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Cheniere Energy Partners 8-K Report, Financial Results (Feb 22, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 22, 2024
Period End
February 22, 2024
Security
CQP
In the record · 2016–202610-K1210-Q338-K177

CQP filed 12 annual reports (10-K), 33 quarterly reports (10-Q) and 177 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Sep ’17Sep ’17
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.

Cheniere Energy Partners, L.P. reported fourth-quarter and full-year 2023 results in a press release furnished as Exhibit 99.1 to this Form 8-K.

For the twelve months ended December 31, 2023, revenues were $9.7 billiona (versus $17.2 billion in 2022), net income was $4.3 billion (versus $2.5 billion), and Adjusted EBITDA was $3.6 billion (versus $5.1 billion). The filing attributes the net income increase primarily to fair value changes in the derivative portfolio, which were approximately $2.1 billion of gains in 2023 compared with $(1.1) billion of losses in 2022. Adjusted EBITDA declined mainly due to lower regasification revenues following the early termination of one terminal use agreement in 2022, and to a lesser extent, lower total margins per MMBtu of LNG delivered.

For the fourth quarter, revenues were $2.7 billionb, net income was $906 million, and Adjusted EBITDA was $1.05 billion. The Partnership declared a distribution of $1.035 per common unit for the quarter, comprised of a $0.775 base amount and a $0.260 variable amount, payable February 14, 2024. It introduced full-year 2024 distribution guidance of $3.15 to $3.35 per common unit while maintaining a $3.10 base distribution.

Total available liquidity at year-end 2023 was approximately $2.4 billionc, including cash and cash equivalents of approximately $575 million. The filing also notes that the Partnership moved its listing from the NYSE American to the NYSE effective February 5, 2024, continuing to trade under the symbol CQP. It expects to file an application with FERC for the SPL Expansion Project by the end of the first quarter of 2024.

02—Key points

Key Highlights

  1. Full-year 2023 revenues of $9.7 billion, down from $17.2 billion in 2022; net income of $4.3 billion versus $2.5 billion.
  2. Full-year 2023 Adjusted EBITDA of $3.6 billion, compared with $5.1 billion in 2022, primarily due to lower regasification revenues from an early terminal use agreement termination in 2022.
  3. Net income benefited from a fair value gain of approximately $2.1 billion on the derivative portfolio in 2023, versus a $(1.1) billion loss in 2022.
  4. Fourth-quarter 2023 distribution of $1.035 per common unit ($0.775 base plus $0.260 variable), payable February 14, 2024.
  5. 2024 full-year distribution guidance of $3.15 to $3.35 per common unit, with the $3.10 base distribution maintained.
  6. Year-end 2023 total available liquidity of approximately $2.4 billion, including cash and cash equivalents of approximately $575 million.
  7. Listing transferred from NYSE American to NYSE, effective February 5, 2024, under the symbol CQP; SPL Expansion Project FERC application expected by end of Q1 2024.

03—Questions

Frequently Asked Questions

  1. Why did net income rise in 2023 even though revenues and Adjusted EBITDA fell?

    The filing states that net income increased primarily because of changes in the fair value of the derivative portfolio, which produced approximately $2.1 billion of gains in 2023 compared with $(1.1) billion of losses in 2022. These fair value changes are non-cash and are excluded from Adjusted EBITDA.

  2. What caused the decline in Adjusted EBITDA?

    The filing attributes the decline primarily to lower regasification revenues driven by the previously disclosed early termination of one terminal use agreement in 2022, and to a lesser extent, decreased total margins per MMBtu of LNG delivered.

  3. What distributions can unitholders expect?

    The Partnership declared a fourth-quarter 2023 distribution of $1.035 per common unit, payable February 14, 2024, to holders of record as of February 7, 2024. For 2024, it introduced full-year distribution guidance of $3.15 to $3.35 per common unit and maintained a base distribution of $3.10 per common unit.

  4. What is the status of the SPL Expansion Project?

    The SPL Expansion Project is expected to have total production capacity of up to approximately 20 mtpa of LNG. The Partnership has entered the FERC pre-filing review process and executed a Front-End Engineering and Design contract with Bechtel, and expects to file its FERC application by the end of the first quarter of 2024.

  5. What liquidity does the Partnership have?

    As of December 31, 2023, total available liquidity was approximately $2.4 billion, including cash and cash equivalents of approximately $575 million, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $720 million of available commitments under the SPL Revolving Credit Facility.

04—Continue

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