Q3 2025 Venture Global Inc Earnings Call

Good morning and welcome to the Venture Global Inc. Third quarter 2025 earnings conference call. At this time, I would like to turn the conference call over to Ben Nolan senior vice president investor relations. Please go ahead.

Thank you, Joanna. Good morning everyone and welcome to venture Global links third quarter 2025 earnings call. I'm joined this morning by Mike Sable Venture Global CEO executive, co-chairman and founder Jack there. Our CFO and other members of venture Global uh management team before I began. I would like to remind our 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 digested Ava,

A Reconciliation of these metrics to the most relevant Gap. Measures can be found in the appendix of the earnings presentation posted on our website.

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'll now turn the call over to Michael Sabel.

Thank you been good morning, everyone and thank you for joining us. Today we are pleased to share our third quarter 2025 results and update our guidance for 2025 which we believe is proving to be a year of strong project advancement Financial growth and operating performance for Venture Global. I'll begin the call with an overview of our considerable third quarter 2025 Kia, accomplishments and results before shifting to our LNG projects individually.

I will then make some remarks in 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.

What we were building at Venture Global, despite only shipping our first cargo in March of 2022, about 3.5 years ago, Venture Global is positioned to be one of the largest LNG producers in the world. With expected production capacity of approximately 67 mtpa in operation or under construction today, before additional brownfield expansions take us over 100 mtpa.

The volume of achievements. In our third quarter was nothing short of extraordinary by the team. The coordinated efforts, and oversight required at every step of the journey have not been easy, but the team has worked incredibly hard to deliver affordable energy security to our partners throughout the world.

We are applying that same level of relentless effort and rigorous execution to grow the business.

Harness the industry's lowest-cost LNG production strategy and pass that value on to our global customers and trade partners in the market.

Executing an operating at this scale and Pace requires significant, stakeholder engagement and support.

Regulatory advocacy Capital Access and most importantly, employee Grit.

Ours is a company with broad geopolitical impacts, that is playing a material part in the US efforts to promote energy security and Achieve better balance of trade globally.

In fact, I just returned from Eastern Europe, where Venture Global executed, a geopolitically important agreement to support energy Security in the region, which I'll comment on more in a moment.

Moving to Page 6 the past several months, demonstrate operational excellence at CSU pass. The Swift ramp up of production at Pacman's, we'll navigating complex construction and commissioning activities and the deployment of significant resources as cp2 as we work to execute for our customers.

These efforts enabled Venture Global to generate $3.3 billion of revenue, $1.3 billion in income from operations, $429 million of net income attributable to common shareholders, and $1.5 billion of consolidated adjustability. But the

These results represent increases of 260% for Revenue.

598% for income from operations and 439% for a consolidated adjusted EBITDA compared with the third quarter of 2024. It was an exceptional quarter for our company and the team.

Considering our success year, our success year to date, successful year to date. Our Market Outlook for the fourth quarter and the inclusion of certain non-cash accounting charges for a recent potential arbitration Awards. We are marginally reducing and tightening the range of our iBot guidance for the year.

This update reflects further operating visibility into the number of commissioning cargos we expect to produce at Pacman's and the current fixed liquefaction fees. We are contracting on those cargos for the remainder of the year.

Presently. We are seeing pricing for winter winter. Carros which reflects static ttf prices and higher. Henry Hub, forwards, implying a compression of winter, liquefaction spreads

As you will recall. Last quarter, we had set a 1 dollar per mmbtu change in price translated into a 230 million to 240 million change in our anticipated Consolidated, adjusted EBA

As we have contracted additional projected output since the end of our prior quarter, this market sensitivity has declined.

However, this compression of margins on future unsold carros during the fourth quarter, plus the timing of 2 Dees loadings—where we load them in and deliver them after the quarter—results in a marginal reduction of our 2025 guidance range to $6.35 to $6.5 billion of consolidated, adjusted EVA for 2025.

This range reflects a forecasted $4.50 per MMBtu to $5.50 per MMBtu, fixed Equifax and P range for available cargoes remaining in the quarter, which is consistent with current TTF and JKM for price expectations.

Additionally, our projector results also incorporate Reserve adjustments, which account for our best estimate of the financial impact of the cock shoe, pass arbitration process. We anticipate updating the market with full year, 2026 guidance, next quarter,

Please turn to page 7.

In my mind, the extraordinary list of accomplishments achieved in the past few months, tells the story of venture Global's unwavering commitment to streamlined, high impact execution, and its growth to date.

Those exported in a single quarter in just a few days ago, we shipped our 500th cargo from capsu pass.

Those achievements are remarkable particularly given the relatively short operating history of the company.

While these are significant, operating achievements, everything, starts with safety.

I'm thankful to say that despite the speed at which we are constructing and developing our projects. The total reportable incident rate is still 10 times better than the industry average.

In addition to these operational successes, we also made incremental strides and sourcing Capital to fund our growth.

Specifically the Blackfinn joint venture raised 1.575 billion dollars of financing which enabled an almost 900 million dollar return of capital to venture Global. And last 5, for at last Friday, we finalized a new 2 billion dollar. Revolving credit facility with a dozen Banks, which we expect will enhance our corporate liquidity and capital flexibility.

