Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE: CQP)
today announced its financial results for fourth quarter and full
year 2024.
HIGHLIGHTS
- During the three and twelve months ended December 31, 2024,
Cheniere Partners generated revenues of $2.5 billion and $8.7
billion, net income of $623 million and $2.5 billion, and Adjusted
EBITDA1 of $890 million and $3.6 billion, respectively.
- With respect to the fourth quarter of 2024, Cheniere Partners
declared a cash distribution of $0.820 per common unit to
unitholders of record as of February 10, 2025, comprised of a base
amount equal to $0.775 and a variable amount equal to $0.045. The
common unit distribution and the related general partner
distribution were paid on February 14, 2025. For full year 2024,
Cheniere Partners paid total cash distributions of $3.25 per common
unit, comprised of a base amount equal to $3.10 and a variable
amount equal to $0.15.
- Introducing full year 2025 distribution guidance of $3.25 -
$3.35 per common unit, maintaining a base distribution of $3.10 per
common unit.
2025 FULL YEAR DISTRIBUTION GUIDANCE
2025
Distribution per Unit
$
3.25
-
$
3.35
SUMMARY AND REVIEW OF FINANCIAL RESULTS
(in millions, except LNG data)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
% Change
2024
2023
% Change
Revenues
$
2,460
$
2,686
(8
)%
$
8,704
$
9,664
(10
)%
Net income
$
623
$
906
(31
)%
$
2,510
$
4,254
(41
)%
Adjusted EBITDA1
$
890
$
1,050
(15
)%
$
3,574
$
3,626
(1
)%
LNG exported:
Number of cargoes
110
115
(4
)%
431
425
1
%
Volumes (TBtu)
399
419
(5
)%
1,567
1,536
2
%
LNG volumes loaded (TBtu)
401
418
(4
)%
1,567
1,536
2
%
Net income decreased approximately $283 million and $1.7 billion
during the three and twelve months ended December 31, 2024,
respectively, as compared to the corresponding 2023 periods. The
decreases were primarily attributable to approximately $129 million
and $1.7 billion of unfavorable variances related to changes in
fair value of our derivative instruments (further described below)
for the three and twelve months ended December 31, 2024,
respectively, as compared to the corresponding 2023 periods.
Adjusted EBITDA1 decreased by approximately $160 million and $52
million during the three and twelve months ended December 31, 2024,
respectively, as compared to the corresponding 2023 periods. The
decreases were primarily due to lower gross margins per MMBtu of
liquefied natural gas (“LNG”) delivered. The decrease during the
twelve months ended December 31, 2024 was partially offset by
higher volumes delivered compared to the prior period.
A portion of the derivative gains are attributable to the
recognition at fair value of our long-term Integrated Production
Marketing (“IPM”) agreements, natural gas supply contracts with
pricing indexed to international gas and LNG prices. Our IPM
agreements are structured to provide stable margins on purchases of
natural gas and sales of LNG over the life of the agreements and
have a fixed fee component, similar to that of LNG sold under our
long-term, fixed fee LNG sale and purchase agreements. However, the
long-term duration and international price basis of our IPM
agreements make them particularly susceptible to fluctuations in
fair market value from period to period. In addition, accounting
requirements prescribe recognition of these long-term gas supply
agreements at fair value each reporting period on a mark-to-market
basis, but do not currently permit mark-to-market recognition of
the corresponding sale of LNG, resulting in a mismatch of
accounting recognition for the purchase of natural gas and sale of
LNG. As a result of continued moderation of international gas price
volatility and changes in international forward commodity curves
during the three and twelve months ended December 31, 2024, we
recognized approximately $13 million and $251 million,
respectively, of non-cash favorable changes in fair value
attributable to these IPM agreements, as compared to approximately
$305 million and $1.8 billion of non-cash favorable changes in fair
value in the corresponding 2023 periods.
During the three and twelve months ended December 31, 2024, we
recognized as revenue 401 and 1,567 TBtu, respectively, of LNG
loaded from the SPL Project (defined below).
Capital Resources
As of December 31, 2024, our total available liquidity was
approximately $2.2 billion. We had cash and cash equivalents of
approximately $270 million, restricted cash and cash equivalents of
$109 million, $1.0 billion of available commitments under the
Cheniere Partners Revolving Credit Facility, and $776 million of
available commitments under the Sabine Pass Liquefaction, LLC
(“SPL”) Revolving Credit Facility.
Recent Key Financial Transactions and Updates
During the three months ended December 31, 2024, SPL repaid $350
million in principal amount of its 5.625% Senior Secured Notes due
2025 with cash on hand.
SABINE PASS OVERVIEW
We own natural gas liquefaction facilities consisting of six
liquefaction Trains, with a total production capacity of
approximately 30 million tonnes per annum (“mtpa”) of LNG at the
Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL
Project”).
