Cheniere Energy Partners, L.P. CQP recorded first-quarter 2024 earnings per unit of $1.18, which beat the Zacks Consensus Estimate of 93 cents. The bottom line declined from the $1.43 per unit reported in the year-ago quarter.
Total quarterly revenues of $2.3 billion were lower than the year-ago quarter’s $2.9 billion. The top line also missed the Zacks Consensus Estimate of $2.4 billion.
Better-than-expected quarterly earnings were driven by higher LNG volumes loaded. The positives were partially offset by higher cost of sales and reduced total margins per MMBtu of 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 114 cargoes in the first quarter, up 2% from 112 in the year-ago period and also beat our estimate of 112.
Total LNG volume in the quarter was 417 trillion British thermal units (TBtu), higher than the year-ago level of 403 TBtu. The metric also beat our estimate of 403 TBtu.
Adjusted EBITDA in the first quarter totaled $1 billion, down 3% from the year-ago level of $1.03 billion. The figure also missed our estimate of $1.2 billion. The decline occurred due to reduced total margins per MMBtu of delivered LNG from the previous period.
Costs & Expenses
The cost of sales in the quarter amounted to $964 million, surging from the year-ago period’s $313 million. Operating and maintenance expenses decreased to $200 million from $206 million in first-quarter 2023.
Total operating costs and expenses were $1.4 billion, up from $788 million in the March-end quarter of 2023. The figure also beat our estimate of $1.3 billion.
Balance Sheet
As of Mar 31, 2024, the partnership had $333 million in cash and cash equivalents, and a net long-term debt of $13.6 billion.
Outlook
The company reiterated its 2024 distribution guidance, expecting to distribute between $3.15 and $3.35 per common unit, with a base distribution set at $3.10 per common unit.
Additionally, the company is working on expanding its operations adjacent to the SPL Project. This expansion, known as the SPL Expansion Project, aims to increase the total production capacity by up to 20 million metric tons per annum (Mtpa) of LNG. In February 2024, some subsidiaries of the company filed applications with the FERC for permission to site, construct and operate the SPL Expansion Project. They also submitted an application to the DOE, seeking authorization to export LNG to both FTA and non-FTA countries.
Zacks Rank & Stocks to Consider
Cheniere Partners currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company SM is an independent oil and gas company engaged in the exploration, exploitation, development, acquisition, and production of oil and gas in North America.
The Zacks Consensus Estimate for SM’s 2024 and 2025 EPS is pegged at $6.46 and $7.35, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess Corporation HES is a leading oil and natural gas exploration and production company. The company’s oil and gas proved reserves increased last year by more than 8% year over year.
The Zacks Consensus Estimate for HES’s 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Ecopetrol S.A. EC operates across various sections of the oil and gas industry, including the exploration, development, and production of oil and gas, refining, transportation, and the sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. The Zacks Consensus Estimate for EC’s 2024 and 2025 EPS is pegged at $2.54 and $2.61, respectively.
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