The announcements are part of the LNG exporter’s ‘20/20 Vision’ capital allocation plan introduced in 2022. (Source: Shutterstock)
Cheniere Energy Inc.’s board of directors approved a $4 billion increase to its share repurchase authorization through 2027, the company announced June 17.
Cheniere will also be increasing its quarterly dividend by approximately 15% to $2 per share annualized. The increase will start with the company’s third quarter dividend.
The announcements are part of the LNG exporter’s ‘20/20 Vision’ capital allocation plan introduced in 2022.
Since the implementation of the plan, Cheniere has repurchased approximately 10% of shares outstanding and completed 60% of its Corpus Christi Stage 3 Project.
“These increases reflect the continued follow through with our ‘20/20 Vision’ capital allocation plan,” said Zach Davis, Cheniere’s executive vice president and CFO. “The new repurchase authorization will enable us to further reduce share count, and the increased dividend will enhance capital returns while retaining significant financial flexibility to fund accretive growth.”
Cheniere hopes to set up over $20 per share in run-rate distributable cash flow for its shareholders by putting over $20 billion of available cash towards accretive growth, capital returns and a sustainable balance sheet, Davis said.
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