What distribution did Cheniere Energy Partners declare and when is it payable?

The partnership declared a quarterly cash distribution of $0.820 per common unit on January 29, 2025. It is payable on February 14, 2025 to unitholders of record as of February 10, 2025.

How is the $0.820 distribution composed?

According to the press release in Exhibit 99.1, the distribution includes a base amount equal to $0.775 and a variable amount equal to $0.045 per common unit.

Are distributions to foreign investors subject to US tax withholding?

The press release states that publicly traded partnerships earning net income effectively connected with a US trade or business are generally required to withhold US income tax from distributions paid to foreign persons. It further states that 100 percent of distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate, and that nominees are treated as withholding agents.

What assets does Cheniere Energy Partners own?

The press release says 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.

CQP 8-K SEC Disclosure — Jan 29, 2025

01—Abstract

Summary

Summary of the 8-K filed January 29, 2025. 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 January 29, 2025 to disclose that it declared a quarterly cash distribution of $0.820^a per common unit. The distribution is payable on February 14, 2025 to unitholders of record as of February 10, 2025. The distribution consists of a base amount of $0.775 and a variable amount of $0.045, as stated in the accompanying press release, which also covers the related distribution to the general partner.

The press release, attached as Exhibit 99.1, includes tax notices for nominees and foreign investors. It states that publicly traded partnerships earning net income effectively connected with a US trade or business are generally required to withhold US income tax from distributions paid to foreign persons. The release 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 also states that 100 percent of these distributions are in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). The press release 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.

02—Key points

Key Highlights

Declared a quarterly cash distribution of $0.820 per common unit, payable February 14, 2025 to unitholders of record as of February 10, 2025.
The $0.820 distribution comprises a base amount of $0.775 and a variable amount of $0.045 per common unit.
A related distribution to the general partner was also declared.
The press release states that 100 percent of distributions to foreign investors are effectively connected with a US trade or business and subject to federal income tax withholding at the highest applicable effective tax rate.
The press release states that 100 percent of distributions to foreign investors exceed cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii).
The Sabine Pass LNG terminal has six liquefaction Trains with total production capacity of approximately 30 million tonnes per annum of LNG.
The partnership also owns the Creole Trail Pipeline, which interconnects Sabine Pass with large interstate and intrastate pipelines.

03—Questions

Frequently Asked Questions

What distribution did Cheniere Energy Partners declare and when is it payable?
The partnership declared a quarterly cash distribution of $0.820 per common unit on January 29, 2025. It is payable on February 14, 2025 to unitholders of record as of February 10, 2025.
How is the $0.820 distribution composed?
According to the press release in Exhibit 99.1, the distribution includes a base amount equal to $0.775 and a variable amount equal to $0.045 per common unit.
Are distributions to foreign investors subject to US tax withholding?
The press release states that publicly traded partnerships earning net income effectively connected with a US trade or business are generally required to withhold US income tax from distributions paid to foreign persons. It further states that 100 percent of distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate, and that nominees are treated as withholding agents.
What assets does Cheniere Energy Partners own?
The press release says 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.

04—Continue

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