively stable. The chart on the left shows 20 years of L&G production growth, which is averaged 5.5% per year.

Speaker #4: Based only on projects which have made FID final investment decisions, the supply growth rate to the end of the decade would be 7.4%, but that assumes no delays in project timing, which historically has been the case on most new facilities.

Speaker #4: Yet, as you can see on the right side of the page, meaningful L&G growth has already occurred in the first half of 2025, with Europe in particular stepping up buying actively.

Speaker #4: As a result, price levels remain unchanged. We continue to monitor the ongoing trade discussions EU plans to eliminate Russian L&G and potential secondary sanctions on Russia from the Trump administration.

Jack Thayer: We continue to monitor the ongoing trade discussions, EU plans to eliminate Russian LNG, and potential secondary sanctions on Russia from the Trump administration. Due to our flexible large-scale LNG capacity, we are uniquely positioned to scale up our support to European partners should the market demand it. We expect that number is only growing as new countries like Vietnam and the Philippines and others become importers, and as countries like China continue to grow their import infrastructure footprint. China specifically is growing their regasification capacity from 152 MTPA currently to 260 MTPA by 2030, with some forecasting that number could be more than 300 MTPA by 2030, an enormous percentage of the market. Finally, on arbitration, we are pleased with the tribunal's determination, which reaffirms what Venture Global has maintained from the outset. The plain language in our contracts, mutually agreed upon with all of our customers, is clear.

Speaker #4: Due to our flexible large-scale L&G capacity, we are uniquely positioned to scale up our support to European partners should the market demand it. We expect that number is only growing as new countries like Vietnam and the Philippines and others become importers and as countries like China continue to grow their import infrastructure footprint.

Speaker #4: China's specifically is growing their regasification capacity from 152 MTPA currently to 260 MTPA by 2030, with some forecasting that number could be more than 300 MTPA by 2030.

Speaker #4: An enormous percentage of the market. And finally, on the arbitration, we are pleased with the tribunal's determination, which reaffirms what Venture Global has maintained from the outset.

Speaker #4: The plain language in our contracts mutually agreed upon with all of our customers is clear. We have consistently honored these agreements without exception. Our industry and the investors and lenders who underpin it all rely on respect for both the sanctity of negotiated contracts and the experience to objective regulatory and legal bodies that govern it.

Jack Thayer: We have consistently honored these agreements without exception. Our industry and the investors and lenders who underpin it all rely on respect for both the sanctity of negotiated contracts and the experienced, objective regulatory and legal bodies that govern it. These principles will ensure our industry remains dynamic, fair, and competitive, enabling the innovation and breakthroughs that benefit all market participants and the customers we serve. Venture Global's unique ability to incrementally export commissioning cargoes during the construction of our facilities has brought LNG to the market years faster than ever before and strengthened global energy security. The world needs more abundant, low-cost energy, and our company looks forward to playing a leading role in meeting that demand for years to come. Now I will hand it over to Jack Thayer, our CFO.

Speaker #4: These principles will ensure our industry remains dynamic, fair, and competitive, enabling the innovation and breakthroughs that benefit all market participants and the customers we serve.

Speaker #4: Venture Global's unique ability to incrementally export commissioning cargos during the construction of our facilities has brought L&G to the market years faster than ever before and strengthened global energy security.

Speaker #4: The world needs more abundant low-cost energy and our company looks forward to playing a leading role in meeting that demand for years to come.

Speaker #4: Now I'll hand it over to Jack Thayer, our CFO.

Speaker #5: Thank you, Mike, and good morning to those on the line. I'll be referring to the Venture Global Inc. Form 10-Q for the quarterly period ended June 30th, 2025.

Jack Thayer: Thank you, Mike, and good morning to those on the line. I will be referring to the Venture Global, Inc. Form 10Q for the quarterly period ended June 30, 2025. The 10Q is available on our website, and some of the key results are summarized on page 16 of the presentation. During this call, I will highlight results I believe are salient to this audience, and I encourage you to review the entirety of our financial statements in detail. Beginning on slide 16 with revenue, our top line was $3.1 billion for the second quarter of 2025, a $2 billion increase from $1.1 billion during the equivalent period in 2024.

Speaker #5: The 10-Q is available on our website, and some of the key results are summarized on page 16 of the presentation. During this call, I will highlight results I believe are salient to this audience, and I encourage you to review the entirety of our financial statements in detail.

Speaker #5: Beginning on slide 16 with revenue, our top line was $3.1 billion for the second quarter of 2025, a $2 billion increase from $1.1 billion during the equivalent period in 2024.

Speaker #5: This increase in revenue was driven by $2.2 billion from higher sales volumes, $329 per BTU in the first quarter of 2025, compared with $132 per BTU in the first quarter of 2024. This was partially offset by $241 million from lower prices. Weighted average fixed facility fees were $5.58 per MBTU in the second quarter of 2025, versus $6.14 per MBTU in the second quarter of 2024, and weighted average commodity fees were $3.97 per MBTU in the second quarter of 2025, versus $2.20 per MBTU in the second quarter of 2024.

Jack Thayer: This increase in revenue was driven by $2.2 billion from higher sales volumes, 329 TBtu in the first quarter of 2025, compared with 132 TBtu in the first quarter of 2024, which was partially offset by $241 million from lower prices. Weighted average fixed facility fees were $5.58 per MMBtu in the second quarter of 2025 versus $6.14 per MMBtu in the second quarter of 2024, and weighted average commodity fees were $3.97 per MMBtu in the second quarter of 2025 versus $2.20 per MMBtu in the second quarter of 2024. Our operating income was $1.0 billion in the second quarter of 2025, a $675 million increase from $363 million in the second quarter of 2024. The shift was primarily driven by the higher sales volumes I mentioned previously, which resulted in a greater total margin for LNG sold.

Speaker #5: Our income from operations was $1.0 billion in the second quarter of 2025, a $675 million increase from $373 million in the second quarter of 2024.

Speaker #5: The shift was primarily driven by the higher sales volumes I mentioned previously, which resulted in a greater total margin for L&G sold. These increases were partially offset by $197 million in higher depreciation and $91 million in higher operating costs in support of the ramp-up of L&G production at the Blockman's project and operating our L&G tankers.

Jack Thayer: These increases were partially offset by $197 million higher depreciation and $91 million higher operating costs in support of the ramp-up of LNG production at the Plaquemines project and operating our LNG tankers. As I mentioned last quarter, we did see a reduction in our development expenses of $117 million as many of the costs associated with CP2 LNG project were able to be capitalized. Our net income attributable to common stockholders, which we will refer to as net income, was $368 million for the second quarter of 2025, a $65 million increase from $303 million in Q2 2024. This increase in net income would have been more substantial, but was offset by non-cash factors such as unfavorable changes in the fair value of our interest rate swaps, which constituted a quarter-over-quarter decline of $288 million.

Speaker #5: As I mentioned last quarter, we did see a reduction in our development expenses of $117 million, as many of the costs associated with CP2 were able to be capitalized.

