Q2 2026 Venture Global Inc Earnings Call

August 11, 2026

Speaker #1: Hello, everyone. Thank you for joining us, and welcome to the Venture Global Inc. Q2 2026 earnings conference call. After today's prepared remarks, we will host a Q&A session.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Venture Global Inc. Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Ben Nolan, Senior Vice President of Investor Relations. Ben, please go ahead.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Venture Global Inc. Q2 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Ben Nolan, Senior Vice President of Investor Relations. Ben, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Ben Nolan, Senior Vice President of Investor Relations.

Speaker #1: Ben, please go ahead.

Speaker #2: Thank you, Trevor. Good morning, everyone, and welcome to Venture Global Inc.'s Q2 2026 earnings call. I'm joined this morning by Mike Sabel, Venture Global's CEO, Executive Co-Chairman, and founder.

Ben Nolan: Thank you, Trevor. Good morning, everyone, and welcome to Venture Global Inc.'s Second Quarter 2026 Earnings Call. I am joined this morning by Michael Sabel, Venture Global's CEO, Executive Co-Chairman and Founder, Jonathan Thayer, our CFO, and other members of Venture Global's senior management team. Before I begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements, and actual results may 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, which we may refer to simply as EBITDA during this call.

Ben Nolan: Thank you, Trevor. Good morning, everyone, and welcome to Venture Global Inc.'s Q2 2026 Earnings Call. I am joined this morning by Michael Sabel, Venture Global's CEO, Executive Co-Chairman and Founder, Jonathan Thayer, our CFO, and other members of Venture Global's senior management team. Before I begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements, and actual results may 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, which we may refer to simply as EBITDA during this call.

Speaker #2: Jack Thayer, our CFO, and other members of Venture Global's senior management team. Before I begin, I would like to remind all listeners that our remarks—including answers to your questions—may contain forward-looking statements and actual results may differ materially from what is described in these statements.

Speaker #2: 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, which we may refer to simply as EBITDA during this call.

Speaker #2: A reconciliation of these metrics to the most relevant GAAP metrics or measures can be found in the appendix of the earnings presentation posted on our website.

Ben Nolan: 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. 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 Michael Sabel.

Speaker #2: 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.

Speaker #2: I'll now turn the call over to Mike Sabel.

Speaker #3: Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our Q2 2026 results. I will begin the call with an overview of our key accomplishments in the quarter, and an update on the business.

Michael Sabel: Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our second quarter 2026 results. I will begin the call with an overview of our key accomplishments in the quarter and an update on the business. I will then make some remarks on the LNG industry before turning over the call to Jack, who will provide a more detailed review of our financial results as well as updated guidance for 2026. Following all prepared remarks, we will open the call to Q&A. On page 5, you can see some of the highlights for the quarter, including our largest ever quarterly EBITDA of $2.5 billion and significant growth in volumes, revenue, income from operations, net income, and EBITDA year over year.

Michael Sabel: Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our Q2 2026 results. I will begin the call with an overview of our key accomplishments in the quarter and an update on the business. I will then make some remarks on the LNG industry before turning over the call to Jack, who will provide a more detailed review of our financial results as well as updated guidance for 2026. Following all prepared remarks, we will open the call to Q&A. On page five, you can see some of the highlights for the quarter, including our largest ever quarterly EBITDA of $2.5 billion and significant growth in volumes, revenue, income from operations, net income, and EBITDA year over year.

Speaker #3: I will then make some remarks on the L&G industry before turning over the call to Jack, who will provide a more detailed review of our financial results, as well as updated guidance for 2026.

Speaker #3: Following all prepared remarks, we will open the call to Q&A. On page 5, you can see some of the highlights for the quarter, including our largest-ever quarterly EBITDA of 2.5 billion dollars, and significant growth in volumes, revenue, income from operations, net income, and EBITDA year over year.

Speaker #3: We are increasing our 2026 EBITDA guidance to 8.7 to 9.1 billion dollars, from 8.2 to 8.5 billion dollars, based on current market outlook for the remainder of the year.

Michael Sabel: We are increasing our 2026 EBITDA guidance to $8.7 billion to $9.1 billion from $8.2 billion to $8.5 billion based on current market outlook for the remainder of the year. Given outsized LNG price volatility related to events in the Middle East, we have maintained a broader than usual guidance range than in the past. As we contract the remainder of our expected volumes for the year, we expect to tighten this range following the Q3. Jack will discuss these numbers in greater detail in a moment. Turning to page 6, in the Q2, we exported 127 cargoes while maintaining our incredible record of safety. Commercial momentum continued in the Q2 where we executed over 2 MTPA of new or increased LNG offtake agreements with new and existing customers, including TotalEnergies, Vitol, EnBW, and Atlantic Sea.

Speaker #3: Given outsized L&G price volatility, related to events in the Middle East, we have maintained a broader-than-usual guidance range than in the past. As we contract the remainder, of our expected volumes for the year, we expect a tighten this range following Q3.

Speaker #3: Jack will discuss these numbers in greater detail in a moment. Turning to page 6, in the Q2, we exported 127 cargos, while maintaining our incredible record of safety.

Speaker #3: Commercial momentum continued in the second quarter, where we executed over 2 MTPA of new or increased LNG offtake agreements with new and existing customers, including TotalEnergies, Vtal, EnBW, and Atlantic Sea.

Speaker #3: The market has welcomed Venture Global's ability to offer customers optionality in uniquely contracting short, medium, and long-term volumes. I'm also proud to highlight that we exported our 1,000th cargo just 4 years after Venture Global's first cargo in the first week of March 2022.

Michael Sabel: The market has welcomed Venture Global's ability to offer customers optionality in uniquely contracting short, medium, and long-term volumes. I am also proud to highlight that we exported our 1,000th cargo just 4 years after Venture Global's first cargo in the first week of March 2022. The team has worked tirelessly to make us the safest, most efficient, and best-performing LNG company in the industry, and we now have the track record to prove it. These efforts, along with the investments, innovations, and process improvements we have made to our machines, position Venture Global well to export our next 1,000 cargoes in a fraction of the time. In just a few years, we should be exporting more than 1,000 cargoes every year. With our continued operational and commercial execution, we are confident in the resiliency of our cash flows.

Speaker #3: The team has worked tirelessly to make us the safest, most efficient, and best-performing L&G company in the industry, and we now have the track record to prove it.

Speaker #3: These efforts, along with the investments and innovations in process improvements we have made to our machines, position Venture Global well to export our next 1,000 cargos in a fraction of the time.

Speaker #3: And in just a few years, we should be exporting more than 1,000 cargos every year. With our continued operational and commercial execution, we are confident in the resiliency of our cash flows.

Speaker #3: On that basis, the board has recently approved an increase in our quarterly common dividends to 4 cents per share, a 122% increase. We are pleased to show this dividend growth in reward our shareholders.

Michael Sabel: On that basis, the board has recently approved an increase in our quarterly common dividends to $0.04 per share, a 122% increase. We are pleased to show this dividend growth and reward our shareholders. This quarter, we were very active in optimizing our capital structure and reducing our capital costs. We refinanced several tranches of term loans, bonds, and even preferred equity, which totaled more than $5.3 billion of capital cumulatively and should reduce our annual interest and coupon obligations by more than $100 million. We added a new $1.5 billion term loan against our 9 LNG carriers, which have previously been funded by cash. We appreciate our capital partners and the team who has worked tirelessly to bring all these transactions together. Venture Global has now raised or refinanced more than $103 billion of capital. Moving to page 7.

Speaker #3: This quarter, we were very active in optimizing our capital structure and reducing our capital costs. We refinanced several tranches of term loans, bonds, and even preferred equity, which totaled more than 5.3 billion dollars of capital cumulatively, and should reduce our annual interest and coupon obligations by more than 100 million dollars.

Speaker #3: We added a new 1.5 billion dollar term loan against our 9 L&G carriers, which had previously been funded by cash. We appreciate our capital partners and the team who has worked tirelessly to bring all these transactions together.

Speaker #3: Venture Global has now raised or refinanced more than 103 billion dollars of capital. Moving to page 7, our contracted position for 2026 has increased markedly to over 91% of the portfolio, from the 84% previously reported on our Q1 earnings call in May.

Michael Sabel: Our contracted position for 2026 has increased markedly to over 91% of the portfolio from the 84% previously reported on our Q1 earnings call in May. The 127 cargoes produced in the Q2 were at the high end of our expected production range, and we are tightening and raising the midpoint of the cargo range for the full year. While normal seasonality does impact production during warmer months, I do think it is worth noting that we have made operational and capital investments to reduce the adverse impact of summer temperatures, which you can see is demonstrated in our relatively stable production profile. Rather than artificially increasing LNG production by deferring maintenance to capitalize on stronger market demand, our solid production performance during the summer months reflects our ongoing focus on innovation and operational improvement.

Speaker #3: The 127 cargos produced in the Q2 were at the high end of our expected production range, and we are tightening and raising the midpoint of the cargo range for the full year.

Speaker #3: While normal seasonality does impact production during warmer months, I do think it is worth noting that we have made operational and capital investments to reduce the adverse impact of summer temperatures, which you can see is demonstrated in our relatively stable production profile, rather than artificially increasing L&G production by deferring maintenance to capitalize on stronger market demand, our solid production performance during the summer months reflects our ongoing focus on innovation and operational improvement.

Speaker #3: In fact, instead of postponing maintenance, we completed significant planned work during the quarter, including hot gas path inspections on the gas turbines at Kakuchi Pass, activities that would typically require substantial production downtime at most L&G facilities.

Michael Sabel: In fact, instead of postponing maintenance, we completed significant planned work during the quarter, including hot gas path inspections on the gas turbines at Calcasieu Pass, activities that would typically require substantial production downtime at most LNG facilities. Given our modular configuration and built-in redundancies, the impact of maintenance on our LNG production was inconsequential. Importantly, we are still early in our optimization journey and expect to debottleneck and deliver further enhancements to our output and operational performance over the coming years. Turning to page 8, our in-house engineering, procurement, and construction team is working hard to safely keep CP2 on time and on budget.

