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Cheniere Energy Partners 8-K Report, Financial Results (Feb 20, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 20, 2025
Period End
February 20, 2025
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 February 20, 2025. Cited figures are marked; the original filing is the authoritative source.

Cheniere Energy Partners, L.P.

(NYSE: CQP) reported results for the fourth quarter and fiscal year ended December 31, 2024, in a press release attached as Exhibit 99.1 to this Form 8-K dated February 20, 2025. For the three months ended December 31, 2024, revenues were $2,460 milliona (versus $2,686 million, down 8%), net income was $623 million (versus $906 million, down 31%), and Adjusted EBITDA was $890 million (versus $1,050 million, down 15%). For the full year 2024, revenues were $8,704 million (down 10%), net income was $2,510 million (down 41%), and Adjusted EBITDA was $3,574 million (down 1%).

The filing attributes the net income decline primarily to unfavorable variances in fair value changes of derivative instruments, approximately $129 millionb for the quarter and $1.7 billion for the year. Adjusted EBITDA declined mainly due to lower gross margins per MMBtu of LNG delivered, partly offset in the full year by higher volumes. Total available liquidity was approximately $2.2 billion as of December 31, 2024, and SPL repaid $350 million of its 5.625% Senior Secured Notes due 2025 with cash on hand during the quarter.

The Partnership declared a fourth-quarter 2024 distribution of $0.820c per common unit, comprising a base amount of $0.775 and a variable amount of $0.045, paid February 14, 2025. It introduced full-year 2025 distribution guidance of $3.25 to $3.35 per common unit while maintaining a base distribution of $3.10 per common unit. The Sabine Pass Liquefaction expansion project, with expected capacity of up to approximately 20 mtpa, received DOE authorization to export to FTA countries in October 2024, and its FERC application remains pending as described.

02—Key points

Key Highlights

  1. Q4 2024 revenues of $2,460 million, down 8% from $2,686 million; full-year revenues of $8,704 million, down 10%.
  2. Q4 2024 net income of $623 million, down 31%; full-year net income of $2,510 million, down 41%, mainly due to derivative fair value variances of about $1.7 billion for the year.
  3. Adjusted EBITDA of $890 million for Q4 2024 (down 15%) and $3,574 million for full year 2024 (down 1%).
  4. Total available liquidity of approximately $2.2 billion at December 31, 2024, including $270 million of cash and cash equivalents.
  5. Q4 2024 distribution of $0.820 per common unit; full-year 2024 distributions totaled $3.25 per common unit.
  6. 2025 full-year distribution guidance of $3.25 to $3.35 per common unit, with the base distribution maintained at $3.10.
  7. SPL repaid $350 million of 5.625% Senior Secured Notes due 2025 with cash on hand; DOE authorized LNG exports to FTA countries for the SPL Expansion Project in October 2024.

03—Questions

Frequently Asked Questions

  1. Why did net income fall so sharply in 2024?

    The filing attributes the decline mainly to unfavorable variances in changes in fair value of derivative instruments, approximately $129 million for the quarter and $1.7 billion for the full year compared with 2023. The filing notes that the long-term Integrated Production Marketing agreements are marked to fair value while the corresponding LNG sales are not, creating an accounting mismatch.

  2. What is the distribution outlook for unitholders?

    The Partnership introduced full-year 2025 distribution guidance of $3.25 to $3.35 per common unit and maintained a base distribution of $3.10 per common unit. The Q4 2024 distribution was $0.820 per unit, comprising a $0.775 base amount and a $0.045 variable amount.

  3. How is the company's liquidity position?

    As of December 31, 2024, total available liquidity was approximately $2.2 billion, including about $270 million of cash and cash equivalents, $109 million of restricted cash, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $776 million under the SPL Revolving Credit Facility. During the quarter, SPL repaid $350 million of its 2025 notes with cash on hand.

  4. What is the status of the SPL Expansion Project?

    The Partnership is developing an expansion adjacent to the Sabine Pass LNG terminal with expected capacity of up to approximately 20 mtpa, inclusive of estimated debottlenecking opportunities. Applications to FERC and DOE for non-FTA export authorization were submitted in February 2024, excluding debottlenecking. In October 2024, the Partnership received DOE authorization to export LNG to FTA countries.

04—Continue

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