Venture Global Inc. Third Quarter 2026 Earnings Conference Call - VENTURE GLOBAL INC

Hello, everyone. Thank you for joining us and welcome to the Venture Global Inc. Third Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your questions, press star 2 again. I will now hand the conference over to Ben Nolan, Senior Vice President of Investor Relations. Ben, please go ahead. Thank you and good morning, everyone! Welcome to Venture Global Inc.'s third quarter 2026 earnings call. I'm joined this morning by Mike Sable, VentureGlobal's CEO, Executive Co-Chairman and Founder, Jack Thayer, our CFO, and other members of Venture Global's senior management team. Before I begin, I would like to remind all listeners that our remarks, including answers to your questions, may contain forward-looking statements, and actual results could differ materially from what is described in these statements. I encourage you to refer to the disclaimers in our earnings presentation, which is available on the investor section of our website. Additionally, we may include references to certain non-GAAP metrics, such as consolidated adjusted EBITDA, which we may refer to as simply EBITTA during this call. A reconciliation of these metrics to the most relevant GAAP measures can be found in the appendix of the earnings presentation posted on our website, Finally, the guidance in this presentation is only effective as of today. In general, we will not update guidance until the following quarter and will not update or affirm guidance other than through broadly disseminated public disclosure. I'll now turn the call over to Mike Sable. Thank you, Ben. Good morning, everyone, and thank you for joining us today. We are pleased to share our third quarter 2026 results. I will begin the call with an overview of our key accomplishments in the quarter and an update on the business. I will then make some remarks on the LNG industry before turning the call over to Jock, who will provide a more detailed review of our financial results, as well as updated guidance for 2026. Following all prepared remarks, we will open the call to Q&A. Beginning on page five, you can see several highlights for the quarter, including the company's largest ever quarterly EBITDA of $2.6 billion and significant growth year over year in volumes, revenue, income from operations, net income, and EBITda. We are increasing our 2026 EBITD guidance to $10 to $11.3 billion from $8.7 to $9.1 billion based on current market outlook for the remainder of the year. Jack will discuss these numbers in greater detail. We are also raising the low end of the expected cargo range by nine cargoes for 2026. Turning to page six, our operational and financial performance was very strong in the third quarter, and the capstone of that operational execution occurred on October 31st as we commenced commercial operations at Plaquemines Phase 1. The team delivered COD within the original window period of our phase one contracts and has now loaded six SBA cargos to customers since COD. Although this milestone occurred after the end of the third quarter, we wanted to highlight this significant achievement and recognize our team who successfully and efficiently completed complex and challenging rectification and commissioning work while sustaining our industry-leading safety record. Plaquemines phase one commenced commercial operations just 53 months after FID, making it the fastest greenfield project of its size to progress from FID to COD and surpassing the record previously set by Calcasieu Pass. Commercial momentum continued in the third quarter as we executed 1.5 MTPA of new or increased LNG offtake agreements. We are pleased to add ConocoPhillips as a new customer with a 1 million ton per annum agreement along with a new off-take agreement with China Gas for 0.5 MTPA. Additionally, just last week, one of our existing high-credit quality customers increased their contracted volume by 0.05 MTPA, Demand for long-term contracts remains robust, and we expect to add more high- credit quality 20-year SPAs before the end of this year. As we announced last month, we have entered in definitive reservation agreements with GE Vernova, GE Grid Solutions, and Baker Hughes for up to 16 power islands and associated grid equipment, enabling us to develop an island mode data center solution as a natural extension of our LNG business. Building upon our LNG and power expertise to create the first industrial AI utility offering, we believe our existing ability to deliver near-term power, turnkey in-house engineering, procurement, and construction, and manage significant volatility in power loads without relying on the public grid can provide a differentiated and actionable solution for compute providers. Importantly, the agreement framework preserves Venture Global's flexibility on the timing and scope of future developments. Also, any potential AI utility development would be separate from and complementary to Venture Global's existing LNG operations and would not impact the company's LNG sales agreements or other existing commercial commitments. The production and delivery of low cost clean American LNG for the next several decades remains our key strategic objective. Moving to page 7, we have now contracted almost all of our 2026 cargoes with over 99% of the portfolio contracted from the 91% previously reported on our second quarter earnings call in August. The 124 cargoes produced in the third quarter were at the high end of our expected production range, and we are raising the low end of the cargo range for the full year by nine cargoes. During the quarter, we were completing phase one commissioning and rectification activities at Plaquemines, which did modestly impact production during the quarter. Moving into the fourth quarter, as anticipated, we have already seen an improvement in production. We will provide further 2027 production and pricing guidance on our fourth quarter call early next year. And we are maintaining our 2027 outlook for 575 to 625 total cargoes next year, which includes 10 to 20 cargoes from CP2 during the third quarter, as