Speaker #5: Our net income attributable to common stockholders, which we will refer to as net income, was $368 million for the second quarter of 2025, a $65 million increase from $330 million in Q2 2024.

Speaker #5: This increase in net income would have been more substantial but was offset by non-cash factors such as unfavorable changes in the fair value of our interest rate swaps, which constituted a quarter-over-quarter decline of $288 million.

Speaker #5: Shifting to consolidated adjusted EBITDA, we realized $1.4 billion during the second quarter of 2025, a $953 million or 217% increase from $440 million in Q2 2024.

Jack Thayer: Shifting to Consolidated Adjusted EBITDA, we realized $1.4 billion during the second quarter of 2025, a $953 million or 217% increase from $440 million in Q2 2024. This increase in Consolidated Adjusted EBITDA was driven chiefly by higher sales volumes. As Mike Sabel discussed, our project exported a total of 89 cargoes in Q2, which increased from 36 cargoes compared with the same period in 2024. Of these cargoes, 329 TBtu of volumes are reflected in our results for Q2 2025, compared with 132 TBtu in Q2 2024. Advancing to page 17, consistent with our previous outlook, we are guiding to a Consolidated Adjusted EBITDA range of $6.4 to $6.8 billion for 2025, incorporating a forecasted 144 to 149 cargoes from Calcasieu Pass and 227 to 240 cargoes from Plaquemines, inclusive of the 152 cargoes we exported in the first half across both facilities.

Speaker #5: This increase in consolidated adjusted EBITDA was driven chiefly by higher sales volumes. As Mike discussed, our project exported a total of 89 cargos in Q2, which increased from 36 cargos compared with the same period in 2024.

Speaker #5: Of these cargos, 329 TBTU of volumes are reflected in our results for Q2 2025, compared with 132 TBTU in Q2 2024. Advancing to page 17, consistent with our previous outlook, we are guiding to a consolidated adjusted EBITDA range of $6.4 to $6.8 billion for 2025.

Speaker #5: Incorporating a forecasted $144 to $149 cargos from Kaukashi Pass, and $227 to $240 cargos from Blockman's, inclusive of the $152 cargos we exported in the first half across both facilities.

Speaker #5: This consolidated adjusted EBITDA range was determined assuming fixed liquefaction fees of between $6 and $7 per MMBtu for cargos remaining to be sold over 2025.

Jack Thayer: This Consolidated Adjusted EBITDA range was determined assuming fixed liquefaction fees of between $6 and $7 per MMBtu for cargoes remaining to be sold over 2025, and it is consistent with current TTF and JKM forward price expectations. On average, if fixed liquefaction fees over the remainder of 2025 increase or decrease by $1 per MMBtu, we expect our Consolidated Adjusted EBITDA range to adjust accordingly by between $230 and $240 million, down from the $460 to $480 million range provided in our previous guidance. This reduced sensitivity to market prices reflects the contracting we executed during the second quarter and thus far in the third quarter. I will now turn the call back over to Mike Sabel.

Speaker #5: And is consistent with current TTF and JKM forward price expectations. On average, if fixed liquefaction fees over the remainder of 2025 increase or decrease, by $1 per MBTU, we expect our consolidated adjusted EBITDA range to adjust accordingly by between $230 and $240 million down from the $460 to $480 million range provided in our previous guidance.

Speaker #5: This reduced sensitivity to market prices reflects the contracting we executed during the second quarter and thus far in the third quarter. I'll now turn the call back over to Mike.

Speaker #6: Thank you, Jack, and now we'll open it up to Q&A.

Ben Nolan: Thank you, Jack, and now we will open it up to Q&A.

Speaker #1: Thank you, ladies and gentlemen. Sorry, thank you, ladies and gentlemen. We will now begin the question and answer session. Our first question today comes from John McKay, Goldman Sachs.

Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. Our first question today comes from John McKay, Goldman Sachs. Please go ahead.

Speaker #1: Please go ahead.

Speaker #7: Hey, good morning all. Morning. Thank you for the time. I wanted to start on the arbitration news from last night, understand you might be limited in how much you can say at this point.

John McKay: Hey, good morning, all. Morning. Thank you for the time. I wanted to start on the arbitration news from last night. Understand you might be limited in how much you can say at this point, but just wondering how we should think about the remaining cases. You know, were other contracts written similarly? Then kind of more broadly, what does this mean for your ability to contract and kind of commercialize the future projects? Thank you.

Speaker #7: But just wondering how we should think about the remaining cases? You know, we're with other contracts written similarly, and then kind of more broadly, what does this mean for your ability to contract and kind of commercialize the future projects?

Speaker #7: Thank you.

Speaker #6: Sure. No, thanks, John. No, the contracts are all very similar. They're all based on the standard. You know, U.S. project finance. Contract that's been used by, you know, multiple companies including us in the market for years.

Jack Thayer: Sure. No, thanks, John. The contracts are all very similar. They are all based on the standard, you know, U.S. project finance contract that has been used by, you know, multiple companies, including us, in the market for years. We are extremely pleased, obviously, as we have said, with the result announced yesterday with our arbitration with Shell. We remain confident of similar outcomes in the balance because, you know, it is the same contracts and the facts around construction and the facts around the completion of the facility are all the same. So, we remain very confident that, you know, this straightforward analysis of the same contracts will be similar. You know, this was an unnecessary, we think, distraction because this contract language has always been clear and standard and straightforward and required as part of the project financings.

Speaker #6: And we're extremely pleased, obviously, as we've said, with the result of announced yesterday with our arbitration with Shell. And we remain confident of similar outcomes in the balance because the, you know, it's the same contracts and the facts around construction and the facts around the completion of the facility are all the same.

Speaker #6: So, we remain very confident that the straightforward analysis of the same contracts will be similar. You know, this was an unnecessary we think distraction because this contract language has always been clear and standard and straightforward and required as part of the project financings.

Speaker #6: And as you all know, we have recently taken COD for Kaukashi Pass, which ended up being about $68 months. From FID, which is, you know, one of the faster greenfield projects, and you know, in line or better.

Jack Thayer: As you all know, we have recently taken COD for Calcasieu Pass, which ended up being about 68 months from FID, which is, you know, one of the faster greenfield projects and in line or better than many projects have executed over the years. Even in the face of being our first project and COVID and a couple of hurricanes, the team was still able to safely execute in 68 months. Now our customers at Calcasieu Pass have been taking deliveries and will enjoy what we think are the lowest suite of, lowest price suite of contracts that have been done, long-term contracts that have been done on the project ever.

Speaker #6: Many projects have been executed over the years, and even in the face of being our first project, COVID, and a couple of hurricanes, the team was still able to safely execute in 68 months.

Speaker #6: And now our customers at Kaukashi Pass have been taking deliveries and will enjoy what we think are the lowest suite of lowest price suite of contracts that have been done long-term contracts have been done on a project ever.

