Cheniere Energy Partners, L.P. CQP recorded fourth-quarter 2024 earnings per unit of $1.05, which missed the Zacks Consensus Estimate of $1.07. The bottom line increased from 96 cents in the year-ago quarter. Since the earnings release, the partnership’s shares have risen 4.5%, closing at $63.97 in the last trading session.

Total quarterly revenues of $2.46 billion were lower than the year-ago quarter’s $2.69 billion. However, the top line beat the Zacks Consensus Estimate of $2.37 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Lower-than-expected quarterly earnings resulted from a higher cost of sales and lower gross margin 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 110 cargoes in the fourth quarter, down 4% from 115 in the year-ago period. The reported figure lagged our estimate of 116.

The total LNG volume in the quarter was 399 trillion British thermal units (TBtu), lower than the year-ago level of 419 TBtu. The figure lagged our estimate of 421 TBtu.

Adjusted EBITDA totaled $890 million, down 15% from the year-ago quarter’s $1,050 million. The figure also missed our estimate of $914 million. The decrease was primarily due to lower gross margins per MMBtu of LNG delivered.

Costs & Expenses

The cost of sales in the quarter amounted to $1,172 million, up from the year-ago period’s $1,123 million. The figure surpassed our estimate of $994.4 million. Operating and maintenance expenses increased to $214 million from $199 million in the fourth quarter of 2023 and came in higher than our estimate of $206.7 million.

Total operating costs and expenses were $1.65 billion, up from $1.59 billion in the December-end quarter of 2023. The figure surpassed our estimate of $1.47 billion.

Balance Sheet

As of Dec. 31, 2024, the partnership had $270 million in cash and cash equivalents, and a net long-term debt of $14.8 billion.

Outlook

The partnership provided its 2025 distribution guidance. It expects to distribute in the range of $3.25-$3.35 per common unit, with a base distribution of $3.10.

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 Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally. 

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

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