we now expect production there to begin mid-year 2027. Taking a closer look at CP2 on page 8, construction continues to progress, and we are moving forward the target of first LNG to July 2027, That would be approximately 24 months after CP2 Phase 1 FID and meaningfully sooner than our previous industry record of 29 months from FID to first production. With each phase of our projects, our team has improved efficiency and speed to first reduction, which has consistently proven beneficial during this period of historically tight global LNG. For reference, Plaquemines produced 234 cargos in its first year of operations. Building on lessons learned at that facility, we believe CP2 can ramp production even more quickly. On page 9, we discuss our bolt-on expansions at CP2 and Plaquemines. For the CP2 phase 3, we are working with our legacy banks and expect to have financing in place soon, positioning us to make a final investment decision on the 10 MTPA expansion in early 2027. For For the Plaquemines expansion, as previously disclosed, we are targeting FID of the first phase around mid-2027. To facilitate the expansion, we expect to build a new pipeline from North Louisiana called Cloud Connector to provide gas to support our Plaqueman's LNG expansion, adjacent air utility site, and enable enhanced production from the original two phases of Plaquemen's. On page 11, you will find our insights on the state of the LNG market. Current prices are a reflection of both increased global natural gas demand and fewer cargos coming out of the Middle East. Gas storage levels, especially in Europe, have grown at a slower than normal pace since summer as Europe consumed large quantities of natural gas to support power demand. Since July, monthly LNG imports into Western Europe have surged by 45 percent, yet even with increased LNG import, inventory builds have lagged typical levels as EU gas storage is at its lowest early November level since 2013, pointing to stronger underlying demand growth. Europe has been using gas as a balancing fuel to offset variability from other sources of electricity. Severe droughts led to lower river levels and limited the cooling capacity of nuclear power plants, contributing to a 7% year-over-year decline in electricity generation from EU nuclear facilities looking ahead to the winter wind power represents approximately 20 percent of europe's electricity generation and forecasts for the next several months call for volatile wind conditions with periods of low wind alternating with high output storm periods this outlook underpins potentially significant natural gas demand during the heating season in asia many markets looking to manage geopolitical risk have increased coal consumption as an alternative to buying spot lng The switching has pressured coal inventories and contributed to sharply higher coal prices. As highlighted by recent Indonesian Coal Force Majeure events, coal is providing less relief. As a result, LNG markets in Asia and throughout the world are becoming increasingly inelastic. These examples illustrate several drivers of near-term demand. If LNG volumes coming from the Middle East remain limited, we expect LNG prices to remain volatile this winter and potentially move higher from currently elevated levels notably blackman's production this past year offset roughly one-third of the global supply impact stemming from disruptions in middle east helping stabilize prices for consumers globally during this period of volatility as cp2 targets starting production in july venture global's lng projects will continue to offset potential broader supply disruptions support global demand and act as a reliable stabilizing force in the market while lng prices remain high energy buyers have taken an all of the above approach encompassing fuel switching demand management and utilization of storage we have not seen permanent demand destruction or a shift away from lng as a strategically significant energy feedstock nothing illustrates this more clearly than continued demand for new long-term contracts and the robust growth of new lng import project development activity As shown on page 12, we count more than 30 incremental projects that have been announced and are in various stages of development since the beginning of the year. While not all of these projects may materialize, demand for power in LNG is unquestionably growing. At least in the case of Venture Global, I think it is fair to characterize demand for long-term contracts as stronger than it has ever been, particularly from Asian buyers. We believe this strong contract appetite reflects continued growth in global energy consumption throughout the world and the value proposition of buying long-term fixed margin Henry Hub-linked LNG at prices that make electricity affordable and available in all market cycles. Turning to page 14, as announced earlier in October, we entered a power frame agreement with GE Renova and Baker Hughes for up to 16 power island units each island has gas turbines heat recovery steam generators and steam turbine generators which gives us about 720 megawatts of combined cycle capacity per island we have also entered a second frame agreement with ge grid solutions for associated gas insulated switch systems power transformer and equipment necessary to manage the load volatility inherent to compute these new frame agreements provide for incremental power supply optionality above and beyond the remaining equipment available under our long-term baker hughes master agreement which governs the supply of key power and liquefaction equipment that has successfully underpinned our growth for over a decade under these contracts we plan to order one power plant before the end of this year and a second one early next year as we secure offtake contracts with investment grade customers we have the option to build out further power and data center infrastructure. We intend to develop this business with the same disciplined approach we have always taken. This means advancing incremental capacity alongside investment-grade customer commitments and maintaining