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The call presented a materially positive operational and financial picture: record quarterly exports, strong adjusted EBITDA and DCF, upwardly revised full-year guidance, accelerated project execution (Stage 3 and midscale trains), disciplined capital allocation including sizable buybacks and dividend growth targets, and improved credit ratings. Key negatives centered on GAAP net loss driven by mark-to-market derivative volatility, significant near-term market disruption from the Middle East (reducing global LNG supply and increasing price/physical volatility), Europe’s tight storage, and some demand pullback in price-sensitive markets. On balance, the company’s operational progress, guidance upgrade, improved liquidity and capital allocation actions outweigh the challenges from market volatility and accounting-driven GAAP losses.
Cheniere raised its full‑year 2026 guidance to consolidated adjusted EBITDA of $7.25–$7.75 billion (midpoint +$500M) and distributable cash flow (DCF) of $4.75–$5.25 billion (midpoint +$400M), while maintaining CQP distribution guidance of $3.10–$3.40 per common unit; management increased the production forecast by ~1 million tonnes to ~52–54 million tonnes (Q1 production recognized 6.46 TBtu), reported Q1 consolidated adjusted EBITDA of over $2.3 billion and DCF of ≈$1.7 billion, expects under 1 million tonnes (less than ~50 TBtu) of unsold 2026 volumes remaining, and notes that a $1 change in market margins would move full‑year EBITDA by less than ~$50 million—while keeping a $500 million guidance range to reflect risks from train ramp timing (Trains 6/7), production variability, optimization contributions, and Henry Hub volatility, with Q1 likely the lowest quarter and Q4 likely the highest as ramp and seasonality unfold.
Generated consolidated adjusted EBITDA of over $2.3 billion and distributable cash flow (DCF) of approximately $1.7 billion in Q1 2026; adjusted net income (after excluding unrealized non-cash derivative impacts) of ~ $1 billion for the quarter.
Raised full-year 2026 guidance to $7.25–$7.75 billion consolidated adjusted EBITDA (midpoint up $500 million) and $4.75–$5.25 billion DCF (midpoint up $400 million) driven by ~1 million tonne increase in production forecast and higher marketing margins/optimizations.
Exported a record 187 cargoes through March (surpassing Q4 2025 record); recognized 6.46 TBtu of LNG produced in the quarter; 2026 production forecast increased by ~1 million tonnes to ~52–54 million tonnes.
CCL Stage 3 ~97% complete with Train 5 substantial completion in March and Trains 6 and 7 tracking ahead of schedule (Train 6 first LNG expected imminently). Midscale Trains 8 & 9 and debottlenecking ~37% complete; piling nearly complete (~8,000 piles) and initial structural steel erected.
Repurchased ~2.7 million shares for ≈$535 million in Q1; declared dividend of $0.555 per share (~$116 million payout this quarter); Board approved a new ~$9 billion repurchase authorization and management reiterated multi-year buyback targets.
Issued $1.0 billion (2030) and $0.75 billion (2056) notes to extend maturities (inaugural 30-year issuance), prepaid $550 million on term loan, cancelled $600 million of unused commitments, repaid >$250 million of debt, and maintained consolidated cash of ~$1.8 billion plus significant undrawn revolver/term-loan capacity.
Moody’s upgraded unsecured notes at CEI and CCH (to Baa2 and Baa1 respectively), resulting in high-BBB project ratings and mid-BBB or better at corporate levels across agencies—supporting investment-grade positioning.
Over 35 long-term, creditworthy counterparties; team reduced open 2026 unsold volumes to <1 million tonnes (less than 50 TBtu), limiting full-year margin exposure (company estimates $1 change in market margins impacts EBITDA by < $50 million).
Thank you for standing by. Good day, and welcome to the First Quarter 2026 Cheniere Energy, Inc. Earnings Call and Webcast. Today's conference is being recorded. At this time, I would like to turn the conference over to Randy Bhatia, Vice President of Investor Relations and Communications. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Cheniere Energy, Inc.’s First Quarter 2026 Earnings Conference Call. The slide presentation and access for the webcast for today's call are available at cheniere.com. Before we begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements and actual results could differ materially from what is described in these statements. Slide 2 of our presentation contains a summary of those forward-looking statements and associated risks. In addition, a reconciliation of non-GAAP measures to the most comparable GAAP measure can be found in the presentation appendix. The call agenda is shown on slide 3. After prepared remarks from Jack, Anatol, and Zach, we will open the call for Q&A.
I will now turn the call over to Jack A. Fusco, Cheniere Energy, Inc.’s President and CEO.
Thank you, Randy, and good morning, everyone. Thank you for joining us today as we review our results from the first quarter of 2026 and our improved outlook for the full year. Certainly, a lot has changed since our last earnings call, which took place just before the start of the war in Iran. What has unfolded in the wake of that operation is another major shock in the global energ...