Cheniere Energy, Inc.

Results of Operations

Consolidated results of operations

Volumes loaded and recognized from the Liquefaction Projects

Components of LNG revenues and corresponding LNG volumes delivered

(1)Long-term agreements include agreements with an initial tenor of 12 months or more.

(2)Includes volumes sold under short-term agreements and volumes sold from natural gas procured under IPM agreements.

Net income attributable to Cheniere

Net income attributable to Cheniere increased $746 million and $597 million for the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, primarily due to $873 million and $596 million of favorable changes in fair value of agreements accounted for as derivative instruments (before tax and the impact of non-controlling interests). The incremental favorable change in fair value of agreements accounted for as derivative instruments between the comparable three and six month periods was primarily attributable to widening market-based locational price differentials for U.S. natural gas deliveries and the relative estimated convergence of applicable global and U.S. domestic natural gas prices, each of which impacted our natural gas and power supply derivatives. Additionally, moderate decreases in prompt global natural gas price indices in the current year, relative to increasing indexed pricing in the prior year, favorably impacted our derivatives related to the sale and purchase of physical LNG. Also contributing to the favorable variances were $294 million and $508 million between the comparable three and six month periods, respectively, of increases in LNG revenues, net of cost of sales and excluding derivatives, primarily as a result of higher pricing per MMBtu, as described below under the caption Revenues.

Partially offsetting these increases were increased tax provisions of $216 million and $228 million for the three and six month periods, respectively, as further explained in Income tax provision below, increased operating and maintenance expenses of $96 million and $118 million for the three and six month periods, respectively, due to the completion of planned large-scale maintenance activities on two trains at the SPL Project during the quarter, and $51 million and $120 million decreases in sublease income from our LNG vessels due to fewer days the LNG vessels were subleased and at lower rates in the current year as compared to the same period of 2024.

The following is an additional discussion of the significant drivers of the variance in net income attributable to Cheniere by line item:

Revenues

The $1.4 billion and $2.6 billion increases in revenues between the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, were primarily attributable to:

•$1.2 billion and $2.2 billion increases in revenues between the three and six month periods, respectively, due to higher pricing per MMBtu from both increased Henry Hub pricing, to which the majority of our long-term LNG sales contracts are indexed, and from international gas pricing; and

•$126 million and $301 million increases in revenues between the three and six month periods, respectively, due to higher volumes of LNG delivered between the periods.

Operating costs and expenses

The $448 million and $1.8 billion unfavorable variances between the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, were primarily attributable to:

•$1.1 billion and $2.0 billion increases in cost of sales excluding the effect of derivative changes between the comparable three and six month periods, respectively, substantially all related to the increases in cost of natural gas feedstock, largely due to the increase in U.S. natural gas prices as further described under the caption Revenues; and

•$96 million and $118 million increases in operating and maintenance expenses between the comparable three and six month periods, respectively, primarily due to the completion of planned large-scale maintenance activities on two trains at the SPL Project during the second quarter and additional expenses as a result of substantial completion of Train 1 of the Corpus Christi Stage 3 Project in March 2025, partially offset by non-recurrence of increased consumables and chemicals cost in the comparable prior periods.

These unfavorable variances were partially offset by $766 million and $327 million of favorable changes in fair value of agreements accounted for as derivative instruments included in cost of sales between the comparable three and six month periods, respectively, with the primary drivers of the variance described above under the caption Net income attributable to Cheniere.

Other income (expense)

The $9 million and $43 million favorable variances between the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, were primarily attributable to:

•$20 million and $57 million decreases in interest expense, net of capitalized interest, between the comparable three and six month periods, respectively, due to $9 million and $30 million increases, respectively, in interest costs qualifying for capitalization, given the higher carrying value of assets under construction, and additionally due to lower gross interest costs due to debt reduction activities associated with our long-term capital allocation plan; and

•$17 million increase in other income, net, between the comparable six month periods primarily from a $26 million gain recognized on the sale of our equity interests in an equity method investment during the three months ended March 31, 2025.

These favorable variances were partially offset by $16 million and $40 million decreases in interest and dividend income between the comparable three and six month periods, respectively, as a result of decreased interest rates and lower average cash and cash equivalents balances between the periods.

Income tax provision

The $216 million and $228 million unfavorable variances between the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, were primarily attributable to increases in our effective tax rate, as described below, as well as a higher tax expense due to $951 million and $792 million increases in pre-tax income, respectively.

Our effective tax rate was 18.3% and 17.6% for the three and six months ended June 30, 2025, respectively, as compared to 15.3% and 13.8% for the same periods of 2024, respectively. Our effective tax rate increased between the comparable periods primarily due to a decreased proportion of our pre-tax income attributable to CQP, which is partially not taxable to us, and a reduced Foreign Derived Intangible Income (“FDII”) deduction. The decrease in the proportion of our pre-tax income attributable to CQP was primarily attributable to favorable changes in fair value of agreements accounted for as derivative instruments as described above under the caption Net income attributable to Cheniere, which were less impactful to CQP’s income as compared to ours. Additionally contributing to the unfavorable variance between the comparable six month periods was an increased tax expense due to a valuation allowance on a capital loss carryover generated on the sale of all of our equity interests in an equity method investment during the three months ended March 31, 2025, as discussed above under the caption Other income (expense). The effective tax rate for the comparable three and six month periods was lower than the statutory rate of 21.0% primarily due to CQP’s income that is partially not taxable to us.

