Cheniere Partners Q1 Earnings & Revenues Beat on Higher Margins

Cheniere Energy Partners, L.P. CQP recorded first-quarter 2025 earnings per unit of $1.08, which beat the Zacks Consensus Estimate of $1.06. However, the bottom line declined from the $1.18 reported in the year-ago quarter.

Total quarterly revenues of $3 billion increased from $2.3 billion reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $2.5 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Better-than-expected quarterly results were driven by increased total margins per MMBtu of delivered liquefied natural gas (LNG). However, the upsides were partially offset by lower LNG volumes loaded, and higher total operating costs and expenses.

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 112 cargoes in the first quarter, down 2% from 114 in the year-ago period. The figure came in below our estimate of 116.

The total LNG volume in the quarter was 405 trillion British thermal units (TBtu), lower than the year-ago level of 417 TBtu. The metric also missed our estimate of 419 TBtu.

Adjusted EBITDA in the first quarter totaled $1.04 billion, up 4% from the year-ago level of $1 billion. The increase was driven by higher total margins per MMBtu of delivered LNG compared to the prior-year levels. Our estimate for the same was pegged at $1.06 billion.

CQP’s Costs & Expenses

The cost of sales in the quarter amounted to $1.7 billion, surging from the year-ago period’s $964 million. Operating and maintenance expenses increased to $203 million from $200 million in the first quarter of 2024.

Total operating costs and expenses were $2.16 billion, up from $1.42 billion in the March-end quarter of 2024. The figure also came in higher than our estimate of $1.42 billion.

Balance Sheet of CQP

As of March 31, 2025, the partnership had $94 million in cash and cash equivalents and a net long-term debt of $14.7 billion.

Outlook

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

CQP’s Zacks Rank and Key Picks

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

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Diversified Energy Company plc DEC and Galp Energia SGPS SA GLPEY. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Diversified Energy and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Diversified Energy Company is an independent oil and natural gas producer in the United States. The company is primarily engaged in the production, transportation, and marketing of natural gas and natural gas liquids. The rising demand for natural gas as a cleaner-burning fuel and an uptick in the commodity’s prices are expected to positively impact the company’s bottom line.

Galp Energia is a Portuguese energy company, engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp had estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region.

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

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