Cheniere Energy Inc. continues to deliver increasing volumes of LNG and said Thursday its production hit a record last week, but the company reported a steep third quarter loss related to the purchase of feed gas at prices linked to international benchmarks.

CEO Jack Fusco said liquefied natural gas output at the company’s terminals in Texas and Louisiana hit an all-time high of over 7 TBtu amid a surge in overseas buying this year. 

But financial results were impacted by derivative losses tied to gas supply deals with North American producers the company calls integrated production marketing (IPM) agreements. Under those deals, Cheniere buys supplies at prices linked to international benchmarks less shipping and liquefaction fees. It liquefies and markets the fuel purchased...