01—Abstract
Summary
Summary of the 8-K filed October 25, 2024. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(NYSE: CQP) reported in this Form 8-K, filed October 25, 2024, that it declared a quarterly cash distribution of $0.810a per common unit. The distribution is payable November 14, 2024 to unitholders of record as of November 4, 2024. The Partnership issued a press release on the same date announcing the distribution, filed as Exhibit 99.1.
The press release states that the $0.810b per-unit distribution consists of a base amount of $0.775 and a variable amount of $0.035, and that the Partnership also declared the related distribution to its general partner. It 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 release also includes tax notices for foreign unitholders.
It states that publicly traded partnerships earning effectively connected income are generally required to withhold U.S. income tax on distributions paid to foreign persons, and that 100 percent of distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. It also serves as qualified notice to nominees under the cited Treasury Regulations.
02—Key points
Key Highlights
- Declared a quarterly cash distribution of $0.810 per common unit, payable November 14, 2024.
- Record date for the distribution is November 4, 2024.
- The $0.810 distribution comprises a base amount of $0.775 and a variable amount of $0.035.
- The Partnership also declared the related distribution to its general partner.
- Sabine Pass LNG terminal has six liquefaction Trains with approximately 30 million tonnes per annum of total production capacity.
- All distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate, per the press release.
- The press release serves as qualified notice to nominees under Treasury Regulation Sections 1.1446-4 and 1.446(f)-4.
03—Questions
Frequently Asked Questions
What distribution did Cheniere Energy Partners declare?
The Partnership declared a quarterly cash distribution of $0.810 per common unit, payable November 14, 2024 to unitholders of record as of November 4, 2024.
How is the $0.810 distribution composed?
According to the press release attached as Exhibit 99.1, the $0.810 per-unit distribution comprises a base amount equal to $0.775 and a variable amount equal to $0.035.
When is the distribution payable and who is eligible?
The distribution is payable November 14, 2024 to common unitholders of record as of November 4, 2024.
Are foreign investors subject to withholding on these distributions?
The press release states that publicly traded partnerships earning effectively connected income are generally required to withhold U.S. income tax on distributions to foreign persons, and that 100 percent of distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate.
What assets does the Partnership own?
The press release says the Partnership owns the Sabine Pass LNG terminal in Cameron Parish, Louisiana, which has six liquefaction Trains with total production capacity of approximately 30 million tonnes per annum of LNG, five LNG storage tanks, vaporizers, and three marine berths, as well as the Creole Trail Pipeline.
04—Continue