Speaker #3: Given our modular configuration, and built-in redundancies, the impact of maintenance on our L&G production was inconsequential. Importantly, we are still early in our optimization journey and expect to debottleneck and deliver further enhancements to our output and operational performance over the coming years.

Speaker #3: Turning to page 8, our in-house engineering procurement and construction team is working hard to safely keep CP2 on time and on budget. Now, just over a year from FID, which was July of last year, July 28, the project has roofs raised on all 4 L&G storage tanks, 16 fabricated liquefaction modules on site, and 5 of the gas and steam turbines that made up the power plant on foundations.

Michael Sabel: Now, just over a year from FID, which was July of last year, 28 July, the project has roofs raised on all four LNG storage tanks, 16 fabricated liquefaction modules on site, and five of the gas and steam turbines that made up the power plant on foundations. For those power plants, we are assembling our heat recovery steam generators, the HRSGs, offsite at our Morgan City facility in Louisiana. We have now built and transported five HRSGs to CP2. You can see one of them arriving and on the barge at CP2 in the picture here, which is no small task as they are nine stories tall and each weigh more than 1,500 tons. This is the first time we have built our own HRSGs, which are some of the largest modular HRSGs ever built.

Speaker #3: For those power plants, we are assembling our heat recovery steam generators, the HERSIGs, off-site at our Morgan City facility in Louisiana. We have now built and transported 5 HERSIGs to CP2.

Speaker #3: You can see one of them arriving, and on the barge at CP2 in the picture here, which is no small task as they are 9 stories tall in each way more than 1,500 tons.

Speaker #3: This is the first time we have built our own HERSIGs, which are some of the largest modular HERSIGs ever built. By taking this scope in-house, and managing it with our internal EPC team, we have removed one of the major bottlenecks in our construction schedule, which should streamline our timeline for the first L&G.

Michael Sabel: By taking this scope in-house and managed by our internal EPC team, we have removed one of the major bottlenecks in our construction schedule, which should streamline our timeline for first LNG. On page 9, we have our bolt-on expansions at CP2 and Plaquemines. In May, we filed an application with FERC for the expansion of CP2, which would be entirely within the existing CP2 footprint. We were pleased to receive a pre-filing waiver from FERC and have already ordered long lead equipment such as power modules and liquefaction trains from our longstanding partners at Baker Hughes. We expect to make a final investment decision on the 10 MTPA expansion in early 2027, with first LNG production at the CP2 expansion in late 2028. For the Plaquemines expansion, you can see the first phase of our bolt-on expansion plans depicted on the slide.

Speaker #3: On page 9, we have our bolt-on expansions at CP2 and Plaquemines. In May, we filed an application with FERC for the expansion of CP2, which would be entirely within the existing CP2 footprint.

Speaker #3: We were pleased to receive a pre-filing waiver from FERC, and have already ordered long lead equipment, such as power modules and liquefaction trains, from our longstanding partners at Baker Hughes.

Speaker #3: We expect to make a final investment decision on the 10 MTPA expansion in early 2027, with first L&G production at the CP2 expansion in late 2028.

Speaker #3: For the Plaqueminese expansion, you can see the first phase of our bolt-on expansion plans depicted on the slide. As previously disclosed, we expect the first phase to include 8 liquefaction trains producing 6.4 MTPA of L&G.

Michael Sabel: As previously disclosed, we expect the first phase to include eight liquefaction trains producing 6.4 MTPA of LNG. We filed to permit the full 31 MTPA expansion of Plaquemines to be constructed in multiple phases late last year, and are targeting FID in the first half of next year, with production from phase one in 2029. To facilitate the expansion of Plaquemines, we expect to build a new pipeline to North Louisiana called Cloud Connector. Once producing from phase one, our run rate production across all three projects is expected to be approximately 85 MTPA. As you can see on page 10, we currently have around 53 of this 85 MTPA committed under long and medium-term contracts. Notably, 100% of our nameplate capacity across our first three projects is contracted.

Michael Sabel: As previously disclosed, we expect the first phase to include eight liquefaction trains producing 6.4 MTPA of LNG. We filed to permit the full 31 MTPA expansion of Plaquemines to be constructed in multiple phases late last year, and are targeting FID in the H1 of next year, with production from phase one in 2029. To facilitate the expansion of Plaquemines, we expect to build a new pipeline to North Louisiana called Cloud Connector. Once producing from phase one, our run rate production across all three projects is expected to be approximately 85 MTPA. As you can see on page 10, we currently have around 53 of this 85 MTPA committed under long and medium-term contracts. Notably, 100% of our nameplate capacity across our first three projects is contracted.

Speaker #3: We filed the permit the full 31 MTPA expansion of Plaqueminese to be constructed in multiple phases, late last year, in our targeting FID in the first half of next year, with production from phase 1 in 2029.

Speaker #3: To facilitate the expansion, of Plaquemines, we expect to build a new pipeline to North Louisiana called Cloud Connector, and once producing from phase 1, a runway production across all 3 projects is expected to be approximately 85 MTPA.

Speaker #3: As you can see on page 10, we currently have around 53 of this 85 MTPA committed under long and medium-term contracts. Notably, 100% of our nameplate capacity across our first 3 projects is contracted.

Speaker #3: The additional 32 MTPA available for marketing is comprised of excess capacity from the addition of the CP2 and Plaquemines Phase 1 bolt-on expansions. We continue to maintain a portfolio approach and anticipate contracting the majority of this capacity through a mix of long-term agreements, to support new financing, and medium-term contracts designed to enhance returns and retain flexibility.

Michael Sabel: The additional 32 MTPA available for marketing is comprised of excess capacity in the addition of the CP2 and Plaquemines phase 1 bolt-on expansions. We continue to maintain a portfolio approach and anticipate contracting the majority of this capacity through both a mix of long-term agreements to support new financing and medium-term contracts designed to enhance returns and retain flexibility. To help understand the portfolio approach I just described and the option value it creates for Venture Global, on page 12, we show the frequency distribution of implied liquefaction fees between the emergence of shale gas into the US market from 2010 to today. As you can see, after adjusting for the cost of gas as well as conservative shipping and logistics costs, the average liquefaction fee would be over $6 per MMBTU.

Speaker #3: To help understand the portfolio approach I just described and the option value it creates for Venture Global, on page 12 we show the frequency distribution of implied liquefaction fees between the emergence of shale gas into the US market from 2010, 2010 to today.

Speaker #3: As you can see, after adjusting for the cost of gas, as well as conservative shipping and logistics costs, the average liquefaction fee would be over $6 per MMBtu.

Speaker #3: While that does include several periods of significantly elevated prices, it also includes the COVID-related downturn of 2020, and even adjusting for those, the median fee would still be nearly twice that of a 20-year contract price, and inevitably those periods of elevated pricing take place a few times a decade.

Michael Sabel: While that does include several periods of significantly elevated prices, it also includes the COVID-related downturn of 2020, and even adjusting for those, the median fee would still be nearly twice that of a 20-year contract price. Inevitably, those periods of elevated pricing take place a few times a decade. This substantial spread with asymmetric extrinsic option value highlights the premium available for short- and intermediate-term contracts in the LNG market. We believe our contracting approach and balanced portfolio provide downside production with the ability to monetize our available LNG capacity at long-term rates, establishing a pricing floor. At the same time, our blended portfolio approach provides flexibility to capture materially better returns on medium-term contracts and remain in a position to harvest outsized returns on shorter-dated contracting during periods of cyclical strength.

Speaker #3: This substantial spread with a semetric extrinsic option value highlights the premium available for short and intermediate-term contracts in the L&G market. We believe our contracting approach and balanced portfolio provide downside production, with the ability to monetize our available L&G capacity at long-term rates establishing a pricing floor.

Speaker #3: At the same time, our blended portfolio approach provides flexibility to capture materially better returns on medium-term contracts, and remain in a position to harvest outsized returns on shorter-dated contracting during periods of cyclical strength.

Speaker #3: These consistently higher blended returns influence our capital allocation decisions, as we believe retaining and monetizing the additional upside option value from a balanced portfolio dramatically enhances the cash flow and absolute value of our L&G assets.

Michael Sabel: These consistently higher blended returns influence our capital allocation decisions as we believe retaining and monetizing the additional upside option value from a balanced portfolio dramatically enhances the cash flow and absolute value of our LNG assets. Turning to page 13. While LNG supply has, of course, been impacted by the events in the Middle East, demand has been resilient. As you can see, most of the substantial Asian markets have experienced a meaningful rebound in imports following the initial impact of elevated prices, with recent months higher on a year-over-year basis. High temperatures in both Asia and Europe have driven greater power demand, and industrial demand from sectors like the fertilizer market has also proven to be inelastic. Importantly, as you can see here, European gas inventories remain well below normal levels, which will likely drive higher winter demand and pricing.

Speaker #3: Turning to page 13, while L&G supply has, of course, been impacted by the events in the Middle East, demand has been resilient. As you can see, most of the substantial Asian markets have experienced a meaningful rebound in imports following the initial impact of elevated prices, with recent months higher on a year-over-year basis.

Speaker #3: A high-temperature in both Asia and Europe have driven greater power demand, and industrial demand from sectors like the fertilizer market has also proven to be inelastic.

Speaker #3: Importantly, as you can see here, European gas inventories remain well below normal levels, which will likely drive higher winter demand and pricing. In fact, Europe is increasingly approaching a point at which it is exposed to severe winter weather, dangerously exposed, both physically and economically.

Michael Sabel: In fact, Europe is increasingly approaching a point at which it is exposed to severe winter weather, dangerously exposed, both physically and economically. Now I'll turn the call over to our CFO, Jack Thayer, who will review the quarterly performance, provide an overview of our project performance, and discuss our updated financial guidance.

Speaker #3: Now I'll turn the call over to our CFO, Jack Thayer, who will review the quarterly performance, provide an overview of our project performance, and discuss our updated financial guidance.