These financing build upon the 15.1 billion, FID project financing for cp2 Phase 1 in the 4 billion dollars a placam and Senior secured notes. We completed early in the quarter,

Year to date, we have now raised approximately $30 billion in closed, 8 separate billion-dollar-plus transactions to further grow our business and optimize our capital structure. It has been a truly remarkable year of financing activity for us.

I'm also pleased to announce the signing of two new 20-year SPA sales and purchase agreements on Friday. We signed a 1 Mtpa agreement with Naty of Spain for Phase 2 of CP2. Venture Global is honored to expand our long-term partnership with Spain through this new agreement with Naty, a leading global LNG company. This contract will positively impact the U.S. balance of trade with Spain.

Our unmatched speed and execution have made Venture Global trusted reliable supplier to the global market. The signing of this agreement along with a strong commercial momentum, we've achieved over the past 6 months, reflects the continued customer confidence in our company and the robust demand for LNG globally.

Venture Global remains committed to meeting that demand with flexible, fast, affordable, and dependable long-term supply.

Additionally, last Thursday, we signed a 20-year spa for a minimum of 0.5. Mtpa with Atlantic clng, which is a newly formed joint venture between Greek companies, actor, and DePauw making Greece's. First ever long-term LNG Supply agreement,

With a US exporter in combination with our capacity at the alexandropoulos LNG. Regasification receiving terminal, this agreement should substantially enhance Central and Eastern European energy security, bringing affordable, and reliable us, natural gas to the region.

Including the three off-take commitments we previously announced and signed in July, Venture Global now added 5.25 Mtpa of new 20-year SPAs in the second half of 2025, which I think might be the most in the market globally, and I expect more to follow. We continue to build momentum towards the FID for CP2 Phase 2.

Turning to page 9.

We'll take a look at our projects starting with cp2 as you know, on June 3rd, our team fully mobilized and started site work at cp2 following final approval. And notice to proceed from furk with fid of phase 1 announced on July 28th.

Additionally on October 22nd, the final non FTA export authorization from the US Department of energy was received.

Phase 1 engineering is is 99% complete allowing for over 98% of All Phase. 1 permanent plant equipment to now be procured.

Perk is reviewed and approved 97% of all underground and Foundation Scopes enabling continuous Phase 1 field execution.

The speed and productivity of the team's mobilization to site has been nothing short of extraordinary.

There are over 3,500 people in more than 1700 major pieces of construction equipment on site.

Construction progress is on schedule, at 98%, of all civil site, prep, and soil improvement. Work completed across 700 Acres.

This work includes Moving, 2 million cubic yards of soil and cement.

Stabilizing over 6 million. Cubic yards of soil, utilizing over 580,000 tons of cement.

To date representing already 1/3 of the 32,000 total piles required.

To create roads and access support, allowing for the start of the foundation work over 1.2 million tons of aggregate base has been installed.

Foundation work is now underway in all major process areas of the facility.

The most notable accomplishments include pouring the first LNG tank foundation and the first liquefaction module foundation in the Power Island switchgear building foundation.

Marine terminal work also continues to progress, with nearly 2 million cubic yards of dredging completed.

Additionally, nearly 5,000 ft of the 22,000 foot. Perimeter wall has been installed nearly a mile

Um, completed offsite All Phase. 1 equipment module, erection has commenced both domestically and abroad.

Specifically, I'd like to highlight the notable progress on our pre-treatment systems. Pipe Rack modules, and electrical buildings, all of which we are building in the US Gulf Coast.

I'm also pleased to recognize that Baker Hughes has completed the first 8. Liquefaction trains which are currently being stored at its fabrication facility in Italy.

The team has incorporated our learnings from the construction of COOP, PASS, and PLACs, which are aiding the progress of construction.

Some of the modifications include: 1. Utilizing 10 marine offloading facilities near the CP2 project site versus just 3 when we built Capsu Pass, which translates into a much greater speed of deployment and less traffic on the roads. 2. Further modularization in new scopes of the project, particularly with respect to the power island, a critical path item. 3. Internalizing additional construction scope and more targeted use of subcontractors to improve quality, efficiency, and pace of construction.

With respect to phase 2, I mentioned the 2 SP we signed in the past few days and we continue to have constructive conversations with off-takers and aim to sign additional Spas before the end of the year.

As I've said before, given the lower cost per ton of Brownfield expansion and our significant equity already invested in Phase 2 of the project, which is now over $1 billion, we do not anticipate needing many more 20-year SPAs to reach FID for either Phase 2 or even beyond that, the Phase 3 bolt-on.

This contract strategy is supportive of VG maintaining a balanced portfolio of intermediate short and long-term contracts.

The targeted, FID time frame for Phase 2 Remains the first half of 2026.

On page 10 and 11. We thought it would be helpful to walk through the value proposition of cp2 and all our future projects on page 10. We have listed some of the attributes that we believe support the company's growth Outlook.

In short.

Engineering and construction optimization.

Access to legacy construction and operation data in an internal team of experienced personnel promotes construction speed.

And production excellence.

This in turn generates Financial returns faster, and allows us to pass this Capital efficiency onto our customers through industry-leading pricing.

In some, it's all in support of realizing our corporate mission of innovating to provide low-cost LNG to the world.

