Cheniere Energy Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Cheniere Energy, Inc. LNG reported a third-quarter 2025 adjusted profit of $4.75 per share, which beat the Zacks Consensus Estimate of $2.56. The bottom line also increased from the year-ago quarter’s level of $3.93, primarily driven by favorable changes in derivative valuations, higher LNG margins from improved pricing and stronger LNG sales revenues supported by robust operational performance.

Revenues totaled $4.4 billion, missing the Zacks Consensus Estimate of $4.7 billion and increasing 18% from the year-ago quarter’s level of $3.8 billion, driven by about a 21% jump in LNG sales.

Cheniere Energy, Inc. Price, Consensus and EPS Surprise

Cheniere Energy, Inc. price-consensus-eps-surprise-chart | Cheniere Energy, Inc. Quote

For the third quarter of 2025, Cheniere Energy’s board of directors declared a quarterly cash dividend of 55 cents per share, increasing it by over 10% from the prior quarter. The increased dividend will be paid on Nov. 18, 2025, to its shareholders of record on Nov. 7.

The oil and gas storage and transportation company reported consolidated adjusted EBITDA of $1.6 billion in the third quarter of 2025, up about 8% from the year-ago quarter’s level. The growth was primarily driven by an improvement in total margins per MMBtu of LNG shipped and higher volumes of LNG delivered in the reported period compared with the corresponding period in 2024.

During the third quarter of 2025, LNG generated distributable cash flow (DCF) of $1.6 billion and also raised the guidance for full-year DCF to range between $4.8 billion and $5.2 billion.

In October 2025, Cheniere Energy achieved substantial completion of Train 3 of the CCL Stage 3 Project, following Trains 1 and 2 in March and August.

In August 2025, Cheniere Energy announced a long-term LNG sale and purchase agreement between Cheniere Marketing and JERA Co., Inc., under which JERA will buy about 1.0 million tons per annum (mtpa) of LNG from 2029 to 2050 on a free-on-board basis. The LNG price will be linked to the Henry Hub benchmark plus a fixed liquefaction fee.

In July 2025, Cheniere Energy’s subsidiaries initiated the pre-filing review process with the Federal Energy Regulatory Commission for the CCL Stage 4 Expansion Project.

During the third quarter and nine months ended 2025, Cheniere Energy allocated approximately $1.8 billion and $4.4 billion, respectively, under its comprehensive capital allocation strategy. These funds were directed toward accretive growth initiatives, strengthening the balance sheet and enhancing shareholder returns. During the three months and nine months ended in 2025, the company repurchased around 4.4 million and 7.4 million shares for about $1 billion and $1.7 billion, respectively. In addition, Cheniere Energy repaid $52 million of consolidated long-term indebtedness during the third quarter of 2025.

LNG’s Costs & Balance Sheet

Costs and expenses amounted to $2.6 billion for the third quarter, up 24% from the prior-year quarter’s level.

As of Sept. 30, 2025, Cheniere Energy had approximately $1.1 billion of cash and cash equivalents. Its net long-term debt amounted to $22 billion, with a debt-to-capitalization of 66%.

LNG’s 2025 & 2026 Preliminary Guidance

LNG expects to maintain its full-year 2025 consolidated adjusted EBITDA guidance of $6.6 billion to $7 billion. The company also anticipates a raised and adjusted guidance for distributable cash flow to a new range of $4.8 billion to $5.2 billion, from $4.4 billion to $4.8 billion expected earlier.

The 2025 DCF guidance is expected to increase, primarily fueled by the Internal Revenue Service, which issued revised interim rules related to the Corporate Alternative Minimum Tax (CAMT) in September that deferred certain cash tax obligations and entitled the company to a refund of previously paid CAMT.

In 2026, Cheniere Energy expects to produce approximately 51 million to 53 million tons of LNG in total across both Sabine Pass and Corpus Christi. During 2026, the company also expects the substantial completion of Trains 5 through 7.

LNG currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed LNG’s third-quarter results in detail, let us take a look at three other key reports in this space.

San Antonio-based Valero Energy Corporation VLO, a leading independent refiner and marketer of transportation fuels and petrochemical products, reported third-quarter 2025 adjusted earnings of $3.66 per share, which beat the Zacks Consensus Estimate of $2.95. The bottom line improved from the year-ago quarter’s level of $1.16 per share. Better-than-expected quarterly results can be primarily attributed to an increase in refining margins, higher ethanol margins and lower total cost of sales.

The company had cash and cash equivalents of $4.8 billion at the end of the third quarter. As of Sept. 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.2 billion.

Switzerland-based offshore drilling company Transocean Ltd. RIG reported third-quarter 2025 adjusted earnings of 6 cents per share, beating the Zacks Consensus Estimate of 4 cents. The bottom line also improved from the year-ago period’s breakeven earnings. This improvement can be attributed to a strong third-quarter result from the company's segments.

RIG’s total adjusted revenues of $1 billion beat the Zacks Consensus Estimate by $21 million. The top line also increased 8.4% from the prior-year figure of $948 million. This was fueled by higher revenues associated with improved rig utilization, improved revenue efficiency and an increase in day rate for one rig. Ultra-deepwater and harsh environment revenues beat the consensus mark of $684 million and $265 million, respectively.

The oil and gas drilling company spent $11 million on capital investments in the third quarter. Cash provided by operating activities was $246 million. Cash and cash equivalents were $833 million as of Sept. 30, 2025. Long-term debt amounted to $4.8 billion, with a debt-to-capitalization of 37.5% as of the same period.

Newcastle & Houston-based oil and gas equipment and services provider, TechnipFMC plc FTI, reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.

The company’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.

As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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