Speaker #2: Thank you, Mike, and good morning to those of you on the line. I'll be referring to the Venture Global Incorporated Form 10-Q for the quarter ended June 30th, 2026.

Jonathan Thayer: Thank you, Mike, and good morning to those of you on the line. I will be referring to the Venture Global, Inc. Form 10-Q for the quarter ended 30 June 2026. The 10-Q is available on our website, and some of the key results are summarized on page 15 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 $4.6 billion for Q2 2026, a $1.5 billion or 48% increase from the $3.1 billion during the equivalent period in 2025. This increase in revenue was driven by $1.3 billion from higher sales volumes, 466 TBTU in Q2 2026, compared with 329 TBTU in Q2 2025, and $102 million from higher net LNG sales prices.

Speaker #2: The 10-Q is available on our website, and some of the key results are summarized on page 15 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 #2: Beginning with revenue, our top line was $4.6 billion for the second quarter of 2026, a $1.5 billion, or 48%, increase from the $3.1 billion during the equivalent period in 2025.

Speaker #2: This increase in revenue was driven by 1.3 billion dollars from higher sales volumes, 466 TBTU in the second quarter of 2026 compared with 329 TBTU in the second quarter of 2025, and 102 million dollars from higher net L&G sales prices.

Speaker #2: Our income from operations was 2.2 billion dollars in the second quarter of 2026, a 1.2 billion dollar or 111% increase from 1.0 billion dollars in the second quarter of 2025.

Jonathan Thayer: Our income from operations was $2.2 billion in Q2 2026, a $1.2 billion or 111% increase from $1.0 billion in Q2 2025. This shift was primarily driven by the higher sales volumes I previously mentioned, augmented by higher LNG sales prices net of the cost of feed gas. Our operating and maintenance costs were $118 million higher respectively year over year through the increased commissioning work at Plaquemines and from more Venture Global-owned ships being in operation. G&A expenses were largely unchanged year over year, despite a larger headcount. Our development costs were lower than the same period last year as we were able to capitalize more costs associated with CP2 and our pipeline and bolt-on expansions.

Speaker #2: This shift was primarily driven by the higher sales volumes I previously mentioned, augmented by higher L&G sales prices net of the cost of feed gas.

Speaker #2: Our operating and maintenance costs were 118 million dollars higher respectively year over year, due to the increased commissioning work at Plaquemines, and from more Venture Global-owned ships being in operation.

Speaker #2: G&A expenses were largely unchanged year over year, despite a larger headcount. Our development costs were lower than the same period last year, as we were able to capitalize more costs associated with CP2 and our pipeline and bolt-on expansions.

Speaker #2: Our net income attributable to common stockholders, which we refer to as net income, was 1.3 billion dollars for the second quarter of 2026, a 979 million dollar or 266% increase from the 368 million in the second quarter of 2025.

Jonathan Thayer: Our net income attributable to common stockholders, which we refer to as net income, was $1.3 billion for Q2 2026, a $979 million or 266% increase from the $368 million in Q2 2025. Higher interest expense was offset by favorable changes in interest rate swaps, and income taxes were higher due to an increase in net income. Shifting to consolidated adjusted EBITDA, we earned $2.5 billion during Q2 2026, a $1.1 billion or 79% increase from $1.4 billion in Q2 2025. This increase in consolidated adjusted EBITDA was driven chiefly by higher sales volumes as well as higher LNG sales prices net of the cost of feed gas. Our EBITDA margin was 54% for the quarter, as higher volumes and better pricing was not accompanied by commensurate increases in costs.

Speaker #2: Higher interest expense was offset by favorable changes in interest rate swaps, and income taxes were higher due to an increase in net income. Shifting to consolidated adjusted EBITDA, we earned $2.5 billion during the second quarter of 2026, a $1.1 billion, or 79% increase, from $1.4 billion in the second quarter of 2025.

Speaker #2: This increase in consolidated adjusted EBITDA was driven chiefly by higher sales volumes, as well as higher LNG sales prices net of the cost of feed gas.

Speaker #2: Our EBITDA margin was 54% for the quarter, as higher volumes and better pricing was not accompanied by commensurate increases in costs. Once again, this quarter our Treasury team was busy, refinancing 5.3 billion dollars since our last earnings call.

Jonathan Thayer: Once again, this quarter our treasury team was busy refinancing $5.3 billion since our last earnings call. In June, we refinanced $2.25 billion of Venture Global, Inc. senior secured notes, and we raised $1.5 billion in vessel financing. In July, together with our partners at WhiteWater, we repriced the $1.07 billion senior secured term loan B. As Mike mentioned earlier, we are expecting our refinancing efforts thus far in 2026 to have saved more than $100 million in annual interest costs and preferred dividend coupons. As you see on page 16, we are providing a consolidated adjusted EBITDA guidance range of $8.7 to $9.1 billion for 2026, which is up from $8.2 to $8.5 billion when we reported in May and conservatively reflects the current market and volatility. This range contemplates a current market liquefaction fee of $12.50 to $13.50 per MMBtu for cargoes remaining to be sold in 2026.

Speaker #2: In June, we refinanced $2.25 billion of Venture Global Incorporated senior secured notes, and we raised $1.5 billion in vessel financing. In July, together with our partners at Whitewater, we repriced the $1.07 billion senior secured term loan B.

Speaker #2: As Mike mentioned earlier, we're expecting our refinancing efforts thus far in 2026 to have saved more than 100 million dollars in annual interest costs and preferred dividend coupons.

Speaker #2: As you see on page 16, we are providing a consolidated adjusted EBITDA guidance range of 8.7 to 9.1 billion dollars for 2026. Which is up from 8.2 to 8.5 billion dollars when we reported in May, and conservatively reflects the current market volatility.

Speaker #2: This range contemplates a current market liquefaction fee of $12.50 to $13.50 per MMBTU for cargoes remaining to be sold in 2026. This conservative range represents a modest discount to the current TTF and JKM forward price expectations.

Jonathan Thayer: This conservative range represents a modest discount to the current TTF and JKM forward price expectations. On average, if fixed liquefaction fees over the remainder of 2026 increase or decrease by $1 per MMBtu, we expect our consolidated adjusted EBITDA range to adjust accordingly by $180 to $210 million, reflecting our accelerated pace of contracting and our 91% contracted position. Lastly, before turning it back to Mike, on page 17, we walk through the capital allocation priorities we laid out last quarter: funding expansion, strategic de-leveraging, and balance sheet optimization and return of capital. First, as we discussed, we are making excellent progress not only in the construction of CP2 but increasingly on the bolt-on additions at both CP2 and Plaquemines, having already made material equity contributions to both expansions. Second, with respect to the balance sheet, I just walked through some of the refinancing measures we have taken.

Speaker #2: On average, if fixed liquefaction fees over the remainder of 2026 increase or decrease by $1 per MMBTU, we expect our consolidated adjusted EBITDA range to adjust accordingly, by 180 to 210 million dollars.

Speaker #2: Reflecting our accelerated pace of contracting and our 91% contracted position. Lastly, before turning it back to Mike, on page 17 we walk through the capital allocation priorities we laid out last quarter.

Speaker #2: Funding expansion, strategic deleveraging, and balance sheet optimization and return of capital. First, as we discussed, we're making excellent progress not only in the construction of CP2, but increasingly on the bolt-on additions at both CP2 and Plaquemines.

Speaker #2: Having already made material equity contributions to both expansions. Second, with respect to the balance sheet, I just walked through some of the refinancing measures we have taken, and through July of this year we have repaid 1.4 billion dollars of debt, including about 1.3 billion dollars of the bridge loan at CP2, and reduced our annual interest and coupon obligations by more than 100 million dollars.

Jonathan Thayer: Through July of this year, we have repaid $1.4 billion of debt, including about $1.3 billion of the bridge loan at CP2, and reduced our annual interest and coupon obligations by more than $100 million. With COD of Plaquemines in Q4 and with the start of production at CP2 next year, we anticipate positive developments with respect to our credit ratings. Lastly, this morning, we announced a 122% increase in our dividend to $0.04 per quarter. Over the longer term, we believe our portfolio of high-return bolt-on opportunities will remain an attractive avenue for future investment. However, the relative scale of the incremental capital investment is expected to decline compared to our growing cash flows, creating more opportunities for other capital allocation priorities. Specifically, we plan to continue to retire and refinance higher-cost capital as bonds mature or are callable.

Speaker #2: With COD of Plaquemines in Q4, and with the start of production at CP2 next year, we anticipate positive developments with respect to our credit ratings.

Speaker #2: Lastly, this morning we announced a 122% increase in our dividend to 4 cents per quarter. Over the longer term, we believe our portfolio of high return bolt-on opportunities will remain an attractive avenue for future investment.

Speaker #2: However, the relative scale of the incremental capital investment is expected to decline compared to our growing cash flows, creating more opportunities for other capital allocation priorities.

Speaker #2: Specifically, we plan to continue to retire and refinance higher cost capital as bonds mature or are callable. We are confident in the resiliency of our cash flows and expect to grow our dividend over time.

Jonathan Thayer: We are confident in the resiliency of our cash flows and expect to grow our dividend over time. Additionally, we may also pursue share repurchases as other incremental means of enhancing shareholder value and returns as our capital program matures. I will now turn the call back over to Mike.

Speaker #2: Additionally, we may also pursue share repurchases as another incremental means of enhancing shareholder value and returns, as our capital program matures. I'll now turn the call back over to Mike.

Speaker #1: Thank you, Jack. At this point, we would like to open up the call for Q&A.

Michael Sabel: Thank you, Jack. At this point, we would like to open up the call for Q&A.

Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Manav Gupta with UBS. Your line is open.

Speaker #3: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand.

Speaker #3: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally, please remember to unmute your device. Your first question comes from the line of Manav Gupta with UBS. Your line, is open.

Speaker #4: Congrats on a good quarter. I just wanted to talk a little bit on also congratulations on raising the dividend. Those things matter, and your comments on potential share buybacks, those are all very positive.

Manav Gupta: Congrats on a good quarter.

Michael Sabel: Thanks, Manav.

