Cheniere Reports Fourth Quarter and Full Year 2025 Results, Introduces Full Year 2026 Financial Guidance, and Announces Completion of ‘20/20 Vision’ Capital Allocation Plan and New Share Repurchase Authorization

HOUSTON--( BUSINESS WIRE)--Cheniere Energy, Inc. (“Cheniere”) (NYSE: LNG) today announced its financial results for the fourth quarter and full year 2025.

YEAR END 2025 SUMMARY FINANCIAL RESULTS

(in billions)

Three Months Ended December 31, 2025

Twelve Months Ended December 31, 2025

Revenues

$5.45

$19.98

Net Income 2

$2.30

$5.33

Consolidated Adjusted EBITDA 1

$2.05

$6.94

Distributable Cash Flow 1

$1.49

$5.29

2026 FULL YEAR FINANCIAL GUIDANCE

(in billions)

2026

Consolidated Adjusted EBITDA 1

$6.75

$7.25

Distributable Cash Flow 1

$4.35

$4.85

RECENT HIGHLIGHTS

Financial

Capital Allocation

Growth / Commercial

CEO COMMENT

“We are celebrating 10 years of LNG exports at Cheniere, a remarkable milestone made possible thanks to our team’s commitment to safety, operational excellence and execution across our platform every single day. This commitment also enabled another record-setting year of LNG production in 2025, driving full year financial results to the high end of our guidance ranges,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “We are introducing our financial guidance ranges for 2026 of $6.75 – $7.25 billion of Consolidated Adjusted EBITDA and $4.35 - $4.85 billion of Distributable Cash Flow, which reflect our previously announced LNG production forecast and include our expectation for the completion of the remaining three trains at Corpus Christi Stage 3 this year. We look forward to delivering 2026 financial results within these ranges.”

Mr. Fusco added, “We are proud to also announce our second long-term contract with CPC, another repeat customer of Cheniere which values the operational reliability and customer focus that has come to define our first decade of LNG exports.”

CFO COMMENT

“We are pleased to announce the successful early completion of our ‘20/20 Vision’ capital allocation plan unveiled in 2022,” said Zach Davis, Cheniere’s Executive Vice President and Chief Financial Officer. “The Board of Directors’ approval of an upsize of our share repurchase authorization to over $10 billion is a major extension of our comprehensive, all-of-the-above capital allocation strategy. Thanks to our contracted cash flow visibility through this decade, we are in a position to augment our shareholder return proposition while continuing to budget for FIDs of our brownfield growth opportunities at Sabine Pass and Corpus Christi. With today’s upsize of the authorization, we are able to raise our run-rate Distributable Cash Flow guidance to approximately $30 per share assuming approximately 175 million shares outstanding.”

SUMMARY AND REVIEW OF FINANCIAL RESULTS

(in millions, except LNG data)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

% Change

2025

2024

% Change

Revenues

5,450

4,436

19,976

15,703

Net income 1

2,302

977

136

5,330

3,252

Consolidated Adjusted EBITDA 2

2,047

1,577

6,943

6,155

LNG exported:

Number of cargoes

185

167

670

646

Volumes (TBtu)

679

604

2,424

2,327

LNG volumes loaded (TBtu)

680

606

2,424

2,327

Net income 2 increased approximately $1.3 billion and $2.1 billion for the three and twelve months ended December 31, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily attributable to approximately $1.6 billion and $2.3 billion of favorable variances related to changes in fair value of our derivative instruments, including those impacts related to our long-term Integrated Production Marketing agreements (before tax and non-controlling interests) for the three and twelve months ended December 31, 2025, respectively, as compared to the corresponding 2024 periods. The increases for the periods were also driven by higher volumes of LNG delivered as a result of the substantial completion of the initial trains of the CCL Stage 3 Project, as compared to the corresponding 2024 periods, and partially offset by higher provisions for income tax and higher net income attributable to non-controlling interests during both periods.

Consolidated Adjusted EBITDA 1 increased approximately $470 million and $788 million for the three and twelve months ended December 31, 2025, respectively, as compared to the corresponding 2024 periods. The increases were primarily due to higher volumes of LNG delivered in both periods as compared to the corresponding 2024 periods. The increases were partially offset by lower total margins per MMBtu of LNG delivered, and to a lesser extent, lower contributions from certain portfolio optimization activities related to our charter vessel portfolio during both periods, as compared to the corresponding 2024 periods.

