Cheniere Energy (LNG) Announces Comprehensive Long-Term Capital Allocation Plan

Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its Board of Directors has approved a comprehensive, long-term capital allocation plan (the “Plan”) designed to achieve an investment grade balance sheet, return significant capital to shareholders over time, and continue to invest in accretive organic growth.

• ~$1 Billion of debt paydown per year until investment grade metrics achieved
• Initiating quarterly LNG dividend for Q3 2021 at $0.33/share
• Share repurchases resumed in Q3; Program reset to 3 years $1 Billion in Q4
• Corpus Christi Stage 3 FID expected in 2022

With financial results for 2021 expected at the high end of the guidance ranges, and the substantial completion of Sabine Pass Train 6 now expected in the first quarter of 2022, the Company has reached a cash flow inflection point and expects to generate ~$10 billion of cumulative Distributable Cash Flow1 (“DCF”) through 2024 with annual run-rate DCF of $2.6 – $3.0 billion, enabling execution on the balance sheet, capital returns, and accretive growth priorities. The Plan is designed to achieve a run-rate DCF of $15 – $17 per share on a long-term basis, inclusive of the Corpus Christi Stage 3 Project (“Corpus Christi Stage 3”).

“Over the past five years, we have successfully executed on our operating, commercial and financial goals, which now serve as the foundation for this comprehensive capital allocation plan for Cheniere’s stakeholders. The Plan is built from our guiding principles of maintaining a strong, sustainable balance sheet, funding financially disciplined accretive growth, and returning capital to shareholders through share repurchases and dividends,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “Our accomplishments over the past five years have led us to this point, and the Plan helps ensure Cheniere’s long-term success by strengthening our financial position, commencing meaningful shareholder returns, and committing to our disciplined approach to deploying growth capital.”

Sustainable Balance Sheet and Liquidity

• Plan for ~$1 billion of annual debt repayment, targeting investment grade consolidated credit metrics by the early-to-mid 2020s
• Prioritize repayment of secured callable or maturing project debt to strengthen project credit metrics and lessen subordination of the corporate level credit profiles

Capital Return to Shareholders

• Declaring an inaugural quarterly dividend of $0.33, or $1.32 annualized, per share. The dividend is payable on November 17, 2021 to shareholders of record as of November 3, 2021
• Plan to grow dividend at mid-single digit growth rate, positioning the inaugural dividend approximately in line with the S&P 500 average yield and growth rate
• Reset share buyback program of $1 billion for an additional 3 years beginning in the fourth quarter of 2021. Share repurchases under the previous $1 billion authorization have resumed in the third quarter

Accretive Growth

• Leverage existing LNG infrastructure platform to progress Corpus Christi Stage 3, a ~10+ mtpa shovel-ready brownfield expansion project, towards Financial Investment Decision (“FID”) in 2022 once remaining investment and commercial parameters are met
• Develop further liquefaction growth opportunities at both Sabine Pass and Corpus Christi with a continued commitment to Cheniere’s disciplined investment parameters
• Develop environmental solutions opportunities along the LNG value chain to further enhance the resiliency and sustainability of Cheniere’s assets

“This ‘all of the above’ capital allocation plan provides a long-term strategic financial framework for Cheniere. Under the Plan, we expect to achieve investment grade consolidated credit metrics while funding accretive growth in accordance with our disciplined investment parameters and returning billions of dollars to our shareholders. This Plan not only helps reinforce the long-term sustainability of the business we have built at Cheniere thus far, but significantly enhances our competitive position as we expect to FID Corpus Christi Stage 3 next year and develop further growth for years to come,” said Zach Davis, Cheniere’s Senior Vice President and Chief Financial Officer.

INVESTOR CONFERENCE CALL AND WEBCAST

Cheniere will host a conference call to discuss the capital allocation plan on Tuesday, September 7, 2021, at 5:30 p.m. Eastern time / 4:30 p.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.

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1 Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.

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