Manav Gupta: I just wanted to talk a little about. Also, congratulations on raising the dividend. Those things matter, and your comments on potential share buybacks. Those are all very positive. I wanted to talk a little about your guidance raise. Can you help us understand some of the drivers of the guidance raise? Because the way we are thinking about it, sir, is you started the year at a guidance, and now this guidance is almost 60% higher than your original guidance. So if you can help us understand drivers of the new guidance raise here.

Speaker #4: I wanted to talk a little bit about your guidance raise. Can you help us understand some of the drivers of the guidance raise? Because the way we are thinking about it, sir, is you started the year at a guidance, and now this guidance is almost 60% higher than your original guidance.

Speaker #4: If you can help us understand the drivers of the new guidance raise here.

Speaker #1: Sure. Thanks, Manav. The basis, obviously, of all of it is our the execution by the team and the production at our facilities. And so we continue to be competent of the quality of the continued production that we expect for the balance of the year.

Michael Sabel: Sure. Thanks, Manav. The basis, obviously, of all of it is the execution by the team and the production at our facilities. We continue to be confident of the quality of the continued production that we expect for the balance of the year. I made a few comments about how we were able, through significant maintenance activity, continue to produce well. We highlighted those comments because it really is a pure kind of operational demonstration of the uniqueness of the configuration of our facilities. We have multiple gas turbines, not embedded directly in large liquefaction trains, but in multiple power plants that provide the electricity for electrically driven compressors in our liquefaction train. So it gives us maximum redundancy and availability even through maintenance. So we are pleased to see a demonstration of that execution.

Speaker #1: I made a few comments about how we were able, through significant maintenance activity, continue to produce well. And we highlighted those comments because it really is pure kind of operational demonstration of the uniqueness of the configuration of our facilities.

Speaker #1: Instead of embedding multiple gas turbines directly in large liquefaction trains, we have multiple power plants that provide electricity for electrically driven compressors in our liquefaction trains.

Speaker #1: So it gives us maximum redundancy and availability even through maintenance. So we're pleased to see a demonstration of that execution. We obviously have had a lot of volatility this year.

Michael Sabel: We obviously have had a lot of volatility this year in the macro markets for LNG pricing. The combination of just confidence in production and what we are anticipating conservatively, as Jack said, the markets to look like for the remaining of the year, feel good about increasing the absolute level of the cash EBITDA generated for the year. On the upper end, moving past $9 billion is something that we are very proud of.

Speaker #1: In the macro markets, for LNG pricing, and the combination of just confidence in production and what we are anticipating conservatively as Jack said, the markets to look like for the remaining year feel good about increasing the absolute level of the cash EBITDA generated for the year, which on the upper end, moving past $9 billion is something that we're very, very proud of.

Manav Gupta: Thank you, sir. My second follow-up here is, obviously, the global markets are disrupted. You are one of the few people who is ramping the projects absolutely at the right time, so you can supply more next year. I am just trying to understand, you have quantified on slide 16 the impact of $1 liquefaction on 2026 EBITDA 180 to 10. I am not looking for exact number, but how should we think about this number as things stand? How much would the liquefaction fees $1 movement change 2027 EBITDA? If you could give us some puts and takes on that would be very good. Thank you.

Speaker #4: Thank you, sir. My second follow-up here is obviously the global markets are disrupted. You are one of the few people who is ramping the project's absolutely at the right time, so you can supply more next year.

Speaker #4: I'm just trying to understand, you have quantified on slide 16 the impact of $1 liquefaction on 2026 EBITDA, $182.10. I'm not looking for exact number, but how should we think about this number as things stand?

Speaker #4: How much would the liquefaction fees, $1 movement, change 2027 EBITDA? If you could give us some puts and takes on that, that would be very good.

Speaker #4: Thank you.

Michael Sabel: I think, Manav, on page 23 in the presentation, we actually answer that question for not just 2027, but 2028 and 2029. Do we go to 2030 as well?

Speaker #1: I think, Manav, on page 23 in the presentation, we actually answer that question—for not just '27, but also '28 and '29. And do we go to 2030 as well?

Speaker #2: No, start at '20. We start at 2029.

Jonathan Thayer: No, we stop at 2029.

Michael Sabel: Yeah. And so it-

Speaker #1: Yeah. And so it.

Jonathan Thayer: It is 650 to 700-

Speaker #2: It's 650 to 750, or 700, through '27.

Michael Sabel: Is it? Okay.

Jonathan Thayer: for 2027.

Speaker #1: Yeah. Great. That's a great chart because it shows the magnitude of the growth that's coming just from executing on CP2 and the brownfield expansion at CP2 and the first small expansion at Plaquemines.

Michael Sabel: Yeah. That's a great chart because it shows the magnitude of the growth that's coming just from executing on CP2 and the brownfield expansion at CP2 and the first small expansion at Plaquemines.

Speaker #2: And importantly, Mike, it contemplates the COD at Plaquemines Phases 1 and 2 as well. So, with a greater contracted position, we're still maintaining significant optionality and exposure to the prevailing markets in a positive fashion.

Jonathan Thayer: Importantly, Mike, it contemplates the COD at Plaquemines phases one and two as well.

Michael Sabel: Correct

Jonathan Thayer: With a greater contracted position, we're still maintaining significant optionality and exposure to the prevailing markets in a positive fashion.

Speaker #1: Correct. As of now, we remain on schedule for and expect to be for Plaquemin's CODs phases 1 and phase 2.

Michael Sabel: Correct. As of now, we remain on schedule for, and expect to be, for Plaquemines CODs phases I and phase II.

Speaker #4: Thank you so much.

Manav Gupta: Thank you so much.

Speaker #1: Thanks, Manav.

Michael Sabel: Thanks, Manav.

Speaker #3: Our next question comes from the line of John Mackey with Goldman Sachs. John, your line is open.

Operator: Our next question comes from the line of John Mackay with Goldman Sachs. John, your line is open.

Speaker #1: Good morning, John. Mackey.

Michael Sabel: Good morning, John Mackay.

Speaker #5: Hey, good morning, Mike, team. Appreciate the time.

John Mackay: Hey, good morning, Mike's team. Appreciate the time.

Speaker #1: Sorry.

Michael Sabel: Sorry.

Speaker #5: Morning.

John Mackay: Morning.

Speaker #1: Yep.

Michael Sabel: Yep.

Speaker #5: I wanted to pick up on some of the macro comments. Look, I think the disruption in the Middle East has gone on longer than we all would have anticipated.

John Mackay: I wanted to pick up on some of the macro comments. I think the disruption in Middle East has gone on longer than we all would've anticipated. I'd be curious to hear from you just how your customer conversations have changed over the past, let's say, couple months, and how that is playing into your view around forward-selling cargoes, either on a kind of prompt basis or maybe out to some of these five-year contracts. Thanks.

Speaker #5: I'd be curious to hear from you just how your customer conversations have changed over the past, let's say, couple of months, and how that is playing into your view around forward selling cargoes—either on a kind of prompt basis or maybe out to some of these five-year contracts.

Speaker #5: Thanks.

Speaker #1: So it's a really interesting question. We obviously are thinking about it every day. If you go back to right before the recent conflict started in the Straits of Hormuz, and if you recall, the net spreads in the market that we were realizing were $5 to $6, closer to $6 net spreads.

Michael Sabel: Well, it's a really interesting question. We obviously are thinking about it every day. If you go back to right before the recent conflict started in the Straits of Hormuz, and if you recall, the net spreads in the market that we were realizing were $5 to $6, closer to $6 net spreads prior to shooting. At that point, we were very busy on 20-year contracting activity and discussions, and we have continued to be very busy and are active in actually a significant number of negotiations on the 20-year contract basis. You've seen us do several billion dollars of five-year deals, and we continue to have interactive in those discussions as well, and expect to have multiple deals completed between now and the end of the year. Obviously, that's a forward-looking statement. It's busier.

Speaker #1: Prior to shooting, at that point, we were very busy on 20-year contracting activity and discussions. And we have continued to be very busy and are active in actually a significant number of negotiations.

Speaker #1: On a 20-year contract basis, you've seen us do several billion dollars of five-year deals, and we continue to be active in those discussions as well.

Speaker #1: And we expect to have multiple deals completed between now and the end of the year. Obviously, that's a forward-looking statement. So it's busier. I would say there has been an uptick in interest on the five-year term and less.

Michael Sabel: I would say there has been an uptick in interest on the five-year term and less in the last 90 days. As this conflict has become more difficult to predict, I think there has been a, I was going to say slight, but maybe a little more than slight uptick in shorter-term contracting interest.

Speaker #1: In the last 90 days, so as this conflict has become more difficult to predict, I think there's been a I was going to say slight, but maybe a little more than slight uptick in shorter-term contracting interest.

Speaker #5: I appreciate the thoughts there. Second quick one from me, going back to that kind of forward look—on the volume outlook and the margin impact. The volume impact is up relative to how you framed it last quarter.

John Mackay: I appreciate the thoughts there. Second quick one from me, going back to that kind of forward look on the volume outlook and the margin impact. The volume impact is up relative to how you framed it up last quarter. Can you just walk us through that? Is that FID timing? Is that CP2 in service timing? What are the plus and takes?

Speaker #5: Can you just walk us through that? Is that FID timing? Is that CP2 in-service timing? What are the puts and takes?

Speaker #1: For the increase in the number of cargoes? Is that your.

Michael Sabel: For the increase in the number of cargoes?

Speaker #5: I'm correct. Yeah.

John Mackay: Correct. Yeah.

Michael Sabel: I think it is really just as we continue to progress through the later stages of phase 1 of Plaquemines, our confidence as we continue to operate there gets better. Obviously, we continuously generate mass amounts of processed data as well that supports a lot of our analytics about production, forward production. As we described, I think, in July, we passed our 1,000th cargo. It is just there is a huge increase every month in our operational knowledge that allows us to make those refinements. That includes having views, obviously, on planned maintenance that we perform frequently. As we get through that activity, that also gives us more clarity on what forward production can be. We mentioned a little bit in the comments about increased confidence in warm weather production at Plaquemines, and that is something we are very pleased with, and that is a part of it as well.

