Cheniere Announces $350 Million Repurchase of Shares from Icahn Enterprises
June 15 2022 - 7:00AM
Business Wire
Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE
American: LNG) announced today that it entered into a Purchase
Agreement (“Purchase Agreement”) to repurchase approximately $350
million of the Company’s common shares beneficially owned by Carl
C. Icahn and certain of his affiliates (“Icahn Enterprises” or
“IEP”), at a purchase price of $130.52 per share, the closing price
of Cheniere’s common shares on June 14, 2022. The purchase of the
shares will be funded from Cheniere’s cash on hand and is a part of
the Company’s $1 billion share repurchase authorization. The
transaction is expected to close no later than June 21, 2022.
Pursuant to a nomination and standstill agreement entered in
2015, the Company agreed to give Icahn Enterprises one board seat
for as long as it continued to hold at least 7,741,412 Company
common shares. This transaction will result in Icahn Enterprises’
holdings in the Company to be under this threshold and the
remaining director designee, Andrew Teno, will resign from the
board of directors within two business days following the closing
of the Purchase Agreement.
“Today’s $350 million repurchase reflects efficient execution on
our long-term capital allocation plan and underscores our
conviction in Cheniere’s industry-leading LNG platform at a time
when environmental priorities and energy security have natural gas
as a key focus globally,” said Jack Fusco, Cheniere’s President and
Chief Executive Officer. “We appreciate Carl Icahn and his Board
representatives for their support of Cheniere over these last
almost seven years as we have become the world’s second largest LNG
operator. They have provided guidance and insight which has
meaningfully contributed to Cheniere’s growth and strategy over
that time.”
“Our investment in Cheniere is a shining example of IEP’s
activism efforts. We were instrumental in hiring CEO Jack Fusco,
who has assembled a great team and unlocked the value of a
fantastic asset. As we have said many times, when the time for
activism is over, we generally take a profit on a portion of our
stock. To date, we have made over $1.3 billion in realized and
unrealized gains on Cheniere and, even after the sale today, we
still remain sizeable owners of Cheniere stock,” said Carl
Icahn.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
liquefied natural gas (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 total
production capacity of approximately 45 mtpa of LNG in operation.
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, and Washington, D.C.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2022, filed with the Securities and
Exchange Commission.
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, and share repurchases, and (viii) statements
regarding the COVID-19 pandemic and its impact on our business and
operating results. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220614006076/en/
Investors Randy Bhatia,
713-375-5479 Frances Smith, 713-375-5753 Media Relations Eben Burnham-Snyder, 713-375-5764
Phil West, 713-375-5586
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