a clear focus on attractive risk-adjusted returns. We expect the first 250 megawatts to come online in late 28, are targeting 5 gigawatts by the end of 2031, and have the potential to reach 10 gigawatts by 2034 across our two sites in Cameron Parish and Blackman's Parish. On page 15, if you look at the AI ecosystem on the left, there are five necessary contributing layers of energy, infrastructure, chips, models, and application. Our AI utility offering is focused on two of the most difficult layers to deliver, infrastructure and energy. We believe our ability to provide both on an integrated basis can offer a differentiated turnkey solution at scale. We view this as additive to our current LNG business and is a natural extension of what we have done since Venture Global's founding. Successfully and quickly building and operating power equipment and infrastructure at a massive scale. We already have approximately 15,000 acres of land and access to roughly 13 BCF per day of pipeline capacity, making us one of the largest gas buyers in the country. We have over 4 gigawatts of island mode power currently operating or in development on our own private grid and a 1,000-person in-house execution and EPC team. We've built ports and fabrication yards, developed supply chain and quality control teams, and executed thousands of scopes across $70 billion of industrial assets. Compared with our LNG projects, power for compute is a relatively simpler and narrower scope. Data centers place heightened demand on power systems as their load is not steady. Power demand can rise or fall sharply, which creates a real reliability challenge for most power providers, necessitating utility-grade connectivity to manage this volatility. Venture Global's design is built to meet this volatility challenge, as our industrial energy grid already reliably absorbs significant load swings in island mode and electrification facility operations today. For potential customers, that adds up to a dramatically better and more reliable product, one that offers speed and scale. We believe initial compute capacity could be available in late 28, early 29, and could scale to 5 gigawatts by the end of 2031. Also, our island mode solution solves for the challenge of connecting to the public power and water grid, bypassing interconnectivity hurdles. VentureGlobal's AI utility would have no added cost to local consumers. Our solution is designed for reliability with a target of greater than 99.9% uptime supported by multiple layers of redundancy. We can achieve all this with no impact on the local community as we don't rely on the local electric grids or water utilities. Further, we are well capitalized and do not expect to need any outside equity to fund our current build plans. Operationally, this is a natural fit with our existing construction program, which should be ramping down from large-scale greenfield operations at CP2 and focused on the smaller brownfield scopes at CP1 and Plaquemines as construction begins to support our AI utility offering. Customer interest to date supports our view that this is a low-risk, high-value, differentiated market offering. We are working hard to secure commercial agreements and are excited about the opportunity to deploy our unique combination of experience, skills, infrastructure, equipment, and capital in this rapidly growing market that needs partners capable of delivering this one-of-one turnkey offering. I will now turn the call over to our CFO, Jack Thayer, who will review the quarterly performance, provide an overview of our project performance, and discuss our updated financial guidance. Thank you, Mike, and good morning to those of you on the line. I'll be starting on slide 17. I'm referring to the Venture Global Inc. Form 10-Q for the quarter-ended September 30, 2026. The 10-Q is available on our website, and some of the key results are summarized on page 17 of the presentation. During this call, I will highlight results we believe are salient to this audience, and I encourage you to review the entirety of our financial statements in detail. Beginning with revenue, our top line was $4.8 billion for the third quarter of 2026, a $1.4 billion or 43% increase from $3.3 billion during the equivalent period in 2025. This increase was driven by $827 million from higher sales volumes with 466 TBTU in the third quarter of 2026 compared with 373 TBTU in the third quarter of 2025, and $580 million from higher net LNG sales prices with $10.16 per MBTU earned in Q3 2026 compared with $8.92 per MBU earned in Q2 2025. Our income from operations was $2.3 billion in the third quarter of 2026, a $1 billion or 74% increase from $1.3 billion in the third quarter of 2025. The improvement was primarily driven by higher sales volumes and prices. Operating and maintenance costs increased $58 million year-over-year, primarily due to increased commissioning work at Plaquemines and expenses related to the ramp-up of operations and readiness at CP2. G&A expenses increased slightly year-over-year, attributable to higher headcount. Our development costs were lower than in the same period last year because, as similar to last quarter, we were able to capitalize more costs associated with our pipeline and bolt-on expansions. Our net income attributable the common stockholders, which we refer to as net income, was 2.5 billion dollars for the third quarter of 2026 a 2.1 billion dollar or 493 percent increase from 429 million dollars in q3 2025 again the most impactful driver of higher net income was increased volume and prices but in the quarter we also recognized a 1.4 billion dollar non-cash gain on interest rate swaps which was slightly offset by higher income tax expense. Shifting to consolidated adjusted EBITDA, we earned $2.6 billion during the third quarter of 2026, a $1.1 billion or 69% increase from $1,5 billion in Q3 2025. This increase was driven primarily by higher sales volumes as well as higher LNG sales prices, net of the cost of feed gas. Similar to last quarter, our EBITTA margin was once again 54%, as higher volumes and better pricing were not