01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(CQP) reported net income of $553 milliona for the three months ended June 30, 2025, compared with $570 million in the prior-year quarter, and $1.19 billion for the six months ended June 30, 2025, versus $1.25 billion a year earlier. Total revenues rose to $2.46 billion for the quarter from $1.89 billion and to $5.44 billion for the six months from $4.19 billion, primarily reflecting higher pricing per MMBtu tied to increased Henry Hub pricing. The decline in net income was primarily attributed to a $79 million and $82 million increase in operating and maintenance expense for the three and six months, respectively, driven by planned large-scale maintenance on two trains at the Liquefaction Project, and a $43 million decrease in derivative gains for the six-month period.
Cash flow and liquidity remained focused on debt reduction and distributions. Net cash provided by operating activities was $1.22 billionb for the six months ended June 30, 2025, versus $1.40 billion a year earlier, and total debt declined to $14.93 billion from $15.23 billion at December 31, 2024. As of June 30, 2025, total available liquidity was $1.93 billion.
The partnership declared a distribution of $0.820c per common unit for the second quarter, payable August 14, 2025, and in July 2025 issued $1.0 billion of 5.550% Senior Notes due 2035 to redeem $1.0 billion of the 2026 SPL Senior Notes. Partners' deficit improved to $(340) million from $(509) million at year-end 2024.
Development of the SPL Expansion Project continues, targeting up to approximately 20 mtpa of capacity with a target FID in 2026/2027, subject to regulatory approvals, commercial agreements and financing. Approximately 90% of anticipated Liquefaction Project production is contracted through the mid-2030s, and the company reported a noncash derivative gain of $159 milliond for the quarter and $119 million for the six months.
02—Key points
Key Highlights
- Total revenues were $2.46 billion for Q2 2025, up from $1.89 billion in Q2 2024, driven by higher Henry Hub-linked pricing.
- Net income was $553 million for Q2 2025 versus $570 million a year earlier; six-month net income was $1.19 billion versus $1.25 billion.
- Operating and maintenance expense rose $79 million for the quarter due to planned large-scale maintenance on two trains at the Liquefaction Project.
- Net cash provided by operating activities was $1.22 billion for the six months ended June 30, 2025, down from $1.40 billion in the prior-year period.
- Total debt was $14.93 billion at June 30, 2025, down from $15.23 billion at December 31, 2024, and total available liquidity was $1.93 billion.
- Fitch upgraded CQP's issuer credit rating to BBB from BBB- in February 2025, and S&P assigned a BBB rating to the 2035 notes and upgraded the remaining unsecured CQP notes to BBB from BBB- in June 2025.
- A distribution of $0.820 per common unit was declared on July 29, 2025 for the second quarter, payable August 14, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.46B$1.89B | +29.6% |
| Operating Expenses | $1.74B$1.13B | +54.3% |
| Operating Income | $715.00M$766.00M | −6.7% |
| Net Income | $553.00M$570.00M | −3.0% |
05—Questions
Frequently Asked Questions
Why did net income decline in the second quarter of 2025?
Net income declined by $17 million for the three months ended June 30, 2025 compared with the same period of 2024, primarily due to a $79 million increase in operating and maintenance expense from planned large-scale maintenance on two trains at the Liquefaction Project. This was partly offset by a $30 million increase in derivative gains, a $14 million decrease in interest expense, and a $22 million increase in other income from an affiliate.
How are revenues changing and what drove the increase?
Total revenues increased $561 million to $2.46 billion for the quarter and $1.26 billion to $5.44 billion for the six months ended June 30, 2025. The filing attributes the increase primarily to $653 million and $1.4 billion higher pricing per MMBtu, respectively, from increased Henry Hub pricing, partially offset by lower production volumes from planned maintenance.
What is the status of debt and liquidity?
Total debt was $14.93 billion as of June 30, 2025, down from $15.23 billion at December 31, 2024. Total available liquidity was $1.93 billion, including $108 million of cash, $36 million of restricted cash, and $1.79 billion of available credit facility commitments. In July 2025, CQP issued $1.0 billion of 5.550% Senior Notes due 2035 and used the proceeds with cash on hand to redeem $1.0 billion of the 2026 SPL Senior Notes.
What distributions are unitholders receiving?
CQP declared distributions of $0.820 per common unit for each of the first and second quarters of 2025, totaling $1.64 per unit for the six months. The second-quarter distribution, declared July 29, 2025, is payable August 14, 2025 to unitholders of record as of August 8, 2025, and consists of a base amount of $0.775 and a variable amount of $0.045 per unit.
What is the status of the SPL Expansion Project?
The SPL Expansion Project is expected to reach up to approximately 20 mtpa of LNG peak production capacity. In June 2025, the FERC application was updated to a two-phased project with three liquefaction trains. The company reports FERC approval to commence site preparation, DOE export authorization for FTA countries, and pending approvals for non-FTA countries and the positive environmental assessment. The target FID is 2026/2027, subject to regulatory approvals and commercial and financing arrangements.
06—Continue