Speaker #7: Thanks for that, Mike. And then, yeah, just following up on the contract front, you mentioned the prepared marks. You expect the pace to continue maybe we could just put a finer point around that.

John McKay: Thanks for that, Mike. Just following up on the contract front, you mentioned in the prepared marks you expect the pace to continue. Maybe you could just put a finer point around that. Would you expect to contract out the CP2 phase two portion this year? Anything you can share on where you think, or where you have seen pricing kind of trending versus your expectations? Thanks.

Speaker #7: Would you expect a contract out this year for the CP2 Phase Two portion? And then, anything you can share on where you think, or where you've seen, pricing kind of trending versus your expectations?

Speaker #7: Thanks.

Speaker #6: Yeah, no, yeah, thanks. I missed the second half of your question. Yeah, no, we're we're very pleased with the contracting that we've completed recently.

Jack Thayer: Yeah, no, thanks. I missed the second half of your question. We are very pleased with the contracting that we have completed recently, the long-term contracting. We are confident as we proceed through this year that we will execute additional 20-year contracts. We are intending to layer in contracts that will cover what we want to get done for the second phase of CP2. We will also look to begin contracting for the third phase or the brownfield expansion for CP2 as well. We may be doing some of that contracting this year as well. The contract prices in the market are kind of in the mid to lower end of the $2 range.

Speaker #6: The long-term contracting and we are confident as we proceed through this year that we'll execute additional 20-year contracts. And we're intending to layer in contracts that will cover what we want to get done for the second phase of CP2 and will also look to begin contracting for the third phase or the brownfield expansion for CP2 as well.

Speaker #6: And we may be doing some of that contracting this year as well. The contract prices in the market are kind of in the mid to lower end of the $2 range.

Speaker #6: And we believe that we're the low-cost liquefier in the market. And our able to price competitively to win the contracts that we need and want in order to size the construction loans for the next phases of CP2 and the third phase or brownfield expansion for Blockman's as well.

Jack Thayer: We believe that we are the low-cost liquefier in the market and are able to price competitively to win the contracts that we need and want in order to size the construction loans for the next phases of CP2 and the third phase or brownfield expansion for Plaquemines as well.

Speaker #7: All right, that's great. I appreciate the time. Talk soon.

John McKay: All right. That's great. Appreciate the time. Talk soon.

Speaker #1: Thank you. Our next question today comes from Jean Anne Salisbury from Bank of America. Please go ahead.

Operator: Thank you. Our next question today comes from Jean Ann Salisbury from Bank of America. Please go ahead.

Speaker #8: Hi, good morning. Good morning. The ramp-up Blockman's continues to beat expectations. Can you talk about if you're starting to bump up on any constraints from here to get all the way to the end, you know, either around the power island timing or around gas sourcing constraints?

Jean Ann Salisbury: Hi. Good morning.

John McKay: Thank you, Ann.

Jean Ann Salisbury: Good morning. The ramp at Plaquemines continues to beat expectations. Can you talk about if you are starting to bump up on any constraints from here to get all the way to the end, either around the power island timing or around gas sourcing constraints?

Speaker #6: No, thanks, Jean Anne. No, we feel good about our plan, our ramp-up plan from here to the end of the year. It's, you know, it's extremely challenging because you know we're still obviously in commissioning and so the teams have to deal with typical surprises all the time in commissioning.

Jack Thayer: No, thanks, Jean. We feel good about our ramp-up plan from here to the end of the year. It is extremely challenging because we are still obviously in commissioning, and so the teams have to deal with typical surprises all the time in commissioning. But we are very experienced at operating and commissioning and executing the configuration and systems in our facilities now. And so we manage it, but we still feel good about the ramp-up plan that we have guided to for the balance of this year. The power plant is certainly one of our power plants, one of our big focus, but we are still on plan.

Speaker #6: But we're very experienced at operating and commissioning and executing the configuration and systems in our facilities now. And so we manage it, but we still feel good about the ramp-up plan that we've guided to for the balance of this year.

Speaker #6: And you know, the power plant is certainly one of our power plants, or one of our big focus. But we're still on plan.

Speaker #8: Great. Thank you. And for the Blockman expansion, I guess as you eventually turn to contracting that, are you kind of thinking of doing that in a couple of large phases as you've done before, or would that one be potentially more gradual, more incremental?

Jean Ann Salisbury: Great. Thank you. For the Plaquemines expansion, I guess as you eventually turn to contracting that, are you thinking of doing that in a couple of large phases as you have done before, or would that one be potentially more gradual, more incremental?

Speaker #6: No, I think we'll be able to right now our plan is to do large-scale long-term contracting there. You know, 20-year contracts that will allow us to do it as one or two large project financings or financings.

Jack Thayer: No, I think we will be able to. Right now, our plan is to do large-scale, long-term contracting there on, you know, 20-year contracts that will allow us to do it as one or two large project financings or financings similar to what we just did for CP2. We feel the demand is about as strong as it has been, at least in the, you know, 15, 16 years that I have been doing this now, that there is sufficient demand in the market for us to do the long-term contracts, to do the construction loan, financing and sizing, the way we like and want to do it and have been guiding to. The first step is going to be to finish the contracting for CP2 phase two and phase three. Then, move on to the brownfield expansion for Plaquemines.

Speaker #6: Similar to what we just did for CP2. And we feel the demand is about as strong as it has been and at least in the, you know, 15 years that I've been doing this now.

Speaker #6: That there's sufficient demand in the market for us to do the long-term contracts, to do the construction loan financing, and size it the way we like and want to do it, and have been guiding to.

Speaker #6: You know, first step is going to be to do finish the contracting for CP2 phase two and phase three. And then move on to the brownfield expansion for Blockman's.

Speaker #8: Great, very clear. Thank you.

Jean Ann Salisbury: Great. Very clear. Thank you.

Speaker #1: Thank you. Our next call to our next question today comes from Manav Gupta from UBS. Please go ahead.

Operator: Thank you. Our next question today comes from Manav Gupta from UBS. Please go ahead.

Speaker #9: Congrats, guys! Very happy for you about the arbitration. We always believed in you. My first question to you is: you will be one of the biggest suppliers of LNG to the world.

Manav Gupta: Morning, Ben Nolan. Very happy for you about the arbitration. We always believed in you. My first question to you is, you will be one of the biggest suppliers of LNG to the world. How are you going about securing the supply for this gas from within the U.S.? If you could talk a little bit about that, sir.

Speaker #9: And how are you going about securing the supply for this gas from within the United States? If you could talk a little bit about that, sir.

Speaker #6: Sure. No, thank you. We unlike the case for Kaukashi Pass and really Blockman's where we had relatively short laterals in a 25, 26 miles.

