Cheniere Energy reported Q4 2025 results that surpassed expectations, with revenue of $5.45 billion and net income of $2.30 billion, translating to earnings per share of $10.68. The earnings beat was driven by a $1.6 billion non‑cash gain from derivative instruments, strong volume growth, and disciplined cost management that helped maintain margins despite higher input costs.
Adjusted EBITDA for the quarter rose to $1.60 billion, an increase of roughly 12% from the prior year. The improvement was largely attributable to higher LNG volumes, while the per‑MMBtu margin contracted slightly because of a shift toward lower‑margin contracts and higher fuel costs. The company’s operating leverage continued to support profitability as it scales its liquefaction capacity.
Cheniere’s subsidiary, Cheniere Marketing International LLP, signed a long‑term sale‑and‑purchase agreement with CPC Corporation, Taiwan, for up to 1.2 million tonnes per annum of LNG on a delivered basis. The contract begins in 2026 and runs through 2050, with pricing indexed to Henry Hub spot prices and an additional fixed fee per shipment. The deal adds a multi‑decade revenue stream and expands Cheniere’s presence in the Asian market, reinforcing its position as a leading U.S. LNG exporter.
The company also announced a significant expansion of its share‑repurchase authorization, increasing the program to over $10 billion through 2030—a $9 billion increase from the prior authorization. The move signals management’s confidence in the company’s cash‑flow generation and its commitment to returning capital to shareholders.
Cheniere provided guidance for fiscal 2026, projecting consolidated adjusted EBITDA of $6.75 billion to $7.25 billion and distributable cash flow of $4.35 billion to $4.85 billion. The guidance reflects expectations of continued demand growth in the LNG market and the company’s ability to leverage its expanded capacity, including the first LNG production from Train 5 of the Corpus Christi Stage 3 project, which began in February 2026 and was 94.1% complete as of December 31 2025.
Management highlighted the significance of the new contract, stating, "We are pleased to enter into another long‑term SPA and build upon our successful long‑term relationship with CPC, a leader in the global LNG market and another repeat customer of Cheniere." He added, "This SPA will further enhance CPC's capability to serve Taiwan's long‑term energy priorities, while also providing additional commercial support for Cheniere's brownfield liquefaction capacity developments. We are proud that our operational excellence, reliability and customer focus contributed to this major expansion of our commercial relationship. We look forward to providing our secure and reliable LNG to CPC into the second half of this century under this new long‑term agreement."
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