Cheniere Corpus Christi Holdings Posts Strong Q2 Earnings, Revenue Jumps 30%

TL;DR

**Cheniere Corpus Christi Holdings is crushing it, buy the dip if you can find one.**

AI Summary

Cheniere Corpus Christi Holdings, LLC reported a significant increase in revenue for the three months ended June 30, 2025, reaching $1,097 million, up from $842 million in the prior-year period, a 30.3% increase. For the six months ended June 30, 2025, total revenue was $2,175 million, compared to $1,717 million in the same period of 2024, representing a 26.7% rise. Net income also saw a substantial improvement, with $418 million for the second quarter of 2025, a 57.1% increase from $266 million in Q2 2024. The six-month net income was $926 million, up 82.3% from $508 million in the first half of 2024. The company's strategic outlook remains focused on LNG production and sales, with significant contributions from both non-related parties and subsidiaries of common parent. Derivative assets increased from $32 million in 2024 to $40 million in 2025, while derivative liabilities decreased from $467 million to $602 million, indicating a shift in hedging positions. The company continues to manage interest rate risk through derivative instruments, referencing SOFR or the base rate.

Why It Matters

This robust performance by Cheniere Corpus Christi Holdings, LLC signals strong demand in the global LNG market, benefiting investors in the energy sector. The significant increase in net income and revenue demonstrates effective operational management and favorable market conditions, potentially leading to increased shareholder value for its parent company, Cheniere Energy. For customers, this indicates a reliable and growing supply of LNG, crucial for global energy security. Competitively, Cheniere's strong results reinforce its position as a leading LNG exporter, potentially putting pressure on smaller players and influencing future investment decisions in the natural gas distribution industry.

Risk Assessment

Risk Level: low — The company demonstrated strong financial performance with a 30.3% increase in Q2 2025 revenue and an 82.3% increase in six-month net income. While derivative liabilities increased from $467 million to $602 million, this is offset by robust operational gains and effective management of interest rate risk, as indicated by the use of SOFR-referenced derivatives.

Analyst Insight

Investors should consider this strong performance as a positive indicator for the broader LNG market and Cheniere Energy's strategic positioning. Given the significant revenue and net income growth, investors might look for opportunities to increase exposure to the parent company, Cheniere Energy, as this subsidiary's success directly contributes to its overall financial health.

Financial Highlights

debt To Equity

X.X

revenue

$1,097 million

operating Margin

X%

total Assets

$X

total Debt

$X

net Income

$418 million

eps

$X

gross Margin

X%

cash Position

$X

revenue Growth

+30.3%

Revenue Breakdown

Key Numbers

• $1,097 million — Q2 2025 Revenue (Increased from $842 million in Q2 2024, a 30.3% rise.)
• $2,175 million — Six-Month 2025 Revenue (Increased from $1,717 million in H1 2024, a 26.7% rise.)
• $418 million — Q2 2025 Net Income (Increased from $266 million in Q2 2024, a 57.1% rise.)
• $926 million — Six-Month 2025 Net Income (Increased from $508 million in H1 2024, an 82.3% rise.)
• $602 million — Derivative Liabilities (Increased from $467 million in 2024, indicating hedging activity.)
• $40 million — Derivative Assets (Increased from $32 million in 2024.)

Key Players & Entities

• Cheniere Corpus Christi Holdings, LLC (company) — filer of the 10-Q
• Cheniere Energy (company) — parent company
• Bloomberg (company) — publisher of the analysis
• SEC (regulator) — recipient of the 10-Q filing
• SOFR (other) — interest rate benchmark