Jack Thayer: Sure. No, thank you. We, unlike the case for Calcasieu Pass and Plaquemines, where we had relatively short laterals, 25, 26 miles, we are for CP2 LNG project and in the brownfield expansions, executing on longer pipelines that connect deeper into the gas supply grid. The laterals for CP2 LNG project, the CPX, which is the primary lateral, is around 90 miles, and that interconnects with multiple pipes, but also with another pipe, Blackfin, which is around 190 miles, that interconnects with more pipes, including, up around Katy, above Houston, that interconnects with Permian gas pipes coming over. For our brownfield expansions, we will be doing similar where we are making larger investments in longer pipeline interconnects. We, around the interconnect points, will continue to do term gas supply deals, to layer in a conservative gas supply for our projects.

Speaker #6: We're for CP2, and the brownfield expansions are executing on longer pipelines. That connect in deeper into the gas supply grid. You know, the laterals for CP2 it's a, you know, the CPX, which is the primary lateral, is around 90 miles.

Speaker #6: And that interconnects with multiple pipes, but also with another pipe BlockFin, which is around 190 miles. That interconnects with more pipes including up around Katy above Houston that interconnects with Permian gas pipes coming over.

Speaker #6: And for our brownfield expansions, we'll be doing similar where we're making larger investments in longer pipeline interconnects. We around the interconnect points, we'll continue to do term gas supply deals.

Speaker #6: To layer in a conservative gas supply for our projects. In this permitting environment, where the pipelines in the market are getting permitted and built, we feel really good about the gas supply.

Jack Thayer: In this permitting environment, where pipelines in the market are getting permitted and built, we feel really good about the gas supply from all the basins, being able to bring liquid gas supply to not just us, but to other demand in the market as well.

Speaker #6: From all the basins, being able to bring liquid gas supply to not just us, but to other demand in the market as well.

Speaker #9: Thank you, sir. You had a very strong second quarter. We are trying to understand the guidance ranges, 6.4 to 6.8. So, what are some of the drivers that can push you towards 6.8 and, in our hope, maybe even over it?

Manav Gupta: Thank you, sir. You had a very strong second quarter. We are trying to understand the guidance range is 6.4 to 6.8. So some of the drivers that can push you towards 6.8 and, in our hope, maybe even over it. If you could talk about that.

Speaker #9: So if you could talk about that.

Speaker #6: Yeah, as Jean Anne asked earlier, we still feel good about the commissioning activity in the ramp-up of production. At Blockman's, we still have a portion of our supply is uncontracted.

Jack Thayer: Yeah, we, as Jean Ann asked earlier, we still feel good about the commissioning activity and the ramp-up of production at Plaquemines. We still have a portion of our supply that is uncontracted. We think that is a huge positive that gives us upside optionality at this point. The third quarter is pretty well covered, but for the fourth quarter and the winter, we have more unsold capacity. We are seeing great demand for it. Europe is still below plan and below trend on storage, so there is still a lot of required buying that has to happen. China, as we mentioned earlier, has enormous, and Asia around it, but China especially has enormous regas capacity to bid for import of LNG as well. As we see globally, a very hot summer going into the winter, there is still a lot of pent-up buying that has to happen.

Speaker #6: We think that's a huge positive that gives us upside optionality at this point. The third quarter is pretty well covered but for the fourth quarter in the winter, we have more unsold capacity.

Speaker #6: And we're seeing great demand for it. You know, Europe is still below plan and below trend on storage and so there's still a lot of required buying that has to happen.

Speaker #6: China as we mentioned earlier, has enormous and Asia around it, but China especially has enormous regas capacity. To bid for import of LNG as well.

Speaker #6: And as we see globally, a very hot summer. Going into the winter, there's still a lot of pent-up buying that has to happen. Our capacity at Blockman's represents a large percentage of the incremental available supply to feed into that.

Jack Thayer: Our capacity at Plaquemines is a large percentage of really the incremental available supply to feed into that. So the upside value, optional value of that unsold capacity, we are very excited about. That continues into the next year at a larger scale.

Speaker #6: So the upside value of that unsold capacity, we're very excited about. And that continues into the next year at a larger scale.

Speaker #9: Thank you for the detailed response and congrats on all the positives. I'll turn it over.

Manav Gupta: Thank you for the detailed response, and congrats on all the positives.

Speaker #6: Thanks. Thank you very much.

Jack Thayer: Thank you very much.

Speaker #1: Thank you. Our next question today comes from Farron A from INFI. Please go ahead.

Operator: Thank you. Our next question today comes from Ben Nolan from Edison. Please go ahead.

Speaker #10: Hi, good morning, Farron.

Jeremy Chenette: Hi. Good morning.

John McKay: Morning, Tharon.

Speaker #6: Good Good morning.

Jeremy Chenette: Good morning. This is Jeremy Chenette from JP Morgan. Good morning.

Speaker #10: This is Jeremy Knapp from JP Morgan. Good morning.

Speaker #6: Oh, good morning, Jeremy.

Jack Thayer: Good morning, Jeremy.

Speaker #10: Sorry about that. I was just wanted to come back to the 8K if I could with regards to the arbitration and the partial final award.

Jeremy Chenette: Sorry about that. I just wanted to come back to the 8K if I could with regards to the arbitration and the partial final award. I was just wondering if you could maybe elaborate on that a little bit. What that means exactly? Do you see any financial obligations here, or is it just kind of immaterial in size? Just trying to understand that better if we could.

Speaker #10: Was just wondering if you could maybe elaborate on that a little bit what that means exactly. Do you see any financial obligations here or is it just kind of immaterial in size?

Speaker #10: Just trying to understand that better if we could.

Speaker #6: Go ahead. I'll keep Larsen our general counsel answer that question.

Jack Thayer: Go ahead. I will let Keith Larson, our General Counsel, answer that question.

Speaker #5: Yeah, good morning. The reference to a partial final award is just is more nomenclature from the ICC than anything. It's final in that it is fully resolved the matter.

Keith Larson: Yeah. Good morning. The reference to a partial final award is just, is more nomenclature from the ICC than anything. It's final in that it has fully resolved the matter. And it is partial in that, there is a residual proceeding to determine responsibility for legal fees.

Speaker #5: And it is partial in that there is a residual proceeding to determine responsibility for legal fees.

Speaker #10: Okay, got it. That's helpful. Thank you for that. And thanks to all the callers today. I was just wondering, as we look into 2026 a bit more, you know, given supply and demand trends as you see it, just wondering your thoughts on how you think the market shakes out, given, you know, geopolitical risk here and thoughts on how much you want to lock in levels versus what you see as kind of fair value for next year.

Jeremy Chenette: Okay. Got it. That is helpful. Thank you for that. Thanks for all the callers today. I was just wondering, as we look into 2026 a bit more, given supply and demand trends, as you see it, just wondering thoughts on how you think the market shakes out given geopolitical risk here and thoughts on how much you want to lock in levels versus what you see as kind of fair value for next year.

Speaker #6: The we're very, we're very bullish for next year in terms of demand and we continue to be optimistic about actually growing demand. The net spreads that we've been selling into the market at the end of this year and in 2026 are very attractive.

