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Cheniere Energy to Report Q2 Earnings: What's in the Offing?
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Key Takeaways
{\"0\":\"LNG is expected to report Q2 earnings of $2.30 per share on revenues of $4.1 billion.\",\"1\":\"Q2 revenues likely rose from added LNG capacity, but higher costs may have hurt earnings.\",\"2\":\"Costs surged 44.7% in Q1 year over year, a trend likely continuing into the second quarter.\"}
Cheniere Energy, Inc. (LNG - Free Report) is set to release second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is $2.30 per share on revenues of $4.1 billion.
Let us delve into the factors that are likely to have influenced the liquefied natural gas (“LNG”) exporter’s performance in the to-be-reported quarter. But it is worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel missed the consensus mark, driven by an increase in operating costs and expenses. Cheniere Energy reported adjusted earnings per share of $1.57, which missed the Zacks Consensus Estimate of $2.81. However, the company’s quarterly revenues of $5.4 billion beat the consensus estimate of $4.4 billion.
LNG’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed in one, resulting in a surprise of 65.2%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 4.2% downward in the past seven days. The estimated figure indicates a 40.1% year-over-year decline. The consensus estimate for revenues, meanwhile, indicates a 27% increase from the year-ago period.
Factors to Consider Ahead of LNG’s Q2 Results
The company forecasts that 2025 and 2026 will be critical years for the supply expansion. After years of sluggish growth, gas supply to U.S. LNG facilities is now gaining momentum. Feed gas for exports is averaging around 16 Bcf per day and expected to rise further as new liquefaction projects come online. By 2029, U.S. projects are set to add more than 80 million tons of new liquefaction capacity to the global market. This supply growth is expected to have acted as a relief valve for Cheniere Energy.
During the second quarter, the company reached a final investment decision for Corpus Christi Midscale Trains 8 & 9 and issued a full construction notice to Bechtel. These two trains, built next to the Stage 3 project, might have added more than 3 million tons per annum (mtpa) of LNG capacity. With debottlenecking and Stage 3, total Corpus Christi LNG capacity is expected to exceed 30 mtpa later this decade. This is also expected to have boosted its revenues in the to be reported quarter.
On a bearish note, the geopolitical and trade issues, along with sharp movements in prices, are expected to continue to present risks to both the top line and the bottom line going forward. Additionally, the increase in Cheniere Energy’s costs is likely to have lowered its bottom line. In the previous three-month period, the company’s total costs and expenses rose 44.7% from the year-ago period. This uptrend is likely to have continued in the second quarter as well.
What Does Our Model Predict for LNG?
The proven Zacks model does not conclusively predict an earnings beat for LNG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.45%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
LNG’s Zacks Rank: LNG currently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some firms from the energy space, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
CLMT is scheduled to release earnings on Aug. 8. Notably, the Zacks Consensus Estimate for Calumet’s current quarter earnings per share indicates 8.33% year-over-year growth. Valued at around $1.3 billion, the company’s shares have gained 35.2% in a year.
Similarly, Plains GP Holdings, L.P. (PAGP - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank of 1 at present. PAGP is slated to release earnings on Aug. 8.
The Zacks Consensus Estimate for Plains’ 2025 earnings per share indicates 205.8% year-over-year growth. Valued at around $3.8 billion, Plains’ shares have gained 7.3% in a year.
HighPeak Energy, Inc. (HPK - Free Report) has an Earnings ESP of +58.33% and a Zacks Rank of 2 currently. It is scheduled to release earnings on Aug. 11.
The Zacks Consensus Estimate for HighPeak Energy’s 2025 earnings per share indicates 2.99% year-over-year growth. Valued at around $1.1 billion, HighPeak Energy’s shares have lost 36.3% in a year.
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Cheniere Energy to Report Q2 Earnings: What's in the Offing?
Key Takeaways
Cheniere Energy, Inc. (LNG - Free Report) is set to release second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is $2.30 per share on revenues of $4.1 billion.
Let us delve into the factors that are likely to have influenced the liquefied natural gas (“LNG”) exporter’s performance in the to-be-reported quarter. But it is worth taking a look at Cheniere Energy’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise History
In the last reported quarter, this Houston, TX-based transporter of super-chilled fuel missed the consensus mark, driven by an increase in operating costs and expenses. Cheniere Energy reported adjusted earnings per share of $1.57, which missed the Zacks Consensus Estimate of $2.81. However, the company’s quarterly revenues of $5.4 billion beat the consensus estimate of $4.4 billion.
LNG’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed in one, resulting in a surprise of 65.2%, on average. This is depicted in the graph below:
Cheniere Energy, Inc. Price and EPS Surprise
Cheniere Energy, Inc. price-eps-surprise | Cheniere Energy, Inc. Quote
LNG’s Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter bottom line has been revised 4.2% downward in the past seven days. The estimated figure indicates a 40.1% year-over-year decline. The consensus estimate for revenues, meanwhile, indicates a 27% increase from the year-ago period.
Factors to Consider Ahead of LNG’s Q2 Results
The company forecasts that 2025 and 2026 will be critical years for the supply expansion. After years of sluggish growth, gas supply to U.S. LNG facilities is now gaining momentum. Feed gas for exports is averaging around 16 Bcf per day and expected to rise further as new liquefaction projects come online. By 2029, U.S. projects are set to add more than 80 million tons of new liquefaction capacity to the global market. This supply growth is expected to have acted as a relief valve for Cheniere Energy.
During the second quarter, the company reached a final investment decision for Corpus Christi Midscale Trains 8 & 9 and issued a full construction notice to Bechtel. These two trains, built next to the Stage 3 project, might have added more than 3 million tons per annum (mtpa) of LNG capacity. With debottlenecking and Stage 3, total Corpus Christi LNG capacity is expected to exceed 30 mtpa later this decade. This is also expected to have boosted its revenues in the to be reported quarter.
On a bearish note, the geopolitical and trade issues, along with sharp movements in prices, are expected to continue to present risks to both the top line and the bottom line going forward. Additionally, the increase in Cheniere Energy’s costs is likely to have lowered its bottom line. In the previous three-month period, the company’s total costs and expenses rose 44.7% from the year-ago period. This uptrend is likely to have continued in the second quarter as well.
What Does Our Model Predict for LNG?
The proven Zacks model does not conclusively predict an earnings beat for LNG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -1.45%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
LNG’s Zacks Rank: LNG currently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some firms from the energy space, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
Calumet, Inc. (CLMT - Free Report) has an Earnings ESP of +49.62% and a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
CLMT is scheduled to release earnings on Aug. 8. Notably, the Zacks Consensus Estimate for Calumet’s current quarter earnings per share indicates 8.33% year-over-year growth. Valued at around $1.3 billion, the company’s shares have gained 35.2% in a year.
Similarly, Plains GP Holdings, L.P. (PAGP - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank of 1 at present. PAGP is slated to release earnings on Aug. 8.
The Zacks Consensus Estimate for Plains’ 2025 earnings per share indicates 205.8% year-over-year growth. Valued at around $3.8 billion, Plains’ shares have gained 7.3% in a year.
HighPeak Energy, Inc. (HPK - Free Report) has an Earnings ESP of +58.33% and a Zacks Rank of 2 currently. It is scheduled to release earnings on Aug. 11.
The Zacks Consensus Estimate for HighPeak Energy’s 2025 earnings per share indicates 2.99% year-over-year growth. Valued at around $1.1 billion, HighPeak Energy’s shares have lost 36.3% in a year.