Cheniere Energy Partners (CQP) Q2 2024 earnings summary

Executive summary

• Operates Sabine Pass LNG Terminal with six Trains and 30 mtpa capacity, plus regasification and pipeline assets.

• Contracted ~80% of production under long-term agreements with ~14 years weighted average remaining life.

• Produced, loaded, and exported ~2,600 LNG cargoes totaling ~180 million tonnes as of August 2024.

• Declared a Q2 cash distribution of $0.810 per common unit, reaffirming full-year 2024 distribution guidance of $3.15–$3.35 per unit, with a $3.10 base.

• Moody's upgraded Cheniere Partners and SPL to investment grade in May 2024, now rated investment grade by all major agencies.

Financial highlights

• Q2 2024 revenues: $1.89B, down $39M year-over-year; six-month revenues: $4.19B, down $661M.

• Q2 2024 net income: $570M, down $52M year-over-year; six-month net income: $1.25B, down $1.31B.

• Q2 2024 EPS: $0.95 vs $0.84 prior year; six-month EPS: $2.13 vs $4.35 prior year.

• Adjusted EBITDA rose 10% year-over-year in Q2, driven by higher LNG volumes and lower operating/maintenance costs.

• LNG cargoes exported increased 5% year-over-year in Q2 to 103 cargoes (373 TBtu); six-month volumes up 4%.

Outlook and guidance

• Full-year 2024 distribution guidance reaffirmed at $3.15–$3.35 per common unit, with a $3.10 base.

• Short-term liquidity needs expected to be met with operating cash flow and $2.18B available liquidity.

• SPL Expansion Project development contingent on commercial and financing arrangements and regulatory approvals.