Jack Thayer: We are very, very bullish for next year in terms of demand. We continue to be optimistic about actually growing demand. The net spreads that we have been selling into the market at the end of this year and in 2026 are very attractive. We layer them in periodically. We are not making price predictions and bets on what prices are going to be in the future. We just kind of dollar-cost average them over time, and it generates very, very attractive returns for us at attractive returns at current prices, at prices below where we are today. They are very attractive returns. We are continuing to see strong bids and strong interest in our capacity.

Speaker #6: We layer them in periodically. We're not making price predictions and bets on what prices are going to be in the future. We just kind of dollar cost average them over time.

Speaker #6: And they generate very, very attractive returns for us at current prices—at prices below where we are today. They're very attractive returns.

Speaker #6: And but we're continuing to see strong bids and strong interest in our capacity.

Speaker #10: Got it. That's very helpful. I'll leave it there. Thanks.

Jeremy Chenette: Got it. That's very helpful. I'll leave it there. Thanks.

Speaker #6: Yep.

Jack Thayer: Yeah.

Speaker #1: Thank you. Our next question today comes from Robert Mosca from Mizuho Securities. Please go ahead.

Operator: Thank you. Our next question today comes from Robert Mosca from Mizuho Securities. Please go ahead.

Speaker #5: Hey, good morning, everyone.

Jack Thayer: Hey, good morning, everyone.

Speaker #6: Good Good morning, everyone.

Keith Larson: Good morning, Alex.

Jack Thayer: I'm wondering what morning. Just wondering maybe what your latest project cost outlook is for CP2 phases one and two. I've seen some data points in the market from other brownfield expansions and wondering if you still expect CP2 to be in that $27 billion to $28 billion range, just given EPC inflation and potential tariff impacts? I'll answer that first, and then Jack, you can add additional detail if you want. There's, you know, we feel good about the ranges that we're guiding to now, but it is a very tough market. There's still wage inflation out there. You know, in our case, not so much for phase one, but phase two and phase three of CP2, there's still tariff uncertainty. So, there's still lots of challenges out there. There's supply chain inflation that the market's still going to have to manage.

Speaker #5: Morning. Just wondering maybe what your latest project cost outlook is for CP2 phases one and two. Seeing some data points in the market from other brownfield expansions and wondering if you still expect CP2 to be in that 27 to 28 billion dollar range, just given EPC inflation and potential tariff impacts.

Speaker #6: We We I'll I'll answer that first, then Jack, you can add additional detail if you want. There's you know, we feel good about the ranges that we're guiding to now, but it is a very tough market.

Speaker #6: There's still wage inflation out there. You know, in our case, not so much for Phase One, but Phase Two and Phase Three of CP2.

Speaker #6: There's still tariff uncertainty. So, yeah, no, there's still lots of challenges out there. There's supply chain inflation that the market's still going to have to manage.

Speaker #6: Having said that, our approach we think is best designed to manage it since so much of our facilities get built in factory settings. And in fabrication facilities where we're able to from on a long-term basis fix both our schedules, but our prices and costs as well.

Jack Thayer: Having said that, our approach, we think, is best designed to manage it since so much of our facilities get built in factory settings and in fabrication facilities where we're able to, on a long-term basis, fix both our schedules, but our prices and costs as well. We also manage directly more of the EPC function. So we've reduced pretty significantly the portions of CP2 that are executed by outside EPC as we've hired and recruited a very large internal EPC team now. So we feel we're in an extremely strong position relative to the rest of the market to manage that. We also work pretty hard to standardize what we do in our facilities that enables us to place orders well ahead of time as we're able to complete our engineering really early.

Speaker #6: We also manage directly more of the EPC function, and so we've reduced pretty significantly the portions of CP2 that are executed by outside EPC as we've hired and recruited very large internal EPC team now.

Speaker #6: And so we feel we're in an extremely strong position relative to the rest of the market to manage that. We also work pretty hard to standardize what we do in our facilities that enables us to place orders well ahead of time as we're able to complete our engineering really early.

Speaker #6: And so we can manage a lot of that exposure by really taking advantage of the similarities and standardization of our facilities. And we continue to actually make a lot of improvements on that from an engineering standpoint.

Jack Thayer: So we can manage a lot of that exposure by really taking advantage of the similarities and standardization of our facilities. We continue to actually make a lot of improvements on that from an engineering standpoint. I know Jack, do you want to add to that?

Speaker #6: And then Jack, do you want to add to that?

Speaker #7: Sure. Thanks, Mike. So sorry.

Keith Larson: Sure. Thanks, Mike. So, sorry. Just specifically, you may have noticed in the 10Q that we took our total project guidance for CP2 Phase 1 and 2 up to $28.5 billion to $29.5 billion. That leverages the fully financed budget and understood cost structure for Phase 1 of CP2. Then it incorporates some of the learnings from that process, specifically, higher interest rates. As we've navigated a higher interest rate environment, we've accounted for that in our Phase 2 forecast. To the extent that we see rates taper off, as some are suggesting, with the Fed reducing rates, that would obviously be a benefit to us. Other variables that we've been addressing, reciprocal tariffs in Phase 2, as you'll recall, were largely fully procured for Phase 1. So we had less exposure there, given the scale of that project.

Speaker #6: Just Just specifically, you may have noticed in the 10-Q that we took our total project guidance for CP2 phase one and two. Up to 28.5 to 29.5 billion dollars.

Speaker #6: That leverages the fully financed budget and understood cost structure for Phase One of CP2. And then it incorporates some of the learnings from that process, specifically higher interest rates, as we've navigated a higher interest rate environment.

Speaker #6: We've accounted for that in our phase two forecast. To the extent that we see rates taper off as summer suggesting, with the Fed reducing rates, that would obviously be a benefit to us.

Speaker #6: Other variables that we've been addressing reciprocal tariffs in phase two, as you'll recall, were largely fully procured for phase one. So we had less exposure there given the scale of that project.

Speaker #6: We had previously guided to a range in the first quarter of tariff impact of $210 million to $350 million. That remains a good estimate of the range of exposure there.

Keith Larson: We had previously guided to a range in the first quarter of tariff impact of $210 million to $350 million. That remains a good estimate of the range of exposure there. Obviously, we're working to find strategies to moderate our tariff exposure. Phase 2 is a much smaller sized project relative to Phase 1, but that has roughly the same exposure as Phase 1 from a tariff perspective, particularly with respect to some of the variability that we've seen of late with reciprocal tariffs. Then finally, two areas where we've accounted for in our budget, with the successful financing of FID of Phase 1, we are now incorporating into our Phase 2 forecast upsizing of certain components in that phase of the project that will ultimately support the inclusion of the brownfield expansion for Phase 3.

Speaker #6: And obviously, we're working to find strategies to moderate our tariff exposure. Phase Two is a much smaller-sized project relative to Phase One, but that has roughly the same exposure as Phase One from a tariff perspective.

Speaker #6: Particularly with respect to some of the variability that we've seen of late with reciprocal tariffs. And then finally, two areas where we've accounted for in our budget, with the successful financing of FID of Phase One, we are now incorporating into our Phase Two forecast upsizing of certain components in that phase of the project.