accompanied by commensurate increases in costs in september we secured a new three billion dollar revolving credit facility for general corporate purposes including to fund early project costs at the cp2 and plackman's bolt-on expansions through september we also utilized project distributions to repay 1.8 billion dollars of cp 2 phase 1 equity bridge drawn capacity. We expect to repay the remaining $0.2 billion balance of the $3 billion facility in Q4 2026. Bolstering our liquidity, we also finished the quarter with $5.1 billion of cash and restricted cash. As you can see on page 18, we are providing a consolidated adjusted EBITDA guidance range of $10 billion to $10.3 billion for 2026, which is up from $8.7 billion to $9.1 billion when we reported in August. This range contemplates a current market liquefaction fee of $21 to $22 per MMBTU for cargoes remaining to be sold in 2026. On average, if the fixed liquefication fees over the remainder of 2026 increase or decrease by $1 per MMBTU, we expect our consolidated adjusted EBITDA range to adjust accordingly by $20 to $30 million, reflecting an LNG portfolio where 99% of our expected 2026 cargoes are now contracted. We plan on providing 2027 EBITDA guidance on our next quarterly earnings call. It is worth reminding you all that there will be an impact to contracted phase one margins from the start of our long-term contracts at Plaquins. We also expect continued basis impact on the gas used at that facility, and there are likely to be some costs associated with ramping up the startup of CP2 and the development of our AI utility business. Given the positive market backdrop and our progress on CP2 construction, we're optimistic about another year of strong results. I'll now turn the call back over to Mike. Thank you, Jack. At this point, we'd like to open up the call for Q&A. We will now begin our question and answer session. We will now begin our question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If your muted locally, please Please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question is from the line of Praneeth Satish of Wells Fargo. Your line is open. Please go ahead. Praneet Satish, Wells Farga, Good morning. Thanks. Good morning, maybe can you walk us through how quickly CP2 ramps after first LNG? I guess looking at your full year 2027 guidance, it implies a big step up in the fourth quarter of 27, just trying to figure out how much of that is seasonality versus the CP1 de-bottleneck versus the cp2 ramp, so just anything on the on the slope of production at cp 2 would be helpful. Sure, no, the best guide is to look at the ramp up for Plaquemines, which in the script we just read here, we reminded that we produced 234 cargoes in the first 12 months for Plaque We studied, as we do very carefully, the opportunities to improve on that, and we think there are opportunities for improving the ramp-up for CPT relative to Plaquemines, but that ramp-ups for Plaquemenes we view as a really good baseline opportunity. So, given the massive scale of CP2, we think the opportunity there is significant. Mike, we also will see some improvement at Calcasieu Pass in the fourth quarter as we benefit from the bottlenecking that we're doing there during the summer. During the summer, yeah. Got it. That's helpful. And maybe switching gears to the power side. So obviously, you know, a big opportunity for you guys. But can you just help us understand how are you thinking about financing for the first set of power islands? And really, it's on the debt side. I guess we've seen financing costs widen for some of the data center projects where they don't yet have customers fully committed. And so do you think that is a risk to the pace of your build out and maybe points to something of a more measured build out as you wait on customers? Or do you think the economics are still strong even with an increase in financing costs? The margins are still fantastic, even with higher financing costs, assuming that we're able to contract on a triple net lease basis in line with where others are contracting in the market. When you look at the timing of the first compute that we think is possible to bring on, matching with the delivery schedules of the equipment, is late 28, early 29. And so it's out a couple of years. And we're looking to build in 250 megawatt compute building increments and then ramping up after over the course of 29 and into 2030. So there's a reasonably gentle ramp up in what that cost would look like that spreads into really mostly into 29 and 2030, which matches up nicely with the big ramp up and cash generation by the LNG business. So we think that timing is going to turn out to be well-suited for the buildup in cash that we expect as we more than double the production capacity, bringing online CP2 and the first bolt-on for CP2. in the first bolt-on of uh of of blackman's the first uh power plants you know we we we'll we'll begin to to place some orders for those as we've guided to shortly uh but the the payments for the power plants are spread out uh over a few years as we as those get built uh we believe we purchased them at a great price. We haven't disclosed individual prices of the power plants, but we believe we purchased them at great price that makes them very attractive economically. The first power plants we can deploy into the bolt-on expansion area for LNG. And so we think we have really nice kind of optionality on how we take advantage of the value from those power plants. Again, we think the market, particularly for, we know the market for power plants that deliver in the next few years is extremely, extremely attractive just given the demand of hyperscalers and utilities, not just in the U.S., but globally chasing power generation equipment. Got it. Very helpful. Thank you. The next question is from the line of John McKay of Goldman Sachs. Your line is open. Please go ahead. Good morning, John. Hey. Good morning Mike and team. Thanks for the time. picking up on that last question a little bit, but just thinking about the remaining LNG build-out, can you just remind us the