Cheniere Energy, Inc.LNG
Cheniere Energy, Inc. Leases Disclosure
LEASES
We are the lessee of LNG vessels leased under time charters (“vessel charters”) as well as tug vessels, office space and facilities, land sites and equipment.
The following table shows the classification and location of our right-of-use assets and lease liabilities on our Consolidated Balance Sheets (in millions):
| December 31, | |||||||||||||||||
| Consolidated Balance Sheets Location | 2025 | 2024 | |||||||||||||||
| Right-of-use assets—Operating | $ | 2,700 | $ | 2,684 | |||||||||||||
| Right-of-use assets—Financing | 861 | 478 | |||||||||||||||
| Total right-of-use assets | $ | 3,561 | $ | 3,162 | |||||||||||||
| Current operating lease liabilities | $ | 539 | $ | 592 | |||||||||||||
| Current finance lease liabilities | 88 | 44 | |||||||||||||||
| Non-current operating lease liabilities | 2,163 | 2,090 | |||||||||||||||
| Non-current finance lease liabilities | 843 | 486 | |||||||||||||||
| Total lease liabilities | $ | 3,633 | $ | 3,212 | |||||||||||||
The following table shows the classification and location of our lease costs on our Consolidated Statements of Operations (in millions):
Consolidated Statements of Operations Location | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||
| Operating lease cost (a) | Operating costs and expenses (1) | $ | 796 | $ | 839 | $ | 783 | ||||||||||||||||
| Finance lease cost: | |||||||||||||||||||||||
| Amortization of right-of-use assets | Depreciation, amortization and accretion expense | 90 | 53 | 50 | |||||||||||||||||||
| Interest on lease liabilities | Interest expense, net of capitalized interest | 52 | 35 | 35 | |||||||||||||||||||
| Total lease cost | $ | 938 | $ | 927 | $ | 868 | |||||||||||||||||
| (a) Included in operating lease cost: | |||||||||||||||||||||||
| Short-term lease costs | $ | 5 | $ | 16 | $ | 33 | |||||||||||||||||
| Variable lease costs | 23 | 14 | 17 | ||||||||||||||||||||
(1)Presented in the appropriate line item within operating costs and expenses, consistent with the nature of our use of the asset under lease.
Future annual minimum lease payments for operating and finance leases as of December 31, 2025 are as follows (in millions):
| Years Ending December 31, | Operating Leases | Finance Leases | |||||||||
| 2026 | $ | 670 | $ | 142 | |||||||
| 2027 | 586 | 143 | |||||||||
| 2028 | 404 | 146 | |||||||||
| 2029 | 315 | 146 | |||||||||
| 2030 | 300 | 146 | |||||||||
| Thereafter | 1,027 | 500 | |||||||||
| Total lease payments (1) | 3,302 | 1,223 | |||||||||
| Less: Interest | (600) | (292) | |||||||||
| Present value of lease liabilities | $ | 2,702 | $ | 931 | |||||||
(1)Does not include approximately $4.3 billion of legally binding minimum payments for leases executed as of December 31, 2025 that will commence in future periods, consisting primarily of vessel charters, with fixed minimum lease terms of up to 15 years.
The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||||
| Weighted-average remaining lease term (in years) | 7.4 | 8.5 | 7.0 | 8.8 | |||||||||||||||||||
| Weighted-average discount rate (1) | 5.2% | 6.6% | 5.0% | 7.4% | |||||||||||||||||||
(1)The weighted average discount rate is impacted by certain finance leases that commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets.
The following table includes other quantitative information for our operating and finance leases (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 764 | $ | 803 | $ | 720 | |||||||||||
| Operating cash flows from finance leases | 52 | 35 | 35 | ||||||||||||||
| Financing cash flows from finance leases | 73 | 35 | 28 | ||||||||||||||
| Right-of-use assets obtained in exchange for operating lease liabilities (1) | 639 | 713 | 646 | ||||||||||||||
| Right-of-use assets obtained in exchange for finance lease liabilities (2) | 472 | 61 | 8 | ||||||||||||||
(1)Net of $33 million reclassified from operating leases to finance leases during the year ended December 31, 2024, as a result of modifications of the underlying tug vessel leases.
(2)Net of $15 million reclassified from finance leases to operating leases during the year ended December 31, 2024, as a result of modifications of the underlying tug vessel leases.
LNG Vessel Subleases
We sublease certain LNG vessels under charter to third parties while retaining our existing obligation to the original lessor. All of our sublease arrangements have been assessed as operating leases. The following table shows the sublease income recognized in other revenues on our Consolidated Statements of Operations (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed income | $ | 90 | $ | 283 | $ | 446 | |||||||||||
| Variable income | 55 | 39 | 57 | ||||||||||||||
| Total sublease income | $ | 145 | $ | 322 | $ | 503 | |||||||||||
As of December 31, 2025, the aggregate future annual minimum sublease payment to be received from LNG vessel subleases was $5 million and is expected to be received during the year ending December 31, 2026.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 19, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.