Did Cheniere Energy Partners maintain its distribution guidance for 2024?

Yes. The Partnership reconfirmed full year 2024 distribution guidance of $3.15 to $3.35 per common unit and maintained its base distribution of $3.10 per common unit. The third quarter declared distribution was $0.810 per common unit, including a $0.035 variable amount.

Why did net income decline in the third quarter of 2024?

The filing states that net income decreased approximately $156 million compared with the third quarter of 2023, primarily due to approximately $215 million of unfavorable variances related to changes in fair value of derivative instruments. The release notes that the Partnership's Integrated Production Marketing agreements are recognized at fair value on a mark-to-market basis, while the corresponding LNG sales are not, creating an accounting mismatch.

What drove the increase in Adjusted EBITDA?

Adjusted EBITDA increased approximately $59 million in the third quarter and $108 million for the nine months ended September 30, 2024, primarily due to higher volumes delivered. This was partially offset by lower gross margins per MMBtu of LNG delivered compared with the prior periods.

What is the status of the SPL Expansion Project?

The Partnership is developing an expansion adjacent to the SPL Project with expected total production capacity of up to approximately 20 mtpa, inclusive of estimated debottlenecking opportunities. In February 2024, subsidiaries applied to FERC and the Department of Energy for authorizations, excluding debottlenecking. In October 2024, the Partnership received DOE authorization to export LNG to Free-Trade Agreement countries.

What liquidity does the Partnership have available?

As of September 30, 2024, total available liquidity was approximately $2.2 billion. This consisted of cash and cash equivalents of approximately $331 million, restricted cash and cash equivalents of $80 million, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $766 million of available commitments under the SPL Revolving Credit Facility.

CQP 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

Cheniere Energy Partners, L.P. reported third quarter 2024 results in a press release furnished as Exhibit 99.1 to this Form 8-K, dated October 31, 2024.

For the three months ended September 30, 2024, the Partnership reported revenues of $2,055 million^a, net income of $635 million, and Adjusted EBITDA of $852 million, compared with revenues of $2,128 million, net income of $791 million, and Adjusted EBITDA of $793 million in the prior-year quarter. For the nine months ended September 30, 2024, revenues were $6,244 million, net income was $1,887 million, and Adjusted EBITDA was $2,684 million. The filing attributes the decline in net income primarily to unfavorable changes in fair value of derivative instruments, while higher volumes drove the increase in Adjusted EBITDA, partially offset by lower gross margins per MMBtu of LNG delivered.

LNG exports rose to 104 cargoes and 377 TBtu in the quarter, from 100 cargoes and 359 TBtu a year earlier. The Partnership declared a cash distribution of $0.810^b per common unit for the third quarter, comprised of a base amount of $0.775 and a variable amount of $0.035, payable November 14, 2024 to holders of record as of November 4, 2024. The Partnership reconfirmed its full year 2024 distribution guidance of $3.15 to $3.35 per common unit and maintained a base distribution of $3.10 per common unit.

Total available liquidity was approximately $2.2 billion^c as of September 30, 2024, including cash and cash equivalents of $331 million. In October 2024, the Partnership received authorization from the U.S. Department of Energy to export LNG to Free-Trade Agreement countries for the SPL Expansion Project, which the company describes as expected to have up to approximately 20 mtpa of production capacity.

02—Key points

Key Highlights

Third quarter 2024 revenues of $2,055 million, down from $2,128 million in the third quarter of 2023; nine-month revenues of $6,244 million versus $6,978 million.
Third quarter 2024 net income of $635 million, compared with $791 million in the prior-year quarter, primarily due to approximately $215 million of unfavorable derivative fair value variances.
Adjusted EBITDA of $852 million for the quarter, up from $793 million, driven mainly by higher volumes delivered; nine-month Adjusted EBITDA was $2,684 million versus $2,576 million.
Quarterly distribution of $0.810 per common unit declared (base $0.775, variable $0.035), payable November 14, 2024.
Full year 2024 distribution guidance of $3.15 to $3.35 per common unit reconfirmed, with the base distribution maintained at $3.10 per common unit.
LNG exports of 104 cargoes (377 TBtu) in the quarter, up from 100 cargoes (359 TBtu) a year earlier.
Total available liquidity of approximately $2.2 billion as of September 30, 2024; SPL repaid $150 million of its 5.625% Senior Secured Notes due 2025 during the quarter.

03—Questions

Frequently Asked Questions

Did Cheniere Energy Partners maintain its distribution guidance for 2024?
Yes. The Partnership reconfirmed full year 2024 distribution guidance of $3.15 to $3.35 per common unit and maintained its base distribution of $3.10 per common unit. The third quarter declared distribution was $0.810 per common unit, including a $0.035 variable amount.
Why did net income decline in the third quarter of 2024?
The filing states that net income decreased approximately $156 million compared with the third quarter of 2023, primarily due to approximately $215 million of unfavorable variances related to changes in fair value of derivative instruments. The release notes that the Partnership's Integrated Production Marketing agreements are recognized at fair value on a mark-to-market basis, while the corresponding LNG sales are not, creating an accounting mismatch.
What drove the increase in Adjusted EBITDA?
Adjusted EBITDA increased approximately $59 million in the third quarter and $108 million for the nine months ended September 30, 2024, primarily due to higher volumes delivered. This was partially offset by lower gross margins per MMBtu of LNG delivered compared with the prior periods.
What is the status of the SPL Expansion Project?
The Partnership is developing an expansion adjacent to the SPL Project with expected total production capacity of up to approximately 20 mtpa, inclusive of estimated debottlenecking opportunities. In February 2024, subsidiaries applied to FERC and the Department of Energy for authorizations, excluding debottlenecking. In October 2024, the Partnership received DOE authorization to export LNG to Free-Trade Agreement countries.
What liquidity does the Partnership have available?
As of September 30, 2024, total available liquidity was approximately $2.2 billion. This consisted of cash and cash equivalents of approximately $331 million, restricted cash and cash equivalents of $80 million, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $766 million of available commitments under the SPL Revolving Credit Facility.

04—Continue

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