01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(CQP) reported net income of $186 milliona for the three months ended March 31, 2026, down from $641 million in the same period of 2025, and basic and diluted net income per common unit of $0.19 versus $1.08. Total revenues rose to $3.60 billion from $2.99 billion, driven by higher LNG revenues and higher pricing per MMBtu tied to increased Henry Hub pricing. The filing attributes the decline in net income primarily to $599 million of unfavorable changes in the fair value of derivative instruments, largely associated with long-term IPM agreements, which the company links to widening spreads between global and U.S. natural gas benchmarks and elevated global gas price volatility.
Balance sheet and liquidity: cash and cash equivalents were $279 millionb at March 31, 2026, and total available liquidity was $2.13 billion, including $1.83 billion of available commitments under the SPL and CQP revolving credit facilities. Current debt rose to $1.61 billion from $306 million, while total partners' equity fell to $78 million from $414 million. Net cash provided by operating activities was $910 million, and the company declared a distribution of $0.790 per common unit on April 28, 2026, payable May 15, 2026.
The filing also notes that the derivative liability, net, grew to $1.17 billionc from $523 million at year-end 2025. The filing reports that the SPL Expansion Project, with expected peak capacity of up to about 20 mtpa, remains pre-FID, with a target FID in 2026/2027 subject to regulatory approvals and commercial and financing arrangements. Contracted volumes were approximately 85% of anticipated Liquefaction Project production through the mid-2030s.
02—Key points
Key Highlights
- Net income fell to $186 million from $641 million, mainly due to $599 million of unfavorable derivative fair value changes tied to long-term IPM agreements.
- Total revenues increased to $3.60 billion from $2.99 billion, primarily from higher pricing per MMBtu driven by increased Henry Hub pricing.
- Net income per common unit was $0.19 versus $1.08 in the prior-year quarter.
- Available liquidity totaled $2.13 billion at March 31, 2026, including $279 million of cash and $1.83 billion of undrawn revolver commitments.
- Current debt increased to $1.61 billion from $306 million, while long-term debt declined to $12.61 billion from $14.16 billion.
- Total partners' equity decreased to $78 million from $414 million at year-end 2025, and the derivative liability, net, rose to $1.17 billion from $523 million.
- A distribution of $0.790 per common unit was declared April 28, 2026, payable May 15, 2026; the Liquefaction Project has produced and exported about 3,360 cumulative cargoes as of May 1, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.60B$2.99B | +20.4% |
| Operating Expenses | $3.24B$2.16B | +49.7% |
| Operating Income | $361.00M$826.00M | −56.3% |
| Net Income | $186.00M$641.00M | −71.0% |
05—Questions
Frequently Asked Questions
Why did net income decline so sharply this quarter?
Net income decreased by $455 million to $186 million, primarily due to $599 million of unfavorable changes in the fair value of agreements accounted for as derivatives, largely associated with long-term IPM agreements. The company attributes these losses to widening spreads between global and U.S. natural gas benchmarks and elevated global gas price volatility. Partial offsets included a $120 million decrease in cost of sales, net of revenues, from selling unutilized natural gas, and a $100 million increase in revenues, net of feedstock cost, from higher Henry Hub pricing.
How did revenues and operating costs change?
Total revenues rose $611 million to $3.60 billion, mainly from a $576 million increase due to higher pricing per MMBtu. Total operating costs and expenses rose $1.08 billion to $3.24 billion, driven by an $826 million unfavorable change in the fair value of long-term IPM agreements and a $508 million increase in natural gas feedstock costs, partially offset by a $225 million favorable change in other derivative fair values and a $144 million decrease in costs from selling unutilized natural gas.
What is the company's liquidity and debt position?
At March 31, 2026, the company had $279 million of cash and cash equivalents, $22 million of restricted cash, and $1.83 billion of available revolver commitments, for total available liquidity of $2.13 billion. Total debt was $14.33 billion, with $1.61 billion classified as current. During the quarter, the company redeemed or repaid $253 million of SPL notes and paid $522 million in distributions.
What is the status of the SPL Expansion Project?
The SPL Expansion Project is a two-phased expansion adjacent to the Liquefaction Project, with three liquefaction trains and expected total peak production capacity of up to about 20 mtpa. It remains pre-FID, requiring regulatory approvals and acceptable commercial and financing arrangements. The target milestone for FID is 2026/2027, and DOE export authorization for FTA countries has been received, subject to ongoing conditionality, while the non-FTA authorization and FERC approvals are pending.
What distribution is the company paying to unitholders?
On April 28, 2026, the company declared a cash distribution of $0.790 per common unit for the first quarter of 2026, to unitholders of record as of May 8, 2026, payable May 15, 2026. It consists of a base amount of $0.775 per unit and a variable amount of $0.015 per unit. The prior distribution paid February 13, 2026 was $0.830 per common unit.
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