Cheniere Energy Partners LP (CQP, Financial), the direct owner of the Sabine Pass LNG terminals and the Creole Trail Pipeline, reported its financial results for the second quarter of 2024. The company generated revenues of $1.9 billion, slightly below the analyst estimate of $2.058 billion, while its earnings per share (EPS) of $0.95 met the estimated $0.95.
Company Overview
Cheniere Energy Partners LP (CQP, Financial) owns and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which includes six liquefaction trains with a total production capacity of approximately 30 million tonnes per annum (mtpa) of LNG. The company also owns the Creole Trail Pipeline, connecting the terminal to third-party gas suppliers.
Performance and Challenges
During the three months ended June 30, 2024, Cheniere Energy Partners LP (CQP, Financial) reported revenues of $1.9 billion, a slight decrease from $1.933 billion in the same period last year. Net income for the quarter was $570 million, down from $622 million in Q2 2023. The company attributed the decrease in net income primarily to unfavorable variances in the fair value of derivative instruments.
Financial Achievements
Despite the challenges, Cheniere Energy Partners LP (CQP, Financial) achieved an Adjusted EBITDA of $832 million for Q2 2024, a 10% increase from $757 million in Q2 2023. The company also declared a cash distribution of $0.810 per common unit, maintaining its full-year 2024 distribution guidance of $3.15 - $3.35 per common unit.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenues | $1.9 billion | $1.933 billion | (2)% |
| Net Income | $570 million | $622 million | (8)% |
| Adjusted EBITDA | $832 million | $757 million | 10% |
| LNG Exported (Cargoes) | 103 | 98 | 5% |
| LNG Volumes Loaded (TBtu) | 372 | 353 | 5% |
Income Statement Highlights
Cheniere Energy Partners LP (CQP, Financial) reported total revenues of $1.9 billion for Q2 2024, with LNG revenues contributing $1.454 billion. The company’s operating costs and expenses totaled $1.128 billion, resulting in an income from operations of $766 million. Interest expense was $202 million, leading to a net income of $570 million for the quarter.
Balance Sheet and Cash Flow
As of June 30, 2024, Cheniere Energy Partners LP (CQP, Financial) had total assets of $17.515 billion, including $351 million in cash and cash equivalents. The company’s total liabilities stood at $18.271 billion, resulting in a partners' deficit of $756 million. The company’s liquidity position remains strong with $2.2 billion in total available liquidity.
Recent Developments
In May 2024, Moody’s Corporation upgraded the issuer credit ratings of Cheniere Partners and Sabine Pass Liquefaction, LLC to investment grade. Additionally, Cheniere Partners issued $1.2 billion in Senior Notes due 2034, using the proceeds to retire existing debt.
Conclusion
Cheniere Energy Partners LP (CQP, Financial) continues to demonstrate resilience in a challenging market environment. The company’s ability to maintain strong financial metrics and liquidity, along with its strategic initiatives, positions it well for future growth. Investors will be keenly watching how the company navigates the evolving energy landscape and capitalizes on its robust infrastructure.
Explore the complete 8-K earnings release (here) from Cheniere Energy Partners LP for further details.
