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Cheniere Partners Q2 Earnings Miss Estimates, Revenues Beat
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Key Takeaways
CQP's Q2 earnings per unit was $0.91, missing estimates and declining from $0.95 last year.
Revenues totaled $2.5B, beating estimates and up from $1.9B a year ago.
Lower LNG volumes and higher costs drove a 13% drop in adjusted EBITDA.
Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2025 earnings per unit of 91 cents, which missed the Zacks Consensus Estimate of 96 cents. The bottom line declined from 95 cents reported in the year-ago quarter.
Total quarterly revenues of $2.5 billion increased from $1.9 billion reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $2.4 billion.
The weak quarterly earnings can be attributed to lower LNG volumes loaded and higher total operating costs and expenses.
Cheniere Energy Partners, L.P. Price, Consensus and EPS Surprise
Cheniere Partners sent 98 cargos in the second quarter, down 5% from 103 in the year-ago period. The figure came in below our estimate of 104.
The total LNG volume in the quarter was 351 trillion British thermal units (TBtu), lower than the year-ago level of 372 TBtu. The metric also missed our estimate of 373 TBtu.
Adjusted EBITDA in the second quarter totaled $726 million, down 13% from the year-ago level of $832 million. The decrease can be attributed to planned maintenance activities during the three months ended June 30, 2025, resulting in higher operating expenses and lower volumes recognized in income during the period. Our estimate for the same was pegged at $987 million.
CQP’s Costs & Expenses
The cost of sales in the quarter amounted to $1.2 billion, up from the year-ago period’s $661 million. Operating and maintenance expenses increased to $289 million from $210 million in the second quarter of 2024.
Total operating costs and expenses were $1.74 billion, up from $1.13 billion in the June-end quarter of 2024. The figure also came in higher than our estimate of $1.38 billion.
Balance Sheet of CQP
As of June 30, 2025, the partnership had $108 million in cash and cash equivalents and a net long-term debt of $14.2 billion.
Outlook
The company reiterated its 2025 full-year distribution guidance, expecting to distribute $3.25-$3.35 per common unit, maintaining a base distribution of $3.10.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.
Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.
Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.
Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment.
ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.
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Cheniere Partners Q2 Earnings Miss Estimates, Revenues Beat
Key Takeaways
Cheniere Energy Partners, L.P. (CQP - Free Report) recorded second-quarter 2025 earnings per unit of 91 cents, which missed the Zacks Consensus Estimate of 96 cents. The bottom line declined from 95 cents reported in the year-ago quarter.
Total quarterly revenues of $2.5 billion increased from $1.9 billion reported in the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $2.4 billion.
The weak quarterly earnings can be attributed to lower LNG volumes loaded and higher total operating costs and expenses.
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
CQP’s Operations
Cheniere Partners sent 98 cargos in the second quarter, down 5% from 103 in the year-ago period. The figure came in below our estimate of 104.
The total LNG volume in the quarter was 351 trillion British thermal units (TBtu), lower than the year-ago level of 372 TBtu. The metric also missed our estimate of 373 TBtu.
Adjusted EBITDA in the second quarter totaled $726 million, down 13% from the year-ago level of $832 million. The decrease can be attributed to planned maintenance activities during the three months ended June 30, 2025, resulting in higher operating expenses and lower volumes recognized in income during the period. Our estimate for the same was pegged at $987 million.
CQP’s Costs & Expenses
The cost of sales in the quarter amounted to $1.2 billion, up from the year-ago period’s $661 million. Operating and maintenance expenses increased to $289 million from $210 million in the second quarter of 2024.
Total operating costs and expenses were $1.74 billion, up from $1.13 billion in the June-end quarter of 2024. The figure also came in higher than our estimate of $1.38 billion.
Balance Sheet of CQP
As of June 30, 2025, the partnership had $108 million in cash and cash equivalents and a net long-term debt of $14.2 billion.
Outlook
The company reiterated its 2025 full-year distribution guidance, expecting to distribute $3.25-$3.35 per common unit, maintaining a base distribution of $3.10.
CQP’s Zacks Rank and Key Picks
CQP currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Delek Logistics Partners, LP (DKL - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.
AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.
Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.
Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.
Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment.
ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.