Unknown Analyst's questions to Cheniere Energy Inc (LNG) leadership • Q4 2024
Question
An analyst from Wolfe Research inquired about the extent of optimization gains seen year-to-date from shipping and gas procurement. They also asked about current pricing levels for long-term SPAs and whether rising new-build costs are creating upward pressure.
Answer
EVP and CFO Zach Davis stated that while most optimization is not in initial guidance, over $100 million has already been locked in for 2025. EVP and CCO Anatol Feygin addressed SPA pricing, confirming it is at or above the historical range due to cost pressures, and noted Cheniere can command a premium due to its operational reliability. Mr. Davis added that Cheniere's brownfield advantages allow them to remain cost-competitive and meet investment hurdles despite rising industry costs.