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Operating cash flow of $1.6B in Q2 2026 was only 51% of net income due to derivative gains, but cumulative OCF of $13.5B over ten quarters exceeds cumulative net income of $7.1B, and FCF swung to $2.3B with a 40.4% margin.
Cheniere Energy, Inc. (LNG) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 6.14B | 5.54B | 5.39B | 8.42B | 10.52B | 2.47B | 1.26B | 1.83B | 1.99B | 1.23B | -404M | -483M | -262.8M | -52.44M | -107.84M | -42.76M | -16.92M | -97.86M | -142.15M | -84.29M | -80.43M | -18.96M | -1.45M | -7.56M | -2.76M | -2.21M | 5.2M | 500K | -1.8M | -500K | 0 |
| Operating CF Margin % | - | 28.21% | 34.19% | 41.5% | 31.17% | 14% | 13.47% | 19.71% | 24.89% | 21.8% | -31.4% | -178.73% | -97.6% | -19.6% | -40.66% | -14.85% | -5.85% | -56.72% | -1989.71% | -13027.98% | -3392.07% | -630.82% | -72.62% | -1148.78% | -1156.36% | -93.24% | 97.8% | 31.25% | - | -500% | - |
| Operating CF Growth % | 105.51% | 2.69% | -35.92% | -20% | 326.2% | 95.18% | -30.99% | -7.89% | 61.66% | 404.7% | 16.36% | -83.79% | -401.18% | 51.38% | -152.17% | -152.74% | 82.71% | 31.16% | -68.64% | -4.81% | -324.28% | -1206.41% | 80.8% | -173.45% | -24.95% | -142.52% | 940.68% | 127.78% | -260% | - | - |
| Net Income | 2.92B | 5.32B | 4.49B | 12.06B | 2.63B | -1.56B | 501M | 1.23B | 1.2B | 563M | -665M | -1.1B | -691.88M | -558.76M | -345.64M | -203.34M | -78.39M | -161.49M | -372.96M | -181.78M | -145.85M | -29.54M | -24.88M | -5.29M | -5.63M | -11.67M | -780.98K | -1.8M | -1.6M | -400K | -100K |
| Depreciation & Amortization | 1.74B | 1.95B | 1.22B | 1.2B | 1.12B | 1.01B | 932M | 794M | 449M | 356M | 174M | -82.68M | 64.26M | 61.21M | 0 | 0 | 0 | 0 | 34.29M | 12.71M | 3.13M | 1.32M | 507K | 429K | 368.56K | 1.24M | 3.37M | 1.4M | 0 | 0 | 0 |
| Stock-Based Compensation | 72M | 0 | 215M | 250M | 205M | 140M | 110M | 131M | 113M | 91M | 101M | 172M | 102M | 271.37M | 58.7M | 26.36M | 17.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 1.33B | 1.86B | 330M | 2.39B | 440M | -715M | 40M | -521M | -5M | -3M | 120M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.04M | -2.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 926M | -1.85B | -675M | -7.3B | 6.43B | 4.85B | 181M | 500M | 241M | 218M | 218M | 492M | 331.77M | 148.33M | 229.8M | 128.74M | 8.04M | 86.5M | 175.32M | 103.94M | 66.75M | -13.29M | -81K | -3.73M | 1.91M | 8.48M | 560.9K | 200K | 0 | 0 | -200K |
| Working Capital Changes | -1.67B | -1.74B | -188M | -177M | -307M | -1.25B | -499M | -303M | -8M | 6M | -232M | -50M | -4.7M | 86.63M | -50.7M | 5.47M | 35.59M | -22.86M | 21.2M | -19.17M | -6.5M | 24.59M | 23M | 1.03M | 586.94K | -271.28K | 2.05M | 700K | -200K | -100K | 300K |