On page 11, we outline how speed and efficiency correlate to strong annual returns, even while passing on much of those lower costs to our SBA customers and the market in a variety of LG pricing environments.

The key to success in any commodity business is being the low-cost producer which for cp2 phases 1 and 2, should be just above 1,000 a ton.

All, including our inside-the-fence power plants, the pipelines, owners' costs, and all other construction costs.

Additionally, we generate considerable cash flow during construction and commissioning which reviews and offset to project cost.

In this case, based on the forward Henry Hub and TTF curves for CP2, we estimate these construction and commissioning pre-Cargo sale EBITDA proceeds.

Would yield an estimated 8 billion dollars of cash flow during construction. Reducing cp2. Net costs down to approximately 21 billion.

Following cod cash flows will come from a combination of fixed. The compaction charges under our long-term spas.

Our 20-year long-term contracts.

In the case of CP2 phases 1 and 2, we expect this available excess production to be 9 to 11 million tons, which we anticipate selling on a medium- and short-term basis, or a non-20-year basis. As you can see on the slide, we are showing two fixed-fraction fee cases.

1 at 4 dollars per mmbtu and 1 at 6 dollars for these, non 20-year SBA cardos

Assuming a 4 dollar fixed liquefaction fee the combination of fixed long-term contribution and that from the available capacity would translate into an estimated 4 billion. Dollars contribution to annual Consolidated adjusted. EBA

Whereas assuming $6 per MMBtu for the available cargos, which I believe will be closer to the case over 20 years, the estimated annual consolidated adjusted EBITDA would rise to $5.2 billion.

Collectively under these scenarios relative to the 21 billion dollars of net project costs after assuming 50% leverage or we carry extra Equity these illustrative results imply a return at the project level on Equity of greater than 30%.

while still providing the lowest price spas in the market to our customers,

which you are now seeing reflected in the high number of 20-year contracts we continue to execute.

Moving to page 12, Pacman's construction and commissioning continues to progress on schedule for phases 1 and 2.

While still relying on temporary power. As we are not in our combined 5 on 2 configuration, for the power plant, for Phase 1 yet, construction continues at our power on units, and the Venture Global team is now safely started up 34 of the 36, the faction trains.

Despite these challenges, our continued construction and commissioning progress enables PLA to export 64 commissioning carros during Q3, hitting the high end of our previously projected range. This represents a 25% increase in exported carros relative to the previous quarter, reflecting the remarkable pace at which we are integrating and commissioning liquefaction trains.

The facility realized a weighted average fixed Equifax fee of $6.79 per MMBtu on these commissioning cargos during the quarter.

As we recently communicated to our Phase 1 off-takers, we maintain our expected Cod schedule, Q4 2026.

Important work remains, but we are making great progress at Pacman's. For example, the projects required combined cycle power generation equipment for Phase 1 is expected to commence commissioning in its 5-on-2 configuration in Q1 2026.

This power Island schedule and other work allows us to have sufficient time to complete commissioning. Reach substantial completion under our EPC contract complete lender, reliability testing in declare Cod on schedule.

Importantly, over the past several years, we've made incremental project investments in areas like temporary power, which we continue to use today and a number of other Scopes, including power Island, uh, to address EPC delays, for which, we have injected approximately 3.3 billion dollars of additional Equity capital in order to hold our Cod schedule. That's not new. That's previously reported. These are incremental costs relative to our FID budgets that we've incurred and absorbed as project sponsor to deliver low-cost LG to our customers years faster than our peers.

I'm pleased to airm that because of this spend, we are on track for COD, in Q4, 2026 for Phase 1 and mid 207 for Phase 2 reflecting a 54-month construction timeline, which is among the industry's best. Um, and will be ever achieved, including the 144 cargos exported from pla in the first 3 quarters of the year. We now anticipate the facility exporting between 234 and 238 cargos by year end. This puts us in the high-end of our previous estimates and represents a 7 cargo. Increase to the low end in a 2 cargo decrease from the high end of our previously reported range.

For Q4, Black Commons is contracted for 79 cargos, or 84% of potential cargos for the quarter, capturing a weighted average fixed fraction fee of $6.41 per MMBtu on those contracted cargos.

blockchain's accounts for 82% of the incremental LNG production capacity added to the global LNG Supply this year, lifting worldwide LNG production, by more than 4%,

That growth almost single-handedly helped to mitigate the impact of a more than 33% rise in European LNG demand in the first 10 months of the year, as the continent seeks to move away from the consumption of Russian gas.

I'm grateful for the hard work, ingenuity, and tenacity of our VG construction team, which enabled the ramping of Pacman's production, despite power and other construction challenges.

With production excellence such as this at Pacman, we are playing an industry-leading role in keeping LNG prices throughout the world.

Next, I'd like to focus on Cox you pass, which is covered on page, 14 of the presentation.

During the third quarter of 2025, we exported 36 cars, which is in line with our previous expectations. However, this is down slightly from the second quarter. The reduction compared to Q2 is due to a longer than scheduled routine power and maintenance on the facility.

This does give us an opportunity to highlight one of the competitive advantages of our midscale modular approach.

Specifically because of the performance capacity of our trains and Equipment redundancy across our process system and our configuration, we can undertake significant maintenance at our facilities with only very modest, impacts on production.

