Cheniere Energy (NYSE:LNG) reported fourth-quarter and full-year 2025 results that management said capped a “record year” for LNG production and delivered financial performance at the high end of guidance, while also extending its shareholder return framework and outlining progress on multiple brownfield expansion projects.
2025 results: record production and guidance outperformance
CEO Jack Fusco said the company generated approximately $2.0 billion of consolidated adjusted EBITDA in the fourth quarter and $6.94 billion for full-year 2025, “at the high end” of its guidance range. Distributable cash flow (DCF) was approximately $1.5 billion in the quarter and approximately $5.3 billion for the year, which management said was about $100 million above the top end of guidance. Net income totaled approximately $2.3 billion in the quarter and over $5.3 billion for the year.
CFO Zach Davis said the company’s DCF and EBITDA outperformance versus guidance was driven by further optimization locked in during the fourth quarter, higher lifting margin due to higher year-end Henry Hub pricing, and certain end-of-year cargoes being delivered in 2025 rather than early 2026. Davis also pointed to higher production volumes versus 2024 tied to the substantial completion of Trains 1 through 4 at Corpus Christi Stage 3, which he said “almost doubled” spot capacity year-over-year from approximately 2 million tons to approximately 4 million tons. Cheniere said it proactively locked in those 2025 spot volumes at “over $8 per MMBtu margins on average.”
2026 guidance: higher production, lower spot margins
Cheniere introduced 2026 guidance calling for:
- Consolidated adjusted EBITDA: $6.75 billion to $7.25 billion
- Distributable cash flow: $4.35 billion to $4.85 billion
- CQP distributions per common unit: $3.10 to $3.40
Management said the 2026 outlook reflects higher production from a full year of Stage 3 Trains 1 through 4, the substantial completion of Trains 5 through 7 over the course of 2026, and higher contracted volumes as new long-term contracts start. Those positives are expected to be partially offset by lower spot cargo margins as prices moderate.
Davis said 2026 includes a one-time benefit from confirmation of an alternative fuel tax credit in the first quarter, contributing “over $300 million” to EBITDA and DCF in cost of sales. He also forecast total production of approximately 51 million to 53 million tons across Cheniere’s two sites, up around 5 million tons year-over-year, inclusive of planned maintenance and resiliency efforts.
On contracted exposure, Davis said Cheniere expects approximately 46 million to 47 million tons of 2026 volumes under long-term contracts, about 1 million tons of commissioning timing volumes, and more than 4 million tons forward sold by Cheniere Marketing International (CMI) to date. He said that leaves less than 1 million tons of unsold open capacity in 2026 and that a $1 change in market margins would impact EBITDA by “less than $50 million” for the full year.
Contracting update: new long-term SPA with CPC Taiwan
Cheniere also announced a new long-term sale and purchase agreement with CPC Corporation, Taiwan for up to 1.2 million tons per annum on a delivered basis. Management said the agreement commences later in 2026 and extends through 2050. Chief Commercial Officer Anatol Feygin described CPC as a repeat customer and said the deal includes “bespoke components,” consistent with Cheniere’s strategy of offering tailored products rather than commoditized structures.
During Q&A, management said the CPC contract begins mid-year and includes flexibility tied to debottlenecking. Feygin also said Cheniere remains comfortable with liquefaction fees in the $2.50 to $3.00 range and indicated the company has been contracting “comfortably above the midpoint” of that range, while noting that broader market economics for U.S. LNG are “below that level.”
Growth projects: Stage 3 nearing completion; expansion projects progressing
Fusco said construction at Corpus Christi Stage 3 is approximately 95% complete, with substantial completion of Trains 3 and 4 in the fourth quarter. He reiterated expected substantial completion timing for Trains 5, 6, and 7 in spring, summer, and fall, respectively, and added that first LNG at Train 5 was achieved “this week.”
On Corpus Christi Midscale Trains 8 and 9, Fusco said groundwork and site preparation continue with piling and fabrication work underway; he noted piling is “already halfway complete,” with all piles for Train 8 set, and forecast substantial completion in 2028.
For the Sabine Pass Liquefaction (SPL) expansion, Fusco said Cheniere is advancing toward permits by the end of this year and targeting FID on the first phase in 2027. He said the company is working on costs with Bechtel, pursuing permitting, and preparing the Cheniere Energy Partners (CQP) complex for conservative project financing. At Corpus Christi, management said the expansion is progressing with a Phase One FID timeline “approximately six months to a year behind” SPL, following submission of a full FERC application earlier in the month.
Management said Phase One expansions at both sites would provide “line of sight” to grow Cheniere’s LNG platform by approximately 50% from today, with long-term planning targeting total capacity of about 75 million tons per year.
Capital allocation: plan completed early, buyback authorization extended
Cheniere said it has completed its “2020 Vision” capital allocation plan ahead of schedule, deploying over $20 billion and reaching over $20 per share of run-rate DCF. Davis said that during 2025 the company paid out about 60% of DCF through share repurchases and dividends, repurchasing 12.1 million shares for approximately $2.7 billion. Shares outstanding were approximately 212 million at year-end, and Davis said the company was down to around 210 million shares as of last week.
The board increased the share repurchase authorization to enable over $10 billion of repurchases through 2030, after approving a $9 billion increase. Davis said the company remains committed to growing its dividend by approximately 10% annually through the end of the decade and discussed a longer-term objective to reset run-rate DCF per share to approximately $30 by decade end, tied to share repurchases and the first phases of expansion at both sites.
On the balance sheet, Davis said Cheniere repaid $652 million of long-term debt in 2025 and paid down the remaining $200 million of SPL 2026 notes earlier this month, leaving “no debt maturities anywhere in the Cheniere complex until 2027.”
About Cheniere Energy (NYSE:LNG)
Cheniere Energy, Inc is a U.S.-based energy company that develops, owns and operates liquefied natural gas (LNG) infrastructure and markets LNG to global customers. The company’s core activities include natural gas liquefaction, long?term and short?term LNG sales and marketing, and the associated midstream services required to move gas from production basins to international markets. Cheniere focuses on converting domestic natural gas into LNG for export, providing a bridge between North American supply and overseas demand.
Cheniere’s principal operating assets are large-scale LNG export terminals located on the U.S.
