A Houston-based energy company that turns natural gas into liquefied natural gas (LNG) and ships it worldwide, operating terminals such as Sabine Pass in Louisiana that power utilities and industries across the globe. Founded in 1996 as an oil and gas explorer, it pivoted to LNG and in 2016 became the first company in the lower 48 states to export American gas overseas. Its name comes from the Louisiana French word for a coastal ridge of oak trees found in the marshes where it operates.
Cheniere swings to a $3.1B Q2 profit as a $1.4B non-cash derivative gain reverses last quarter's loss.
Cheniere returned to profitability after a large derivative-driven loss last quarter. rose 23.5% to $5.7 billion and was $14.65, as a $1.4 billion favorable swing in non-cash derivative fair value and higher volumes from new Corpus Christi trains drove the result. The company also moved to shield most of its long-term gas contracts from future swings, a change that will reshape reported earnings going forward.
Key takeaways
attributable to Cheniere was $3.1 billion, up from a $3.5 billion loss in Q1 2026, driven by a $1.4 billion favorable change in the fair value of derivative instruments as global gas price spreads narrowed.
LNG revenues rose $1.1 billion to $5.5 billion, with delivered volumes increasing to 657 TBtu from 558 TBtu as additional trains reached substantial completion.
Total operating costs fell $669 million from Q2 2025, as $944 million in favorable derivative fair value changes recorded in cost of sales more than offset higher natural gas feedstock costs and .
Section summaries
Management's Discussion and Analysis
Cheniere's Q2 2026 net income rose $1.4B driven by favorable derivative fair value changes and higher LNG production from new Corpus Christi trains.
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attributable to Cheniere increased $1.4B in Q2 2026 vs. Q2 2025, primarily due to $1.4B in favorable derivative changes from narrowing global gas spreads.
In June 2026, Cheniere elected the for approximately 73% of its long-term IPM agreement volumes, a change that will significantly reduce future earnings volatility from adjustments on those contracts.
The company repurchased $550 million of shares and paid a $0.555 per share during the quarter, while the Board authorized a $9 billion increase to the program through 2030.
Available liquidity stood at $7.5 billion as of June 30, 2026, including $1.1 billion in cash and $5.96 billion in undrawn commitments.
What changed
The position swung to a $255 million asset from a $1.7 billion liability at the end of Q1 2026, as the narrowing of global gas price spreads reversed the prior quarter's large non-cash charge.
turned positive at $398 million, recovering from negative $193 million in Q2 2025 and $344 million in Q1 2026, as the pace of moderated.
The company's decision to apply the NPNS exception to most directly addresses the earnings volatility from derivative fair value changes that had been flagged as a key risk in every prior period.
What to watch
The fair value of the remaining not designated as NPNS, now a $255 million asset with a 10% gas price move potentially shifting it by $649 million, as global gas spreads evolve.
The pace of remaining construction spend and the timing of substantial completion for the final trains, now expected by the second half of 2026.
Progress on construction and financing following the June 2025 final investment decision, and any impact from U.S. trade policy on LNG exports.
The level of share repurchases in Q3 2026 after the Board authorized a $9 billion increase to the program and $550 million was bought back this quarter.
LNG revenues grew $1.1B in Q2 2026, driven by higher delivered volumes (657 TBtu vs. 558 TBtu) as additional Corpus Christi Stage 3 trains reached substantial completion.
Total operating costs fell $669M in Q2 2026, largely from $944M in favorable derivative changes in cost of sales, partially offset by higher feedstock costs and .
Cheniere designated the for ~73% of its IPM agreement volumes in June 2026, which will reduce future earnings volatility from adjustments.
Available liquidity stood at $7.5B as of June 30, 2026, supported by $5.96B in undrawn commitments and $1.1B in cash.
Capital returns included $550M in share repurchases and $0.555/share in dividends during Q2 2026, with the Board authorizing a $9B increase to the program through 2030.
Quantitative and Qualitative Disclosures About Market Risk
Marketing and Trading Commodity Price Risk We have commodity contracts accounted for as derivative instruments which consist of natural gas and power supply contracts, including certain of our long-term IPM agreements for which we have not designated as NPNS, as described in Not…
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Marketing and Trading Commodity Price Risk
We have commodity contracts accounted for as derivative instruments which consist of natural gas and power supply contracts, including certain of our long-term IPM agreements for which we have not designated as NPNS, as described in Note 1—Nature of Operations and Basis of Presentation, for the commissioning and operation of the Liquefaction Projects and the SPL Expansion Project, as well as the associated economic hedges (collectively, the “Liquefaction Supply Derivatives”) and LNG contracts in which we have contractual net settlement and economic hedges on the exposure to the commodity markets in which we have contractual arrangements to purchase or sell physical LNG (collectively, “LNG Trading Derivatives”). In order to test the sensitivity of the fair value of the Liquefaction Supply Derivatives and the LNG Trading Derivatives to changes in underlying commodity prices, management modeled a 10% change in the commodity price for natural gas for each delivery location and a 10% change in the commodity price for LNG, respectively, as follows (in millions):
June 30, 2026 December 31, 2025
Fair Value Change in Fair Value Fair Value Change in Fair Value
Liquefaction Supply Derivatives $ 255 $ 649 $ 2,865 $ 2,722
LNG Trading Derivatives (57) 17 (17) 1
See Note 5—Derivative Instruments of our Notes to Consolidated Financial Statements for additional details about our commodity derivative instruments.
We are, and may in the future be, involved as a party to various legal proceedings, which are incidental to the ordinary course of business. We regularly analyze current information and, as necessary, provide accruals for probable liabilities on the eventual disposition of these…
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We are, and may in the future be, involved as a party to various legal proceedings, which are incidental to the ordinary course of business. We regularly analyze current information and, as necessary, provide accruals for probable liabilities on the eventual disposition of these matters. There have been no material changes to the legal proceedings disclosed in our annual report on Form 10-K for the fiscal year ended December 31, 2025.