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Cheniere Energy (CQP) Q2 Earnings Beat on Lower Cost of Sales
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Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2023 earnings per unit of 84 cents, beating the Zacks Consensus Estimate of 60 cents. The bottom line significantly increased from 25 cents per unit in the year-ago quarter.
Total quarterly revenues of $1,933 million were lower than the year-ago level of $4,181 million. The top line missed the Zacks Consensus Estimate of $2,195.3 million.
Strong quarterly earnings resulted from a significant decline in the cost of sales. This was offset partially by lower LNG volumes loaded.
Cheniere Energy Partners, LP Price, Consensus and EPS Surprise
Cheniere sent 98 cargoes in the second quarter, down from 103 in the year-ago period. Total LNG volumes loaded in the quarter were 353 trillion British thermal units (TBtu), lower than the year-ago level of 375 TBtu.
Adjusted EBITDA in the second quarter was $757 million, down from the year-ago level of $977 million. The decrease resulted from lower regasification revenues.
Costs and Expenses
The cost of sales in the quarter was $604 million, significantly down from the year-ago period’s $3,202 million. Our estimate also reflects a significant year-over-year decline. Yet, operating and maintenance expenses increased to $263 million from $191 million in second-quarter 2022.
Total operating costs and expenses in the quarter were $1,115 million, down from $3,626 million in the June-ended quarter of 2022. Our estimate reflects a year-over-year decline of 66.3%.
Balance Sheet
As of Jun 30, 2023, the partnership had $1,834 million in cash and cash equivalents. Cheniere had a net long-term debt of $15,595 million.
Zacks Rank & Stocks to Consider
Cheniere Energy currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Murphy USA (MUSA - Free Report) . While Evolution Petroleum and Oceaneering carry a Zacks Rank #2 (Buy), Murphy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Oceaneering International is well placed on improving oil prices since it is a leading provider of engineered services and products and robotic solutions to the energy companies working offshore. Higher oil price is supporting increased upstream activities, which, in turn, will improve demand for Oceaneering’s drilling and completions support services.
Murphy, a leading retailer of gasoline and convenience merchandise, has a solid business model.
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Cheniere Energy (CQP) Q2 Earnings Beat on Lower Cost of Sales
Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2023 earnings per unit of 84 cents, beating the Zacks Consensus Estimate of 60 cents. The bottom line significantly increased from 25 cents per unit in the year-ago quarter.
Total quarterly revenues of $1,933 million were lower than the year-ago level of $4,181 million. The top line missed the Zacks Consensus Estimate of $2,195.3 million.
Strong quarterly earnings resulted from a significant decline in the cost of sales. This was offset partially by lower LNG volumes loaded.
Cheniere Energy Partners, LP Price, Consensus and EPS Surprise
Cheniere Energy Partners, LP price-consensus-eps-surprise-chart | Cheniere Energy Partners, LP Quote
Operations
Cheniere sent 98 cargoes in the second quarter, down from 103 in the year-ago period. Total LNG volumes loaded in the quarter were 353 trillion British thermal units (TBtu), lower than the year-ago level of 375 TBtu.
Adjusted EBITDA in the second quarter was $757 million, down from the year-ago level of $977 million. The decrease resulted from lower regasification revenues.
Costs and Expenses
The cost of sales in the quarter was $604 million, significantly down from the year-ago period’s $3,202 million. Our estimate also reflects a significant year-over-year decline. Yet, operating and maintenance expenses increased to $263 million from $191 million in second-quarter 2022.
Total operating costs and expenses in the quarter were $1,115 million, down from $3,626 million in the June-ended quarter of 2022. Our estimate reflects a year-over-year decline of 66.3%.
Balance Sheet
As of Jun 30, 2023, the partnership had $1,834 million in cash and cash equivalents. Cheniere had a net long-term debt of $15,595 million.
Zacks Rank & Stocks to Consider
Cheniere Energy currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Evolution Petroleum Corporation (EPM - Free Report) , Oceaneering International, Inc. (OII - Free Report) and Murphy USA (MUSA - Free Report) . While Evolution Petroleum and Oceaneering carry a Zacks Rank #2 (Buy), Murphy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Through its ownership interests in onshore oil and natural gas properties in the United States, Evolution Petroleum is touted as a key independent energy player.
Oceaneering International is well placed on improving oil prices since it is a leading provider of engineered services and products and robotic solutions to the energy companies working offshore. Higher oil price is supporting increased upstream activities, which, in turn, will improve demand for Oceaneering’s drilling and completions support services.
Murphy, a leading retailer of gasoline and convenience merchandise, has a solid business model.