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Cheniere (CQP) Q3 Earnings Beat Estimates, Revenues Fall Y/Y

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Cheniere Energy Partners, L.P. (CQP - Free Report) recorded third-quarter 2023 earnings per unit of $1.19, which beat the Zacks Consensus Estimate of 53 cents. The bottom line significantly improved from a reported loss of $1.49 per unit in the year-ago quarter.

Total quarterly revenues of $2,128 million were lower than the year-ago quarter’s level of $4,976 million. The top line also missed the Zacks Consensus Estimate of $2,256 million.

Strong quarterly earnings were driven by a significant decline in the cost of sales and total operating costs and expenses.

Operations

Cheniere sent 100 cargoes in the third quarter, down from 103 in the year-ago period. Total LNG volume in the quarter was 362 trillion British thermal units (TBtu), lower than the year-ago level of 363 TBtu.

Adjusted EBITDA in the third quarter totaled $793 million, down from the year-ago level of $1,471 million. The figure also missed our estimate of $1,053.9 million. The decrease resulted from lower regasification revenues.

Costs and Expenses

The cost of sales in the quarter amounted to $682 million, significantly down from the year-ago period’s figure of $4,739 million. Our estimate also reflects a significant year-over-year decline. Yet, operating and maintenance expenses increased to $211 million from $189 million in third-quarter 2022.

Total operating costs and expenses were $1,140 million, down from $5,275 million recorded in the September-end quarter of 2022. Our estimate reflects a year-over-year decline of 66.8%.

Balance Sheet

As of Sep 30, 2023, the partnership had $499 million in cash and cash equivalents and a net long-term debt of $15,600 million.

Zacks Rank & Stocks to Consider

Cheniere Energy currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are Liberty Energy Inc. (LBRT - Free Report) , Matador Resources Company (MTDR - Free Report) and Oceaneering International, Inc. (OII - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Liberty reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.

The company’s board of directors announced a cash dividend of 7 cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.

Matador Resources reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.

For the fourth quarter of 2023, MTDR expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the previously mentioned 143,000 BOE/D.

Oceaneering International reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of 27 cents. OII’s outperformance was largely due to robust results in certain segments.

For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues compared with the third-quarter results.

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