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Cheniere Energy Partners (CQP) Prices $1.2B Senior Notes

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Cheniere Energy Partners LP (CQP - Free Report) announced the pricing of senior notes with $1.2 billion in principal amount. The notes are scheduled to mature on Jan 31, 2032, and will likely bear an interest rate of 3.25%.

The partnership expects the offering of the notes, that are priced at par, to close on Sep 27, 2021. With the deduction of initial purchasers’ discounts, estimated fees and expenses, the offering’s net proceeds will likely be allocated for refinancing all of the partnership’s senior notes outstanding that are scheduled to mature by 2026. For refinancing, the partnership announced that it will also utilize its cash on hand. A part of the proceeds will also be utilized for refinancing a portion of Sabine Pass Liquefaction, LLC’s senior notes that will likely mature by 2022. Cheniere Energy Partners said that fees and expenses, associated with refinancing, will also get refinanced with the proceeds.

Cheniere Energy Partners is based in Houston, TX. The partnership is a leading provider of affordable, secure and clean liquefied natural gas (LNG). The partnership has ownership interests in Sabine Pass LNG terminal – among the world’s largest LNG production facilities – that is situated in Cameron Parish, LA. With demand for LNG expected to keep rising in the long run, the partnership is well poised to generate stable cashflow.

The partnership currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Continental Resources, Inc. (CLR - Free Report) and PDC Energy, Inc. (PDCE - Free Report) . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1 (Strong Buy), PDC Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 428.2% in 2021.

PDC Energy is likely to see earnings growth of 198% in 2021.