Cheniere Energy's Mixed Q2 Results: Earnings Decline Amid Lower Gas Prices
Portfolio Pulse from Lekha Gupta
Cheniere Energy (NYSE:LNG) reported mixed Q2 FY24 results with a 21% Y/Y revenue decline to $3.251 billion, missing consensus estimates. Adjusted EBITDA fell 29% Y/Y to $1.32 billion due to lower gas prices and higher long-term contract sales. Despite this, EPS of $3.84 exceeded expectations. The company raised its FY24 adjusted EBITDA and Distributable Cash Flow outlooks and announced a 15% increase in its quarterly dividend starting Q3 2024. Cheniere also signed a long-term LNG sale agreement with Galp Trading. Investors can gain exposure via LNG, LNGG, and LNGZ ETFs.
August 08, 2024 | 4:08 pm
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NEUTRAL IMPACT
Cheniere Energy reported a 21% Y/Y revenue decline and a 29% drop in adjusted EBITDA for Q2 FY24, missing revenue estimates but beating EPS expectations. The company raised its FY24 adjusted EBITDA and Distributable Cash Flow outlooks and announced a 15% increase in its quarterly dividend starting Q3 2024.
The mixed results with a revenue miss but EPS beat, along with raised FY24 outlook and dividend increase, create a neutral short-term impact. Positive long-term outlook may balance short-term concerns.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Cheniere Energy through the Listed Funds Trust Roundhill Alerian LNG ETF (NYSE:LNGG). The ETF may see neutral to slightly positive impact due to Cheniere's raised FY24 outlook and dividend increase.
The ETF's performance is tied to Cheniere Energy, which has a mixed short-term outlook but positive long-term prospects due to raised guidance and dividend increase.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Cheniere Energy through the Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF (NYSE:LNGZ). The ETF may see neutral to slightly positive impact due to Cheniere's raised FY24 outlook and dividend increase.
The ETF's performance is tied to Cheniere Energy, which has a mixed short-term outlook but positive long-term prospects due to raised guidance and dividend increase.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50