Speaker #1: I think it's really just, as we continue to progress through the later stages of Phase 1 of Plaquemines, our confidence as we continue to operate there gets better.

Speaker #1: And obviously, we continuously generate massive amounts of processed data as well. That supports a lot of our analytics about production, forward production. And as we described in, I think, in July, we passed our 1,000th cargo.

Speaker #1: So, it's just that there's a huge increase every month in our operational knowledge. That allows us to make those refinements, and that includes having these, obviously, unplanned maintenance activities that we perform frequently.

Speaker #1: And as we get through that activity, that also gives us more clarity on what forward production can be. We mentioned a little bit in the comments about increased confidence in warm weather production.

Speaker #1: At Plaquemines. And that's something we're very pleased with, and that's a part of it as well.

Speaker #5: All right. That's great. Appreciate the time.

John Mackay: All right. That is great. Appreciate the time.

Speaker #1: Yep.

Michael Sabel: Yep.

Speaker #3: Our next question comes from the line of Ginan Salisbury with Bank of America. Your line is open.

Operator: Our next question comes from the line of Jean Ann Salisbury with Bank of America. Your line is open.

Speaker #1: Good morning, Ginan.

Michael Sabel: Good morning, Jean Ann.

Speaker #6: Hi, good morning. Thanks for the new slide around the historical distribution of the liquefaction fee and the discussion around the balanced portfolio approach. What is kind of your latest thinking around your ideal steady-state mix of long-term contracts, medium-term contracts, and uncontracted in your book?

Jean Ann Salisbury: Hi, good morning. Thanks for the new slide around historical distribution of the liquefaction fee and the discussion around the balanced portfolio approach. What is kind of your latest thinking around your ideal steady-state mix of long-term contracts, medium-term contracts, and uncontracted in your book, and how far away is it from what your mix looks like today?

Speaker #6: And how far away is it from what your mix looks like today?

Speaker #1: So our plan and our target is to largely contract—which we've already done—on the nameplate capacity. We aim to largely contract all of the excess production capacity on a multi-year basis.

Michael Sabel: Our plan and our target is to largely contract, which we've already done in the nameplate capacity, largely contract all of the excess capacity production on a multi-year basis. We have several years of commissioning cargoes, both from CP2 and from the bolt-ons that are coming. Those, for several years, will give us a nice exposure to that upside option value that that slide refers to. Ideally, and we expect to be able to do it, the excess capacity will be largely all contracted on a multi-year basis, where when you look at the total portfolio, we are overweighted in 20-year contracts. While we are going to do more 20-year contracts, our emphasis is going to shift more to much shorter contracts for the balance of that portfolio to drive the much higher price.

Speaker #1: And we have several years of commissioning cargoes both from CP2 and from the bolt-ons that are coming. And those for several years will give us nice exposure to that upside option value that that slide refers to.

Speaker #1: And so, ideally—and we expect to be able to do it—the excess capacity will be largely all contracted on a multi-year basis. When you look at the total portfolio, we are overweighted in 20-year contracts.

Speaker #1: So while we are going to do more 20-year contracts, our emphasis is going to shift more to much shorter contracts for the balance of that portfolio to drive the much higher price.

Speaker #1: And as the data in that slide, we think it's really fascinating, and that it shows— it really explains a lot of the portion occupied by the trading companies that contract and buy from producers and then on-sell to the market.

Michael Sabel: The data in that slide we think is really fascinating in that it shows. It really explains a lot of the portion of the market that's occupied by the trading companies that contract and buy from producers and on-sell to the market. When you look at over the course of that time, many of those traders started out as primarily building and producing their own facilities and volumes. Since then, have grown bigger businesses in contracting from other producers that are taking the balance sheet risk to build that capacity. It's exactly for the math that's shown over the last 16 years here, that there's more than double the value over the last 16 years for having shorter term contracts than the 20-year contracts.

Speaker #1: And when you look at—when you look at, over the course of that time, many of those traders started out as primarily building and producing their own facilities and volumes.

Speaker #1: And since then, have grown bigger businesses and contracting from other producers that are taking the balance sheet risk to build that capacity. And it's exactly for the math that's shown over the last 16 years here.

Speaker #1: That there's more than double the value and over the last 16 years, for having shorter-term contracts than the 20-year contracts. And we think 16 years is a great dataset.

Michael Sabel: We think 16 years is a great data set, and we think that some version of that going forward is going to continue and be reflected in pricing. The combination of us contracting all of our nameplate capacity, which supports investment-grade credit rating treatment at our projects, but retaining more of the extra production capacity that we have on a shorter than 20-year capacity, captures that higher option value and is the right combination of portfolio mix that will maximize the return over time. It's been the case for the last 16 years. We think it will continue, and I think the behavior and activity of the very large trading market demonstrates that the market thinks that's the case, too.

Speaker #1: And we think that that some version of that going forward is going to continue and be reflected in pricing. So the combination of us contracting all of our nameplate capacity, which supports investment-grade credit ratings treatment at our projects, but retaining more of the extra production capacity that we have on a shorter than 20-year capacity, captures that higher option value.

Speaker #1: And it is the right combination of portfolio mix that will maximize the return over time, and it's been the case for the last sixteen years.

Speaker #1: And we think it will continue, and I think the behavior and activity of the very large trading market demonstrates that the market thinks that's the case too.

Speaker #6: That makes sense. Thank you. And did the Plaquemines Phase 1 bolt-on timing FID move up from just, like, 2027 to now, first half of 2027?

Jean Ann Salisbury: That makes sense. Thank you. Did the Plaquemines Phase One bolt-on timing FID move up from like 2027 to now H1 2027? What drove that? Was it customer demand?

Speaker #6: And what drove that? Was it customer demand?

Speaker #1: We've been, for a while, we've been looking at the—we've had our eyes focused on the first half of 2027. We think the customer demand can comfortably support that.

Michael Sabel: For a while, we've had our eyes focused on H1 2027. We think the customer demand can comfortably support that.

Speaker #1: And the constraint is not going to be the timing of the off-take contracts.

Jean Ann Salisbury: Great, thanks.

Michael Sabel: The constraint's not going to be the timing of the offtake contracts.

Speaker #6: Great. Thanks a lot, Mike.

Jean Ann Salisbury: Great. Thanks a lot, Mike.

Speaker #1: Thanks, Ginan.

Michael Sabel: Thanks, Jean Ann.

Speaker #3: Our next question comes from the line of Elvira Scotto with RBC Capital Markets. Your line is open.

Operator: Our next question comes from the line of Elvira Scotto with RBC Capital Markets. Your line is open.

Elvira Scotto: Hey. Hey, good morning, everyone.

Speaker #7: Hey. Hey, good morning, everyone.

Speaker #1: Good morning, Elvira.

Michael Sabel: Good morning, Elvira.

Speaker #7: I just wanted to follow up on a couple of the questions. I guess the first one: on the expansion projects that you are going to do on CP and Plaquemines, what is your targeted contracting strategy there?

Elvira Scotto: I just wanted to follow up on a couple of the questions. I guess the first one, on the expansion projects that you are going to do on Calcasieu Pass and Plaquemines, what is your targeted contracting strategy there? Are those expansion projects going to be long-term contracts or a mix?

Speaker #7: Are those expansion projects going to be long-term contracts, or a mix?

Speaker #1: They'll be that's a great question. It'll be a mix. When you look at the timing that we just described, you'll notice that they come on they come online fairly quickly.

Michael Sabel: That's a great question. It will be a mix. When you look at the timing that we just described, you will notice that they come online fairly quickly. Because they are true brownfields that benefit significantly from the existing installed facilities. The time from FID to production is much shorter, even faster than what we have been able to achieve to date and may in fact set new records on timing. It gives us extra flexibility on the mix of term that we need for the contracts and does not require as many of those to be 20-year contracts. So we will do some 20-year contracts, but it will have more midterm contracts than projects have been able to execute successfully in the past. Generically, the project finance in the LNG business is designed around needing $10 billion to construct facilities and you do not get any revenue or profits for six, seven, eight years on average.

Speaker #1: Because they're true brownfield projects, they benefit significantly from the existing installed facilities. The time from FID to production is much shorter— even faster than what we've been able to achieve to date.

Speaker #1: And may, in fact, set new records on the timing. It gives us extra flexibility on the mix of terms that we need for the contracts.

Speaker #1: And it doesn't require as many of those to be 20-year contracts. So we will do some 20-year contracts, but it'll have more mid-term contracts than projects have been able to execute successfully in the past.

Speaker #1: Generically, the project finance and the LNG business is designed around needing $10 billion to construct facilities, and you don’t get any revenue or profits for six, seven, eight years.

Speaker #1: On average, securitizing 20-year contracts and amortizing construction loan bank debt over 20 years is a requirement to make the math work. When you are 18 to 20 months between FID and production, it's a much different formula and gives you more flexibility in financing.

Michael Sabel: That's securitizing 20-year contracts and amortizing construction loan bank debt over 20 years is a requirement to make the math work. When you are 18 to 20 months between FID and production, it is a much different formula and gives you more flexibility in financing and also creates an opportunity to drive much, much more significant returns on capital.

Speaker #1: And also creates an opportunity to drive much, much more significant returns on capital.

Elvira Scotto: Great. Thank you for that. Then I know you talked about this a little bit, but maybe go into a little bit more detail. You increased your dividend 122% to $0.04 a share. What was the rationale for that increase at this time? Then you talked about your broader capital allocation strategy, but given this increase, how should we think about the dividend going forward?

Speaker #7: Great, thank you for that. And then, I know you talked about this a little bit, but maybe could you go into a little bit more detail?

Speaker #7: You increased your dividend 122% to 4 cents a share. What was the rationale for that increase at this time? And then you talked about your broader capital allocation strategy, but given this increase, how should we think about the dividend going forward?

Speaker #1: A lot of it was largely just that we were significantly below the rest of the group on both an absolute and a percentage yield basis.

