01—Abstract
Summary
Summary of the 8-K filed January 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(CQP) filed this Form 8-K on January 26, 2024 to report that it declared a quarterly cash distribution of $1.035a per common unit. The distribution is payable February 14, 2024 to unitholders of record as of February 7, 2024. The filing states the distribution is comprised of a base amount of $0.775 and a variable amount of $0.260, and the Partnership also declared the related distribution to its general partner.
The press release attached as Exhibit 99.1 contains tax-related disclosures for investors. It states that publicly traded partnerships earning net income effectively connected with a US trade or business are generally required to withhold US income tax from distributions paid to foreign persons. The release states that 100 percent of the Partnership's distributions to foreign investors are attributable to income effectively connected with a US trade or business and are subject to federal income tax withholding at the highest applicable effective tax rate.
It also serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4 and 1.446(f)-4. The release describes the Partnership as owning the Sabine Pass LNG terminal in Cameron Parish, Louisiana, with six liquefaction Trains and a total production capacity of approximately 30 million tonnes per annum of LNG, along with five LNG storage tanks, vaporizers, three marine berths, and the Creole Trail Pipeline. The filing itself is a routine distribution announcement, with no new financial results disclosed.
02—Key points
Key Highlights
- Quarterly cash distribution declared at $1.035 per common unit, payable February 14, 2024 to unitholders of record as of February 7, 2024
- Distribution comprised of a base amount of $0.775 and a variable amount of $0.260 per common unit
- Related distribution to the general partner also declared
- Press release states 100 percent of distributions to foreign investors are effectively connected with a US trade or business and subject to federal income tax withholding at the highest applicable effective tax rate
- Press release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4 and 1.446(f)-4
- Sabine Pass LNG terminal has six liquefaction Trains with total production capacity of approximately 30 million tonnes per annum of LNG
- Partnership's common units trade on the NYSE American under the ticker CQP
03—Questions
Frequently Asked Questions
What distribution did Cheniere Energy Partners declare?
The Partnership declared a cash distribution of $1.035 per common unit, consisting of a base amount of $0.775 and a variable amount of $0.260, along with the related distribution to its general partner.
When will the distribution be paid and who is eligible?
The distribution is payable on February 14, 2024 to unitholders of record as of February 7, 2024.
Are distributions to foreign investors subject to US tax withholding?
Yes. The press release states that 100 percent of distributions to foreign investors are attributable to income effectively connected with a US trade or business and are subject to federal income tax withholding at the highest applicable effective tax rate. Nominees are treated as withholding agents responsible for withholding on behalf of foreign investors.
What assets does the Partnership own?
According to the press release, the Partnership owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which includes six liquefaction Trains with a total production capacity of approximately 30 million tonnes per annum of LNG, five LNG storage tanks, vaporizers, and three marine berths. It also owns the Creole Trail Pipeline.
04—Continue