capital you need to fund the remaining 85 MTPA? And then any kind of guidance you can give us on kind of the cash generation you'd expect to make over that period? Just trying to think of, you know, completing the LNG build- out as you kind of make this uh shift into the data center side sure so um the the the next financing is going to be for the the bolt-on for cpt phase three which is adding uh 12 lng trains and approximately 10 million tons of additional production capacity uh the financings are going to look generally similar to what we've done which will be a combination of of uh bank construction debt at the project level and other debt facilities at the project level. A little bit of contributed equity from cash equity from the parent and we do not expect to raise any parent level equity or debt like has been the case for the previous transactions. the bolt-on for Plaquemines we're guiding to the first half of next year the first phase of that is adding eight trains so it's a it's a little bit fewer trains in the next phase for the bolt-ons and Plaquements and that that number of trains matches up nicely with how it integrates with the with the balance and plant for phases one and two at Placomans and so that that that financing sequence we expect to have done by the middle of next year before we begin to shift over to the financings for the build out of the AI compute opportunity again provided we're signing customer contracts to match up with that growth. The cumulative EBITDA from today for 27, 28, and 29 is significant. And my view is that it's going to, in aggregate, be in excess of $30 billion, depending on your price assumption. on the sale of cargoes in the future. And so we have significant retained earnings accumulation that supports the LNG buildup plus any incremental equity to support financing for contracted data center buildings and also amortization of debt and a nice cash cushion. Today, if you took note from a few minutes ago, Jack showed that we have today $5.3 billion of cash. And so while we've been growing our business significantly in the last year, adding $18 billion of assets and increase in production capacity, we've also been able to manage the cash balance attractively. thanks mike appreciate that and maybe just uh thinking about the lng build out but pulling the macro in a little bit can you just share some of your thoughts on what the contracting environment looks like right now we've seen a new buyer come into the u.s contract market that's a little different from what we've seeing before um so any any kind of thoughts you can share on on the general contracting environment and what your appetite to sign new long-term deals is right now. Thanks. Yeah, no, it's an extremely attractive 20-year market or active 20- year market for us right now, probably as good as we've seen since the beginning. And we're expecting to sign more 20-Year deals this year and next year. The market has shifted to for for the moment at least to more buyer buyers coming from asia than europe which is a pivot from the last couple years uh one we expected but but has arrived now uh we um feel good that we'll be able to layer into the portfolio the additional 20-year spas that uh that we want uh and we also think that um we'll see increasing appetite for uh midterm deals as well you know five year to ten year deals and uh and so we'll probably look to add some of those next year as well that's clear appreciate the time thank you the next question is from the line of spiro dunas of city your line is open please go ahead good good morning. Thanks, Upper. Hey, morning, Mike. I want to just follow up actually on that last question with respect to contracting activity. Mike, you maybe level set us on what's still needed to commercialize the next expansions at Cal State Pass and Placomines. The slides point to about 30 MTPA still available. So I want you to get your sense on how you're thinking about what that looks like post-FID and how much you'd be willing to contract out. We're in a good position to finance today um what we uh what we need to what we need to where we already have what we needed um to uh do the fid for the cp2 bolt-on and it's uh it you know it's a it's brownfield expansion we expect to be able to turn that um incremental um 10 million ton or 10 trains that are inside the wall for the phase three fairly quickly and so it creates extra opportunities for how we how we finance that project we uh expect and plan to have more this year uh some of which will be uh assigned to that bolt-on expansion and others that will shift over uh to the plockman's bolt-on uh the for the uh plockmans bolt-ons we could finance that one um ahead of uh additional 20-year deals but um given the cadence of of our activity uh we would we we expect to have two or three more um if uh or more to uh to support the timing of the FID for Blackman's. We expect to have all that contracted on a multi-year basis. You know, a five to 20 year basis is probably the likely range. We have a heavily weighted portfolio today heavily weighted to 20-year deals so our overall portfolio length is really long and we'd like to add more midterm deals so we can add more price uh and still end up with a very long long term so of that remaining 30 million tons uh out of the i can't remember what page number that has been uh but out of uh the 85 we have uh um coming online in the next few years uh you know those those will be done on a a blend of you know five-year deals 10-year deals 20-year deal two-year um that um we have we have you know a few years to to blend those contracts in. We're not going to rush out and do them all in the next few months and quarters. We'll spread them out to kind of a blended term. If we did half of that on a midterm basis, we're still going to have a contract length that's 13, 14, 15 years in term, which is still a long life portfolio. Yeah, I appreciate the color on that. Switching gears back over to the power side and just to focus on the power returns, I guess, and I'm not sure how much you could say right now, but can you talk about