Share-based compensation expenses included in net income totaled $21 million and $161 million for the three and twelve months ended December 31, 2025, respectively, compared to $76 million and $215 million for the corresponding 2024 periods.

Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of December 31, 2025 consisted of 100% ownership of the general partner interest and a 48.6% limited partner interest.

BALANCE SHEET MANAGEMENT

Capital Resources

The table below provides a summary of our available liquidity (in millions) as of December 31, 2025:

December 31, 2025

Cash and cash equivalents (1)

1,099

Restricted cash and cash equivalents (2)

485

Available commitments under our credit facilities:

Sabine Pass Liquefaction, LLC (“SPL”) Revolving Credit Facility

824

Cheniere Partners Revolving Credit Facility

1,000

CCH Credit Facility

2,710

CCH Working Capital Facility

1,390

Cheniere Revolving Credit Facility

1,250

Total available commitments under our credit facilities

7,174

Total available liquidity

8,758

(1) $182 million of cash and cash equivalents was held by our consolidated variable interest entities (“VIEs”).

(2) $22 million of restricted cash and cash equivalents was held by our consolidated VIEs.

Recent Key Financial Transactions and Updates

In December 2025, SPL redeemed $300 million aggregate principal amount outstanding of its 5.875% Senior Secured Notes due 2026 (the “2026 SPL Senior Notes”), and in February 2026, SPL redeemed the remaining $200 million aggregate principal amount of its 2026 SPL Senior Notes.

LIQUEFACTION PROJECTS OVERVIEW

In aggregate across the Sabine Pass LNG terminal and the Corpus Christi LNG terminal, we have approximately 52 mtpa of liquefaction capacity in operation, over 9 mtpa under construction, and over 40 mtpa in the regulatory permitting process.

SPL Project

Through Cheniere Partners, we operate liquefaction and export facilities with a total production capacity of over 30 mtpa of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL Project”).

SPL Expansion Project

Through Cheniere Partners, we are developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG (the “SPL Expansion Project”), inclusive of estimated debottlenecking opportunities and supporting infrastructure. We expect to execute the SPL Expansion Project in a phased approach, and a positive FID is subject to, among other things, receipt of necessary regulatory approvals and acceptable commercial and financing arrangements. The FERC application for authorization to site, construct and operate the SPL Expansion Project, as well as the DOE application authorizing the export of LNG to non-FTA countries, remain pending.

CCL Project

We operate liquefaction and export facilities with a total production capacity of over 21 mtpa of LNG at the Corpus Christi LNG terminal near Corpus Christi, Texas (the “CCL Project”), inclusive of Trains 1 - 4 of the CCL Stage 3 Project.

CCL Stage 3 Project

We are constructing an expansion of the CCL Project consisting of seven midscale Trains with an expected total production capacity of over 10 mtpa of LNG (the “CCL Stage 3 Project”), including approximately 6 mtpa in operation and over 4 mtpa under construction or in commissioning. Substantial completion was achieved for Trains 1 - 4 of the CCL Stage 3 Project in March, August, October and December 2025, respectively, and Trains 5 - 7 are scheduled to reach substantial completion by the end of 2026. In February 2026, LNG was produced for the first time from Train 5 of the CCL Stage 3 Project.

CCL Midscale Trains 8 & 9 Project

We are constructing an expansion adjacent to the CCL Stage 3 Project consisting of two additional midscale Trains with an expected total production capacity of approximately 5 mtpa of LNG (the “CCL Midscale Trains 8 & 9 Project”), inclusive of estimated debottlenecking opportunities. In June 2025, our Board of Directors made a positive FID with respect to the CCL Midscale Trains 8 & 9 Project and debottlenecking, and full notice to proceed was issued to Bechtel effective June 18, 2025.

CCL Stage 3 Project and CCL Midscale Trains 8 & 9 Project Progress as of December 31, 2025:

CCL Stage 3 Project

CCL Midscale Trains 8 & 9 Project

Project Status

Trains 1-4 Operational

Trains 5-7 Under Construction or in Commissioning

Under Construction

Project Completion Percentage

94.1% (1)

31.8% (2)

Expected Substantial Completion

1H 2026 - 2H 2026

2H 2028

(1) Engineering 99.6% complete, procurement 100.0% complete, subcontract work 95.1% complete and construction 84.7% complete.

