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Cheniere Energy Partners, L.P. CQP recorded fourth-quarter 2024 earnings per unit of $1.05, which missed the Zacks Consensus Estimate of $1.07. The bottom line increased from 96 cents in the year-ago quarter. Since the earnings release, the partnership’s shares have risen 4.5%, closing at $63.97 in the last trading session.
Total quarterly revenues of $2.46 billion were lower than the year-ago quarter’s $2.69 billion. However, the top line beat the Zacks Consensus Estimate of $2.37 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Lower-than-expected quarterly earnings resulted from a higher cost of sales and lower gross margin per MMBtu for delivered LNG.
Cheniere Energy Partners, L.P. Price, Consensus and EPS Surprise
Cheniere Energy Partners, L.P. price-consensus-eps-surprise-chart | Cheniere Energy Partners, L.P. Quote
Operations
Cheniere Partners sent 110 cargoes in the fourth quarter, down 4% from 115 in the year-ago period. The reported figure lagged our estimate of 116.
The total LNG volume in the quarter was 399 trillion British thermal units (TBtu), lower than the year-ago level of 419 TBtu. The figure lagged our estimate of 421 TBtu.
Adjusted EBITDA totaled $890 million, down 15% from the year-ago quarter’s $1,050 million. The figure also missed our estimate of $914 million. The decrease was primarily due to lower gross margins per MMBtu of LNG delivered.
Costs & Expenses
The cost of sales in the quarter amounted to $1,172 million, up from the year-ago period’s $1,123 million. The figure surpassed our estimate of $994.4 million. Operating and maintenance expenses increased to $214 million from $199 million in the fourth quarter of 2023 and came in higher than our estimate of $206.7 million.
Total operating costs and expenses were $1.65 billion, up from $1.59 billion in the December-end quarter of 2023. The figure surpassed our estimate of $1.47 billion.
Balance Sheet
As of Dec. 31, 2024, the partnership had $270 million in cash and cash equivalents, and a net long-term debt of $14.8 billion.
Outlook
The partnership provided its 2025 distribution guidance. It expects to distribute in the range of $3.25-$3.35 per common unit, with a base distribution of $3.10.
Zacks Rank & Stocks to Consider
Cheniere Partners currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.