Cheniere Energy Offers Returns to Shareholders and Incremental Growth

Cheniere Energy sits between North American natural gas producers and global LNG consumers. It seeks to strike long-term purchase agreements with both producers and consumers alike. Long-term purchase agreements allow the firm to lock in a consistent spread between the cost of gas and the fees it charges customers—90% of all volumes Cheniere produces are linked to these arrangements. These agreements, in part pioneered by Cheniere, last two decades. Both their long duration and strength give investors high confidence in their cash generation.