Michael Sabel: A lot of it was largely just we were significantly below the rest of the group on an absolute and a percentage yield basis. Even after this increase, that is the case, and that is obviously just because we only recently started a dividend. So it is just part of the catch-up. Our plan is to continue to grow the dividend over time. It is a reflection also of our maturity of our growth in our businesses. As we pass $60 billion in assets, and we feel good about the progress of turning on CP2 and a giant increase in the execution of all the 20-year contracts that are associated with CP2, that we feel very comfortable in absorbing that.

Speaker #1: And even after this increase, that's the case. And that's obviously just because we only recently started a dividend, so it's just part of the catch-up.

Speaker #1: And our plan is to continue to grow the dividend over time. It's also a reflection of the maturity of our growth and our businesses, as we pass $60 billion in assets. We feel good about the progress of turning on CP2 and the significant increase in the execution of all the 20-year contracts that are associated with CP2.

Speaker #1: That we can we feel very comfortable in absorbing that. As Jack described in his comments, in the future too, that could be combined with not just dividend increases, but also potential share buybacks that obviously will be part of the discussion as Jack described.

Jonathan Thayer: As Zack described in his comments, in the future too, that could be combined with not just dividend increases, but also potential share buybacks that obviously will be part of the discussion, as Jack described.

Elvira Scotto: Great. Thank you very much.

Speaker #7: Great. Thank you very much.

Speaker #1: Thank you.

Michael Sabel: Thank you.

Speaker #3: Our next call comes from the line of Zach Van Everen with TPH Research. Your line is open.

Operator: Our next call comes from the line of Zack Van Everen with TPH & Co. Your line is open.

Operator: Our next call comes from the line of Zack Van Everen with TPH Your line is open.

Speaker #1: Good morning, Zach.

Michael Sabel: Good morning, Zack.

Speaker #5: Good morning. Thanks for taking my questions. Maybe, for the first one, we saw Williams sanction a project, the Delta Access Project, that does appear to be heading in the direction of Plaquemines.

Zack Van Everen: Morning. Thanks for taking my questions. Maybe the first one, we saw Williams sanction a project, the Delta Access project, that does appear to be heading the direction of Blackfin. I was curious if that is going to help feed current or future feed gas, or if your own CP Express pipeline is enough on the pipeline side.

Speaker #5: I was curious if that is going to help feed current or future feed gas, or if your own cloud connector pipeline is enough on the pipeline side.

Michael Sabel: Jack, do you want to take that question?

Speaker #1: Zach, do you want to take that question?

Speaker #5: Sure. So, as you surmise, that's headed directly towards our Plaquemines facility, and we would expect that pipeline to connect into our Cloud Connector—our Cloud Connector pipe.

Zack Van Everen: Sure. As you surmise, that is headed directly towards our Blackfin facility, and we would expect that pipeline to connect into our Cloud Connector pipe, and we have capacity on that pipe. Got it. Makes sense. Then maybe around that same theme, we have seen a significant increase in power demand and power projects around Texas and Louisiana. How do you guys think about supply contracts with producers, maybe with longer terms, just to make sure you have not only the FT, but also the supply secured for your contracts into the future?

Speaker #5: And we have capacity on that pipe.

Speaker #1: Got it. Makes sense.

Jonathan Thayer: Got it. Makes sense. Then maybe around that same theme, we have seen a significant increase in power demand and power projects around Texas and Louisiana. How do you guys think about supply contracts with producers, maybe with longer terms, just to make sure you have not only the FT, but also the supply secured for your contracts into the future?

Speaker #5: And then, maybe around that same theme, we've seen a significant increase in power demand and power projects around Texas and Louisiana. How do you guys think about supply contracts with producers?

Speaker #5: Maybe with longer terms, just to make sure you have not only the FT but also the supply secured for your contracts into the future.

Speaker #1: The I'll make some comments from Jack if you want to if I miss if I miss some things, jump in. The we're always in the market negotiating and contracting a mixed blend of gas supply.

Michael Sabel: I will make some comments, and Jack, if I miss some things, jump in. We are always in the market negotiating and contracting a mixed blend of gas supply, and we do it opportunistically. So yeah, we keep careful watch on that. Our view is that there is plenty of gas to support the domestic demand, both for LNG domestic production and also incremental demand that will layer on in years to come from data centers. We are more focused on the interconnect and transportation and pipeline capacity to access the plentiful gas. So you have seen us make significant and meaningful investments in this area, and we will continue to do some of that. That was part of the long-range planning that you saw play out for us with the significant investment in our nitrogen removal unit at CP2. Several of those large units are sitting on foundations.

Speaker #1: And we do it opportunistically. So yeah, we keep a careful watch on that. Our view is that there's plenty of gas to support the domestic demand, both for LNG domestic production and also incremental demand that will layer on in years to come from data centers.

Speaker #1: And we're more focused on the interconnect and transportation and pipeline capacity to access the plentiful gas and so you've seen us make significant and meaningful investments in this area.

Speaker #1: And we'll continue to do some of that. That was part of the long-range planning that you saw play out for us with the significant investment in our nitrogen removal unit at CP2.

Speaker #1: Several of those larger units are sitting on foundations. Last Saturday, I saw the second rolling onto foundations down at CP2. In addition, the longer CPX lateral, which approaches 100 miles down to Silsby, and our beautiful Blackfin pipeline that we partnered with Whitewater on, heads to Katy, and our transportation agreements take us all the way to the Waha.

Michael Sabel: Last Saturday, I saw the second rolling onto foundations down at CP2. In addition, the longer CP Express lateral, which approaches 100 miles down to Silsbee, and our beautiful Blackfin pipeline that we partnered with WhiteWater that heads to Katy and our transportation agreements that take us all the way to the Waha. So we have been focused on this I think a few years ahead of the rest of the market and feel in a very strong position and continue to spend a significant amount of our time on kind of medium and long-term planning on that front. Jack, do you have some add this time?

Speaker #1: And so, we've been focused on this, I think, a few years ahead of the rest of the market and feel in a very strong position. We continue to spend a significant amount of our time and kind of medium- and long-term planning on that front.

Speaker #1: Jack, do you have something to add?

Jonathan Thayer: Just two quick points, Mike. That was a comprehensive answer. First of all, power plants relative to LNG facilities are relatively small consumers of natural gas. I would say roughly less than 10% relative to an LNG facility is consumed at a power plant. I think the other comment I would make is the majority of our pipes are intrastate, which allows us to control 100% of the capacity on those pipes, whether it is our own pipes or whether we are contracting for significant capacity on laterals that connect into our facilities.

Speaker #5: Just two quick points, Mike. There was a comprehensive answer. First of all, power plants relative to L&G facilities are relatively small consumers of natural gas.

Speaker #5: I would say roughly less than 10%. Relative to an L&G facility, is consumed at a power plant. I think the other comment I'd make is the majority of our pipes are in trust state, which allows us to control 100% of the capacity on those pipes, whether it's our own pipes or whether we're contracting for significant capacity on laterals that connect into our facilities.

Speaker #5: So, the amount of dedicated supply and dedicated delivery that's coming to our facilities, we think, gives us a significant competitive advantage relative to others who are not spending the money to build that dedicated connectivity.

Jonathan Thayer: The amount of dedicated supply and dedicated delivery that is coming to our facilities, we think gives us a significant competitive advantage relative to others who are not spending the money to build that dedicated connectivity and are looking to contract on it on a relatively short-term basis and will be more exposed to competing for access to gas over time. We think it is a real strength of our portfolio. Awesome. I appreciate the detailed answer. Thanks, guys.

Speaker #5: And are looking to contract on it on a relatively short-term basis. And we'll be more exposed to competing for access to gas over time.

Speaker #5: We think it's a real strength of our portfolio. Awesome. I appreciate the detailed answer. Thanks, guys.

Speaker #1: Thank you.

Michael Sabel: Thank you.

Speaker #3: Our next question comes from the line of Craig Shear with TUI Brothers Investment Research. Your line is open.

Operator: Our next question comes from the line of Craig Shere with Tuohy Brothers Investment Research. Your line is open.

Speaker #1: Good morning, Craig.

Michael Sabel: Good morning, Craig.

Craig Shere: Good morning. I want to pick up on Jon's contracting question a bit. I want to confirm that the "multiple more deals anticipated by year-end 2026" are indeed 3 to 5 years. Given that kind of increased hedging through decade end, could that position you for more of a multi-year guidance and capital allocation outlook by H1 2027?

Speaker #6: Good morning. I want to pick up on John's contracting question a bit. I want to confirm that the quoted multiple, more deals anticipated by year-end 2026, are indeed three to five years.

Speaker #6: And given that kind of increased hedging through decade end, could that position you for more of a multi-year guidance and capital allocation outlook by the first half of '27?

Speaker #1: So we’re uniquely in the market now, able to talk to customers about almost any term that customers have need for. Because as we are bringing on Plaquemines to COD, we still retain a large volume of capacity that’s not contracted on a 20-year basis.

Michael Sabel: We are uniquely in the market now able to talk to customers about almost any term that customers have need for. As we are bringing on Plaquemines to COD, we still retain a large volume of capacity that is not contracted on a 20-year basis. As CP2 comes online, that is going to increase dramatically. As you will note from our comments in the presentation today, we have what we think are very attractive schedules for the CP2 and Plaquemines bolt-ons to come online in 2028 and 2029 as well. It gives us tremendous availability that we think is having material positive impacts on the price of LNG globally and gas. Yes, we are expecting multiple deals of varied terms this year and next year and the year after, of course.

Speaker #1: And as CP2 comes online, that's going to increase dramatically. As you will note from our comments in the presentation today, we have what we think are very attractive schedules for the CP2 and Plaquemines bolt-ons to come online in 2028 and 2029 as well.

Speaker #1: And so it gives us tremendous availability that we think is having material positive impacts on the price of L&G globally and gas. And so yes, we're expecting multiple deals of varied terms this year and next year and the year after, of course.

Speaker #1: So we've been waiting and watching progress on our projects to get to this point in our growth that would enable us to have that advantage.

