Cheniere Energy Partners, L.P. ( CQP Quick Quote CQP - Free Report) has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days.
The company, currently sporting a Zacks Rank #1 (Strong Buy), has gained 14.6% in the past year compared with 4.3% growth of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research Factors Favoring the Stock
Long-term and fixed-fee contracts with clients provide Cheniere Partners a steady revenue source. Hence, the partnership is least exposed to commodity price fluctuations and generates stable fee-based revenues from the large-scale liquefied natural gas (LNG) export facility via contracts.
CQP owns the Sabine Pass liquefaction and export facility located in Cameron Parish, LA. It is one of the largest LNG production facilities in the world, with six operational trains. The facilities a total production capacity of 30 million tons per annum of LNG.
Cheniere Partners is the largest LNG producer and exporter in the United States. As most industries are seeking ways to lower emissions, the demand for LNG is expected to grow significantly. This will enable the partnership to make massive profits from its export facility.
LNG demand from major Asia economies is likely to rise in the coming days, which will boost the demand for Cheniere Partners’ assets. The partnership is well-positioned to capitalize on the rising LNG demand as it is expected to surpass growth of other hydrocarbons over the next 10-15 years.
For 2023, the partnership projects its guidance for distribution per unit at $4-$4.25. This implies that the partnership is thriving since it can afford to pay more of its profits to unitholders. Also, declining costs and expenses will aid CQP’s bottom line.
The partnership has economic hedges to secure natural gas feedstock for liquefaction projects, which will provide a cushion to its bottom line from volatile commodity prices.
Thus, Cheniere Partners stock appears to be a solid bet, based on the compelling business prospects.
Other Stocks to Consider
Some other top-ranked players in the energy space are
Evolution Petroleum Corporation ( EPM Quick Quote EPM - Free Report) , Oceaneering International, Inc. ( OII Quick Quote OII - Free Report) and Seadrill Limited ( SDRL Quick Quote SDRL - Free Report) , currently each sporting a Zacks Rank of 1. You can see . the complete list of today’s Zacks #1 Rank stocks here
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of 17 cents.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.05, respectively.
One of the leading suppliers of integrated technology solutions, Oceaneering boasts an impressive portfolio of diversified products and services. OII has a Zacks Style Score of A for Momentum and B for Growth.
Oceaneering has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for OII’s 2023 and 2024 earnings per share is pegged at $1.12 and $1.29, respectively.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.