FAQ

Risk Factors

• Derivative Liability Fluctuations [medium — financial]: Derivative liabilities increased significantly from $467 million in 2024 to $602 million in 2025. This increase indicates substantial hedging activity, which, while intended to mitigate risk, can also introduce complexity and potential volatility if hedging strategies are not perfectly aligned with market movements.
• LNG Market Volatility [high — market]: The company's revenue is heavily dependent on the global demand and pricing for Liquefied Natural Gas (LNG). Fluctuations in energy prices, geopolitical events, and shifts in energy policies can significantly impact revenue and profitability.
• Operational Risks in LNG Production [medium — operational]: The operation of liquefaction facilities involves complex processes and significant infrastructure. Any operational disruptions, maintenance issues, or accidents could lead to production downtime, impacting delivery commitments and financial performance.
• Environmental and Regulatory Compliance [medium — regulatory]: As a major energy infrastructure company, Cheniere Corpus Christi Holdings is subject to stringent environmental regulations and permitting requirements. Changes in regulations or failure to comply could result in fines, operational restrictions, or project delays.

Industry Context

Cheniere Corpus Christi Holdings operates within the highly competitive and capital-intensive Liquefied Natural Gas (LNG) export market. The industry is characterized by long-term contracts, significant infrastructure investments, and sensitivity to global energy demand and supply dynamics. Key trends include the increasing global demand for natural gas as a cleaner alternative to coal and oil, and the ongoing development of new export terminals.

Regulatory Implications

The company faces significant regulatory oversight related to environmental impact, safety standards, and international trade policies for LNG exports. Compliance with evolving environmental regulations and obtaining necessary permits are critical for ongoing operations and future expansion. Geopolitical factors can also influence regulatory frameworks and market access.

What Investors Should Do

1. Monitor derivative positions and their impact on earnings volatility.
2. Analyze revenue drivers and customer diversification.
3. Evaluate capital expenditure plans and debt management strategies.

Glossary

SOFR

Secured Overnight Financing Rate. A broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities. (Used as a benchmark rate for interest rate risk management through derivative instruments.)

Derivative Assets

Financial instruments whose value is derived from an underlying asset, index, or rate, and which represent a potential future economic benefit to the company. (Increased to $40 million, indicating the company's use of derivatives for hedging or investment purposes.)

Derivative Liabilities

Financial instruments whose value is derived from an underlying asset, index, or rate, and which represent a potential future economic obligation for the company. (Increased to $602 million, reflecting the company's hedging strategies and potential future obligations.)

Liquefied Natural Gas (LNG)

Natural gas that has been cooled down to liquid form at approximately -162 degrees Celsius (-260 degrees Fahrenheit). (The primary product Cheniere Corpus Christi Holdings produces and sells, forming the basis of its revenue.)

Year-Over-Year Comparison

Cheniere Corpus Christi Holdings demonstrated robust financial performance compared to the prior year. Revenue for Q2 2025 surged by 30.3% to $1,097 million, and six-month revenue grew 26.7% to $2,175 million. Net income saw even more substantial increases, with Q2 net income up 57.1% to $418 million and six-month net income rising 82.3% to $926 million. A notable change is the increase in derivative liabilities from $467 million to $602 million, indicating a shift in hedging strategies.

Filing Documents

• cch-20250630.htm (10-Q) — 1012KB
• exhibit101cchq22025form10q.htm (EX-10.1) — 260KB
• exhibit102cch2025q2form10q.htm (EX-10.2) — 1274KB
• exhibit311cchq22025form10q.htm (EX-31.1) — 9KB
• exhibit321cchq22025form10q.htm (EX-32.1) — 5KB
• cch-20250630_g1.jpg (GRAPHIC) — 27KB
• image.jpg (GRAPHIC) — 4KB
• image1.jpg (GRAPHIC) — 1KB
• image2.jpg (GRAPHIC) — 2KB
• image3.jpg (GRAPHIC) — 5KB
• image4.jpg (GRAPHIC) — 2KB
• 0001693317-25-000014.txt ( ) — 7552KB
• cch-20250630.xsd (EX-101.SCH) — 46KB
• cch-20250630_cal.xml (EX-101.CAL) — 43KB
• cch-20250630_def.xml (EX-101.DEF) — 232KB
• cch-20250630_lab.xml (EX-101.LAB) — 437KB
• cch-20250630_pre.xml (EX-101.PRE) — 327KB
• cch-20250630_htm.xml (XML) — 966KB