| Change in Receivables | -570M | -640M | 380M | 840M | -502M | -799M | -154M | 1M | -133M | -141M | -207M | -1M | 67K | -31K | 704K | 1.46M | 466K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -261M | -32M | -57M | 377M | -123M | -409M | 21M | 11M | -73M | -73M | -119M | -28M | -18.87M | -26.46M | -20.9M | -16.34M | 31.13M | -32.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 344M | -232M | 248M | -982M | 250M | 1.14B | 54M | 52M | 188M | 225M | 64M | 2M | 16.07M | 6.69M | -29.3M | 24.81M | 7.87M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3.5B | -2.89B | -2.28B | -2.2B | -1.84B | -912M | -1.95B | -3.16B | -3.65B | -3.38B | -4.41B | -6.98B | -2.9B | -29.42M | -84.53M | -22.13M | 108.99M | 11.98M | -133.06M | -439.89M | -1.54B | -405.59M | 1.98M | 29K | 1.99M | 441.1K | -4.88M | -9.3M | -2.9M | -3M | -4.1M |
| Capital Expenditures | -1.01B | -3.08B | -2.24B | -2.12B | -1.83B | -966M | -1.84B | -3.06B | -3.64B | -3.36B | -4.36B | -6.85B | -2.83B | -3.11B | -1.12B | -8.93M | -4.22M | -113.31M | -597.25M | -830.2M | -455.03M | -238.81M | -2.15M | -2.85M | -1.44M | -4.75M | -6.88M | -9.5M | -2.9M | -3.1M | -100K |
| CapEx % of Revenue | 4.55% | 15.68% | 14.19% | 10.46% | 5.42% | 5.48% | 19.59% | 32.86% | 45.57% | 59.46% | 338.56% | 2535.9% | 1050.9% | 1163.97% | 421.51% | 3.1% | 1.46% | 65.68% | 8360.12% | 128315.46% | 19191.44% | 7947.25% | 107.61% | 433.89% | 604.45% | 200.26% | 129.34% | 593.75% | - | 3100% | 100% |
| Acquisitions | -213M | 122M | -12M | -61M | -15M | 68M | -100M | -105M | -25M | -41M | 0 | 0 | 0 | -11.12M | -545.14M | -17.81M | 104.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.27B | 68M | -29M | -20M | 1M | -14M | -8M | -2M | 14M | 17M | -57M | -131M | -66.86M | 3.1B | 1.58B | 22.41M | -99.35M | 110M | 447.48M | 488.75M | -1.08B | -166.77M | 4.13M | 2.88M | 3.44M | 5.19M | 2M | 200K | 0 | 100K | 0 |
| Cash from Financing | -3.14B | -4.25B | -4.45B | -4.18B | -8.01B | -1.82B | -235M | 1.17B | 2.21B | 2.94B | 4.91B | 6.42B | 3.35B | 840.99M | -65.08M | 449.89M | -106.28M | 72.05M | 80.87M | 357.75M | 1.39B | 808.69M | 306.66M | 8.2M | 750K | 493.33K | 390.74K | 9.8M | 4.1M | 4M | 5M |
| Debt Issued (Net) | 1.44B | -105M | -796M | -1.2B | -5.2B | -899M | 883M | 2.09B | 2.89B | 3.22B | 5.19B | 7.07B | 3.41B | 4.4B | -806.51M | 0 | -104.68M | -30.15M | 360.46M | 400M | 1.43B | 923.5M | -1M | 1M | 750K | 0 | -4.46M | 2.1M | 0 | 3.5M | 400K |
| Equity Issued (Net) | -3.15B | -2.72B | -2.26B | -1.47B | -1.37B | -9M | -198M | -268M | -20M | -12M | -20M | -61M | 228.78M | -136.37M | 2.79B | 520.95M | -2.84M | -999K | -4.9M | -19.55M | 1.95M | 2.97M | 320.93M | 4.43M | 0 | 500K | 5.16M | 8.4M | 4.3M | 600K | 5.3M |