This translates into smoother production profiles and lowers operating costs per mbtu production.

At Cox you pass we realized a weighted average fixed the fraction fee of a dollar 76 per mbtu in the third quarter. This is lower than the dollar 1977 per mmbt. We had published in our October 6th daytech. As we have Incorporated, a non-cash, 27 million arbitration related Reserve relative to the 5 and a half months of production since cod in our Q3 results that cash you pass.

For the fourth quarter of 2025 based on liquefaction fees achieved from spa and excess cargo sold on a 4 basis today.

We anticipate capturing a weighted average look of faction fee of $2.14 for mbtu across all forward sole Cox. You pass production which reflects contracted sales under a long-term sba's plus and excess cargo that has been sold.

That figure includes a Q4 adjustment for arbitration reserves, incorporating the 108 cargos exported from this facility in the first half. We now anticipate exporting 148 cargos by the end of the year.

Collectively, across taksu, pass and plums. We have contracted 59, more cargos for export in Q4 2025, since our prior report and contract and have contracted 119 of a potential 134 carros are roughly 89% of our total Q4 2025 production,

I want to spend a few minutes updating you all on the couch. You passed arbitration proceedings.

Well, confidentiality agreements do restrict our ability to provide all the details. We'd like to the extent, we were able, we thought we'd provide answers to a number of the common questions we have received.

You can see the most frequent of these on page 15.

Let me address, uh, several first.

There have now been full or partial resolutions in three of the proceedings. As you know, the Shell arbitration was decided in our favor. We settled the second for an amount which did not have a material impact on Venture's goals results.

And the arbitration panel reached a partial final decision against Do You Pass? And the BP arbitration—there are four separate outstanding proceedings now, which we expect should be determined over the course of the next few years in the absence of settlements.

Secondly, no damages have been determined or awarded in the BP arbitration and the date for the hearing and damages has not been set as of the date of this presentation.

Financially, including BP the remedies sought by our customers against ventricle coox. She passed, including BP have been materially reduced to 4.8 to 5.5 billion dollars from 6.7 to 7.4 billion.

Venture gold will cost you passes aggregate. Liability cap under the post, Cod Spas for the 4 remaining arbitration proceedings. Excluding BP is now 765 million.

Importantly, while we ardently disagree with the BP award, the result does not impact our strategy for growth and providing low-cost LNG to our customers throughout the world.

The accounting treatment for estimating the financial impact in the form of non-cash reserves of BP and these remaining arbitration shortly.

Turning to page 17.

While there has been modest softening of winter 2026 LNG spreads, demand remains healthy and the margins are robust even as new LNG supply enters the market. Over the next several years, we expect prices to remain supportive as energy demand responds to affordable prices. As you can see on the left, the forward curve reflects the market's expectation for LNG prices in both Asia and Europe to remain at considerable spreads above Henry Hub for the next 12 months.

Beyond this time frame, we continue to see upward revisions to demand that reinforce our belief that margins will reflect.

That margins will reflect insufficient LG supply through 2028 and beyond.

Flipping to page 18, for years industry pundits have been predicting a plateau in LNG demand, and time and time again, those predictions have not materialized, as demand has continued to grow at record levels. Historically, LNG consumption has grown about 5% to 6% per year.

Even assuming a more conservative 3% growth rate, the current slate of new projects would not be sufficient to meet global demand by the middle of the next decade and into a 5% compound growth rate, which is the historical number for global LNG. Infrastructure would need to nearly triple to meet global demand.

There certainly may be fluctuations in LNG prices over time, but we remain confident in underlying fundamental demand growth because of the increase in consumption of electricity around the world.

Lately, powering Ai, and data centers globally has been at the front of everyone's Minds, while we certainly view that as a major source of global power, demand factors, like a rising middle class, which uses air conditioning among among lots of other demand growing industrialization, that continued migration from coal and moderating growth expectations for Renewables and even more coal. We, um, are even more core to what we perceive will drive strong LNG, demand growth for decades to come this demand growth also reinforces the importance of our mission, to deliver increased volumes of LG to support this Global growth. Now, I'll turn it over to our CFO Jack there who will review the financials and are updated guidance.

Thank you, Mike and good morning to those of you on the line, I will be referring to the Venture Global Incorporated form. 10q for the quarterly period ended September 30th, 2025 the 10 Q is available on our website and some of the key results are summarized on page, 20 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 with Revenue our Top Line was 3.3 billion for the third quarter of 2025 a 2.4 billion dollar increase from 0.9 billion during the equivalent period in 2024. This increase in Revenue was driven by 2.9 billion dollars from higher sales volumes 373 tbtu in third quarter of 2025 compared with 1002. 24, primarily at the plaque men's project which was partially offset by 517 million from lower. Net rates at kashu pass due to the commencement of LNG sales under its postkod spas.

With weighted average fixed facility fees of $1.76 per mmbtu in the third quarter of 2025 versus 6.67 cents per mmbtu and the third quarter of 2024 and offset by a weighted average commodity fees of $3.53 per mmbtu in the third quarter of 2025 versus $2.51 per mmbtu.

you in the third quarter of 2024,

our income from operations was 1.3 billion in the third quarter of 2025 a 1.1 billion, increase from 199 million in the third quarter of 2024. This shift was primarily driven by the higher sales volumes. I mentioned previously which resulted in a greater total margin for LNG. Sold these increases were partially offset by 102 million of higher. Operating costs in support of the ramp up of LNG production that the pla's project and operating our LNG tankers, as well as 28 million and 129 million of higher GNA and depreciation expenses. Respectfully,

we also experienced a reduction in our development expenses of 103 million quarter over quarter, as many of the costs associated with our 3-phase cp2 project were capitalized.