Financial Information

Part I. Financial Information Item 1. Consolidated Financial Statements 3 Consolidated Statements of Operations 3 Consolidated Balance Sheets 4 Consolidated Statements of Member's Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Note 1—Nature of Operations and Basis of Presentation 7 Note 2—Trade and Other Receivables, Net of Current Expected Credit Losses 8 Note 3—Inventory 8 Note 4—Property, Plant and Equipment, Net of Accumulated Depreciation 8 Note 5—Derivative Instruments 8 Note 6—Accrued Liabilities 12 Note 7—Debt 12 Note 8—Revenues 14 Note 9—Related Party Transactions 15 Note 10—Segment Information and Customer Concentration 16 Note 11—Supplemental Cash Flow Information 16 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 6. Exhibits 27

Signatures

Signatures 28 i Table of Contents DEFINITIONS As used in this quarterly report, the terms listed below have the following meanings: Common Industry and Other Terms ASU Accounting Standards Update Bcfe billion cubic feet equivalent EPC engineering, procurement and construction FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission FID final investment decision GAAP generally accepted accounting principles in the United States Henry Hub the final settlement price (in U.S. dollars per MMBtu) for the New York Mercantile Exchange's Henry Hub natural gas futures contract for the month in which a relevant cargo's delivery window is scheduled to begin IPM agreements integrated production marketing agreements in which the gas producer sells to us gas on a global LNG or natural gas index price, less a fixed liquefaction fee, shipping and other costs LNG liquefied natural gas, a product of natural gas that, through a refrigeration process, has been cooled to a liquid state, which occupies a volume that is approximately 1/600th of its gaseous state MMBtu million British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit mtpa million tonnes per annum SEC U.S. Securities and Exchange Commission SOFR Secured Overnight Financing Rate SPA LNG sale and purchase agreement TBtu trillion British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit Train an industrial facility comprised of a series of refrigerant compressor loops used to cool natural gas into LNG 1 Table of Contents Abbreviated Legal Entity Structure The following diagram depicts our abbreviated legal entity structure as of June 30, 2025, including our ownership of certain subsidiaries, and the references to these entities used in this quarterly report:

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS CHENIERE CORPUS CHRISTI HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues LNG revenues $ 1,097 $ 842 $ 2,175 $ 1,717 LNG revenues—affiliate 418 266 926 508 Total revenues 1,515 1,108 3,101 2,225 Operating costs and expenses (recoveries) Cost (recovery) of sales (excluding operating and maintenance expense and depreciation and amortization expense shown separately below) ( 488 ) ( 105 ) 1,047 724 Cost of sales—affiliate — 46 30 47 Operating and maintenance expense 142 139 283 270 Operating and maintenance expense—affiliate 34 27 65 56 Operating and maintenance expense—related party 8 3 16 5 General and administrative expense 2 1 3 3 General and administrative expense—affiliate 12 10 23 21 Depreciation and amortization expense 124 113 242 226 Other operating costs and expenses — 4 — 4 Total operating costs and expenses (recoveries) ( 166 ) 238 1,709 1,356 Income from operations 1,681 870 1,392 869 Other income (expense) Interest expense, net of capitalized interest ( 9 ) ( 14 ) ( 13 ) ( 51 ) Loss on modification or extinguishment of debt — ( 3 ) — ( 3 ) Other income, net 2 2 5 4 Other income—affiliate 16 — 16 — Total other income (expense) 9 ( 15 ) 8 ( 50 ) Net income $ 1,690 $ 855 $ 1,400 $ 819 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents CHENIERE CORPUS CHRISTI HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions) (unaudited) June 30, December 31, 2025 2024 ASSETS Current assets Restricted cash and cash equivalents $ 46 $ 113 Trade and other receivables, net of current expected credit losses 199 194 Trade receivables—affiliate 199 190 Advances to affiliates 117 180 Inventory 146 132 Current derivative assets 9 21 Prepaid expenses 27 12 Other current assets