| Dividends Paid | -461M | -451M | -412M | -393M | -349M | -85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26.39M | -26.39M | -26.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -3.15B | -2.72B | -2.26B | -1.47B | -1.37B | -9M | -155M | -249M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.84M | -999K | -4.9M | -325.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -972M | -972M | -981M | -1.11B | -1.1B | -824M | -920M | -652M | -667M | -274M | -266M | -589M | -287.24M | -3.43B | -2.05B | -71.06M | 27.64M | 129.59M | -248.3M | -22.69M | -44.73M | -117.78M | -13.27M | 2.77M | 0 | -6.67K | -302.55K | -700K | -200K | -100K | -700K |
| Net Change in Cash | -498M | -1.61B | -1.33B | 2.04B | 670M | -260M | -917M | -162M | 543M | 786M | 91M | -1.04B | 189.83M | 759.13M | -257.45M | 385M | -14.21M | -13.82M | -194.34M | -166.43M | -229.63M | 384.15M | 307.19M | 668K | -20.68K | -1.28M | 712.61K | 1.1M | -700K | 500K | 900K |
| Free Cash Flow | 7.04B | 2.46B | 3.16B | 6.3B | 8.69B | 1.5B | -574M | -1.22B | -1.65B | -2.13B | -4.76B | -7.34B | -3.09B | -3.17B | -1.23B | -51.7M | -21.14M | -211.17M | -739.39M | -914.49M | -535.46M | -257.77M | -3.6M | -10.41M | -4.21M | -6.96M | -1.68M | -9M | -4.7M | -3.6M | -100K |
| FCF Margin % | 31.65% | 12.54% | 20.01% | 31.04% | 25.75% | 8.52% | -6.11% | -13.15% | -20.68% | -37.66% | -369.96% | -2714.63% | -1148.5% | -1183.56% | -462.17% | -17.95% | -7.31% | -122.4% | -10349.83% | -141343.43% | -22583.51% | -8578.07% | -180.23% | -1582.67% | -1760.81% | -293.51% | -31.54% | -562.5% | - | -3600% | -100% |
| FCF Growth % | 198.47% | -22.02% | -49.88% | -27.56% | 478.38% | 361.85% | 53.07% | 26.01% | 22.25% | 55.34% | 35.11% | -137.23% | 2.35% | -158.34% | -2271.07% | -144.52% | 89.99% | 71.44% | 19.15% | -70.79% | -107.73% | -7058.32% | 65.42% | -147.4% | 39.55% | -314.98% | 81.35% | -91.49% | -30.56% | -3500% | - |
| FCF per Share | 33.61 | 11.17 | 13.78 | 25.96 | 34.31 | 5.93 | -2.27 | -4.74 | -6.67 | -9.12 | -20.81 | -32.33 | -13.78 | -14.47 | -6.74 | -0.68 | -0.38 | -4.09 | -15.61 | -18.10 | -9.84 | -4.83 | -0.09 | -0.35 | -0.16 | -0.27 | -0.06 | -0.70 | -0.59 | -0.54 | -0.02 |
| FCF Conversion (FCF/Net Income) | 2.41x | 1.04x | 1.66x | 0.85x | 7.37x | -1.05x | -14.88x | 2.83x | 4.23x | -3.13x | 0.66x | 0.50x | 0.48x | 0.10x | 0.32x | 0.22x | 0.22x | 0.61x | 0.38x | 0.46x | 0.55x | 0.64x | 0.06x | 1.43x | 0.49x | 0.19x | -6.66x | -0.28x | 1.13x | 1.25x | - |
| Interest Paid | 0 | 0 | 1.07B | 1.03B | 891M | 1.36B | 1.4B | 1.13B | 707M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 117M | 30M | 4M | 2M | 24M | 14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying LNG stock.