Referred to as net income was 429 million for the third quarter of 2025 a 776 million increase from the loss of 347 million in Q3 2024.

changes in interest rate swaps negatively impacted Q3 results both this year and in 2024, by 144 million and 480 million respectfully,

a respect respectively and Q3 2025. Net income was also on favorably impacted by a 100 million accounting, charge related to the partial voluntary, prepayment of the pla's term loan.

Shifting to consolidated adjusted EVA. We earned $1.5 billion during the third quarter of 2025, a $1.2 billion, or 439%, increase from $283 million in Q3 2024.

This increase in Consolidated adjustability but uh was driven chiefly by higher sales volumes.

As Mike mentioned earlier, our projects exported a total of 100 Cargoes in Q3 which increased from 31 carros compared with the same period in 2024.

Of these cargoes, 372 TBtu of volumes are reflected in our results for Q3 2025, more than tripling production compared to the 110 TBtu in Q3 2024. I also wanted to further provide information regarding the accounting treatment for the BP and our four remaining outstanding.

arbitrations impact, as mentioned, our Consolidated financial statements, incorporate a 27 million non-cash Reserve relative to the period from our April 15th, Cod until the end of Q3,

Going forward. The non-cash reserve which reflects our best estimate of award outcomes from BP. In the 4 remaining arbitrations is currently estimated to be between 14 and 15 million per quarter. Through the 20-year duration of the spa contract. Terms this amount will directly reduce calcu, pass revenue and flow through ebita.

Although there will be no offsets, or although there will be offsets to net income due to adjustments for non-controlling interest in taxes.

Importantly, this is an estimate and there is no cash impact. To our third quarter financial statements, we will update these estimates in our financials quarterly as we finalize arbitration results and incorporate any Financial Awards or settlements going forward.

Finally, I would like to call out several additional Financial updates. Following the 1.575 billion financing of the blackton pipeline and an 889 million return of cash to venture Global our cash and restricted cash position. At the end of the quarter was over 3.5 billion dollars. Also subsequent to the end of the quarter, we secured a new 2 billion Dollar corporate revolver facility.

We believe that this with this combination of cash on hand, revolve our capacity substantial future cash flow and substantial future. Cash flow. We expect to generate incoming quarters and billions of dollars of unencumbered assets. Venture Global is in an excellent liquidity position.

Advancing to pages 21 and 22, we are updating our guidance to a consolidated adjusted EBITDA range of $6.35 billion to $6.5 billion for 2025, as we've reduced and tightened the range from our previous guidance range of $6.4 billion to $6.8 billion.

We have improved the lower end of our cargo production forecast range by 7.

Validated adjusted EBITDA to our range to adjust accordingly by $50 million to $60 million, reduced from the $230 million to $240 million range provided in our previous guidance.

This reduced sensitivity to market prices reflects the contracting we executed during the third quarter and thus far in the fourth quarter. I will now turn the call back over to Mike. Thank you, Jack. At this point, we'd like to open up our call for Q&A.

Thank you.

The next session. Should you have a question, please press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. If you wish to decline from the polling process, please press star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys.

The first question comes from John McKay at Goldman Sachs. Please go ahead.

Hey team, thank you for the time. I I do want to start on the arbitration. I appreciate the color from both of you. Mike and and Jack on the the kind of funding levers here. But maybe could you walk us through in just a little more detail about how you'd think about funding a kind of you know worst case scenario on these. And then On a related note uh you lined up the you know 14 to 15 million a quarter for 20 years you know that gets to a number that's that's below the kind of total you you guys talked about. So maybe just walk us through some of the math on getting to that 1 as well. Thank you.

Sure, good morning, John. Thanks. I'll, uh, I'll take the first half of that, and Jack will probably, um, take the second half.

We're in a very strong current cash position, the remaining arbitrations. Um, if uh, if we were to settle or they were to run its full course, I should say if they run their full course. We'll take place over the next uh you know uh year or 2 or more. So they're spread over a considerable amount of

The time and we remain um remain confident that we're going to do well on those but in you know, just to answer your question. Um, if they didn't all go well um the incurrence of potential damages there would be spread out over a number of years. So in addition to current cash,

And the the, um, uh, earnings that will achieve over the next couple years. Um, plus the, uh, large amount of money for assets that we have, we have plenty of liquidity and time to smoothly manage exposure, um, exposure to any future, potential damages, their, you know, we're over with this quarter over 50 billion dollars in in uh, in assets. We Own 100% of venture Global we own a 100% of cp2, we own. Um, our ships for cash,

And, uh, we own approximately 77% of CPU1, so we're in a very strong ownership position of extremely valuable liquid assets.

Jack, did you want to address the second? Sure. So, John, um, you know, I think the important, uh,

uh,

descriptor of of how we're addressing for accounting purposes. The arbitration is uh the term best estimate of award outcomes.

