01—Abstract
Summary
Summary of the 8-K filed July 26, 2024. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(NYSE: CQP) filed a Current Report on Form 8-K on July 26, 2024 to disclose that it declared a quarterly cash distribution of $0.810a per common unit. The distribution is payable on August 14, 2024 to unitholders of record as of August 7, 2024. The filing states the distribution was announced in a press release of the same date, attached as Exhibit 99.1.
The press release breaks the $0.810b per-unit distribution into a base amount of $0.775 and a variable amount of $0.035. The Partnership also declared the related distribution to its general partner. The release describes the Partnership as the owner of 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, plus the Creole Trail Pipeline.
The release also contains tax notices for nominees and foreign investors. It 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 further states that 100 percent of these distributions to foreign investors are in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii).
02—Key points
Key Highlights
- Quarterly cash distribution declared at $0.810 per common unit, payable August 14, 2024.
- Record date for the distribution is August 7, 2024.
- Distribution comprises a base amount of $0.775 and a variable amount of $0.035 per common unit.
- A related distribution to the general partner was also declared.
- Sabine Pass LNG terminal has six liquefaction Trains with total production capacity of approximately 30 million tonnes per annum of LNG.
- All distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate, per the press release.
- Filing was made under Item 8.01 (Other Events) with the press release furnished as Exhibit 99.1.
03—Questions
Frequently Asked Questions
How much is the distribution and when is it paid?
The Partnership declared a cash distribution of $0.810 per common unit, payable on August 14, 2024 to unitholders of record as of August 7, 2024.
What makes up the $0.810 per-unit distribution?
According to the press release, the $0.810 distribution consists of a base amount equal to $0.775 and a variable amount equal to $0.035.
What assets does Cheniere Energy Partners own?
The press release states the Partnership owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which has 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.
Are distributions subject to tax withholding for foreign investors?
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 identified as withholding agents responsible for withholding on distributions received for foreign investors.
Is there a separate distribution to the general partner?
Yes. The press release states that the Partnership also declared the related distribution to its general partner, payable on August 14, 2024.
04—Continue