Speaker #6: That will ultimately support the inclusion of the brownfield expansion for phase three. And finally, given the competition for exceptional craft labor in the region where we're constructing, we've also built in dollars for labor attraction.

Keith Larson: Finally, given the competition for exceptional craft labor in the region where we're constructing, we've also built in dollars for labor attraction so that we can secure and retain the best talent and build our project safely and efficiently. So, you know, a very modest increase to the overall size and scale of the budget. We think we're being conservative in how we're approaching this and building in dollars that we hope we won't have to use. We have strategies to optimize that and reduce that exposure in those areas, but wanted to be fulsome in our estimates.

Speaker #6: So that we can secure and retain the best talent and build our project safely and efficiently, there is a very modest increase to the overall size and scale of the budget.

Speaker #6: We think we're being conservative in how we're approaching this and building in dollars that we hope we won't have to use. We have strategies to optimize that and reduce our exposure in those areas, but we wanted to be fulsome in our estimates.

Speaker #5: Thanks, Jack. Got it. No, I appreciate that thorough answer. And maybe second from me, can you talk about the plans to maybe add more liquefaction trains to that Blockman's expansion you laid out in the last call?

Manav Gupta: Thanks, John.

Keith Larson: Got it. No, I appreciate that thorough answer. For me, can you talk about the plans to maybe add more liquefaction trains to that Plaquemines expansion you laid out in the last call? How much incremental capacity could there be beyond that 18 to 19 MTPA you laid out? How do you balance the push to maximize that project size with the absolute cost and potential financing needs?

Speaker #5: How much incremental capacity could there be beyond that 18 to 19 MTPA you laid out? And how do you balance the push to maximize that project size with the absolute costs and potential financing needs?

Speaker #6: Sure. Right now, we're guiding to layering on the brownfield phase three at CP2 first, which on an all-in basis is approximately 10 million tons.

Jack Thayer: Sure. We are, right now, we are guiding to layering on the brownfield phase three at CP2 first, which is on an all-in basis, is approximately 10 MTPA. That from a timing standpoint, that will go first because it is going to be faster to do the long-term contracting that we want to support the sizing we want for the construction loans for that phase. For Plaquemines, really, we are going to look to manage any increase in the material increase in spending on the Plaquemines expansion, with the pace of the contracting, which we are bullish on, as I mentioned earlier, in this market. As we begin to ramp up the 20-year contracts, applied to that brownfield expansion of Plaquemines, then we will script out the pace of the spending for it. The size is, I think, will end up being north of 24 MTPA for the brownfield.

Speaker #6: And so, from a timing standpoint, that'll go first because it's going to be faster to do the long-term contracting that we want to support the sizing we want for the construction loans for that phase.

Speaker #6: For Blockman's, really, we're going to look to manage any increase in the material spending on the Blockman's expansion with the pace of the contracting, which we're bullish on.

Speaker #6: As I mentioned earlier in this market. And so as we begin to ramp up the 20-year contracts, applied to that brownfield expansion at Blockman's, then we'll script out the pace of the spending for it.

Speaker #6: The size is, I think we'll end up being north of 24 MTPA. For the brownfield, as I mentioned earlier in previous calls, we've advanced engineering analysis on the throughput capacity of our jetties and some common facilities like tanks.

Jack Thayer: We have, as I mentioned earlier in earlier calls, we have advanced engineering on analysis on really the throughput capacity of our jetties in some common facilities like tanks, that enable us to do a lot more brownfield than we expected at Plaquemines six months ago. We are excited about the synergies and the accretion opportunities by layering on top of existing infrastructure additional production capacity. As we layer in more contracts, we will talk more about it in coming months and quarters. The first stop is going to be the brownfield expansion for CP2.

Speaker #6: That enabled us to do a lot more brownfield than we expected at Blockman's six months ago. We're excited about the synergies and the accretion opportunities by layering additional production capacity on top of existing infrastructure.

Speaker #6: And as we layer in more contracts, we will talk more about it in coming months and quarters. But the first stop is going to be the brownfield expansion for CP2.

Speaker #5: Got it. Appreciate the time, everyone.

Keith Larson: Got it. Appreciate the time, everyone.

Speaker #6: Yep.

Jack Thayer: Yep.

Speaker #1: Thank you. Our next call or sorry, our next question today comes from Michael Blum from Wells Fargo. Please go ahead.

Operator: Thank you. Our next question today comes from Michael Blum from Wells Fargo. Please go ahead.

Speaker #10: Good morning, Michael.

Jack Thayer: Good morning, Michael.

Speaker #11: Good morning. Thanks for taking the questions here. Maybe just staying on the slight really modest cost increases at Blockman's and CP2. So you did, you know, appreciate all the explanations of what's going on there in terms of why the costs are increasing.

John McKay: Good morning. Thanks for taking the questions here. Maybe just staying on the slight, really modest cost increases at Plaquemines and CP2. You did appreciate all the explanations of what is going on there in terms of why the costs are increasing. I am wondering, do those costs increase? Are they fully borne by Venture Global, and therefore, they would impact the return economics, or are there terms in your contracts, for what is contracted so far, which allow for some cost contingencies?

Speaker #11: But I'm wondering, do those cost increases, are they fully borne by venture global and therefore they would impact the return economics or are there terms in your contracts for what's contracted so far, which allow for some cost contingencies?

Speaker #6: When you say contracts, do you mean offtake agreements with the SPA customers?

Jack Thayer: When you say contracts, you mean offtake SPAs?

Speaker #11: Yes. Yes.

John McKay: Yes. Yes.

Speaker #6: Yeah, we're those costs are borne by venture global. And Blockman's is 100% owned project by venture global. So when there are cost overruns at those projects, all that cost is borne by us and the customers.

Jack Thayer: No, those costs are borne by Venture Global. Plaquemines is a 100% owned project by Venture Global. So when there are cost overruns at those projects, all that cost is borne by us, and the customers continue to enjoy their contracted long-term prices.

Speaker #6: Customers continue to enjoy their contracted long-term prices.

Speaker #11: Okay, got it. Thanks for that. And then just one other follow-up on the arbitration proceedings. I'm just wondering, since you said that effectively the terms of each of these disputes are largely the same, I'm wondering is it the same judge or tribunal that is looking at all of these and is there a chance now that one has been ruled upon that all of these could be consolidated into one case?

John McKay: Okay. Got it. Thanks for that. Just one other follow-up on the arbitration proceedings. I am just wondering, since you said that effectively the terms of each of these disputes are largely the same, is it the same judge or tribunal that is looking at all of these? Is there a chance now that one has been ruled upon that all of these could be consolidated into one case?

Speaker #11: Thanks.

Jack Thayer: Thanks. No, they will still be, they are still separate tribunals.

Speaker #6: No, they'll still be there. There's still separate tribunals. I mean, they're all looking at the same set of facts and the same contract terms, but they're separate tribunals.