Michael Sabel: We have been waiting and watching progress on our projects to get to this point in our growth that would enable us to have that advantage. The slide that shows the option value, what number is that, Ben? What page number is the, I love that. That is my favorite slide in the deck.

Speaker #1: And the slide that shows the option value, what number is that been? What page number is the I love that. So that's my favorite slide in the deck.

Speaker #5: It is slide 12.

Craig Shere: It is slide 12.

Jonathan Thayer: It is slide 12.

Michael Sabel: Slide 12, that shows the data for the last 16 years on what pricing has looked at on an average and a medium basis over that period. It shows that there is tremendous option value in our configuration and execution that frankly, I do not think is captured in our value at all because we, like the rest of the market, have contracted the nameplate capacity of our production. Because of our configuration and our ability to convert the massive amount of data we generate into process engineering that produces significant extra volumes, gives us that upside option value that over time, long periods of time, have proven extremely valuable and well above the long-term contract prices. As you include just construction cost inflation in projected periods, you have additional floor price support that is still coming.

Speaker #1: Slide 12 shows the data for the last 16 years on what pricing is looked at on an average and a median basis over that period.

Speaker #1: It shows that there's tremendous option value in our configuration and execution. Frankly, I don't think that's captured in our value at all, because we, like the rest of the market, have contracted the nameplate capacity of our production. But because of our configuration and our ability to convert the massive amount of data we generate into process engineering, that produces significant extra volumes.

Speaker #1: Gives us that upside option value that, over long periods of time, has proven extremely valuable and well above the long-term contract prices. And as you include just construction cost inflation in projected periods, you have additional floor price support that's still coming.

Speaker #1: So in that, we think that that, as I described earlier in my answer, shows up in the behavior of all the trading companies that continue to grow their contracted portfolios.

Michael Sabel: In that, we think that that, as I described earlier in my answer, shows up in the behavior of all the trading companies that continue to grow their contracted portfolios. Rather than deploying their balance sheet capacity and capital in building mostly new production capacity, they continue to allocate more of their business and contracting from other producers and on selling it at much higher prices than the long-term contract prices. There is a lot of data. I mean, really all the data shows that that, at least in the last 16 years, has been the correct strategy. I answered a lot more than you asked there.

Speaker #1: Rather than deploying their balance sheet capacity and capital in building mostly new production capacity, they continue to allocate more of their business to contracting from other producers and on selling at higher—much higher—prices than the long-term contract prices.

Speaker #1: And there's a lot of data. I mean, really, all the data shows that, at least in the last 16 years, that has been the correct strategy.

Speaker #1: I answered a lot more than you asked there. Sorry, Craig. But in your media training, they tell you to do that, so I covered your question in there.

Craig Shere: Understood.

Michael Sabel: Sorry, Craig. In your media training, they tell you to do that. I answered in there your question.

Craig Shere: We agree with the upside not captured in market value, but believe the three to five-year contracting does start to capture that. To the degree the post Iran conflict, medium-term contracting increases relative to what had been open cargoes, relative to what was shorter-term contracted before. We just felt that that opens up the opportunity to start thinking about a more clarified multi-year outlook that could help unleash some of that upside we were just talking about. Maybe you could kind of provide thoughts on that. To finish off my second question, some of these figures, I think, are starting to bleed together a bit. You mentioned 6 MTPA of medium-term guided contracting, but I think that includes the 0.5 MTPA of foundation Calcasieu Pass contracts. That includes 1 MTPA rolling off in April 2028.

Speaker #6: We agree with the upside not captured in market value, but believe the three to five-year contracting does start to capture that. And to the degree the poster on conflict medium-term contracting increases, relative to what had been open cargoes relative to what was shorter-term contracted before, we just felt that that opens up the opportunity to start thinking about a more clarified multi-year outlook that could help unleash some of that upside we're just talking about.

Speaker #6: Maybe you could provide some thoughts on that, but to finish off my second question—some of these figures, I think, are starting to bleed together a bit.

Speaker #6: You mentioned six MTPA medium-term guided contracting. But I think that includes the 1.5 MTPA of foundation calculation pass contracts. That includes 1 MTPA rolling off in April '28.

Speaker #6: So you could be legging into some nice medium-term margin uplift on a variety of levels here.

Craig Shere: You could be legging into some nice medium-term margin uplift on a variety of levels here.

Speaker #1: No, we agree. And we think about it every day as we plan and schedule our investments in growth. I think the first stop in thinking about the your comments on the multi-year projection is really what the actual physical production capacity curve looks like.

Michael Sabel: No, we agree, and we think about it every day as we plan and schedule our investments in growth. I think the first stop in thinking about your comments on the multi-year projection is really what the actual physical production capacity curve looks like. We load roughly, what are we doing? 43 cargoes a month or so today. That is going to more than double as we turn on CP2 and add these bolt-ons in two and a half years. So that is a massive increase on already a very large LNG production business in a short amount of time to have a doubling in scale. You can layer on multiple pricing scenarios on top of that. On page 23, we are trying to show what that looks like. We are coming upon, as we turn on the facilities, tremendous increase in production capacity.

Speaker #1: We load roughly—what do we do—43 cargoes a month or so today. That's going to more than double as we turn on CP2 and add these bolt-ons in two to two and a half years.

Speaker #1: So, that's a massive increase on an already very large LNG production business. In a short amount of time, to have a doubling in scale is significant.

Speaker #1: And you can layer on multiple pricing scenarios on top of that, and on page 23, we're trying to show what that looks like. And as we turn on the facilities, we're coming upon a tremendous increase in production capacity.

Speaker #1: And we think the way the market—meaning the commercial contracting customer market—is executing their portfolio strategies shows that there's a more bullish view than a pessimistic view on expected prices. We believe this will drive very nice returns—very, very nice returns—on our investments and produce a lot of increases in cash generation in the next few years.

Michael Sabel: We think the way that the market, meaning the commercial contracting customer market, is executing their portfolio strategies shows that there is a more bullish view than a pessimistic view on expected prices that we believe will drive very nice returns on our investments and produce a lot of increases in cash generation in the next few years.

Craig Shere: Thank you.

Speaker #1: Thank you.

Michael Sabel: Thank you.

Speaker #7: Our next question comes from the line of Wade Suki with Capital One. Your line is open.

Operator: Our next question comes from the line of Wade Suki with Capital One. Your line is open.

Speaker #1: Good morning, Wade.

Michael Sabel: Good morning, Wade.

Speaker #8: Good morning, everyone. I appreciate you all taking my questions. I'm just kind of curious if you could maybe discuss what might be holding you back from narrowing the timeline on CP2 startup or moving it forward—what those toggles might be?

Wade Suki: Good morning, everyone. Appreciate y'all taking my questions. I am just kind of curious if you maybe could discuss what might be holding you guys back from maybe narrowing the timeline on CP2 startup or moving it forward, what those toggles might be?

Speaker #1: We're—I mean, these are very large, complex construction projects that have tens of thousands of scopes. And so we're just being disciplined and being conservative. The market—you've seen how we've executed on a timing basis. The first LNG, first Katsu Pass, and Plaquemines were 29 and 30 months, respectively.

Michael Sabel: These are very large, complex construction projects that have tens of thousands of scopes. We are just being disciplined and being conservative. The market, you have seen how we have executed on a timing basis. The first LNG, first Calcasieu Pass and Plaquemines was 29 and 30 months respectively. We have done it before. The first LNG train, as you have heard us say and know, that CP2 is going to be the 55th train that we have done. The teams have executed these configurations a lot now, and it is going extremely well from an execution standpoint. We are just being disciplined and conservative at this point on how we are providing guidance. Obviously, we are very careful when we say the H2 of next year. In our definition, the H2 of next year starts 1 July and goes to 31 December of next year. That is a pretty broad range.

Speaker #1: And so we've done it before. The first LNG train, as you've heard us say and know, at CP2 is going to be the 55th train that we've done.

Speaker #1: So, the teams have executed these configurations a lot now, and it's going extremely well from an execution standpoint. We're just being disciplined and conservative at this point on how we're providing guidance.

Speaker #1: Obviously, we're a very careful when we say the second half of next year. In our definition, the second half of next year starts July 1 and goes to December 31 of next year.

Speaker #1: That's a pretty broad range. And but we're being precise and kind of the language. But we're also sprinkling in and you saw it in the commentary here the data points about the progress at the site.

Michael Sabel: We are being precise in the language, but we are also sprinkling in, and you saw it in the commentary here, the data points about the progress at the site. 28 July, just a few days ago, a little less than two weeks ago, was the one-year anniversary at CP2. Most projects after 12 months may still be finishing engineering and doing test files. We have complete modules sitting on foundations being integrated and having cables pulled. CP2, knock on wood, in addition to our focus on safety, is progressing as well as a LNG facility has ever progressed. We are being disciplined. We obviously know as the market investors contemplate the next couple of years, the significance of the timing of when CP2 turns on. It is certainly tempting for us to provide more detail on it.

Speaker #1: July 28th, just a few days ago—a little less than two weeks ago—was the one-year anniversary at CP2. Most projects, after 12 months, may still be doing finishing engineering and conducting test piles.

Speaker #1: And we have complete modules sitting on foundations, being integrated and having cables pulled. And so CP2—knock on wood—in addition to our focus on safety, is progressing as well as an LNG facility has ever progressed.

Speaker #1: So, we're being disciplined. We obviously know, as the market and investors contemplate the next couple of years, the significance of the timing of when CP2 turns on.

Speaker #1: And so it is certainly tempting for us to provide more detail on it. But for the moment, we're being conservative, but it is going very well.

Michael Sabel: For the moment, we are being conservative, but it is going very well.

Speaker #8: Thanks. Thanks for that, Mike. That all makes sense. So there's some upside to slide 23, is what you're telling me. Switching gears a little bit, if you don't mind.

Wade Suki: Thanks for that, Mike. That all makes sense. So there's some upside to slide 23 is what you're telling me. So switching gears a little bit, if you don't mind, just to maybe dovetail on some of the prior questions on contracting.