(2) Engineering 75.5% complete, procurement 47.3% complete, subcontract work 29.0% complete and construction 0.2% complete.

CCL Expansion Project

We are developing an expansion adjacent to the CCL Project with an expected total peak production capacity of up to approximately 24 mtpa of LNG, inclusive of estimated debottlenecking opportunities and supporting infrastructure (the “CCL Expansion Project”). We expect to execute the CCL Expansion Project in a phased approach, and a positive FID is subject to, among other things, receipt of necessary regulatory approvals and acceptable commercial and financing arrangements. In February 2026, certain of our subsidiaries filed an application with the FERC for authorization to site, construct and operate the CCL Expansion Project.

INVESTOR CONFERENCE CALL AND WEBCAST

We will host a conference call to discuss our financial and operating results for the fourth quarter and full year 2025 on Thursday, February 26, 2026, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.

___________________________

Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.

Net income as used herein refers to Net income attributable to Cheniere Energy, Inc. on our Consolidated Statements of Operations.

About Cheniere

Cheniere Energy, Inc. is the leading producer and exporter of LNG in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with a total combined production capacity of approximately 52 mtpa of LNG in operation and an additional over 9 mtpa of expected production capacity under construction or in commissioning, inclusive of estimated debottlenecking opportunities. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, Dubai and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.

Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP and should be evaluated only on a supplementary basis.

Share Repurchase Authorization

Under the share repurchase authorization, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The timing and amount of any shares of Cheniere’s common stock that are repurchased under the share repurchase authorization will be determined by Cheniere’s management based on market conditions and other factors. The share repurchase authorization does not obligate Cheniere to acquire any particular amount of common stock, and may be modified, suspended or discontinued at any time or from time to time at Cheniere’s discretion.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, share repurchases and execution on the capital allocation plan, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

(Financial Tables and Supplementary Information Follow)

LNG VOLUME SUMMARY

As of February 20, 2026, over 4,610 cumulative LNG cargoes totaling over 315 million tonnes of LNG have been produced, loaded and exported from our liquefaction projects.

During the three and twelve months ended December 31, 2025, we exported 679 and 2,424 TBtu, respectively, of LNG from our liquefaction projects. 24 TBtu of LNG exported from our liquefaction projects and sold on a delivered basis was in transit as of December 31, 2025, 1 TBtu of which was related to commissioning activities.

The following table summarizes the volumes of LNG that were loaded from our liquefaction projects and for which the financial impact was recognized on our Consolidated Financial Statements during the three and twelve months ended December 31, 2025:

Three Months Ended December 31, 2025

Year Ended December 31, 2025

(in TBtu)

Operational

Commissioning

Total

Operational

Commissioning

Total

Volumes loaded during the current period

669

680

2,400

2,424

Volumes loaded during the prior period but recognized during the current period

—

Less: volumes loaded during the current period and in transit at the end of the period

(23

)

(24

)

(23

)

(24

)

Total volumes recognized in the current period

676

687

2,416

2,439

In addition, during the three and twelve months ended December 31, 2025, we recognized 4 and 22 TBtu, respectively, of LNG on our Consolidated Financial Statements related to LNG cargoes sourced from third-parties.

Cheniere Energy, Inc.

Consolidated Statements of Operations

(in millions, except per share data) (1)

Three Months Ended

Twelve Months Ended

December 31,

2025

2024

2025

2024

Revenues

LNG revenues

5,313

4,266

19,435

14,899

Regasification revenues

136

135

Other revenues

103

137

405

669

Total revenues

5,450

4,436

19,976

15,703

Operating costs and expenses

Cost of sales (excluding operating and maintenance expense and depreciation, amortization and accretion expense shown separately below) (2)

712

1,746

7,150

6,021

Operating and maintenance expense

487

493

1,966

1,857

Selling, general and administrative expense

142

383

441

Depreciation, amortization and accretion expense

350

308

1,329

1,220

Other operating costs and expenses

Total operating costs and expenses

1,646

2,697

10,864

9,575

Income from operations

3,804

1,739

9,112

6,128

Other income (expense)

Interest expense, net of capitalized interest

(246

)

(240

)

(948

)

(1,010

)

Loss on modification or extinguishment of debt

)

—

)

Interest and dividend income

106

189

Other income (expense), net

)

Total other expense

(233

)

(194

)

(830

)

(825

)