Uh and so as as as we worked with our account accounting firm um to analyze the remaining arbitrations the uh outcome in the BP arbitration and uh aligned on what was our best estimate of the, uh, potential exposure associated with those. That's what allowed us to arrive at an estimate of the 14 to 15 million dollars per quarter impact. As you noted, that is, uh, that is an amount below the maximum liability, uh, that we have, uh, that we've articulated. Um, but even that's come down, rather dramatically given the given the shell, and, and the other settlement Awards um, or or outcomes. Uh, so you know, we we believe this captures uh the accounting guidance on how to uh address these potential outcomes but by no means, is it a cash charge at this point? Uh we need to fully uh fully arbitrate out the

The uh, the BP process and we need to let the other poor uh processes uh, go forward and result in in outcomes or or in any potential settlements that we might achieve similar to the 1, uh, that we achieved with 1 counterpart. Are you already?

All right, thanks guys. Appreciate the color. Maybe just turning to, uh, the contracts you signed recently. You may just give us an update, you know, we've seen a lot of Contracting activity across the US project so far this year.

Do you think that activity continues, and what kind of rates have come in pricing on those relative to your expectations? And maybe the last piece of that is, has the BP ruling at all changed the tone of those contracting discussions? Thanks.

um,

Um, uh, today. And, and over coming decades, is the uh, is the pace at which we're signing 20-year contracts. I, I think since, um, since the beginning of July, where we've signed over, uh, over 5 5 and a quarter, mtpa, um, we've signed the most in the world of any project. So I think that's the best Market data point on the trust that the market has um for our for our execution.

Uh, we, you know, indicated in earlier calls earlier in the year, um, that we've re-entered the market after, um, deliberately, um, staying on the sidelines to watch market pricing. We’ve re-entered the market really coming after the Liberation Day tariff announcement and activities from the United States and have been, um, extremely successful in executing the 20-year contracts that we wanted to. The market remains very active for us and we, um, still have a.

Um, a very active queue of live deals. As we've talked about, um, uh, recently as well and we we expect that to continue for us. Uh, pricing is in line um with uh where we started this. And um and uh which which we believe is the most attractive long-term price in the world. And as we described earlier in this call,

Um, we still achieve, um, probably the best returns, uh, in the market in our market on those, and so we're able to offer a great price for the market that the market's responding to, um, drive great returns for shareholders and offer great pricing in the market globally to help keep prices low, um, to support, uh, future growth for everyone in the world.

Appreciate the time. Thank you. Yep, thank you.

Thank you. The next question.

Is from Jeremy Tonette at JP Morgan. Please go ahead.

Good morning, Jeremy

Hey, good morning. This is actually broth and ready on for Jeremy. Um okay. I just want to follow up a little bit on the arbitration and if you guys could talk a little bit about the confidence, um in that 765 million cap and maybe where that differed with the BP case versus the outstanding ones.

The, uh, the $765 million, uh, cap is the aggregate of the remaining, um, uh, caps for, um, the four remaining, uh, arbitrations. Uh, we obviously agree with, uh, with the result from the shell arbitration panel that closely followed the results of the contract and resulted in there being, uh, uh, no awards. Uh, and and, uh, and so that's.

That's the result that we expect for the rest of them. We obviously were surprised and strongly disagree with the result of the BP panel. But if we um were to lose all the rest of them up to the cap, um, that Aggregates now to 765 million in any, in any case, as we've talked about, um, we're able to, we're able to to manage, um, you know, um, either case of outcomes and it doesn't impact our growth and our ability to uh, uh, Finance efficiently, uh, the construction of our facilities. Um, uh, on the pace we've been describing, uh, to generate the future earnings from um, you know, much number a larger number of installed installed trains, you know, with with very conservative. Um for pricing assumptions in uh, in a few years. Uh, you know, when you when you guys model it out,

You'll see where, you know, we we pass and not too long uh double double digit billion dollar numbers. And so we have um, a a large um, you know, a large ramp up in growth, in earnings coming in a few years. Um, you know, as you see uh, the phases of cp2 come online.

We're building a 20 million ton uh cp2 Phase 1 right now.

And with the additional brownfields and bolt-ons coming for CPT2 and PLACs.

We have a tremendous um growth and earnings coming in the next few years that uh result just from completion of what we have already in construction or uh, or the brown fields that give us, plenty of capital Firepower, cash, Firepower, and earnings coming, uh, to manage through this.

Got it. That's very helpful. Thank you. And then I think the prepared remarks hit on not needing many more 20-year SBAs to reach FID on CB2 Phase 2 and the Bolton as well. I'm just curious if you could talk about your strategy with regards to the tenor and contracts moving forward from here.

Um, it's, it's similar to what we've, we've what we've been talking about for the last year. Which is where we're going to, uh, contract. Um, 20 year, Spa sufficient to give us, um, the coverage ratios. The investment grade coverage ratios on the debt of the projects.

And then the additional volume above that, which is substantial.

Um, is essentially, um, you know, uh, uh, in the air quotes, you know, free extra capacity above the, the long-term contracts required to fully serviced and advertise the debt and cover operating expenses and return. Um, and that extra margins, then of production gives us a a really, really attractive um, upside optionality on returns that we just described.

