Cheniere Energy expects lower profits as natural gas prices continue their fall



Cheniere Energy, the energy firm with a major natural gas line extending from Oklahoma’s STACK and SCOOP plays and also the biggest U.S. buyer of gas and the biggest U.S. exporter of LNG, forecast a lower core profit for 2024.

Just as Oklahoma City’s Chesapeake Energy lowered its capital expenditures for natural gas exploration because of what’s happened to the natural gas market, Cheniere Energy is under the same kind of financial pressure. Natural gas prices dropped nearly 40% in 2023.

As a result, Cheniere Energy explained it plans to cut 2024 production by nearly 30%.

Cheniere expects adjusted core profit between $5.5 billion and $6 billion for 2024, about 35% lower from the previous year at mid-point and below analysts’ expectations of $6.2 billion, according to LSEG data, reported Reuters.

Cheniere’s profit plunged 65% to $1.38 billion after LNG revenue was cut in half to $4.58 billion when Hernry Hub pricing plunged. The plunge occurred after Cheniere installed its major Midship natural gas pipeline to carry gas from near Kingfisher in Oklahoma’s STACK play and south to the state line.

Cheniere Energy shares dropped nearly 4% in late-week trading.