Mike Sabel: They are all looking at the same set of facts and same contract terms, but they are separate tribunals.

Speaker #11: Thank you.

Speaker 2: Thank you.

Speaker #6: Yep.

Speaker 3: Yeah.

Speaker #5: I want to go back to a little bit of extra color on your first question related to costs. In the case of Blockman’s, we have now contracted just under $6 billion so far.

Mike Sabel: I want to go back to a little bit of extra color on your first question related to costs. We, in the case of Plaquemines, have now contracted just under $6 billion so far of contracts for commissioning cargoes for Plaquemines, which is approaching 50% of the total debt of $12.9 billion at Plaquemines. We still have a large portion of commissioning cargoes for phases 1 and 2 yet to contract. The return profile for Plaquemines, even with extra costs, are extremely attractive and probably among the best that have been achieved in the LNG industry and will still allow us to come out of construction and take COD and have, on a relative net basis, historically low levels of net debt. When I say net debt, it is just debt less what we have earned and reinvested again in LNG investments.

Operator: Thank you. Our next question today comes from Chris Robertson from Deutsche Bank. Please go ahead.

Ben Nolan: Thank you, Chris.

Speaker 3: Good morning, Chris.

Ben Nolan: Good morning, Mike. I appreciate the time here. Just on the CP2 LNG project and then with the expansion projects, what are you guys thinking about now in terms of contracting strategy, either as it relates to just overall strategy with the company or as it relates to lender requirements in terms of a percentage of nameplate capacity that you look to put away?

Mike Sabel: As we've demonstrated, the much higher than expected total production capacity at Plaquemines, which we've designed into, and I think, I hope, even more production capacity at CP2 LNG project currently and in future phases. We've guided previously to doing a little bit more percentage of our nameplate capacity on a long-term contracted basis. We are a little over 13 MTPA of the 14.4 nameplate capacity of phase 1. We will, so we ended up around a little over 13 out of around 20, I think, we'll be able to do at phase 1 of CP2 LNG project. So we're going to be roughly similar to that for the second and third phases of CP2 LNG project, which results in us being close to the 50% equity that we've been guiding to. We're not required by the banks by any means to do the 50% level.

Around 20, I think we will be able to do, um, at Phase 1 as CP2.

so we're we're we're um going to be roughly similar to that for uh

You know, the second and third phases of CP2, and, you know, which results in us being close to, um,

The 50% equity.

Mike Sabel: But at that level, we're still getting great returns. It's much more conservative, which we like. It allows us to carry more uncontracted on a long-term basis in the financing. Again, we're going to contract all the capacity, but we're not going to do all of it on a 20-year basis. But we are going to contract all of our production capacity. And right now, we're a little over 43 MTPA of capacity out of nameplate capacity of 50 on an average term of close to 19 years. And so we have a very long portfolio right now, and it's going to continue on a total portfolio basis to be a long-term contract portfolio.

Uh that we've been guiding to we're not required um by the banks by any means to do the uh the 50% level. But at that level we're still getting great returns. Uh, it's much more conservative which we like it allows us to um carry more um uncontracted on a long-term basis. Um in the financing again we're going to we're going to contract all the capacity.

Um uh but we're not going to do all of it on a 20-year basis, and but we are going to contract all our all all of our production capacity. And, you know, right now, um, we're a little over 43. Mtpa of capacity out of name plate, capacity of 50 on a average term of, uh, close to 19 years. And so we have a very long portfolio right now. And, and, you know, it's going to continue on an on a, you know, a total portfolio basis to be a long-term contract.

Portfolio.

Speaker 3: Got it. Thank you, Mike. So follow-up, just looking at total CP2 LNG project construction costs here, how much of that included in the total amount is related to pipeline construction costs so that we can better compare project costs apples to apples versus other projects?

Construction costs here. How much of that included in the total amount is related to, you know, pipeline construction costs, so that we can better compare project costs apples to apples versus other projects.

Mike Sabel: We've broken that out separately.

Speaker 3: Okay.

We've broken that out separately.

Mike Sabel: I am not sure we have.

Speaker 3: No, I do not believe we have. As Mike mentioned, the Plaquemines pipe that we have been constructing with our partner Whitewater, that is outside of the CP2 forecasted budget. That is a 193-mile pipe, 48 inches in diameter. It is a very substantive project that links us to Permian Gas and provides attractively priced gas. That is sitting outside. The CPX pipe is also a 48-inch pipe. It is substantive in nature. That is roughly 85 to 90 miles in length, and that is incorporated in our forecast.

Okay, so I'm not sure we have. So um, no, no, we I I, I don't, I don't believe we have, but, but as, as Mike mentioned, uh, the Blackfinn pipe that we have been, uh, constructing with our partner partner Whitewater, that is outside of uh, the cp2 forecasted budget.

Um, that's a 193 mile pipe 48 inches in in diameter. It's a very substantive project. That links us to permanent gas

Um, and provides attractively priced gas. Uh, that's sitting outside.

um,

The uh, CPX pipe is uh, is uh, also a 48 inch pipe. It's it's, uh,

Mike Sabel: Yeah. I mean, also, there's a lot of components of projects that are different with us than others. For example, CP2 LNG project has two large power plants inside the fence. We, in phase 2, have a nitrogen removal unit and associated equipment that's very substantial that enables us uniquely to take enormous volumes of Permian Gas that has a lot of extra nitrogen content into it. There are lots of things beyond just pipelines that are not apples to apples with other projects.

Substantive in nature. And um you know that that is that is roughly 85 to 90 miles in length. Um and that's that's Incorporated in our in our, in our forecast. Yeah, I would also there's a lot of uh there's a lot of components of projects that are different with us than others. For example, cp2 Scott 2, large power plants.

Inside the fence.

Um,

We, uh, uh, in Phase 2 have a nitrogen removal unit, um, and associated equipment. That's very substantial and enables us uniquely to take enormous volumes of Parian gas.

Uh, that has a lot of extra nitrogen content in it. And so, there are lots of things beyond just pipelines that...

Um, we are not comparing apples to apples with other projects.

Speaker 3: I appreciate that.

Mike Sabel: But on a net basis, meaning net of commissioning cargoes, on a cost basis, we are confident that we are well ahead of the rest of the market on cost.

I appreciate that. Yeah.

but on a, on a net basis, on a net basis, we're uh, meaning that of

Of, uh, commissioning cargos, um, um, on a cost basis. We're confident that we're well ahead of.

Well, ahead of the rest of the market on cost.

Speaker 3: I appreciate the color. Thank you, Mike. That's helpful.

Mike Sabel: Yep.

I appreciate the call. Thank you, Mike. Yeah, that's helpful. Yep.

Operator: Thank you. Our next question today comes from Elvira Scotto, RBC Capital Markets. Please go ahead.

Jack Thayer: Hey, thanks.

Thank you. Our next question. Today comes from Alvaro, Alvaro RBC Capital markets. Please go ahead.

Mike Sabel: Morning, Elvira.

