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Cheniere Partners Misses Earnings and Revenue Estimates in Q3

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Cheniere Energy Partners, L.P. (CQP - Free Report) recorded third-quarter 2024 earnings per unit of 84 cents, which missed the Zacks Consensus Estimate of 92 cents. The bottom line increased from 60 cents in the year-ago quarter.

Total quarterly revenues of $2.06 billion were lower than the year-ago quarter’s $2.13 billion. The top line also lagged the Zacks Consensus Estimate of $2.09 billion.

Lower-than-expected quarterly earnings resulted from a higher cost of sales and a lower gross margin per MMBtu for delivered LNG. The negatives were partially offset by higher LNG volumes loaded.

Cheniere Energy Partners, L.P. Price, Consensus and EPS Surprise

 

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 104 cargoes in the third quarter, up 4% from 100 in the year-ago period. The reported figure also beat our estimate of 103.

The total LNG volume in the quarter was 377 trillion British thermal units (TBtu), higher than the year-ago level of 359 TBtu and beating our estimate of 375 TBtu.

Adjusted EBITDA totaled $852 million, up 7% from the year-ago quarter’s $793 million. However, the figure missed our estimate of $922 million. The increase was primarily driven by higher volumes delivered, partially offset by a lower gross margin per MMBtu of delivered LNG from the prior-year level.

Costs & Expenses

The cost of sales in the quarter amounted to $773 million, up from the year-ago period’s $682 million. The figure surpassed our estimate of $681 million. Yet, operating and maintenance expenses decreased to $200 million from $211 million in the third quarter of 2023 and missed our estimate of $214.3 million.

Total operating costs and expenses were $1.2 billion, up from $1.1 billion in the September-end quarter of 2023. The figure surpassed our estimate of $1.15 billion.

Balance Sheet

As of Sept. 30, 2024, the partnership had $331 million in cash and cash equivalents, and a net long-term debt of $14.8 billion.

Outlook

The partnership reiterated its 2024 distribution guidance. It expects to distribute between $3.15 and $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 that currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Williams Companies, Inc. (WMB - Free Report) is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.

The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Archrock Inc. (AROC - Free Report) is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.

The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.10. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Kodiak Gas Services Inc. (KGS - Free Report) primarily operates contract compression infrastructure within the United States. The company specializes in managing high-horsepower compression units.

The Zacks Consensus Estimate for KGS’s 2024 EPS is pegged at 99 cents. The company has a Zacks Style Score of B for Value and Growth.

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