Cheniere Partners Q3 Earnings Miss Estimates on Higher Expenses

Cheniere Energy Partners, L.P. CQP recorded third-quarter 2025 earnings per unit of 81 cents, which missed the Zacks Consensus Estimate of $1.01. The bottom line also declined from 84 cents reported in the year-ago quarter.

Total quarterly revenues of $2.4 billion increased from $2.1 billion reported in the year-ago quarter. The top line, however, lagged the Zacks Consensus Estimate of $2.5 billion.

The weak quarterly earnings can be attributed to higher total operating costs and expenses. However, higher total margins per million British thermal units (Btu) of LNG partially offset the negatives.

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

CQP’s Operations

Cheniere Partners sent 104 cargoes in the third quarter, flat year over year. The figure came in higher than our estimate of 101.

The total LNG volume in the quarter was 374 trillion British thermal units (TBtu), lower than the year-ago level of 377 TBtu. The metric beat our estimate of 368 TBtu.

Adjusted EBITDA in the third quarter totaled $885 million, up 4% from the year-ago level of $852 million. The increase can be primarily attributed to a decline in operating and maintenance expenses, and higher total margins per million Btu of LNG delivered. The positives were partially offset by lower volumes delivered compared to the year-ago period. Our estimate for the same was pegged at $967.7 million.

CQP’s Costs & Expenses

The cost of sales in the quarter amounted to $1.3 billion, up from the year-ago period’s $773 million. Operating and maintenance expenses declined to $191 million from $200 million in the third quarter of 2024.

Total operating costs and expenses were $1.7 billion, up from $1.2 billion in the September-end quarter of 2024. The figure also came in higher than our estimate of $1.5 billion.

Balance Sheet of CQP

As of Sept. 30, 2025, the partnership had $121 million in cash and cash equivalents and a net long-term debt of $14.2 billion.

Outlook

The partnership reiterated its 2025 full-year distribution guidance, expecting to distribute $3.25-$3.35 per common unit, maintaining a base distribution of $3.10.

CQP’s Zacks Rank and Key Picks

CQP currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers. 

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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This article originally published on Zacks Investment Research (zacks.com).

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