the relative returns on power and how that compares to LNG and where some of those trade-offs might be? And similarly, is there an easy way to think about the unit economics and capex on each of these 250 megawatt units so the the the returns if we just did power and didn't also build the data centers might be a little bit higher but we wouldn't be deploying that much capital the returns on on a combined basis of power plus data center buildings uh is higher than the returns uh on the lng side provided that we're contracting in line with where others are contracting in the market uh it's not a neither or though we're going to continue building the lg and we're gonna build out um our grids in order to support uh uh you know data center demand uh so it it we think it's a very attractive addition again if we're able to execute the triple net lease contracts and uh we think that it will um uh provide a really nice um kind of a blend of contracts that are that are also long-term but don't have the um the same commodity price exposure and so as we layer those contracts in it will um it will you know blend out um that volatility and and and we think be very attractive for shareholders great i'll leave it there thank you the next question is from the line of manav gupta of ubs your line is open please go ahead Good morning. Good morning, Mike and Tim. I'm trying to understand, as I look at the slide 24, what is, in your opinion, the optimal mix of contracted versus uncontracted capacity as you are trying to enter a new year? So let's say, where would you like to be somewhere in December 2027 and then again December 2028? As you enter those years, what would be the right mix of contacted versus uncont contracted capacity? So, you know, not all the volume, obviously, in these charts exists today. It's some of it's a lot of it in construction with CP2 and in development with the bolt-ons. And so we don't have to do it all, you now, this quarter and next quarter. And we think that wouldn't be smart to do. And so we have time to blend in the contracts. We have over 50 million tons of contracts today, almost all on a 20-year basis. And so, we have room in our portfolio to capture more price by doing shorter than 20- year deals. And so We expect the vast majority of this to all be contracted in the next couple of years. uh but we'd like to do more uh mid-term deals to blend down um the 20-year term and and hopefully achieve a higher price in the market today as i'm sure you know you know as you go shorter in contracted term the prices are higher and we have room to add uh add a decent amount of mid-term deals and still have a very long portfolio of contract term. It's difficult to give an exact blend today of where we're going to be a year from now and two years from now because we don't know the market price to be able to do it. And obviously, we're always reacting to the market place. We think that the fundamentals that are true in most commodity markets will continue to be the case here, which is replacement cost drives the market price over time. And we think that construction costs are going to continue to inflate. We think that interest rates are more likely to stay the same or go higher than go lower in the next couple of years, and that signals higher replacement costs. And so we think over a multi-year period supports increasing price opportunity that we want to blend into over time. Perfect, sir. My quick follow-up is on the power side. You know, a lot of companies are trying this. I'm trying to understand from Venture Global's perspective, what are the strategic advantages that your company has? Why would you feel that the AI data centers would like to partner with you? What advantages can you bring to the table versus some of the multiple solutions that are out there? Thank you. Sure. Well, the one of the big challenges that exists in the in the compute market today is really the scarcity of electricity being available to power the buildings in the computer. And a big part of that is the ability or the difficulty in connecting to utility grids as they have in the past. and it's political and regulatory. And the other component of it is the ability to manage the scale and variability of the compute loads as the compute utilization goes up and down sometimes in milliseconds. So the market and response, as we've all seen over this year, is to start to build power plants separate from the utility grids and contribute that power to the grids. The data centers largely remain connected to the Grids in parallel to connecting with the incremental power, which means that they continue to use throughput capacity in the transmission lines and the Grids of the utilities, which we think will remain to be a large impediment to the growth of the market. In our case, we have developed over many years and built and now operate multi-gigawatt grids that manage the variable load of our LNG facilities and have demonstrated to be very reliable in managing that variability and providing high quality power for, in our case lng production and so for us we can uh expand our existing grids uh to provide a significantly increased power generation combined with uh data center buildings to support the compute demand all in island mode so we're not connecting and reliant on the utility grids we have no impact on the community's grids or or uh available power generation or prices and we're not reliant on the water utilities either so in an environment where we think that's one of the primary challenges to growth we we think we solve entirely we also have built out as you know our own execution team team that engineers, procures, builds, commissions, and operates these complex electrical grids. And so we think it's including gas supply. And so, we think, it enables us to be a turnkey solution on two of the layers of the AI ecosystem, energy, and infrastructure, and provide very, very high-quality product for the hyperscaler customers. MR. Thank you so much. MR. Thank you. MR. The next question is from the line of Jean Ann Salisbury of Bank of America. Your line is open. Please go ahead. MR. Good morning. Hi, good morning. I know it's early, but do the midterm election results affect how you see the power frame opportunity in the geographic areas that you're targeting which from slide 14 looks like it's basically all Louisiana and could you actually see Louisiana potentially gain market share and data centers from this uh yes we think the uh Louisiana uh has a significant advantage in the market uh for the moment it seems like it seems they might be the only uh the only store open on sunday here for data centers and combined with our our offering which is island mode we think that it creates a significant scarcity value at scale for for uh for how we how we can execute this it appears that uh the other states are going to take a while uh to kind of decide what they want the new rules uh to be for uh expanding uh uh you know power data centers and compute and louisiana particularly with what we've already executed and how large an investor we are today in louisana uh is uh open for business and we think louisian has a great opportunity to significantly add to their existing gas businesses in the state and become a major supplier of compute in the United States. That makes sense. Thank you. And then a follow-up on slide 14. Thank you for the split of your outlook for the power frame business into Cameron Parish versus Plaquemine Parish. you know, there's some pretty severe gas constraints going into Plaquemines Parish, which I guess would just get worse if you added Tower and Plaquenines Bolton. Do you think that you need to see pipelines come in to fix those constraints before you'll be able to really get customers to sign up there? Gina Ann, this is Jack. So importantly, there are two pipes that are coming online in 2028 that will address some of that constraint that we've been seeing in our basis projections. But I would add that the cloud connector pipe that Mike announced in his prepared remarks is really an avenue for us to secure significant gas. That pipeline will ultimately go up to Perryville. And you've seen increasingly improved connectivity heading west to east as projects have been announced that look to develop not just the Permian assets and the gas associated with them coming over, but also the development of the Western Haynesville and the Shelby Trough and that gas coming over as well. I'd also note that production within Haynesvile has been incredibly high volumes in what has been a low price environment. That's always viewed as the most price sensitive market, but we see developers and upstream producers earning attractive returns in a low-price environment, and we expect them to continue to maintain their production and, in fact, grow their production as new demand comes online. That'll make sense. Thank you. Thank you The next question is from the line of Chris Robertson of Deutsche Bank. Your line is open. Please go ahead. Good morning. Thank you, operator. Good morning, Mike. Just first question on the Power Island AI side. I think the power offering is pretty clear, but can you talk more about the additional infrastructure offering that you guys will be providing, including, you know, some buildings and other design elements? And can you talk about, was this engineering work already done in-house or are you still developing plans around that? Sure. No, the infrastructure offering is really just the data center buildings, in combination with the integrated power. That's the bulk of it. Obviously, it includes cooling systems as well. There's an envelope inside the building where we hand off to the customers of the compute. And again, when we sign these, we're assigning triple net leases on the power buildings. And so the envelope inside is going to depend on the customers end up being and we're building our target is to build incrementally 250 megawatt compute buildings and so we have we have a room to have multiple customers between buildings if that's how it turns out and so it's possible there would be different designs within the buildings uh we manage uh as we as we build on the lng infrastructure side teams of multiple subcontractors uh and uh the um uh it'll be similar for the data center buildings where we tap into specialist contracting firms that provide different aspects of the construction and engineering for uh specialized systems and and that's exactly the same way we do it at a larger scale on the uh on the lng side and but you know the power systems we're very familiar with which are um uh you know the gas insulated switch buildings the e-houses the transformers and the power generation itself is uh nearly near nearly identical we'll we'll be adding layers of you know batteries and air derivatives but we in our lng facilities have networks of battery systems and air derivatives uh as well designed to manage variable load so it's very very similar that's clear uh maybe one for jack or mike you could probably answer this as well but you know 2027 will be the first full year of commercial operation at both CP as well as Plaquemines in terms of the base production. So can you talk about maybe expectations around what percentage of full year EBITDA or revenues for 27 will be derived from the contract agreements versus any spot or commissioning volumes? In terms of, Chris, in terms of 2027, the split will be given that phase two will come online the middle of next year for Plaquemines in COD format, and those contracts will start. We'd still anticipate that the prevailing market prices will be the major driver of of our earnings in EBITDA during 2027. And that forward curve looks attractive at current prices. And as we play through the winter here, we anticipate that bow waving into 2027 as Europe in particular addresses a storage shortfall. I would pause and think about the data we talked about earlier on the call, which is the ramp-up for the first 12 months of Plaquemines was 234 cargos. And, you know, how hard we've worked kind of looking for opportunities to make improvements in that ramp-ups schedule. and and obviously the guidance we just gave to uh you know