01—Abstract
Summary
Summary of the 10-Q filed May 8, 2025. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(CQP) reported net income of $641 milliona for the three months ended March 31, 2025, down from $682 million in the prior-year period, on total revenues of $2.99 billion (versus $2.30 billion). The filing attributes the $41 million decline mainly to an $84 million unfavorable change in fair value of derivative instruments, partially offset by a $32 million increase in LNG revenues net of cost of sales and excluding derivatives, and a $12 million decrease in interest expense. Basic and diluted net income per common unit was $1.08, compared with $1.18.
Revenue growth was primarily driven by a $733 millionb increase from higher pricing per MMBtu tied to increased Henry Hub pricing, partially offset by a $63 million decrease from lower production volume. Liquidity and balance sheet items improved in the quarter. Total partners' deficit narrowed to $(380) million from $(509) million at December 31, 2024.
SPL repaid the remaining $300 millionc of its 5.625% Senior Secured Notes due 2025 at maturity and borrowed and repaid $125 million under its revolver. Total available liquidity was $1.96 billion at March 31, 2025, including $94 million of cash and cash equivalents and $1.785 billion of available revolver commitments. Total debt was $14.93 billion.
Cash provided by operating activities was $665 milliond. The company declared a distribution of $0.820 per common unit on April 29, 2025, payable May 15, 2025, consisting of a $0.775 base amount and a $0.045 variable amount. The filing also reports that the SPL Expansion Project, which could add up to approximately 20 mtpa of liquefaction capacity, remains pre-FID, with a target FID of 2026/2027 and certain FERC and DOE non-FTA approvals still pending.
Contracted volumes under SPAs and the IPM agreement were approximately 80% of anticipated Liquefaction Project production, with about 13 years of weighted average remaining life. Total unsatisfied transaction price was $44.5 billion.
02—Key points
Key Highlights
- Net income was $641 million for Q1 2025 versus $682 million in Q1 2024; net income per common unit was $1.08 versus $1.18.
- Total revenues rose to $2.99 billion from $2.30 billion, driven by a $733 million increase from higher pricing per MMBtu, partly offset by a $63 million decrease from lower volumes.
- An $84 million unfavorable change in fair value of derivative instruments was the main driver of the net income decline.
- Total available liquidity was $1.96 billion at March 31, 2025, including $1.785 billion of available revolver commitments.
- SPL repaid $300 million of 5.625% Senior Secured Notes at maturity in March 2025; total debt was $14.93 billion.
- Distribution of $0.820 per common unit declared April 29, 2025, payable May 15, 2025.
- SPL Expansion Project (up to ~20 mtpa) remains pre-FID with a target FID of 2026/2027; the FERC application for the project is pending and the DOE non-FTA export approval is pending.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 8, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $2.99B$2.29B | +30.2% |
| Operating Expenses | $2.16B$1.42B | +52.3% |
| Operating Income | $826.00M$875.00M | −5.6% |
| Net Income | $641.00M$682.00M | −6.0% |
05—Questions
Frequently Asked Questions
Why did net income decline in the first quarter of 2025 even though revenues increased?
Total revenues increased by $694 million, but operating costs rose by $743 million, mainly from a $643 million increase in natural gas feedstock costs and an $83 million decrease in gains from changes in fair value of derivative instruments in cost of sales. The filing attributes the $41 million net income decline primarily to an $84 million unfavorable change in fair value of derivative instruments, partly offset by higher LNG revenues net of cost of sales and a $12 million decrease in interest expense.
How much liquidity does CQP have and how is its debt structured?
At March 31, 2025, total available liquidity was $1.955 billion, consisting of $94 million of cash and cash equivalents, $76 million of restricted cash designated for the Liquefaction Project, and $1.785 billion of available revolver commitments under the SPL and CQP revolving credit facilities. Total debt was $14.93 billion, including $8.13 billion of SPL senior secured notes and $6.80 billion of CQP senior notes. Both the SPL and CQP revolving facilities were undrawn, and the company reported compliance with all debt covenants.
What is the status of the SPL Expansion Project?
The SPL Expansion Project is expected to provide up to approximately 20 mtpa of additional LNG production capacity. It remains pre-FID, with a target FID of 2026/2027. FERC authorizations, including a positive environmental assessment and a Section 3 order, are pending. DOE authorization for FTA countries has been received, subject to ongoing conditionality, while non-FTA authorization is pending. Definitive commercial agreements are in process, and a definitive full-scope EPC contract has not yet been signed.
What distributions are unitholders receiving?
On April 29, 2025, CQP declared a cash distribution of $0.820 per common unit for the first quarter of 2025, payable May 15, 2025 to unitholders of record as of May 9, 2025. The distribution consists of a base amount of $0.775 per unit and a variable amount of $0.045 per unit. The related general partner distribution is also payable on that date.
How concentrated is CQP's customer base?
For the three months ended March 31, 2025, Customer A accounted for 24% of total revenues, Customer B for 14%, Customer C for 14%,Dcustomer D for 13%, and Customer E for 11%. Customers A through E are the only customers above 10% of total revenues or receivables reported in the filing.
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