Cheniere Energy Inc

Geopolitical and trade · International conflicts and tensions

Cyberattacks on businesses have escalated in recent years, including as a result of geopolitical tensions... disruptions to maritime transportation routes, such as the security situation in the Gulf of Aden and congestion at the Panama Canal.

Geopolitical and trade · Trade policies tariffs and sanctions

Changes to U.S. trade policy could have a material adverse effect on our business... The U.S. has recently enacted and proposed to enact significant new tariffs and trade restrictions... the Office of the U.S. Trade Representative (the 'USTR') in April 2025 mandated restrictions on maritime transport services for U.S. LNG exports.

Natural and catastrophic events · Pandemic and public health crises

Outbreaks of infectious diseases, such as COVID-19, at one or more of our facilities could adversely affect our operations or business... the risk of future variants and other infectious diseases is unknown and the outbreak of a more potent variant or another infectious disease in the future at one or more of our facilities could adversely affect our operations or business.

Natural and catastrophic events · Climate change and environmental impact

The EPA has finalized or proposed multiple GHG regulations that impact our assets and supply chain... other international, federal and state initiatives may be considered in the future to address GHG emissions through treaty commitments, direct regulation, market-based regulations such as a GHG emissions tax or cap-and-trade programs.

Industry regulation · Energy grid operating standards

Our interstate natural gas pipelines and their FERC gas tariffs are subject to FERC regulation... The FERC regulates the transportation of natural gas in interstate commerce, including the construction and operation of pipelines, the rates, terms and conditions of service and abandonment of facilities.

Technology infrastructure · Technology systems and infrastructure failure

We rely on control systems, technologies and networks to run our business and to control and manage our trading, marketing, pipeline, liquefaction and shipping operations... Should multiple of the third party pipelines which supply our Liquefaction Projects suffer similar concurrent attacks, our Liquefaction Projects may not be able to obtain sufficient natural gas to operate at full capacity, or at all.

Cybersecurity and data protection · Data breaches and cyber attacks

A cyberattack involving our business, operational control systems or related infrastructure, or that of third parties with whom we do business, including pipelines which supply our Liquefaction Projects, or an attack on our critical suppliers, could negatively impact our business or operations, result in data security breaches, impede the processing of transactions, delay financial or compliance reporting and potentially harm our reputation.

Capital structure and performance · Financial performance volatility

Our use of derivative instruments, including our IPM agreements, to manage risks could have a significant adverse or otherwise volatile effect on our earnings reported under GAAP and our liquidity... our net income for the years ended December 31, 2025 and 2024 included $3.6 billion and $1.3 billion of gains, respectively, resulting from changes in the fair values of our derivatives.

Market and investment · Interest rate and yield curve risk

A variety of factors beyond our control could impact the availability or cost of capital, including domestic or international economic conditions, increases in key benchmark interest rates and/or credit spreads, the adoption of new or amended banking or capital market laws or regulations.

Capital structure and performance · Dividend policy and capital allocation

We and our subsidiaries may be restricted under the terms of our and their indebtedness from paying dividends or distributions under certain circumstances... Any inability to pay or increase dividends or distributions by us or our subsidiaries as a result of the foregoing restrictions could have a material adverse effect on our liquidity.

Credit and liquidity · Access to capital and financing

An inability to source capital to supplement our available cash resources and existing credit facilities could cause us to have inadequate liquidity and could materially and adversely affect us... Our ability to fund our capital expenditures and refinance our indebtedness may depend on our ability to access additional project financing as well as the debt and equity capital markets.

Capital structure and performance · Debt management and refinancing

We incur, and will incur, significant interest expense relating to financing the assets at the Sabine Pass LNG Terminal and the Corpus Christi LNG Terminal, and we anticipate drawing on current committed facilities and/or incurring additional debt to finance the construction of the Corpus Christi Stage 3 Project and the CCL Midscale Trains 8 & 9 Project.

Credit and liquidity · Credit risk and customer defaults

Our future results and liquidity are substantially dependent upon performance by our customers to make payments under long-term contracts... While substantially all of our long-term third party customer arrangements are executed with a creditworthy company or secured by a parent company guarantee or other form of collateral, we are nonetheless exposed to credit risk in the event of a customer default that requires us to seek recourse.

Market and investment · Market volatility and economic cycles

Cyclical or other changes in the demand for and price of LNG and natural gas may adversely affect our LNG business and the performance of our customers... Natural gas and LNG prices have been, and are likely to continue to be, volatile and subject to wide fluctuations in response to one or more of the following factors.

Core operations · Safety incidents and operational accidents

We are subject to significant construction and operating hazards and uninsured risks, one or more of which may create significant liabilities and losses for us... The construction and operation of our LNG terminals and our pipelines are, and will be, subject to the inherent risks associated with these types of operations including explosions, breakdowns or failures of equipment, operational errors by vessel or tug operators, pollution, release of toxic substances, fires, hurricanes and adverse weather conditions.

Human capital and workforce · Talent acquisition and retention

We may experience increased labor costs, and the unavailability of skilled workers or our failure to attract and retain qualified personnel could adversely affect us... We compete with other energy companies and other employers to attract and retain qualified personnel with the technical skills and experience required to construct and operate our facilities and pipelines.

Supply chain and procurement · Raw material availability and cost volatility

We may not be able to purchase or receive physical delivery of sufficient natural gas to satisfy our delivery obligations under the SPAs... The supply of natural gas to our Liquefaction Projects to meet our LNG production requirements timely and at sufficient quantities is critical to our operations and the fulfillment of our customer contracts.

Market position and competition · Competitive pressure and market share loss

Failure of exported LNG to be a long term competitive source of energy for international markets could adversely affect our customers... The success of our business plan is dependent, in part, on the extent to which LNG can, for significant periods and in significant volumes, be supplied from North America and delivered to international markets at a lower cost than the cost of alternative energy sources.

Market position and competition · Pricing pressure and margin compression

We face competition based upon the international market price for LNG... Factors relating to competition may prevent us from entering into a new or replacement SPA on economically comparable terms as existing SPAs, or at all.

Corporate governance · Internal controls and risk management

We do not, nor do we intend to, maintain insurance against all of these risks and losses... Although losses incurred as a result of self-insured risk have not been material historically, the occurrence of a significant event not fully insured or indemnified against could have a material adverse effect on our business.