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Cheniere Partners (CQP) Stock Up Since Q2 Earnings Beat
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Since the announcement of strong second-quarter earnings on Aug 6, Cheniere Energy Partners, L.P. (CQP - Free Report) has seen an 8.5% rise in unit price. It is to be noted that the partnership reiterated its profit and distributable cash flow guidance despite current market volatility. Moreover, it increased quarterly cash distribution, thereby boosting investor confidence.
Strong Second-Quarter Earnings
Cheniere Partners reported second-quarter 2020 earnings per unit of 90 cents, which beat the Zacks Consensus Estimate of 57 cents. Moreover, the figure was higher than the year-ago level of 44 cents per unit. The outperformance was led by lower total operating costs and expenses, as well as higher margins.
However, revenues of $1,470 million were lower than the year-ago level of $1,705 million and missed the Zacks Consensus Estimate of $1,712 million on reduced LNG cargoes sold.
Cheniere Energy Partners, LP Price, Consensus and EPS Surprise
The partnership increased quarterly cash distribution from 64 cents per unit to 64.5. The distribution hike during current market uncertainty is expected to send a strong signal to investors about its operational strength.
Operations
The partnership sent 58 cargoes in the second quarter, down from 85 in the year-ago period. Total LNG volumes loaded in the quarter was recorded at 207 trillion British thermal units (TBtu), much lower than the year-ago level of 305 TBtu.
Adjusted EBITDA for the second quarter was recorded at $846 million, up from the year-ago level of $591 million. Profits rose in the second quarter on the back of higher total margins, courtesy of the collected fees of cargoes cancelled by clients.
Costs and Expenses
Cost of sales for the quarter was $398 million, down from the year-ago period’s $880 million. Operating and maintenance expense rose marginally to $165 million from $162 million in second-quarter 2019. Total costs and expenses for the quarter were recorded at $684 million, significantly down from $1,250 million in the June quarter of 2019.
Cash Flow
Notably, the partnership generated operating cash flow of $339 million in second-quarter 2020, higher than the year-ago level of $296 million.
Balance Sheet
As of Jun 30, 2020, the partnership had only $1,341 million in cash and cash equivalents, down from $1,734 million at first quarter-end. Cheniere Partners had a net long-term debt of $17,566 million, higher than $15,591 million in the first quarter. It had a debt to capitalization ratio of 0.95.
Guidance
The partnership expects full-year 2020 distribution per unit in the range of $2.55-$2.65. The SPL Project Train 6 was 63.9% complete at second quarter-end. Full work on the train is expected to be completed by second-half 2022.
Despite reduced energy demand due to the coronavirus pandemic, the partnership reiterated its full-year 2020 adjusted EBITDA guidance at $3.8-$4.1 billion. Also, it reaffirmed distributable cash flow for the year at $1-$1.3 billion.
Noble Energy’s bottom line for 2021 is expected to surge 57.9% year over year.
EOG Resources’ bottom line for 2021 is expected to soar 278.3% year over year.
Concho Resources’ bottom line for 2020 is expected to rise 36.1% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Cheniere Partners (CQP) Stock Up Since Q2 Earnings Beat
Since the announcement of strong second-quarter earnings on Aug 6, Cheniere Energy Partners, L.P. (CQP - Free Report) has seen an 8.5% rise in unit price. It is to be noted that the partnership reiterated its profit and distributable cash flow guidance despite current market volatility. Moreover, it increased quarterly cash distribution, thereby boosting investor confidence.
Strong Second-Quarter Earnings
Cheniere Partners reported second-quarter 2020 earnings per unit of 90 cents, which beat the Zacks Consensus Estimate of 57 cents. Moreover, the figure was higher than the year-ago level of 44 cents per unit. The outperformance was led by lower total operating costs and expenses, as well as higher margins.
However, revenues of $1,470 million were lower than the year-ago level of $1,705 million and missed the Zacks Consensus Estimate of $1,712 million on reduced LNG cargoes sold.
Cheniere Energy Partners, LP Price, Consensus and EPS Surprise
Cheniere Energy Partners, LP price-consensus-eps-surprise-chart | Cheniere Energy Partners, LP Quote
Distribution Hike
The partnership increased quarterly cash distribution from 64 cents per unit to 64.5. The distribution hike during current market uncertainty is expected to send a strong signal to investors about its operational strength.
Operations
The partnership sent 58 cargoes in the second quarter, down from 85 in the year-ago period. Total LNG volumes loaded in the quarter was recorded at 207 trillion British thermal units (TBtu), much lower than the year-ago level of 305 TBtu.
Adjusted EBITDA for the second quarter was recorded at $846 million, up from the year-ago level of $591 million. Profits rose in the second quarter on the back of higher total margins, courtesy of the collected fees of cargoes cancelled by clients.
Costs and Expenses
Cost of sales for the quarter was $398 million, down from the year-ago period’s $880 million. Operating and maintenance expense rose marginally to $165 million from $162 million in second-quarter 2019. Total costs and expenses for the quarter were recorded at $684 million, significantly down from $1,250 million in the June quarter of 2019.
Cash Flow
Notably, the partnership generated operating cash flow of $339 million in second-quarter 2020, higher than the year-ago level of $296 million.
Balance Sheet
As of Jun 30, 2020, the partnership had only $1,341 million in cash and cash equivalents, down from $1,734 million at first quarter-end. Cheniere Partners had a net long-term debt of $17,566 million, higher than $15,591 million in the first quarter. It had a debt to capitalization ratio of 0.95.
Guidance
The partnership expects full-year 2020 distribution per unit in the range of $2.55-$2.65. The SPL Project Train 6 was 63.9% complete at second quarter-end. Full work on the train is expected to be completed by second-half 2022.
Despite reduced energy demand due to the coronavirus pandemic, the partnership reiterated its full-year 2020 adjusted EBITDA guidance at $3.8-$4.1 billion. Also, it reaffirmed distributable cash flow for the year at $1-$1.3 billion.
Zacks Rank & Stocks to Consider
The partnership currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Noble Energy, Inc. , EOG Resources, Inc. (EOG - Free Report) and Concho Resources Inc. , each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Noble Energy’s bottom line for 2021 is expected to surge 57.9% year over year.
EOG Resources’ bottom line for 2021 is expected to soar 278.3% year over year.
Concho Resources’ bottom line for 2020 is expected to rise 36.1% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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