Cheniere Energy expects to generate over $9B available cash through 1H24
Cheniere Energy announced that its Board of Directors has approved a comprehensive capital allocation framework for the company that prioritizes reinvestment of cash flows to grow Cheniere's LNG platform, achievement of improved credit metrics for the company's liquefaction project entities and on a consolidated basis, and return of excess capital to shareholders through a framework that provides the Company flexibility to adapt to changes in growth opportunities and market conditions. Cheniere expects to generate over $9B of available cash through the first half of 2024. The capital allocation framework provides for the following allocation through the forecast period of approximately five years: Growth Investments - Reinvest cash flows to fund accretive projects using at least 50% equity funding, Sabine Pass Train 6 - Over 50% equity investment, Corpus Christi Stage 3 - At least 50% equity investment for expansion project adjacent to the Corpus Christi Liquefaction Project with total expected nominal production of approximately 9.5 million tonnes per annum, for which a positive Final Investment Decision is expected as early as 2020. Debottlenecking Projects - capital investments to increase production of existing liquefaction platform Balance Sheet - Ensure resiliency of investment grade ratings at liquefaction project entities and move toward an investment grade corporate rating for Cheniere. Leverage - proactively reduce consolidated debt and achieve an investment grade debt to Consolidated Adjusted EBITDA ratio. Capital Return - Platform that enables meaningful capital return to shareholders while maintaining flexibility for Cheniere/ Share Repurchase Authorization - 3-year, $1B share repurchase authorization approved by Cheniere's Board of Directors.