On July 4, 2025, the One Big Beautiful Bill Act(“OBBBA”) was signed into law with significant changes to the Internal Revenue Code that are expected to impact us, including, among other provisions, 100% bonus depreciation on qualifying assets acquired after January 19, 2025 and changes to the FDII deduction rules, renamed to the Foreign Derived Deduction Eligible Income(“FDDEI”) under the OBBBA. The 100% bonus depreciation under the OBBBA is expected to reduce our income tax payable retroactively from the effective date, which will be adjusted in our Consolidated Financial Statements in the third quarter of 2025, the period of enactment. Under law in effect prior to the OBBBA, the effective rate on FDII was scheduled to increase as a result of a decrease in the FDII deduction to 21.875% for tax years beginning after December 31, 2025. Effective for tax years beginning after December 31, 2025, the OBBBA sets the FDDEI deduction at 33.34%, and also eliminates for purposes of FDDEI, the qualified business asset investment provisions and the requirement to apportion certain expenses to foreign derived income. The FDDEI provisions are expected to have a favorable impact on our effective tax rate once effective beginning in 2026. Refer to Liquidity and Capital Resources for the discussion of the effects of the OBBBA on our operating cash flows.

Net income attributable to non-controlling interests

The $11 million and $33 million decreases between the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, were primarily attributable to $17 million and $58 million decreases in CQP’s consolidated net income.

Significant factors affecting our results of operations

Below are significant factors that affect our results of operations.

Gains and losses on derivative instruments

Derivative instruments, which we use to manage certain risks, are reported at fair value in our Consolidated Financial Statements. For commodity derivative instruments, including those related to our IPM agreements, the underlying LNG sales being economically hedged are accounted for under the accrual method of accounting, whereby revenues expected to be derived from the future LNG sales are recognized only upon delivery or realization of the underlying transaction. Notwithstanding the operational intent to mitigate risk exposure over time, the recognition of derivative instruments at fair value has the effect of recognizing gains or losses relating to future period exposure, and given the significant volumes, long-term duration and volatility in price basis for certain of our derivative contracts, the use of derivative instruments may result in continued volatility of our results of operations based on changes in market pricing, counterparty credit risk and other relevant factors that may be outside of our control. For example, as described in Note 5—Derivative Instruments of our Notes to Consolidated Financial Statements, the fair value of the Liquefaction Supply Derivatives incorporates, as applicable, market participant-based assumptions pertaining to certain contractual uncertainties, including those related to the availability of market information for delivery points, which may require future development of infrastructure, as well as the timing of satisfaction of certain events or development of infrastructure to support natural gas gathering and transport. We may recognize changes in fair value through earnings that could significantly impact our results of operations if and when such uncertainties are resolved.

Commissioning volumes

Prior to substantial completion of a Train, amounts received from the sale of commissioning volumes from that Train are offset against LNG terminal construction-in-process, because these amounts are earned or loaded during the testing phase for the construction of that Train and are necessary activities to bring the asset to the condition for its intended use. During the three and six months ended June 30, 2025, we realized offsets to LNG terminal costs of $7 million and $55 million, respectively, corresponding to 1 TBtu and 6 TBtu, respectively, of LNG that were related to the sale of commissioning volumes. We did not record any offsets to LNG terminal costs during the three and six months ended June 30, 2024.

Business Seasonality

Our quarterly results are affected by production levels, timing of our maintenance activities and the resulting availability of volumes. Therefore, operating profit may not be generated evenly throughout the year. Weather variations, including temperature, have an impact on LNG output at our Liquefaction Projects. Our Liquefaction Projects are capable of relatively higher production volumes during the cooler months as compared to the summer months. We typically perform our scheduled major maintenance activities at our sites during shoulder months in the second and third quarters in order to mitigate the impact to our annual operating results.

Additional liquefaction capacities

The Corpus Christi Stage 3 Project and CCL Midscale Trains 8 & 9 Project are currently under construction and are expected to add over 15 mtpa of operational liquefaction capacity, inclusive of estimated debottlenecking opportunities, once all Trains reach substantial completion, of which approximately 14 mtpa is still under construction or commissioning as of June 30, 2025. Substantial completion was achieved for the first Train of the Corpus Christi Stage 3 Project in March 2025. Additionally, first LNG was produced from the second Train of the Corpus Christi Stage 3 Project in June 2025, and substantial completion was achieved in August 2025. The operation and maintenance of these Trains and increased LNG volumes produced are expected to result in higher revenues and operating costs and expenses. However, prior to the commencement of long-term SPAs associated with these volumes, the additional volumes will be sold by our integrated marketing function at prevailing market prices. Additionally, potential expansion projects that increase the amount of LNG volumes produced, including those discussed above in Disciplined Accretive Growth, would also be expected to result in higher revenues and operating costs and expenses.