01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P. reported net income of $1.16 billiona for the three months ended June 30, 2026, versus $553 million in the same period of 2025, and $1.35 billion for the six months versus $1.19 billion a year earlier.
Total revenues were $2.58 billionb for the quarter (up from $2.46 billion) and $6.18 billion for the six months (up from $5.44 billion). The quarterly increase in net income was primarily driven by $367 million of favorable changes in the fair value of derivative-accounted agreements and a $192 million increase in margins from higher production volume, with planned large-scale maintenance in the prior-year quarter not recurring. Income from operations was $1.34 billion for the quarter.
Net income per common unit was $2.14c for the quarter and $2.33 for the six months. In June 2026, the company designated the normal purchases and normal sales (NPNS) scope exception for its IPM agreements, so these contracts are no longer marked to market and future earnings volatility from their fair value changes is expected to be mitigated. The designation established a net deferred NPNS asset/liability position of $520 million, which is being amortized into cost of sales over the remaining contract terms, with an estimated $57 million gain in 2026.
Liquidity was $2.34 billiond at June 30, 2026, including $443 million of cash and $1.87 billion of available revolving credit commitments. Total debt was $14.58 billion, and the company issued $1.0 billion of 5.350% Senior Notes due 2036 and $750 million of 6.050% Senior Notes due 2056 in June 2026, using part of the proceeds to redeem $1.5 billion of SPL's 5.00% Senior Secured Notes due 2027. Operationally, the company reported net cash provided by operating activities of $1.61 billion for the six months, up from $1.22 billion.
Capital spending on property, plant and equipment was $297 million, including $99 million for the SPL Expansion Project under a limited notice to proceed issued in May 2026 to Bechtel Energy, Inc. The company declared a distribution of $0.820 per common unit for the second quarter of 2026, payable August 14, 2026, consisting of a $0.775 base amount and a $0.045 variable amount. The expansion project's final investment decision is targeted for 2026/2027 and remains subject to regulatory approvals and financing arrangements.
02—Key points
Key Highlights
- Net income of $1.16 billion for Q2 2026, up from $553 million in Q2 2025; net income per common unit of $2.14 versus $0.91.
- Total revenues of $2.58 billion for Q2 2026 (vs. $2.46 billion) and $6.18 billion for the six months (vs. $5.44 billion), with volumes recognized as revenues of 396 TBtu for the quarter (vs. 351 TBtu).
- Q2 2026 net income benefited from $367 million of favorable changes in fair value of derivative-accounted agreements, largely IPM agreements, prior to the June 2026 NPNS designation.
- The June 2026 NPNS designation for IPM agreements removes their fair value volatility going forward; a $520 million net deferred NPNS position is being amortized into cost of sales, with $57 million estimated for 2026.
- Total liquidity of $2.34 billion at June 30, 2026, including $443 million of cash and $1.87 billion of available credit facility commitments.
- In June 2026, issued $1.0 billion 5.350% Senior Notes due 2036 and $750 million 6.050% Senior Notes due 2056; redeemed $1.5 billion of SPL 5.00% Senior Secured Notes due 2027.
- Declared a $0.820 per common unit distribution for Q2 2026 (base $0.775 plus variable $0.045), payable August 14, 2026; SPL Expansion Project FID targeted for 2026/2027.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.58B$2.46B | +5.2% |
| Operating Expenses | $1.24B$1.74B | −28.6% |
| Operating Income | $1.34B$715.00M | +87.4% |
| Net Income | $1.16B$553.00M | +109.9% |
05—Questions
Frequently Asked Questions
Why did net income rise so sharply in the second quarter of 2026?
The filing attributes most of the $608 million increase to $367 million of favorable changes in the fair value of agreements accounted for as derivatives, largely related to long-term IPM agreements, as narrowing spreads between global and U.S. natural gas benchmarks affected results. The rest reflects a $192 million increase in revenues, net of cost of sales and excluding derivative fair value changes, from higher production volume, as planned large-scale maintenance in the prior-year quarter did not recur.
What does the June 2026 NPNS designation mean for future earnings?
The company designated the normal purchases and normal sales scope exception for its IPM agreements, so they are no longer measured at fair value on a recurring basis. Their estimated fair values at designation became a new cost basis amortized into cost of sales over the remaining contract terms, which the filing says will vary by delivery timing. The filing states that future earnings volatility from fair value changes on these contracts will be mitigated, though the contracts would be marked to fair value if they no longer meet the exception.
How strong is the company's liquidity and debt position?
At June 30, 2026, total available liquidity was $2.34 billion, comprising $443 million of cash, $23 million of restricted cash for the Liquefaction Project, and $1.87 billion of available revolving commitments. Total debt was $14.58 billion, and the company stated it was in compliance with all debt covenants. In June 2026 it issued $1.75 billion of new CQP senior notes and used part of the proceeds to redeem $1.5 billion of SPL 2027 notes.
What is the status of the SPL Expansion Project?
In May 2026, SPL Stage V entered into a lump sum, turnkey EPC contract with Bechtel Energy, Inc. for the first phase and issued a limited notice to proceed for early engineering and procurement. The filing lists FERC authorizations as pending and DOE authorization for non-FTA countries as pending, and targets a final investment decision in 2026/2027, subject to regulatory approvals and acceptable commercial and financing arrangements. Six-month capital spending on the project was $99 million.
What distributions are unitholders receiving?
On July 28, 2026, the company declared a cash distribution of $0.820 per common unit for the quarter ended June 30, 2026, to unitholders of record as of August 7, 2026, payable August 14, 2026. It consists of a $0.775 base amount and a $0.045 variable amount. Distributions paid during the first half of 2026 were $0.790 per unit in May and $0.830 per unit in February.
06—Continue