Income before income taxes and non-controlling interests

3,571

1,545

8,282

5,303

Less: income tax provision

638

261

1,488

811

Net income

2,933

1,284

6,794

4,492

Less: net income attributable to non-controlling interests

631

307

1,464

1,240

Net income attributable to Cheniere

2,302

977

5,330

3,252

Net income per share attributable to common stockholders—basic (1)

10.71

4.35

24.19

14.24

Net income per share attributable to common stockholders—diluted (1)

10.68

4.33

24.13

14.20

Weighted average number of common shares outstanding—basic

214.3

224.5

219.7

228.4

Weighted average number of common shares outstanding—diluted

214.9

225.4

220.3

229.1

___________________________

Please refer to the Cheniere Energy, Inc. Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.

(2)

Cost of sales includes approximately $2.2 billion and $3.5 billion of gains from changes in the fair value of commodity derivatives prior to contractual delivery or termination during the three and twelve months ended December 31, 2025, respectively, as compared to $0.6 billion and $1.4 billion of gains in the corresponding 2024 periods, respectively.

Cheniere Energy, Inc.

Consolidated Balance Sheets

(in millions, except share data) (1)(2)

December 31,

2025

2024

ASSETS

Current assets

Cash and cash equivalents

1,099

2,638

Restricted cash and cash equivalents

485

552

Trade and other receivables, net of current expected credit losses

1,380

727

Inventory

524

501

Current derivative assets

155

Margin deposits

128

Other current assets, net

119

100

Total current assets

3,692

4,801

Property, plant and equipment, net of accumulated depreciation

35,755

33,552

Operating lease assets

2,700

2,684

Derivative assets

4,663

1,903

Deferred tax assets

Other non-current assets, net

1,060

899

Total assets

47,882

43,858

LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

123

171

Accrued liabilities

2,081

2,179

Current debt, net of unamortized discount and debt issuance costs

306

351

Deferred revenue

150

163

Current operating lease liabilities

539

592

Current derivative liabilities

618

902

Other current liabilities

Total current liabilities

3,916

4,441

Long-term debt, net of unamortized discount and debt issuance costs

22,507

22,554

Operating lease liabilities

2,163

2,090

Derivative liabilities

1,208

1,865

Deferred tax liabilities

3,698

1,856

Other non-current liabilities

1,312

992

Total liabilities

34,804

33,798

Commitments and contingencies

Redeemable non-controlling interest

136

Stockholders’ equity

Preferred stock: $0.0001 par value, 5.0 million shares authorized, none issued

—

Common stock: $0.003 par value, 480.0 million shares authorized; 279.2 million shares and 278.7 million shares issued at December 31, 2025 and 2024, respectively

Treasury stock: 66.8 million shares and 54.7 million shares at December 31, 2025 and 2024, respectively, at cost

(8,852

)

(6,136

)

Additional paid-in-capital

4,523

4,452

Retained earnings

12,243

7,382

Total Cheniere stockholders’ equity

7,915

5,699

Non-controlling interests

5,027

4,354

Total stockholders’ equity

12,942

10,053

Total liabilities, redeemable non-controlling interest and stockholders’ equity

47,882

43,858

___________________________

(1)

Please refer to the Cheniere Energy, Inc. Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.

(2)

Amounts presented include balances held by our consolidated VIEs, substantially all of which are related to Cheniere Partners. As of December 31, 2025, total assets and liabilities of our VIEs, which are included in our Consolidated Balance Sheets, were $17.3 billion and $17.0 billion, respectively, including $182 million of cash and cash equivalents and $22 million of restricted cash and cash equivalents.

Reconciliation of Non-GAAP Measures

Regulation G Reconciliations

Consolidated Adjusted EBITDA

The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and twelve months ended December 31, 2025 and 2024 (in millions):

Three Months Ended December 31,

Twelve Months Ended December 31,

2025

2024

2025

2024

Net income attributable to Cheniere

2,302

977

5,330

3,252

Net income attributable to non-controlling interests

631

307

1,464

1,240

Income tax provision

638

261

1,488

811

Interest expense, net of capitalized interest

246

240

948

1,010

Loss on modification or extinguishment of debt

—

Interest and dividend income

(15

)

(40

)

(106

)

(189

)

Other expense (income), net

)

(20

)

Income from operations

3,804

1,739

9,112

6,128

Adjustments to reconcile income from operations to Consolidated Adjusted EBITDA:

Depreciation, amortization and accretion expense

350

308

1,329

1,220

Gain from changes in fair value of commodity and foreign exchange (“FX”) derivatives, net (1)

(2,124

)

(487

)

(3,615

)

(1,313

)

Total non-cash compensation expense

113

114

Other operating costs and expenses

Consolidated Adjusted EBITDA

2,047

1,577

6,943

6,155

(1)

Change in fair value of commodity and FX derivatives prior to contractual delivery or termination

Consolidated Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of financial and operating performance.