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1— NATURE OF OPERATIONS AND BASIS OF PRESENTATION We own a natural gas liquefaction and export facility located near Corpus Christi, Texas (the "Corpus Christi LNG Terminal" ) with total expected production capacity of over 30 mtpa of LNG, including approximately 14 mtpa under construction as of June 30, 2025, inclusive of estimated debottlenecking opportunities. The Corpus Christi LNG Terminal also has three LNG storage tanks and two marine berths. We also own an approximately 21 -mile natural gas supply pipeline that interconnects the Corpus Christi LNG Terminal with several large interstate and intrastate natural gas pipelines (the "Corpus Christi Pipeline" ). As noted above, we are constructing an expansion of the Corpus Christi LNG Terminal that is expected to add over 10 mtpa of operational liquefaction capacity across seven midscale Trains once fully completed (the "Corpus Christi Stage 3 Project" ), inclusive of the first midscale Train that reached substantial completion in March 2025. Subsequently, in August 2025, the second midscale Train of the Corpus Christi Stage 3 Project reached substantial completion. In addition to the Corpus Christi Stage 3 Project, on June 17, 2025, Cheniere's board of directors (the "Board" ) made a positive FID with respect to two additional midscale Trains with an expected total production capacity of approximately 5 mtpa of LNG, inclusive of estimated debottlenecking opportunities (the "Midscale Trains 8 & 9 Project" and together with the existing assets at the Corpus Christi LNG Terminal, the Corpus Christi Stage 3 Project and the Corpus Christi Pipeline, the "Liquefaction Project" ). Upon FID of the Midscale Trains 8 & 9 Project, the related EPC contract was novated to CCL from another subsidiary of Cheniere that was developing the project, and the related construction-in-process and other non-current assets recognized by the subsidiary totaling $ 373 millio

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) NOTE 2— TRADE AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES Trade and other receivables, net of current expected credit losses, consisted of the following (in millions): June 30, December 31, 2025 2024 Trade receivables $ 176 $ 181 Other receivables 23 13 Total trade and other receivables, net of current expected credit losses $ 199 $ 194 NOTE 3— INVENTORY Inventory consisted of the following (in millions): June 30, December 31, 2025 2024 Materials $ 125 $ 108 LNG 11 16 Natural gas 9 7 Other 1 1 Total inventory $ 146 $ 132 NOTE 4— PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): June 30, December 31, 2025 2024 LNG terminal Terminal and interconnecting pipeline facilities $ 14,503 $ 13,406 Land 407 302 Construction-in-process 5,113 4,846 Accumulated depreciation ( 2,541 ) ( 2,306 ) Total LNG terminal, net of accumulated depreciation 17,482 16,248 Fixed assets Fixed assets 30 28 Accumulated depreciation ( 23 ) ( 22 ) Total fixed assets, net of accumulated depreciation 7 6 Property, plant and equipment, net of accumulated depreciation $ 17,489 $ 16,254 The following table shows depreciation expense and offsets to LNG terminal costs (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Depreciation expense $ 123 $ 113 $ 240 $ 226 Offsets to LNG terminal costs (1) 2 — 47 — (1) We recognize offsets to LNG terminal costs related to the sale of commissioning volumes because these amounts were earned or loaded prior to the start of commercial operations of the respective Trains of the Corpus Christi Stage 3 Project during the testing phase for its construction. NOTE 5— DERIVATIVE INSTRUMENTS We have commodity derivatives consisting of natural gas and power supply contracts, including our IPM

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis, distinguished by the fair value hierarchy levels prescribed by GAAP (in millions): Fair Value Measurements as of June 30, 2025 December 31, 2024 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset $ — $ 8 $ 1,137 $ 1,145 $ — $ 33 $ 506 $ 539 We value the Liquefaction Supply Derivatives using a market or option-based approach incorporating present value techniques, as needed, which incorporates observable commodity price curves, when available, and other relevant data. We include a significant portion of the Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants may use in valuing the asset or liability. To the extent valued using an option pricing model, we consider the future prices of energy units for unobservable periods to be a significant unobservable input to estimated net fair value. In estimating the future prices of energy units, we make judgments about market risk related to liquidity of commodity indices and volatility utilizing available market data. Changes in facts and circumstances or additional information may result in revised estimates and judgments, and actual results may differ from these estimates and judgments. We derive our volatility assumptions based on observed historical settled global LNG market pricing or accepted pr

