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    Cheniere plans for first shareholder returns

Summary

The company is looking to expand its LNG capacity along the US Gulf Coast.

by: Daniel Graeber

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Cheniere plans for first shareholder returns

US LNG company Cheniere Energy announced September 7 that its board backed a long-term capital allocation plan meant to return capital to its shareholders.

Cheniere operates the LNG export terminals at Sabine Pass in Louisiana and Corpus Christi in Texas, with production capacity of around 45mn metric tons/year of LNG either in operation or under construction.

The company said it expects full-year 2021 results to come it at the high end of its expectations. It plans now for about $1bn in annual debt repayment and envisions a quarterly dividend of around $0.33/share payable in November, a first. Dividends could grow moving forward at the “mid-single digit” rate, the company added.

“Over the past five years, we have successfully executed on our operating, commercial and financial goals, which now serve as the foundation for this comprehensive capital allocation plan for Cheniere’s stakeholders,” said Jack Fusco, Cheniere’s CEO.

Part of its plan, meanwhile, is to advance a third phase of operations at Corpus Christi, which was described as a 10 mt/yr “shovel-ready” project, toward a final investment decision in 2022. Train 6 at Sabine Pass is expected to be finished by the first half of next year.

About 85% of the total $1.9bn in revenue during the three months ending June 30 came from LNG, Cheniere said. Total revenue improved 28% from the same period last year. Ebitda, however, declined 18% from the $846mn posted during Q2 2020.