Fracking Exporters Post Huge First Quarter Profits

LNG boom bad news for climate, but great news for CEOs and shareholders

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Climate and Energy

The companies exporting liquified natural gas (LNG) are posting huge gains as they plot strategies to massively expand their operations in order to capitalize on the shift away from Russian gas.

A Food & Water Watch analysis of first quarter financial records shows that four of the most high profile companies – Cheniere, EQT, Tellurian and Total – reported substantial increases in sales, profits, and stock buybacks. The company stock held by CEOs jumped in value as well. 

Cheniere, the country’s largest LNG company, exported a record amount of gas in the first quarter of this year, and posted revenues of $7.4 billion, more than doubling their haul from a year earlier. The vast majority of those revenues come from their LNG business. The value of stock held by CEO Jack Fusco jumped by $30 million in the first three months of the year, and the company bought back about a quarter million shares for $25 million. 

The Houston-based Tellurian generated about $146 million in total gas revenues, about $120 million of which came from its LNG business. This is a substantial increase from last year’s first quarter total of $8.7 million. The company has a direct tie to the White House: Amos Hochstein, a Senior Advisor for Energy Security at the State Department, was an executive vice president atTellurian just before joining the Biden administration. Hochstein, who still owns considerable stock in the company, is currently helping to lead the US-EU Energy Security Task Force, a secretive body that is playing a key role in promoting LNG exports. 

EQT, based in Pittsburgh, is pushing an aggressive public relations campaign called Unleash U.S. LNG, which it calls “the largest green initiative on the planet.” The company is calling for the quadrupling of the country’s LNG capacity over the next eight years.  Unlike other major players, EQT posted losses in the first quarter, some of which is attributable to its focus on reducing its debt. The company reports selling more gas at higher prices than last year.  In the first quarter of this year, CEO Toby Rice has seen the value of his EQT shares appreciate by nearly $9 million. The company spent about $200 million buying back shares.

The French-owned TotalEnergies, which is the second largest LNG company in the world, reported adjusted net income of $9 billion, a massive jump from last year’s $3 billion total for the same time period. The company’s gas sales increased about 34 percent from the previous year. The company spent $1 billion in the quarter buying back shares of company stock.