Speaker #8: Just to maybe dovetail on some of the prior questions on contracting, and I'm speaking maybe more industry-wide, not poking at you guys specifically here, but seem to be sort of a lack of or fewer longer-term 20-year contracts signed this year, just industry-wide, at least from what I've seen.

Michael Sabel: Yeah.

Wade Suki: I'm speaking maybe more industry-wide, not poking at you guys specifically here, but it seems to be sort of a lack of, or fewer longer-term, 20-year contracts signed this year, just industry-wide, at least from what I've seen.

Michael Sabel: Yeah.

Speaker #8: I'm just wondering if you could maybe give us a little bit more granularity on what your commercial conversations are like, and to the extent you can, sort of parse that out by customer type, region, developed world, and developing world.

Wade Suki: I'm just wondering if you could maybe give us a little bit more granularity on what your kind of commercial conversations are like, and to the extent you can sort of parse that out by customer type, region, developed world, developing world, that would be helpful. Thank you.

Speaker #8: That would be helpful. Thank you.

Speaker #1: There definitely is a rhythm to the conversations with customers—not just for us, but for the whole market. When you do multi-billion-dollar, 20-year contracts, they typically happen after years of conversations.

Michael Sabel: There definitely is rhythm to the conversations with customers, not just for us, but the whole market. When you do multi-billion dollar, 20-year contracts, they typically happen after years of conversations. So they very often are, the timing of concluding those contracts are not being driven by current macro environment, but just the byproduct of multi-year conversations and contract roll-off by utility customers that are doing very long-range planning. So sometimes you can't, and you shouldn't read too much into the macro relationship with contract announcements. For us, the contracting activity has remained very steady all the way from last year to today, and we feel really good about the cadence of those conversations and matching up with how we want to continue to contract our portfolio. It's pretty broadly distributed between Europe and Asia.

Speaker #1: And so, very often, the timing of concluding those contracts is not being driven by the current macro environment, but is just the byproduct of multi-year conversations and contract roll-off by utility customers that are doing very long-range planning.

Speaker #1: And so sometimes you can't, and you shouldn't, read too much into the macro relationship with contract announcements. For us, the contracting activity has remained very steady all the way from last year to today.

Speaker #1: And we feel really good about the cadence of those conversations and matching up with how we want to continue to contract our portfolio. It's pretty broadly distributed between Europe and Asia.

Michael Sabel: Europe was running a little bit ahead, I think, last year of the pace of Asian contracting. I think today the Asian contracting, this is very general, has caught up with the number of and level of interest from Europe.

Speaker #1: Europe was running a little bit ahead, I think, last year, of the pace of Asian contracting. And I think today, the Asian contracting is very general.

Speaker #1: It's caught up with the number and level of interest from Europe.

Wade Suki: Awesome. Thank you again. Appreciate all the color.

Speaker #8: Awesome. Thank you again. Appreciate all the color.

Michael Sabel: Mm-hmm. On the demand side, it remains very positive. You continue to see periodically new announcements on regas terminals and power plants. China continues to make very significant progress in construction of regas terminal capacity. That is a very significant percentage of the total global LNG market. You are starting to see a lot more global announcements of very large-scale data center demand, a large portion of which will be gas-fired electricity.

Speaker #1: The demand on the demand side, it remains very, very positive. You continue to see periodically new announcements on re-gas terminals and power plants. China continues to make very, very significant progress in construction of re-gas terminal capacity.

Speaker #1: That's a very, very significant percentage of the total global LNG market. And you're starting to see a lot more global announcements of very large-scale data center demand, a large portion of which will be gas-fired electricity.

Michael Sabel: There is still a lot of growth coming internationally in our view, on top of the very strong trend being driven by a growing global middle class that has the same typical demands that we have seen over decades as the rest of the world that, as you start with a lot of coal production capacity and layer in more gas on top of it. We see that strong trend continuing and new demand on top of it that will be significant in certain markets for data center demand.

Speaker #1: And so there's still a lot of growth coming internationally, in our view, on top of the very strong trend being driven by the growing global middle class that has the same typical demands that we've seen over decades as the rest of the world. As you start with a lot of coal production capacity and layer in more gas on top of it, we see that strong trend continuing.

Speaker #1: And new demand on top of it that will be significant in certain markets for data center demand.

Speaker #8: Great. All makes sense. Thanks again. Appreciate it. Have a great day.

Wade Suki: Great. All makes sense. Thanks again. Appreciate it.

Speaker #1: Thank you. You too.

Michael Sabel: Thank you.

Wade Suki: Have a great day.

Michael Sabel: You too.

Speaker #2: We have time for one more question. Our final question comes from the line of Sunil Sibal with Seaport Global. Your line is open.

Operator: We have time for one more question. Our final question comes from the line of Sunil Sibal with Seaport Global. Your line is open.

Speaker #1: Good morning, Sunil.

Michael Sabel: Good morning, Sunil.

Speaker #8: Hey, good morning, and thanks for your time this morning. So I wanted to understand a little bit about the longer-term capital allocation strategy. Obviously, you've raised dividends and I think you also talked about share buybacks.

Sunil Sibal: Hey, good morning, and thanks for the time this morning. I wanted to understand a little bit about the longer-term capital allocation strategy. Obviously, you've raised dividends, and I think you also talked about share buybacks, and then you talked about investment-grade at the full consolidated level also in the past. I was curious, especially when you look at stock buybacks versus, say, investment-grade gradings, how do you prioritize those two? Then maybe in the context of that, you obviously have in the capital structure some junior debt also. How do you think about that also in that context?

Speaker #8: And then you've talked about investment-grade at the full consolidated level also in the past, so I was curious—especially when you look at stock buybacks versus investment-grade ratings—how do you prioritize those two?

Speaker #8: And then maybe in the context of that, you obviously have the capital structure—some junior debt also. So how do you think about that also in that context?

Speaker #1: So, as Jack mentioned in his comments, the growth of our LNG production and how that translates in coming years to increased cash generation. As I described a moment ago, in the next couple of years or so, we'll double from our current production capacity.

Michael Sabel: As Jack mentioned in his comments, the growth of our LNG production and how that translates in coming years to increase cash generation. As I described a moment ago, in the next couple of years or so, we'll double from our current production capacity. Even in a pretty broad range of sale contract pricing, we generate a lot of cumulative cash, tens of billions of dollars of cumulative cash in the next few years. It gives us the cash generation that supports continued growth that we've been describing, but it supports investment-grade path at the project levels and at the parent level. It supports dividend growth and supports stock buybacks in the future. It's just the incremental scale of the new production that we've described is just getting smaller on a relative basis to the scale of our earning assets.

Speaker #1: Even in a pretty broad range of sale contract pricing, we generate a lot of cumulative cash, tens of billions of dollars of cumulative cash in the next few years.

Speaker #1: And so, it gives us the cash generation that supports continued growth that we've been describing, but it also supports our investment-grade path. At the project level and at the parent level, it supports dividend growth and supports stock buybacks in the future.

Speaker #1: It's just the incremental scale of the production the new production that we've described is just getting smaller in a relative basis to the scale of our earning assets.

Michael Sabel: We're passing $61, $62 billion of assets. If you look at, I think we've added $8 billion-plus this year and year-on-year basis around $15 billion, and that general path is going to continue for a few years. We just are building a big earning asset base that generates a lot of cash. If you look at our absolute levels, the first cargo we loaded was the first week of March 2022, and here we are in 2026 projecting $9 billion of cash EBITDA this year. That's material. It's a big amount of LNG volume.

Speaker #1: We're passing $61 to $62 billion of assets, and if you look at it, I think we've added $8 billion plus this year, and on a year-on-year basis, around $15 billion.

Speaker #1: And that general path is going to continue for a few years. So we just are building a big earning asset base that generates a lot of cash.

Speaker #1: If you look at our absolute levels, we're our first the first cargo we loaded was the first week of March 2022. And here we are in 2026, projecting 9 billion dollars of cash EBITDA this year.

Speaker #1: That's material. And so it's just a big amount of L&G volume.

Sunil Sibal: Understood. On the arbitration on Calcasieu Pass, any update there? Obviously, you can't comment on ongoing arbitrations, but I was curious, with what we are seeing in the market, does that help or does that change your view in any way in the last few months with regard to settling of some of those ongoing arbitrations?

Speaker #8: Understood. And then on the arbitration on Calcasieu Pass, any update there? Obviously, you can't comment on ongoing arbitrations, but I was curious with what we are seeing in the market, does that help or does that change your view in any way in the last few months with regard to settling of some of those ongoing arbitrations?

Speaker #1: We don't control the schedule of the arbitration processes; those are managed independently from us. Therefore, we expect the resolution of the next one—we thought it would be in the first half of the year.

Michael Sabel: We don't control the schedule of the arbitration processes. Those are controlled away from us. We expect resolution of the next one, we thought it would be in the H1 of the year. We still expect it before the end of the year. Then we have the next one after that. We have a hearing that begins at the end of November, and will extend into next year. Again, if we don't settle. You've seen us obviously settle several of them successfully, and we remain open and constructive on settling what remains outstanding, and we remain optimistic on being successful in working through them.

Speaker #1: We still expect it before the end of the year. And then, after that, we have the next one. We have a hearing that begins at the end of November and will extend into next year.

Speaker #1: Again, if we don't settle, you've seen us obviously settle several of them successfully. And we remain open and constructive on settling what remains outstanding and we remain optimistic on being successful in working through them.

Speaker #8: Okay. Thank you.

Sunil Sibal: Okay. Thank you.

Speaker #1: Thanks, Sunil.

Michael Sabel: Thanks, Sunil.

Speaker #2: We have reached the end of the Q&A session. I will now turn the call back to Mike Sable, CEO, for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Michael Sabel, CEO, for closing remarks.

Speaker #1: Thank you, everyone. We appreciate your time this morning and look forward to answering follow-up questions and look forward to seeing many of you in person in coming months.

Michael Sabel: Thank you, everyone. We appreciate your time this morning and look forward to answering follow-up questions and look forward to seeing many of you in person in coming months.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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