Jack Thayer: Morning, everyone. Hey, it's good morning. Just a question on demand. How have you seen demand since the tariff negotiations and the EU's commitment to buy $750 billion of energy from the U.S. over the next three years? I think you're uniquely positioned to capitalize on that.

Hey, thanks. Good morning, everyone. Hey, good morning. Um

Uh just a a question on demand. How have you seen uh demand since the Tariff negotiations and the eu's commitment to buy 750 billion of energy from the US over the next.

In the next three years, I think you're uniquely positioned to capitalize on that.

Mike Sabel: We think so too. Demand has been fantastic, maybe the best we have seen in 10 years on both a long-term contract basis and less than 20 years, but also less than that as well. Given that demand is current, being able to build projects and bring them online fast is extremely attractive to customers, combined with our ability, we think, to offer the best price, liquefaction fee as well, and our proven execution on schedule and the advantages of our configuration. It makes us very optimistic that we are going to be able to sell the incremental contracts for our capacity for the second phase of CP2, phase 3 of CP2, and the expansion for Plaquemines as well that will enable us to build those projects.

Uh, we think so too. Uh demand has been fantastic and maybe the best we've seen and ten years.

On on both a long term contract basis, and less, you know, 20 years, but also less than that, as well. And, um,

given that that demand, uh,

You know, is is current.

Uh, being able to build projects and bring them online fast.

is extremely, um, attractive to customers combined with our ability. We think that we offer the best price liquefaction fee as well. And our proven execution, on, uh, on schedule and the advantages of our configuration. So it makes us, it makes us, uh,

Very optimistic that we're going to be able to sell the incremental contracts for, um, for, uh, our capacity for, you know, the second phase of cp2 phase 3, a CP, uh, 2 and the expansion for for pla as well.

Mike Sabel: At this point, our view is that with just brownfield expansions at CP2 and Plaquemines, we will be able to build and bring capacity to the market with high returns and very efficient in excess of 100 million tonnes, approximately around 2030.

That will enable us to uh, build those build those projects. Um um. And really at this point, our view is that with just Brownfield expansions at cp2 and CP3 we're or pla. Uh we will be able to to build and bring capacity to the market. Um with high returns and very efficient uh in excess of a 100 million tons, you know, approximately around 2030.

Jack Thayer: Great. Thanks for that. For CP2 LNG project, it sounds like the pace of construction activity is progressing in line with just slightly ahead of your other two projects. What are some of the factors that can drive an acceleration in that timeline so that you can get to first LNG faster?

Mike Sabel: We are, you know, we at FID, we are approximately 98% complete on engineering, which supports very rapid remaining procurement and fabrication. You know, a good place to be for a high-performing project at FID is, let us say, 25% to 30% engineered. Being 98% is an outlier in a good way. Combined with that, we did massive scale, we think the most ever for an LNG project prior to FID of procurement. As we said in the recorded script, we already have two trains shrink-wrapped and stored at Baker Hughes in Italy. I think we have our next two trains finishing up there as well. To be just a few weeks past FID and to have that stage of fabrication complete and in storage, particularly for our configuration where so much of our facility is performed off-site, is a huge advantage.

Ct2. It sounds like the the pace of construction activity is progressing in line with the slightly ahead of of your other 2 projects. Um, what are some of the factors that can drive an acceleration in that timeline so that you can get the first LG faster? So we're, you know, we at FID, were approximately 98% complete on engineering, which supports, um, very rapid, um, remaining procurement and Fabrication.

And you know a a a a a good place to be or a high performing project at FID is, let's say 25 to 30% engineered and so being 98% is an outlier and and a good way and combined with that we did massive scale, we think the most ever for an LG project prior to FID of of procurement.

Mike Sabel: I would say the data points to really focus on as it relates to schedule is how quickly we are able to get out of the ground. It is soil stabilization, piling, foundations, completion of our perimeter walls, and all the logistics around that. Those are the things that are key for us. One of the big benefits, differentiators of our approach is as soon as those foundations are coming up out of the ground, we are going to have several years of procurement and fabricated equipment ready to go immediately on the foundations, which opens up enormous work fronts so that we can start interconnecting equipment at a massive scale, you know, faster than it has been done before.

And and, you know, as we, as we said in the in the recorded script, we already have 2 trains shrink wrapped and stored at Baker Hughes in Italy. And and uh, I think we have our next 2 trains, uh, finishing up there as well. So to to be just a few weeks past FID and to have that stage of of uh, fabrication complete and in storage, particularly for our configuration, we're so much of our facility is performed. Off-site is a, is a huge advantage.

Manage. So I would say,

the uh,

You know, the data points to really focus on as it relates to schedule is how quickly we're able to get out of the ground. So, it's soil. Stabilization piling foundations.

Um completion of our perimeter walls um and all the logistics around that. So uh those those are, those are the things that are key for us.

Mike Sabel: This is also, this is the, you know, our third project in our fourth phase with a lot of the team having been with us from the, you know, phase one at Calcasieu Pass. We have tremendous experience in interconnecting and commissioning the equipment. The first two trains at CP2 LNG project are trains number 55 and 56. There has been enormous repetition and troubleshooting and problem-solving and mistakes that we work really hard as a company to learn from.

And um, 1 of the big benefits. Differentiators of our approach is as soon as those foundations are, uh, coming up out of the ground, we're going to have, um, several years of procurement and fabricated equipment ready to go immediately on the foundations, which opens up enormous, um, uh, Workforce. So that we can start interconnecting equipment at a massive scale, uh, you know, faster than it's been done before. This is also, this is the

you know, our third project in our, our fourth phase,

Uh, with a lot of the team having been with us from the from the, you know, Phase 1 at CU. And so we have tremendous experience in um interconnecting uh and commissioning the equipment, the first 2 trains, uh cpt2, our trains number of 55, and 56.

and so uh there's been enormous repetition and and troubleshooting and problem solving and

And, uh, mistakes that we work really hard as a company to learn from.

Jack Thayer: Great. Thank you very much.

Great, thank you very much.

Operator: Thank you, everyone. This concludes our question and answer session. I will now turn the call over to Mike Sabel. Please continue.

Mike Sabel: Thank you, everybody. We are grateful for everybody's time this morning and consideration as they think about investments in Venture Global. We will continue to work really hard this quarter and the rest of the year to build our facilities for the long term. We look forward to meeting many of you in the coming weeks and months. Thank you for your time. Have a great rest of the summer.

Thank you, everyone. This concludes our question and answer session. I will now turn the call over to Mike Sable. Please continue.

Thank you, everybody. Uh, we're grateful for everybody's time this morning and, uh, and uh, and consideration as they think about investments in, in Venture Global, we will, uh, continue to work really hard this quarter and the rest of the year to build, uh, to build our facilities for, uh, for the long term. So we look forward to to meeting many of you and, uh, coming weeks and months and uh, uh, thank you for your time.

Have a great rest of the summer.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

ladies and gentlemen, this

Connect.

John McKay: Please wait. The conference will begin shortly.

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