And, uh, those non 20-year deals. We we expect and plan on Contracting over time. On an intermediate, um, and shorter term, uh, short-term basis to have a blended Blended portfolio. You know, as we just reported, we have 45 mtpa.

Of long-term contracts. And, um, if you take what we're building today at cp2, plus the second phase, which we're, as we said, we're over a billion dollars invested in already. That's a total of 67. Mtpa.

Uh, so of that 67, where 45 contracted on a long-term basis, and we'll do more 20 years. And so you see through the second phase of CP2, we will be easily majority because we already are today 20-year contracted.

Great, thank you so much.

Thank you. The next question comes from Manav Gupta at UBS. Please go ahead.

Good morning, man. Good morning. Good morning. And congrats on a good result and the new Spas. I also wanted to talk to you about this situation in in Ukraine. There was a news on Reuters. I'm not sure if it was true, but apparently you met president zielinski with President Trump, and I'm trying to understand what can Venture Global do to help the situation in Ukraine, which is massively short.

Yes, at this point in time.

so the, um,

You know, the the as we, as we um provided the statistic in in our comments, um just a few minutes ago, um pla's represented incrementally new volume for the year um um of over 82%.

And so, uh, Pacman's and Venture Global had a material impact on the global price and certainly European price of LNG, which were super proud of the team for. And we, we think about every day in in in, in, in the people, in the Ukraine and Eastern Europe.

Uh, so that's the most important part. And as we also indicated previously, we invested an extra few billion dollars into PLA to keep the schedule.

Uh, without which we probably would be a couple of years further behind the schedule we are today. So those investments, uh, that we made, that, you know, a lot came from, you know, Bob and I, and directly through our ownership, uh, were critical to maintaining the pricing that we're seeing today in Europe, which is, um, certainly moderate compared to where it’s been in the last few years, uh, because we're able to, um, produce so much extra production capacity at Clockman, and we expect to see it at CP2 as well. It gives us.

Extra availability for our LNG volumes in the incoming months and quarters, and in the next couple of years, is unique in the whole market. I think we probably have the most available capacity in the world that will allow us to support flows into the market, either directly.

Into storage or, uh, uh, through intermediaries, or both, that, um, that we're, you know, we're working on to support new. Certainly saw the, uh, the agreement with, uh, with Greece.

uh, extra Supply through the southern part of that, vertical, Corridor of

Of, uh, a pipeline supporting Eastern European countries there.

Sir, 1 thing, which Venture Global sometimes. I believe doesn't get enough credit for is the massive data science operations that you have set up when you were at the Platinum trip to explain some of those help us understand how what differentiates your data science teams and the investment that your company has made in these data science operations.

Uh, know. We're very, we're very proud of it and, um, I, you know, sometimes we don't get credit for it because we know we're not giving all our secret sauce out there. But, uh, if you keep it Among Us, Men of I'll say the the, uh, uh, we've always viewed our facilities, not as factories. But as complex, machines that to us, um, always create opportunity for uh, acquisition of data and, and um, analysis of that data. So I think for uh, couch you pass, we're streaming now around 2222 thousand uh data points every 10 seconds. So it's a massive amount of data.

Uh, Pacman's uh will exceed that amount, that volume of data throughput.

And we have a dedicated team of data scientists, process engineers, and AI programmers that have been incorporating that data into our current operations, but also into design changes as we've learned some very surprising interactions of different.

Parts of the facility that are on a facilities that are unanticipated, that have contributed to our ability to, um, achieve the remarkable performance results at Pacman's. Uh, and that we expect will carry over into cp2. So it's, uh, been an incredible effort for us and, uh, we've been hugely rewarded in, uh, the volume of production that we've, uh, achieved in and, uh, and maintained

Thank you so much.

We thank, uh, just to add to that. We think that, uh, that will allow us to, to, to, to, to push, cp2 up to, um, uh, 30. Mtpa, we'll have to go back and get the the export authorization. Moved from 28 up to 30, but, uh, we think cp2 will be doing, uh, even better than than Pacman's which is doing, uh, the best that any projects ever done.

Thank you.

Thank you. The next question comes from Gene and Salisbury at Bank of America. Please go ahead.

Good morning. Um, I wanted to talk about, oh no, I wanted to talk about the CP1 volumes. Um, as you mentioned in your prepared remarks, they have bounced around a bit the last couple of quarters. It sounds like due to the power maintenance. Um, can you discuss the power maintenance, I guess, and then the path to get to the sustained 12.4 MTPA? And as my follow-up, are these power maintenance issues kind of unique to CP1? Or would you expect to see that maintenance eventually affecting Platinum as well? Thank you.

The, uh, the the maintenance, uh, the maintenance at cp1 took a little bit longer than we expected. Um, as I described. Uh, I know, I don't think it is, uh,

Is something that will carry on, um, for a plaque, and obviously, you're always going to have, um, routine maintenance at all your facilities, including in the power plants. Um, but it resulted, you know, it resulted in the one um, the one cargo we um,

We have been, um, this year conservative in our guidance for Takashi Pass as we, um, uh, continue to finish up things that, uh, that uh, will get us to the higher volumes. We have a, we have a pretty good.

Um, we have a pretty specific view on what we're going to do to get those volumes up. And we're just deciding when we're going to implement that relative to.

