Cheniere Energy Inc.

Overview Key strengths Key risks Strong contractual profile, with approximately 95% of capacity locked in under long-term offtake agreements with creditworthy counterparties. Bullet maturity bonds represent about 80% of Cheniere Energy Inc.?s (CEI) consolidated capital structure. Although we anticipate bullet debt will be replaced with amortizing structures, the current capital structure exposes the project to some refinancing risk and capital market conditions. Commercially proven design and technology as the largest liquified natural gas (LNG) production and export company in the U.S. Limited geographic diversity due to reliance on only two assets located in the same region. Comprehensive program to obtain natural gas feed stocks and related transportation to comfortably support production commitments at the Sabine Pass Liquefaction LLC (SPL) and

...We expect Cheniere Energy Inc. (CEI) to return to run-rate EBITDA and cash flow generation levels in 2024. CEI saw record LNG export volumes and revenue in 2022 and 2023 resulting from the supply-demand imbalance caused by the Russia-Ukraine conflict and the resulting continued demand from Europe. Demand and prices have normalized partly due to unseasonably warm weather and high global gas storage levels. Henry Hub pricing in the U.S. is currently at historical lows trading below $2.00/mmbtu and reaching as low as $1.50/mmbtu in February 2024. We expect CEI's S&P Adjusted EBITDA to be between $6.0 billion and $6.5 billion for 2024 and 2025 with leverage around 4.0x. CEI used record excess cash flow to complete $6.6 billion in deleveraging during the past two years, supporting the `###' credit rating. The company's EBITDA more than doubled to $11.6 billion in 2022 and $8.8 billion in 2023, from 2021 EBITDA of $4.9 billion. In line with its 1:1 debt/equity capital allocation plan, the company...

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