Consolidated Adjusted EBITDA is calculated by taking net income attributable to Cheniere before net income attributable to non-controlling interests, interest expense, net of capitalized interest, taxes, depreciation, amortization and accretion expense, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, changes in the fair value of our commodity and FX derivatives prior to contractual delivery or termination, and non-cash compensation expense. The change in fair value of commodity and FX derivatives is considered in determining Consolidated Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management’s own evaluation of performance.

Consolidated Adjusted EBITDA and Distributable Cash Flow

The following table reconciles our actual Consolidated Adjusted EBITDA and Distributable Cash Flow to Net income attributable to Cheniere for the three and twelve months ended December 31, 2025 and forecast amounts for full year 2026 (in billions):

Three Months Ended December 31,

Twelve Months Ended December 31,

Full Year

2025

2026

Net income attributable to Cheniere

2.30

5.33

2.2

2.7

Net income attributable to non-controlling interests

0.63

1.46

1.3

Income tax provision

0.64

1.49

0.5

0.6

Interest expense, net of capitalized interest

0.25

0.95

1.1

Depreciation, amortization and accretion expense

0.35

1.33

1.5

Other income, financing costs, and certain non-cash operating expenses

(2.12

)

(3.62

)

0.1

Consolidated Adjusted EBITDA

2.05

6.94

6.75

7.25

Interest expense, net of interest income, capitalized interest and amortization

(0.22

)

(0.76

)

(1.0

)

(1.0

)

Maintenance capital expenditures

(0.04

)

(0.16

)

(0.2

)

(0.2

)

Income tax (excludes deferred taxes) (1)

(0.01

)

0.37

(0.0

)

(0.0

)

Other income (expense)

(0.03

)

(0.11

)

(0.1

)

(0.1

)

Consolidated Distributable Cash Flow

1.75

6.28

5.4

5.9

Distributable Cash Flow attributable to non-controlling interests

(0.26

)

(1.00

)

(1.0

)

(1.0

)

Cheniere Distributable Cash Flow

1.49

5.29

4.35

4.85

___________________________

Note: Totals may not sum due to rounding.

Distributable Cash Flow is defined as cash generated from the operations of Cheniere and its subsidiaries and adjusted for non-controlling interests. The Distributable Cash Flow of Cheniere’s subsidiaries is calculated by taking the subsidiaries’ EBITDA less interest expense, net of capitalized interest, taxes, maintenance capital expenditures and other non-operating income or expense items, and adjusting for the effect of certain non-cash items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, amortization of debt issue costs, premiums or discounts, impairment of equity method investment and deferred taxes. Cheniere’s Distributable Cash Flow includes 100% of the Distributable Cash Flow of Cheniere’s wholly-owned subsidiaries. For subsidiaries with non-controlling investors, our share of Distributable Cash Flow is calculated as the Distributable Cash Flow of the subsidiary reduced by the economic interest of the non-controlling investors as if 100% of the Distributable Cash Flow were distributed in order to reflect our ownership interests and our incentive distribution rights, if applicable. The Distributable Cash Flow attributable to non-controlling interests is calculated in the same method as Distributions to non-controlling interests as presented on our Consolidated Statements of Stockholders’ Equity (Deficit) in our Forms 10-Q and Forms 10-K filed with the Securities and Exchange Commission. This amount may differ from the actual distributions paid to non-controlling investors by the subsidiary for a particular period.

We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be considered for deployment by our Board of Directors pursuant to our capital allocation plan, such as by way of common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures 1. Distributable Cash Flow is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We have not made any forecast of net income on a run-rate basis, which would be the most directly comparable measure under U.S. GAAP, in part because net income includes the impact of derivative transactions, which cannot be determined at this time, and we are unable to reconcile differences between run-rate Distributable Cash Flow and net income.

Capital spending for our business consists primarily of: