v3.25.3
Derivatives
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
Interest rate swaps

The Company has entered into interest rate swaps to mitigate its exposure to variability in interest payments associated with certain variable rate debt. None of the Company's interest rate swaps was designated as cash flow hedges as of September 30, 2025 or December 31, 2024.

During the nine months ended September 30, 2025, the Company settled a pro rata portion of the interest rate swaps associated with the Plaquemines Credit Facilities and received $869 million of cash proceeds. See Note 10 – Debt for further discussion.

The following table summarizes outstanding interest rate swaps:
Outstanding notional
Debt instrument
Latest maturity
Receive
variable rate
Pay
fixed rate(d)
Maximum notionalSeptember 30,
2025		December 31,
2024
Plaquemines Credit Facilities2046
(a)
Compounding SOFR2.46%$4,633 $4,633 $8,089 
Calcasieu Pass Credit Facilities2036
(b)
Compounding SOFR2.56%831 831 969 
CP2 Credit Facilities2049
(c)
Compounding SOFR4.04%9,527 84 — 
Total notional
$14,991 $5,548 $9,058 
____________
(a)Subject to mandatory early termination provisions under which certain interest rate swaps will settle at fair value in May 2029.
(b)Subject to mandatory early termination provisions under which certain interest rate swaps will settle at fair value in August 2026.
(c)Subject to mandatory early termination provisions under which certain interest rate swaps will settle at fair value in July 2032.
(d)Represents a weighted-average fixed rate based on the maximum notional.

Natural gas supply contracts

The Company has entered into natural gas supply contracts for the supply of feed gas to the Calcasieu Project and the Plaquemines Project. Those natural gas supply contracts not designated or qualifying as NPNS are recognized as either derivative assets or liabilities and measured at fair value. None of the Company's natural gas supply contracts was designated as NPNS as of September 30, 2025.

None of the Company's natural gas supply contracts was designated as hedges as of September 30, 2025 or December 31, 2024.

The following table summarizes outstanding natural gas supply contracts recognized as derivatives (notional amount in millions of MMBtus):

September 30, 2025December 31, 2024
Natural gas supply contractsTotal notionalLatest maturityTotal notionalLatest maturity
Natural gas3,365 20392,048 2031
The following table summarizes the fair value and classification of derivatives on the condensed consolidated balance sheets:

Balance sheet locationSeptember 30,
2025		December 31,
2024
Assets
Interest rate swapsDerivative assets$70 $150 
Natural gas supply contractsDerivative assets20 4 
Interest rate swapsNoncurrent derivative assets359 1,459 
Natural gas supply contractsNoncurrent derivative assets25 23 
Total assets$474 $1,636 
Liabilities
Interest rate swapsAccrued and other liabilities$17 $1 
Natural gas supply contractsAccrued and other liabilities38 12 
Interest rate swapsOther noncurrent liabilities242 2 
Natural gas supply contractsOther noncurrent liabilities95 12 
Total liabilities$392 $27 

The following table presents the pre-tax effects of derivative instruments recognized in earnings:

Three months ended
September 30,		Nine months ended
September 30,
Line item2025202420252024
Natural gas supply contractsCost of sales$(24)$— $91 $— 
Interest rate swapsGain (loss) on interest rate swaps(144)(480)(448)70 

The following table presents the gross and net fair value of outstanding derivatives:

September 30, 2025December 31, 2024
Gross balanceBalance subject to nettingNet balanceGross balanceBalance subject to nettingNet balance
Derivative assets$477 $(3)$474 $1,648 $(12)$1,636 
Derivative liabilities
(395)3 (392)(39)12 (27)

Credit-risk related contingent features

Interest rate swaps

The interest rate swap agreements contain cross default provisions whereby if the Company were to default on certain indebtedness, it could also be declared in default on its derivative obligations and may be required to net settle the outstanding derivative liability positions with its counterparties. As of September 30, 2025, the Company had not posted any collateral related to these agreements and was not in breach of any agreement provisions. The aggregate fair value of the Company's interest rate swap derivative instruments with credit-risk related contingent features in a net liability position was $259 million as of September 30, 2025.

Natural gas supply contracts

Certain natural gas supply contracts contain credit risk-related contingent features which stipulate that if the Company's credit ratings were to change, it could be required to provide additional collateral. As of September 30, 2025, the Company would not be required to post any collateral related to these contracts if the credit-risk related
contingent features were triggered, as the delivery of the underlying commodity had not yet commenced. The aggregate fair value of the Company's natural gas supply contracts with credit-risk related contingent features in a net liability position was $62 million as of September 30, 2025.