Uh, the return we get for deploying that much capital into a CPT, for example, to increase output there.

Uh, and so we we look at it on a, on a holistic basis, but we'll, we'll, we'll get it. We'll, we'll get it up to that number. And eventually, you'll see expansions both on expansions at at cp1 as well.

Thanks Mike.

Thanks.

Thank you. The next question comes from Chris Robertson at Deutsche Bank. Please go ahead.

Morning. Chris.

Morning, Mike, thanks for taking my questions. I just wanted to follow up on, on the previous question when you guys talk about, you know, getting to that 24% above name plate over the next few years. Um, do you think that takes place kind of steadily over time, or do you see that taking place at that changes in any particular year and what the implications might be for, uh, any onm expenses related to that process?

Uh it'll be a, it'll be a it'll be a combination of Step change and City increase.

We uh, we're not being more specific on it just because we don't want to give away intellectual property. We obviously because of how we're operating the facility at Pacman's. Uh, it's so much higher at the 140% level. We have a good view of of uh what produces more and and and and and so we'll um,

We'll uh, we'll we have a good path to how we're going to get there. We just will up. We'll update people when update the market when uh, when we want to disclose what the timing of it, it's going to be. But, you know, I I I just broke some news on our confidence level that cp2 of getting that to 30

And, uh, and uh, you know, as I just said to Gina, we look at it across all our facilities about where we're going to make the investments to add the extra volume.

Got it. Okay, operational expense side. It's adding the extra adding those extra. Um, trains. Don't materially impact the uh, operating expense at all. So we we view that as all almost almost entirely upside margin

Okay, thanks, Mike. Um, just related to your point just now around thinking about it holistically across the very facilities here.

Um, when you guys think about Contracting, it traditionally in the past, things have been tied to a specific phase or a specific project. Um, but are you, are you now considering structuring uh, agreements where it's a flexible cargo across any of the the facilities that are producing? Um, not necessarily just tied to 1, but just tied to the greater portfolio.

yeah, I mean, we are, we're, you know, we're with the bolt-ons for

cp2 and plums were heading towards, in a few years passing, a 100 million tons of annual production,

So, we'll have 1 of the largest annual portfolios in the world of produced LNG.

and so it gives us immense flexibility and particularly, as you think about the combination of the extra margin of production across Pacman's and cp2

Which you'll you'll you'll see kind of comparably also in the boltons, we think. And so we have a big portfolio of, you know, I'm doing air quotes of extra LNG production because we will have contracted on a long-term basis. What we need to, You Know, cover all the construction debt and the returns,

And uh so that gives us flexibility to provide um uh portfolio more portfolio sale type structures with fixed with fixed delivery dates that allow us to assign production to particular phases. That, uh, will be difficult for a lot of other people in the market, uh, to match. So when you add that on top of the the cost and price Advantage uh that flexibility allows us to offer uh super attractive commodity prices for these contracts.

Uh, years sooner than almost everybody else in the market.

And it's showing up, right? I mean, it's the, the, the the Contracting Market, the spa Market is a voting machine, right? And so, in the last, uh, few months, um, you know, Venture Global has gotten the most votes in the market from a terms of, uh, customer trust and confidence in, you know, with with our with these uh, counterparties making multi- decade commitments to us and and and uh, us to them.

Right. Yeah I'm pretty sure the caller on that. I'll turn it over. Thank you Mike.

Thank you. The last question comes from Bob bracket at Bernstein, Bernstein research. Please go ahead.

Nine months later, someone announced our in December of 2022, and someone else announced arbitration. Now, here we are with PLA Minds' first cargo at the very end of December 2024. You've ramped all through this year. How is your relationship with the current set of counterparties, and are they all on board with this sort of pre-COD, post-COD world that you guys live in?

uh, we have we, uh

We have a, a great relationship with the customers we believe and you know as it relates to capsu pass, you know, we've performed successfully all of those uh all of those loading since we took Cod for for Cox, you passed, we are still and have just reconfirmed it and you know, we just provided those comments. Again, we confirmed all the all the customers that blockchains that we're still on the original schedule.

uh, for the first window period for Pacman's, which is uh um, month 54,

And um you know for a giant project like Blackman's 54 months is a remarkable achievement. We are still operating um under around 400 megawatts of temporary power today and that's going to uh continue um like I described probably until the first quarter.

And then we, um, don't have substantial completion under the EPC contract until late in the summer.

And, um, including a lender liability test reliability tests. Um, we, uh, have a lot to get done but feel really good about achieving the original schedule with, uh, our customers for PLA. Um, that, in combination with the many billions of dollars that we've already put in extra into, um, the Pacman's, um, project in order to maintain the current record.

Setting schedule. Uh, we think we're in, we think we're in, um, a very solid position for, uh, for, for blockchains.

Very clear. Thanks for that.

Yep. Thanks Bob.

Thank you at this time. I'll try to call back over to Mike stable, for closing comments.

Great. Thank you, everybody. We appreciate everybody's time this morning. Thank you for, uh, for all the questions and, uh, and coming days we look forward to answering more questions for people and, uh, um, um, look forward to, uh, uh, being together here in the, in a few months to report on, uh, how we ended up for the fourth quarter and um, look forward to 2026. Thanks everybody bye.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.