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

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 8, 2024
Period End
August 8, 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 August 8, 2024. Cited figures are marked; the original filing is the authoritative source.

Cheniere Energy Partners, L.P.

(NYSE: CQP) reported second quarter 2024 results in a press release furnished as Exhibit 99.1 to this Form 8-K dated August 8, 2024. For the three months ended June 30, 2024, the Partnership reported total revenues of $1,894 milliona, net income of $570 million, and Adjusted EBITDA of $832 million. For the six months ended June 30, 2024, revenues were $4,189 million, net income was $1,252 million, and Adjusted EBITDA was $1,832 million.

Net income declined year over year, which the filing attributes primarily to unfavorable variances from changes in fair value of derivative instruments, with derivative gains of $104 millionb for the quarter versus $230 million a year earlier. Adjusted EBITDA rose, which the filing attributes primarily to higher volumes delivered and lower operating and maintenance expenses. The Partnership declared a second-quarter cash distribution of $0.810 per common unit, comprised of a base amount of $0.775 and a variable amount of $0.035, payable August 14, 2024, to unitholders of record as of August 7, 2024.

It reconfirmed full-year 2024 distribution guidance of $3.15 to $3.35c per common unit, with a base distribution of $3.10 per common unit. Liquidity was approximately $2.2 billion at June 30, 2024, including $351 million of cash and cash equivalents. In May 2024 the Partnership issued $1.2 billion of 5.750% Senior Notes due 2034, and the proceeds, with cash on hand, were used to retire $1.2 billion of SPL's 5.625% Senior Secured Notes due 2025.

Moody's upgraded the ratings of the Partnership and Sabine Pass Liquefaction, LLC, and both are now investment grade rated by Moody's, S&P Global Ratings and Fitch Ratings. Operationally, the Sabine Pass LNG terminal has six liquefaction Trains with total production capacity of approximately 30 mtpa.

The company exported 103 cargoes in the quarter, compared with 98 a year earlier. The filing also describes the SPL Expansion Project, with expected capacity of up to approximately 20 mtpa, for which applications were submitted to FERC and DOE in February 2024.

02—Key points

Key Highlights

  1. Total revenues were $1,894 million for Q2 2024 versus $1,933 million in Q2 2023; net income was $570 million versus $622 million.
  2. Adjusted EBITDA was $832 million for Q2 2024 versus $757 million in Q2 2023, primarily due to higher volumes delivered and lower operating and maintenance expenses.
  3. Net income declined mainly because of lower fair value gains on derivative instruments: $104 million in Q2 2024 versus $230 million in Q2 2023.
  4. Cash distribution of $0.810 per common unit declared for Q2 2024 ($0.775 base plus $0.035 variable), payable August 14, 2024.
  5. Full-year 2024 distribution guidance of $3.15 to $3.35 per common unit was reconfirmed, with a base distribution of $3.10 per common unit.
  6. Total available liquidity was approximately $2.2 billion as of June 30, 2024, and both the Partnership and SPL are now investment grade rated by Moody's, S&P Global Ratings and Fitch Ratings.
  7. LNG exports totaled 103 cargoes in Q2 2024 (373 TBtu) versus 98 cargoes (355 TBtu) in Q2 2023.

03—Questions

Frequently Asked Questions

  1. How did Cheniere Partners perform in the second quarter of 2024?

    Revenues were $1,894 million and net income was $570 million for the three months ended June 30, 2024, compared with $1,933 million and $622 million in the prior-year quarter. Adjusted EBITDA increased to $832 million from $757 million.

  2. Why did net income decline even though Adjusted EBITDA increased?

    The filing attributes the net income decrease primarily to unfavorable variances from changes in fair value of derivative instruments. Gains were $104 million in Q2 2024 versus $230 million in Q2 2023. Adjusted EBITDA excludes these derivative fair value changes.

  3. What distribution can unitholders expect?

    A distribution of $0.810 per common unit was declared for the second quarter of 2024, payable August 14, 2024, to holders of record as of August 7, 2024. The Partnership reconfirmed full-year 2024 distribution guidance of $3.15 to $3.35 per common unit.

  4. What is the Partnership's financial flexibility?

    As of June 30, 2024, total available liquidity was approximately $2.2 billion, including $351 million of cash and cash equivalents, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $762 million under the SPL Revolving Credit Facility. The Partnership issued $1.2 billion of 5.750% Senior Notes due 2034 in May 2024.

  5. What growth projects are under development?

    The company is developing the SPL Expansion Project, with expected total production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities. In February 2024, subsidiaries applied to FERC for siting and construction authorization and to DOE for LNG export authorization.

04—Continue

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