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) Increases or decreases in basis or pricing spreads, in isolation, would decrease or increase, respectively, the fair value of the Liquefaction Supply Derivatives. The following table shows the changes in the fair value of the Level 3 Liquefaction Supply Derivatives (in millions): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Balance, beginning of period $ ( 140 ) $ ( 822 ) $ 506 $ ( 502 ) Realized and change in fair value gains (losses) included in net income (1): Included in cost of sales, existing deals (2) 1,131 511 330 66 Included in cost of sales, new deals (3) — — ( 1 ) ( 2 ) Purchases and settlements: Purchases (4) — — — — Settlements (5) 146 77 304 204 Transfers out of level 3 (6) — — ( 2 ) — Balance, end of period $ 1,137 $ ( 234 ) $ 1,137 $ ( 234 ) Favorable changes in fair value relating to instruments still held at the end of the period $ 1,131 $ 511 $ 329 $ 64 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to the contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table. (2) Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period. (3) Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period. (4) Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period. (5) Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. (6) Transferred out of Level 3 as a result of observable market for the underlying natur

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) The following table shows the effect and location of the Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions): Gain Recognized in Consolidated Statements of Operations Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 LNG revenues $ 1 $ 2 $ 2 $ 2 Cost (recovery) of sales 1,299 538 616 215 (1) Does not include the realized value associated with the Liquefaction Supply Derivatives that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. The following table shows the fair value and location of the Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of June 30, 2025 December 31, 2024 Consolidated Balance Sheets Location Current derivative assets $ 9 $ 21 Derivative assets 2,133 1,805 Total derivative assets 2,142 1,826 Current derivative liabilities ( 512 ) ( 635 ) Derivative liabilities ( 485 ) ( 652 ) Total derivative liabilities ( 997 ) ( 1,287 ) Derivative asset, net $ 1,145 $ 539 Consolidated Balance Sheets Presentation The following table reconciles the fair value of our derivative assets and liabilities on a gross basis, by contract, to net amounts as presented on our Consolidated Balance Sheets after offsetting for any balances with the same counterparty under master netting arrangements or other relevant netting criteria under GAAP (in millions): Liquefaction Supply Derivatives June 30, 2025 December 31, 2024 Gross assets $ 3,377 $ 2,836 Offsetting amounts ( 1,235 ) ( 1,010 ) Net assets $ 2,142 $ 1,826 Gross liabilities $ ( 1,051 ) $ ( 1,326 ) Offsetting amounts 54 39 Net liabilities $ ( 997 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) NOTE 6— ACCRUED LIABILITIES Accrued liabilities consisted of the following (in millions): June 30, December 31, 2025 2024 Natural gas purchases $ 294 $ 319 Liquefaction Project costs 87 143 Interest costs and related debt fees 5 5 Other accrued liabilities 41 56 Total accrued liabilities $ 427 $ 523 NOTE 7— DEBT Debt consisted of the following (in millions): June 30, December 31, 2025 2024 Senior Secured Notes: 5.125 % due 2027 $ 1,201 $ 1,201 3.700 % due 2029 1,125 1,125 3.788 % weighted average rate due 2039 (1) 2,539 2,539 Total Senior Secured Notes 4,865 4,865 Term loan facility agreement (the "CCH Credit Facility" ) — — Working capital facility agreement (the "CCH Working Capital Facility" ) — — Total debt 4,865 4,865 Unamortized discount and debt issuance costs ( 32 ) ( 35 ) Total long-term debt, net of unamortized discount and debt issuance costs $ 4,833 $ 4,830 (1) Includes notes that amortize based on a fixed amortization schedule as set forth in their respective indentures. Credit Facilities Below is a summary of our credit facilities outstanding as

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