Cheniere Energy, Inc. (LNG) generated $5.54B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cheniere Energy, Inc. (LNG) generated $2.46B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Cheniere Energy, Inc. (LNG) spent $3.08B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Cheniere Energy, Inc. (LNG) returned $451.0M to shareholders via cash dividends and spent $2.72B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Qatari supply glut overhang
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Derivative Swings
In Q2 2026, operating cash flow of $1.6B was only 51% of net income, reflecting derivative gains; excluding those, conversion appears healthier, per the latest quarterly filing.
The OCF/NI ratio of 0.51 in Q2 2026 is distorted by a $3.1B net income that includes large non-cash derivative gains. In contrast, Q1 2026 showed a negative ratio due to a $3.5B loss, while Q2 2025's ratio was 0.51. This volatility suggests that reported earnings are not a reliable proxy for cash generation, and investors should focus on cash flow metrics.
Free Cash Flow Inflects on Volume and Spreads
FCF swung from -$193M in Q2 2025 to $2.3B in Q2 2026, with FCF margin expanding to 40.4%, as reported in the latest quarterly results.
The dramatic improvement in FCF is driven by higher LNG volumes and favorable global price spreads, which boosted operating cash flow despite elevated capex. The 40.4% FCF margin in Q2 2026 is well above the 18.9% in Q2 2024, indicating that the company is converting revenue into cash more efficiently. However, this is partly due to derivative settlements, so sustainability depends on continued strong spreads.
Capital Spending Peaks as Expansion Nears Completion
Capex rose to $1.2B in Q2 2026, representing 20.6% of revenue, up from 15.5% in Q2 2024, reflecting ongoing construction of Midscale Train 6 and SPL Expansion, per SEC filings.
The elevated capex is consistent with the company's growth phase, as it invests in new liquefaction capacity. The capex/revenue ratio of 20.6% is high but expected to decline as projects complete. The positive FCF despite this spending suggests that existing operations are generating sufficient cash to fund growth, reducing the need for external financing.
Working Capital Drags on Cash Flow Volatility
Working capital changes were negative in five of the last six quarters, with Q2 2026 showing -$493M, indicating cash outflows from receivables and inventory, as per the cash flow statement.
The persistent negative working capital changes suggest that the company is building receivables or inventory, possibly due to timing of LNG cargo sales and feed gas purchases. This is a common pattern in the LNG industry, but the magnitude of the swings (e.g., -$708M in Q1 2026) adds volatility to operating cash flow. Investors should monitor whether this reflects operational needs or inefficiencies.
Capital Returns Accelerate Amid Expansion
In Q2 2026, Cheniere returned $692M to shareholders via dividends and buybacks, up from $607M in Q2 2025, while maintaining elevated capex, as reported in the latest quarterly filing.
The company is simultaneously funding growth and returning capital, with buybacks of $576M in Q2 2026, up from $327M in Q2 2025. This is a positive signal of confidence in cash flow generation, but it also increases financial leverage. The debt/equity ratio of 2.19 suggests the balance sheet is strained, and investors should watch whether capital returns are sustainable if LNG prices weaken.
Cumulative Cash Generation Outpaces Earnings
Over the last ten quarters, cumulative operating cash flow of $13.5B exceeds cumulative net income of $7.1B, indicating strong cash conversion, based on reported figures.
The cumulative OCF/NI ratio of 1.9 suggests that earnings are backed by real cash generation, despite quarterly volatility. This is partly due to non-cash derivative losses in some quarters and gains in others, but the overall trend is positive. The gap may also reflect the timing of working capital changes, which have been a drag on cash flow in recent quarters.
What the Cash Flow Statement Obscures
Reported operating cash flow excludes the cash impact of derivative settlements, which can be significant; in Q2 2026, net income included $3.1B in derivative gains, per the income statement.
The cash flow statement may not fully capture the economic reality of the company's hedging activities, as derivative gains and losses are often non-cash and can distort both earnings and operating cash flow. Additionally, the company's use of project financing may not be fully reflected in the debt/equity ratio, potentially understating true leverage. Investors should adjust for these items to assess the underlying cash-generating ability of the business.