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Cheniere Partners (CQP) Q2 Earnings Beat, Revenues Fall Y/Y
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Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2024 earnings per unit of 95 cents, which beat the Zacks Consensus Estimate of 83 cents. The bottom line increased from 84 cents reported in the year-ago quarter.
Total quarterly revenues of $1.89 billion were lower than the year-ago quarter’s $1.93 billion. The top line also missed the Zacks Consensus Estimate of $2.04 billion.
The strong quarterly earnings were driven by higher LNG volumes loaded. The positives were partially offset by the higher cost of sales and lower gross margins per MMBtu for delivered LNG.
Cheniere Energy Partners, L.P. Price, Consensus and EPS Surprise
Cheniere Partners sent 103 cargoes in the second quarter, up 5% from 98 in the year-ago period. The reported figure also beat our estimate of 100.
Total LNG volume in the quarter was 372 trillion British thermal units (TBtu), higher than the year-ago level of 353 TBtu. The figure also beat our estimate of 359 TBtu.
Adjusted EBITDA totaled $832 million, up 10% from the year-ago level of $757 million. However, the figure missed our estimate of $954 million. The increase was primarily driven by higher volumes delivered, partially offset by lower gross margins per MMBtu of delivered LNG compared with the prior-year level.
Costs & Expenses
The cost of sales in the quarter amounted to $661 million, up from the year-ago period’s $603 million. Operating and maintenance expenses decreased to $210 million from $263 million in the second quarter of 2023.
Total operating costs and expenses were $1.13 billion, up from $1.12 billion in the June-end quarter of 2023. The figure was lower than our estimate of $1.16 billion.
Balance Sheet
As of Jun 30, 2024, the partnership had $351 million in cash and cash equivalents and a net long-term debt of $14.8 billion.
Outlook
The partnership reiterated its 2024 distribution guidance. It expects to distribute between $3.15 and $3.35 per common unit, with a base distribution set at $3.10.
Additionally, it is working on expanding its operations adjacent to the Sabine Pass LNG (SPL) terminal. This expansion, known as the SPL Expansion Project, is aimed at increasing the total production capacity by up to 20 million metric tons per annum (Mtpa) of LNG.
Zacks Rank & Stocks to Consider
Cheniere Partners currently carries a Zacks Rank #3 (Hold).
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Matador Resources is a leading U.S. oil and gas explorer, focused on shale and unconventional resources. Its primary operations are in the Delaware and Midland basins of the Permian and the Eagle Ford shale in South Texas. The integration of its MAXCOM operations has enhanced well performance and reduced service costs.
The Zacks Consensus Estimate for MTDR’s 2024 EPS is pegged at $7.83. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $10.97 and $12.55, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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Cheniere Partners (CQP) Q2 Earnings Beat, Revenues Fall Y/Y
Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2024 earnings per unit of 95 cents, which beat the Zacks Consensus Estimate of 83 cents. The bottom line increased from 84 cents reported in the year-ago quarter.
Total quarterly revenues of $1.89 billion were lower than the year-ago quarter’s $1.93 billion. The top line also missed the Zacks Consensus Estimate of $2.04 billion.
The strong quarterly earnings were driven by higher LNG volumes loaded. The positives were partially offset by the higher cost of sales and lower gross margins 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 103 cargoes in the second quarter, up 5% from 98 in the year-ago period. The reported figure also beat our estimate of 100.
Total LNG volume in the quarter was 372 trillion British thermal units (TBtu), higher than the year-ago level of 353 TBtu. The figure also beat our estimate of 359 TBtu.
Adjusted EBITDA totaled $832 million, up 10% from the year-ago level of $757 million. However, the figure missed our estimate of $954 million. The increase was primarily driven by higher volumes delivered, partially offset by lower gross margins per MMBtu of delivered LNG compared with the prior-year level.
Costs & Expenses
The cost of sales in the quarter amounted to $661 million, up from the year-ago period’s $603 million. Operating and maintenance expenses decreased to $210 million from $263 million in the second quarter of 2023.
Total operating costs and expenses were $1.13 billion, up from $1.12 billion in the June-end quarter of 2023. The figure was lower than our estimate of $1.16 billion.
Balance Sheet
As of Jun 30, 2024, the partnership had $351 million in cash and cash equivalents and a net long-term debt of $14.8 billion.
Outlook
The partnership reiterated its 2024 distribution guidance. It expects to distribute between $3.15 and $3.35 per common unit, with a base distribution set at $3.10.
Additionally, it is working on expanding its operations adjacent to the Sabine Pass LNG (SPL) terminal. This expansion, known as the SPL Expansion Project, is aimed at increasing the total production capacity by up to 20 million metric tons per annum (Mtpa) of LNG.
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 SM Energy Company (SM - Free Report) , Matador Resources Company (MTDR - Free Report) and Hess Corporation (HES - Free Report) . While SM Energy currently sports a Zacks Rank #1 (Strong Buy), Matador and Hess carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Matador Resources is a leading U.S. oil and gas explorer, focused on shale and unconventional resources. Its primary operations are in the Delaware and Midland basins of the Permian and the Eagle Ford shale in South Texas. The integration of its MAXCOM operations has enhanced well performance and reduced service costs.
The Zacks Consensus Estimate for MTDR’s 2024 EPS is pegged at $7.83. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $10.97 and $12.55, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.