01—Abstract
Summary
Summary of the 8-K filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy Partners, L.P.
(NYSE: CQP) reported first quarter 2026 results in a press release furnished as Exhibit 99.1 to this Form 8-K dated May 7, 2026. For the three months ended March 31, 2026, the Partnership generated revenues of $3.6 billiona, net income of $186 million, and Adjusted EBITDA of $1.2 billion, compared with revenues of $2.989 billion, net income of $641 million, and Adjusted EBITDA of $1.038 billion in the prior-year period. The filing attributes the net income decline of approximately $455 million mainly to approximately $599 million of unfavorable variances from changes in the fair value of derivative instruments, including those tied to the long-term Integrated Production Marketing (IPM) agreements.
Adjusted EBITDA rose by approximately $137 millionb, primarily driven by higher total margins per MMBtu of LNG delivered. The Partnership declared a first-quarter cash distribution of $0.790 per common unit (a base amount of $0.775 and a variable amount of $0.015), payable May 15, 2026 to unitholders of record as of May 8, 2026. It reconfirmed full-year 2026 distribution guidance of $3.10 to $3.40 per common unit, with the base distribution maintained at $3.10 per common unit.
At March 31, 2026, total available liquidity was $2.132 billionc, including $279 million of cash and cash equivalents and $1.831 billion of available credit facility commitments, while current debt rose to $1.606 billion from $306 million at December 31, 2025. The filing also notes that the SPL Expansion Project, with expected total peak production capacity of up to approximately 20 mtpa, remains subject to pending FERC and DOE approvals and to a positive final investment decision.
02—Key points
Key Highlights
- Revenues were $3.6 billion for Q1 2026, up from $2.989 billion a year earlier, and net income was $186 million versus $641 million.
- Net income declined approximately $455 million, primarily due to approximately $599 million of unfavorable derivative fair value variances, including IPM agreements; the filing cites $677 million of non-cash unfavorable fair value changes in Q1 2026 versus $149 million of non-cash favorable changes in Q1 2025.
- Adjusted EBITDA was $1.175 billion, up approximately $137 million, driven by higher total margins per MMBtu of LNG delivered.
- Declared a Q1 2026 distribution of $0.790 per common unit, payable May 15, 2026, and reconfirmed full-year 2026 distribution guidance of $3.10 to $3.40 per unit.
- Total available liquidity of $2.132 billion at March 31, 2026, including $279 million of cash and $1.831 billion of available credit facility commitments.
- Current debt increased to $1.606 billion from $306 million at December 31, 2025, and partners' equity was $78 million at March 31, 2026, versus $414 million at year-end 2025.
- The SPL Expansion Project (up to approximately 20 mtpa) remains subject to pending FERC and DOE approvals and a positive final investment decision.
03—Questions
Frequently Asked Questions
Why did net income fall so sharply in the first quarter of 2026?
The filing attributes the approximately $455 million decrease in net income mainly to approximately $599 million of unfavorable variances from changes in the fair value of derivative instruments, including those related to the long-term IPM agreements. The filing states these non-cash fair value changes reflect increased international gas price volatility and higher international forward commodity curves.
Did operating performance improve despite the lower net income?
Yes, according to the filing. Adjusted EBITDA increased approximately $137 million to $1.175 billion, primarily driven by higher total margins per MMBtu of LNG delivered. LNG exported was 412 TBtu compared with 406 TBtu, and the number of cargoes was 112 in both periods.
What distribution can unitholders expect?
The Partnership declared a cash distribution of $0.790 per common unit for Q1 2026, comprised of a $0.775 base amount and a $0.015 variable amount, payable May 15, 2026 to holders of record as of May 8, 2026. It reconfirmed 2026 full-year distribution guidance of $3.10 to $3.40 per common unit, with the base distribution at $3.10 per unit.
How much liquidity does the Partnership have?
As of March 31, 2026, total available liquidity was $2.132 billion, consisting of $279 million of cash and cash equivalents, $22 million of restricted cash and cash equivalents, and $1.831 billion of available credit facility commitments under the SPL and Cheniere Partners revolving credit facilities ($831 million and $1.000 billion, respectively).
What is the status of the SPL Expansion Project?
The filing states the SPL Expansion Project is expected to reach total peak production capacity of up to approximately 20 mtpa in a phased approach. A positive final investment decision is subject to regulatory approvals and acceptable commercial and financing arrangements. The FERC siting and construction application and the DOE non-free trade agreement export authorization both remain pending.
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