vectoring towards a july first lng date date and so it's you know a pretty significant move moving the uh this the the first lng date from you know from the from the winter into uh into uh the summer there to the middle the middle of the year great thank you mike i'll turn it over thank you the next question is from the line of elvira scotto of rbc capital markets your line is open please go ahead uh yeah good morning thanks for taking my question so you talked a little bit about this already but with the new ai data center initiative um you know obviously given your your expertise in power, this seems to make a lot of sense, but how should we think about, you know, capital allocation? How are you deploying human and other resources to LNG versus power? And what are the latest thoughts on, you know that sort of getting to investment grade in light of this new business, and then just capital return to shareholders? So wow, those are a lot great questions. So first of all, in terms of resource timing, You know, we're actually getting ready to come off peak at CP2 already, which when you think about our guidance on when we're going to get to first LNG would be expected. and and so in the in the bolt-on at cp2 a lot of that activity happens at the factory the incremental 12 lng trains you know the first bolt-On train is going to be the 91st train uh that we commission and and turn on and you know that's being built over in Italy and they'll roll over and and slide onto onto foundations the power plant we ordered a long time ago it's a similar power plant. We have very little pipe rock for this phase three. So the when you compare and then the Plaquemines bolt on you know it looks like it's going to just trail by about six months And that's eight trains in the first phase of that. So it's a very manageable execution that kind of just staples on to the remaining activity. And the big ramp up for the data centers, again, if and when we sign off-date contracts, happens really more, you know, some in 28, but really more 29 and 30. And so it gives us a great scope to apply this amazing team, this giant team that we've built that has, we think, an amazing set of skills and capacity. And so from an execution allocation perspective, this blends in really nicely with kind of the tapering of the most intense LNG construction and commissioning activity. That lag in timing also plays very nicely into the deployment of capital. Again, if we're able to sign triple net leases, that capital requirement pushes out into 29 and 30. The 250 megawatt buildings, the rest of the industry builds those today. It's kind of in the $5, $6, $7 billion range, not including the chips. And, and so our, and we're going to do this, if we're able to do this with, you know, investment Craig counter parties and, and so the incremental capital requirements for those are manageable relative to our size, particularly out in you know 28, 29, 30, as we're significantly ramping up production and cash flows. We load, give or take, 43 cargoes a month now. And 24 months from now, that'll pass 90 a month. And so we have a very significant buildup of cash. And so we think it's a really nice way to deploy a lot of extra capital that we think actually will improve our path to investment grade as we increase contracted long-term sales of the triple net leases and hopefully significantly increase our cash generation and earnings. But we have, in coming years, cumulatively tens of billions of dollars of cash generation. And so we have plenty of room to manage to investment grade at project levels and at apparent level, pay down debt and buy back stock if we think the stock price remains attractive and too low from our perspective. Great. Thank you. And then just in terms of, I know you announced this recently, but presumably you've been working on this for a while, but can you give us a sense of just the appetite from hyperscalers? Have you already started having discussions with some counterparties? And then what's the sort of typical lead time from customer commitment to revenue commencement? So we've been working on this for seven to eight months now and only announced it recently as we executed i think three weeks ago now the expansion of the frame agreement with ge and and uh and and and we really needed to have that in place to have um uh you know the most serious conversations with potential customers because the scarcity in the market has been the ability to you know actually acquire the the near-term power generation equipment and the switchgear and transformers and so that needs to be in place for not just us but any counterparty to close out deals with uh with customers on specific schedules uh we've never on the on the prediction of timing you know we've ever signed a triple net lease before so we're we're not experts on predicting the timing of those we've done you know give or take 140 billion dollars of long-term contracts with you know lng customers uh so we're we're able to uh give you better predictions on that side and and and so we want to remain uh very conservative on comments on timing we think uh we know we can execute it uh we now know we've secured uh the supply chain to match up with our execution execution capacity we have room to do it we've permitted for 10 years uh you know uh similar infrastructure in our locations uh we're in a great state to do it. We have the capital capacity to do it, but we haven't signed the deals yet. And so that's what we're working on. Great. Thank you very much. Thank You. We've reached the end of the Q&A session. I will now turn the call back to Mike Sable, CEO, Executive Co-Chairman and Founder for closing remarks. Great. Thanks for everyone's time this morning. We are extremely pleased with the progress that we made this quarter. We're hard at work safely executing our current construction and growth projects and look forward to speaking to many of you in coming days and weeks and are excited for our next quarterly call already. So thanks, everybody. Have a great day. This concludes today's call. Thank you for attending. You may now