Cheniere Energy, Inc. (AMEX:LNG) Q2 2023 Earnings Call Transcript - Page 6 of 6 - InvestingChannel

Cheniere Energy, Inc. (AMEX:LNG) Q2 2023 Earnings Call Transcript

Anatol Feygin: Yes and just to follow-up. What is critical for us and things that we look at, Europe this year will add order of magnitude 60 million tons of import capacity. That obviously comes with storage capacity as well. Asia is on track to match that and in the coming years, exceed that. Europe will add 100 million tons overall probably through this build. . Our customers will enjoy and as Zach said, this year and next year and really into the mid-30s, we are overwhelmingly contracted, and they will enjoy very stable pricing and we will enjoy the ability to bring volumes into various markets as those markets send the right price signal. So the way we look at it, the best case scenario is we continue to perform. Our operational excellence continues to deliver these volumes.

Our customers enjoy those stable economics, and the world has the capacity to consume these additional volumes. Could you see more volatility? Sure. But we doubt that you will see a repeat of 2022 anytime soon, and the world will put tools in place to address that.

Jean Salisbury: Great. And just a quick follow-up on the other revenue bucket that you disclosed in your earnings. I think a lot of that has to do with chartering out vessels. Correct me if I’m wrong. But given the outlook that fleet rates are going to continue to move higher, should we expect other revenues bucket to continue to grow?

Zach Davis: I will say we don’t forecast anything that is not firm. So I look at Corey and the team, and we do expect them to take a full advantage of the system and the assets that we have every day looking forward. On top of that, though, we are pretty firm for the rest of this year. I mean we have less than 10 TBTU even open, and some of the upside in the guidance today was things that not only subchartering year-to-date, but some that they locked in for the rest of the year. So there could be some, but it is getting smaller and smaller as we get further along in the year.

Operator: Our final question comes from Chris Tsung with Webber Research.

Chris Tsung: I wanted to just ask if you have noticed any impact from the DOE policy that has reduced the number of viable U.S. LNG projects? And would you anticipate that affecting the cadence of your filing process?

Jack Fusco: No. All of our projects what make our filings are already either fully commercialized or will be — are well on their way to being commercialized. So there is no question of the need, and we should need significant extensions like we did during COVID. .

Chris Tsung: Okay. And just as a follow-up, we are seeing green shoots in the long-term pricing market with prices inching up above like 250 or so. And we also noticed [Nex] (Ph) amended its pricing across several of its SPAs ahead of their FID. Is that something you are seeing as well as you term out your merchant book and commercialize SPLC chart?

Jack Fusco: Yes, you are probably seeing that folks with the previous questions around inflation, they can’t seem to make their numbers without having some price escalation. So that is probably what you are seeing around the market. And it is not easy to get a Greenfield project off the ground.

Jack Fusco: And thanks, everybody. Thanks for your support of Cheniere and we will talk soon. .

Operator: Thank you. Ladies and gentlemen, that will conclude today’s conference. We thank you for your participation. You may disconnect at this time.

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