01—Abstract
Summary
Summary of the 10-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(CQP) reported net income of $2,987 milliona for 2025, up from $2,510 million in 2024, on total revenues of $10,758 million (versus $8,704 million). The increase was primarily attributed to $344 million of favorable changes in the fair value of derivative instruments and a $199 million increase in revenues net of feedstock cost from higher Henry Hub pricing, partially offset by lower volumes from planned maintenance on two Trains. Operating cash flow was $2,768 million, and total distributions paid were $2,064 million.
The company ended 2025 with $182 millionb of cash and cash equivalents and $2.0 billion of total available liquidity, against $14.6 billion of senior notes outstanding. The Sabine Pass LNG Terminal has total production capacity of over 30 mtpa, and approximately 85% of anticipated production from the Liquefaction Project is contracted through the mid-2030s under SPAs and IPM agreements, with about 13 years of weighted average remaining life. The company is developing the SPL Expansion Project, with expected peak capacity of up to approximately 20 mtpa, targeting a final investment decision in 2026/2027, subject to remaining FERC approvals and commercial and financing arrangements.
Credit ratings were upgraded during 2025, with S&P assigning BBB+ to CQP in November 2025. Key risks highlighted include customer concentration, with five customers accounting for 76% of total revenues from contracts with external customers in 2025, dependence on derivative valuations (including a Level 3 liability of $500 millionc), funding requirements for expansion, evolving U.S. trade policy affecting U.S.-built vessel requirements for LNG exports, and LNG market price competition as global supply grows.
02—Key points
Key Highlights
- Net income rose to $2,987 million in 2025 from $2,510 million in 2024, with total revenues of $10,758 million versus $8,704 million.
- Net income included $732 million of gains from changes in fair value of derivatives, substantially all tied to commodity derivatives indexed to international LNG prices, mainly IPM agreements.
- Approximately 85% of anticipated Liquefaction Project production is contracted through the mid-2030s, with about 13 years of weighted average remaining contract life as of December 31, 2025.
- Total debt of $14.6 billion at December 31, 2025, down from $15.2 billion a year earlier; SPL redeemed $300 million of 2026 notes in December 2025 and the remaining $200 million in February 2026.
- Aggregate distributions of $3.29 per common unit were declared for 2025; a $0.830 per unit distribution was declared on January 28, 2026 for the fourth quarter of 2025.
- The SPL Expansion Project targets up to approximately 20 mtpa, with FID targeted for 2026/2027; the FERC application was updated in June 2025 and FTA-country DOE export authorization was received in November 2025.
- Five customers accounted for an aggregate 76% of 2025 revenues from contracts with external customers, highlighting customer concentration.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 26, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $10.76B$8.70B | +23.6% |
| Operating Expenses | $7.05B$5.42B | +30.0% |
| Operating Income | $3.71B$3.28B | +13.0% |
| Net Income | $2.99B$2.51B | +19.0% |
05—Questions
Frequently Asked Questions
What drove the increase in net income in 2025?
Net income increased by $477 million to $2,987 million, primarily due to $344 million of favorable changes in the fair value of derivative instruments and a $199 million increase in revenues, net of natural gas feedstock cost, from higher Henry Hub pricing. These were partly offset by a $63 million decrease from lower volumes loaded and recognized.
How much liquidity does the partnership have?
As of December 31, 2025, total available liquidity was $2.0 billion, consisting of $182 million of cash and cash equivalents, $19 million of restricted cash and cash equivalents, and $1.8 billion of available commitments under the SPL and CQP revolving credit facilities, which mature in 2028.
What is the status of the SPL Expansion Project?
The SPL Expansion Project is a two-phased project with expected peak capacity of up to approximately 20 mtpa. Its FERC application was updated in June 2025. The DOE authorization to export to FTA countries was received in November 2025, while non-FTA approval is pending FERC permit approval. The target FID is 2026/2027, subject to regulatory approvals and acceptable commercial and financing arrangements.
How exposed is the partnership to customer concentration and contract performance?
Customers BG Gulf Coast LNG (22%), Korea Gas Corporation (15%), GAIL (India) (15%), Naturgy LNG GOM (14%) and TotalEnergies (10%) each accounted for 10% or more of 2025 revenues from external customers. The filing states that substantially all long-term customer arrangements are with creditworthy companies or are secured by guarantees or collateral, but customer defaults or terminations could expose the partnership to unrecoverable losses.
What are the main regulatory and trade risks disclosed?
The filing notes that USTR's Section 301 measures require 1% of U.S. LNG exports to be carried on U.S.-built vessels starting April 2029, rising to 15% by April 2047, with uncertain potential impact. Regulatory approvals from FERC and DOE are required for expansions, and the FERC penalty can reach approximately $1.6 million per day per violation.
06—Continue