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 long-term IPM agreements.

Net income (loss) attributable to Cheniere

Net income (loss) attributable to Cheniere declined by $3.9 billion during the three months ended March 31, 2026 as compared to the same period of 2025, primarily due to $4.8 billion of unfavorable changes in the fair value of agreements accounted for as derivative instruments (before tax and the impact of NCI), largely associated with our long-term IPM agreements. These increased losses were primarily attributable to widening spreads between global and U.S. domestic natural gas benchmarks and elevated global natural gas price volatility influenced in part by the tightening supply conditions, transit constraints and heightened geopolitical uncertainties from the conflict and instabilities across parts of the Middle East during 2026. Partially offsetting these losses was $462 million of favorable change in income tax provision (benefit), the recognition of $370 million in tax credits and a $225 million decrease in net income attributable to NCI.

Our operating results, excluding these items discussed above, were favorable during the three months ended March 31, 2026 as compared to the same period of 2025 due to higher total margins primarily from higher volumes delivered, which increased by 66 TBtu, largely due to the first four Trains of the Corpus Christi Stage 3 Project in operation throughout the three months ended March 31, 2026 as compared to the first Train of the Corpus Christi Stage 3 Project in operation for only half a month during the same period in 2025 and from contributions from optimization activities, and to a lesser degree from the relative portion of our cargoes sold that is subject to global LNG pricing.

Continued tightening of global natural gas and LNG supply conditions, including upstream production constraints, liquefaction capacity limitations and shipping and transit disruptions in the Middle East, together with heightened geopolitical uncertainties in key producing and consuming regions, may result in sustained volatility in global natural gas and LNG prices. Such volatility, along with fluctuations in regional price differentials, could materially impact our results of operations, cash flows and financial condition, particularly from LNG sales under spot or short-term agreements indexed to global prices. Additionally, the potential impacts of sustained volatility in global natural gas and LNG prices may also affect the fair value of our agreements accounted for as derivatives, particularly those indexed to global natural gas benchmarks.

The following is an expanded discussion of the material drivers of the variance in net income (loss) attributable to Cheniere:

Revenues

The $424 million increase in total revenues during the three months ended March 31, 2026 as compared to the same period of 2025 was primarily attributable to:

•1.3 billion increase primarily due to higher pricing per MMBtu from increased Henry Hub pricing, to which the majority of our long-term LNG sales contracts are indexed, as well as higher volumes of LNG delivered as LNG revenues between the periods; partially offset by:

•$952 million of unfavorable changes in the fair value of agreements accounted for as derivative instruments included in revenues, as further described above under the caption Net income (loss) attributable to Cheniere.

Operating costs and expenses

The $4.9 billion increase in total operating costs and expenses during the three months ended March 31, 2026 as compared to the same period of 2025 was primarily attributable to:

•$4.2 billion of unfavorable changes in the fair value of agreements accounted for as derivative instruments included in cost of sales indexed to global natural gas and LNG prices, primarily related to our long-term IPM agreements, as further described above under the caption Net income (loss) attributable to Cheniere, partially offset by a $316 million favorable change in the fair value of other agreements accounted for as derivative instruments included in cost of sales, largely due to changes in market-based locational forward price differentials for North American natural gas deliveries;

•$1.2 billion increase in the cost of natural gas feedstock, largely due to the increase in U.S. natural gas prices and increased volume of LNG delivered; partially offset by:

•$370 million reduction to cost of sales from the recognition of tax credits during the three months ended March 31, 2026, as further discussed in the Liquidity and Capital Resources section of ourannual report on Form 10-K for the fiscal year ended December 31, 2025.

Income tax provision (benefit)

The $462 million of favorable variance in income tax provision (benefit) during the three months ended March 31, 2026 as compared to the same period of 2025 was primarily attributable to a lower income tax expense due to a $4.5 billion decrease in pre-tax income (loss) as well as the change in our effective tax rate, as further described below.

Our effective tax rate was 9.1% and 15.3% during the three months ended March 31, 2026 and 2025, respectively, due to a decline in our pre-tax income (loss) and the proportion of such pre-tax income attributable to CQP, which is partially not taxable to us. The effective tax rate for each of the comparable three month periods were lower than the statutory rate of 21.0% primarily due to CQP’s income that is partially not taxable to us.

Net income attributable to NCI

The $225 million decrease in net income attributable to NCI during the three months ended March 31, 2026 as compared to the same period of 2025 was primarily attributable to a $455 million decrease in CQP’s consolidated net income primarily from unfavorable changes in the fair value of agreements accounted for as derivative instruments.

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, unless they satisfy criteria for, and we elect, the normal purchases and normal sales exception which applies the accrual method of accounting. For commodity derivative instruments, including those related to our long-term 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 months ended March 31, 2026 and 2025, we realized offsets to LNG terminal costs of $47 million corresponding to 6 TBtu of LNG and $48 million corresponding to 5 TBtu of LNG, respectively, that was related to the sale of commissioning volumes associated with the Corpus Christi Stage 3 Project.

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 8 mtpa is still under construction as of March 31, 2026. As of March 31, 2026, the first five Trains of the Corpus Christi Stage 3 Project were in operation, while as of March 31, 2025, only the first Train of the Corpus Christi Stage 3 Project was in operation. 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.

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.