As of February 14, 2025, approximately 2,840 cumulative LNG
cargoes totaling over 195 million tonnes of LNG have been produced,
loaded, and exported from the SPL Project.
SPL Expansion Project
We are developing an expansion adjacent to the SPL Project with
an expected total production capacity of up to approximately 20
mtpa of LNG (the “SPL Expansion Project”), inclusive of estimated
debottlenecking opportunities. In February 2024, certain of our
subsidiaries submitted an application to the Federal Energy
Regulatory Commission for authorization to site, construct and
operate the SPL Expansion Project, as well as an application to the
Department of Energy requesting authorization to export LNG to
Free-Trade Agreement (“FTA”) and non-FTA countries, both of which
applications exclude debottlenecking. In October 2024, we received
authorization from the DOE to export LNG to FTA countries.
DISTRIBUTIONS TO UNITHOLDERS
In January 2025, we declared a cash distribution of $0.820 per
common unit to unitholders of record as of February 10, 2025,
comprised of a base amount equal to $0.775 ($3.10 annualized) and a
variable amount equal to $0.045, which takes into consideration,
among other things, amounts reserved for annual debt repayment and
capital allocation goals, anticipated capital expenditures to be
funded with cash, and cash reserves to provide for the proper
conduct of the business. The common unit distribution and the
related general partner distribution was paid on February 14,
2025.
INVESTOR CONFERENCE CALL AND WEBCAST
Cheniere Energy, Inc. (NYSE: LNG) will host a conference call to
discuss its financial and operating results for fourth quarter and
full year 2024 on Thursday, February 20, 2025, at 11 a.m. Eastern
time / 10 a.m. Central time. A listen-only webcast of the call and
an accompanying slide presentation may be accessed through our
website at www.cheniere.com. Following the call, an archived
recording will be made available on our website. The call and
accompanying slide presentation will include financial and
operating results or other information regarding Cheniere
Partners.
1 Non-GAAP financial measure. See
“Reconciliation of Non-GAAP Measures” for further details.
About Cheniere Partners
Cheniere Partners owns the Sabine Pass LNG terminal located in
Cameron Parish, Louisiana, which has natural gas liquefaction
facilities consisting of six liquefaction Trains with a total
production capacity of approximately 30 mtpa of LNG. The Sabine
Pass LNG terminal also has operational regasification facilities
that include five LNG storage tanks, vaporizers, and three marine
berths. Cheniere Partners also owns the Creole Trail Pipeline,
which interconnects the Sabine Pass LNG terminal with a number of
large interstate and intrastate pipelines.
For additional information, please refer to the Cheniere
Partners website at www.cheniere.com and Annual Report on Form 10-K
for the year ended December 31, 2024, filed with the Securities and
Exchange Commission.
Use of Non-GAAP Financial Measures
In addition to disclosing financial results in accordance with
U.S. GAAP, the accompanying news release contains a non-GAAP
financial measure. Adjusted EBITDA is a non-GAAP financial measure
that is used to facilitate comparisons of operating performance
across periods. This non-GAAP measure should be viewed as a
supplement to and not a substitute for our U.S. GAAP measures of
performance and the financial results calculated in accordance with
U.S. GAAP, and the reconciliation from these results should be
carefully evaluated.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements.” All statements, other than statements
of historical or present facts or conditions, included herein are
“forward-looking statements.” Included among “forward-looking
statements” are, among other things, (i) statements regarding
Cheniere Partners’ financial and operational guidance, business
strategy, plans and objectives, including the development,
construction and operation of liquefaction facilities, (ii)
statements regarding Cheniere Partners’ anticipated quarterly
distributions and ability to make quarterly distributions at the
base amount or any amount, (iii) statements regarding regulatory
authorization and approval expectations, (iv) statements expressing
beliefs and expectations regarding the development of Cheniere
Partners’ LNG terminal and liquefaction business, (v) statements
regarding the business operations and prospects of third-parties,
(vi) statements regarding potential financing arrangements, (vii)
statements regarding future discussions and entry into contracts,
and (viii) statements relating to our goals, commitments and
strategies in relation to environmental matters. Although Cheniere
Partners believes that the expectations reflected in these
forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. Cheniere Partners’ actual results could
differ materially from those anticipated in these forward-looking
statements as a result of a variety of factors, including those
discussed in Cheniere Partners’ periodic reports that are filed
with and available from the Securities and Exchange Commission. You
should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
Other than as required under the securities laws, Cheniere Partners
does not assume a duty to update these forward-looking
statements.
(Financial Tables Follow)
Cheniere Energy Partners,
L.P.
Consolidated Statements of
Operations
(in millions, except per unit
data)(1)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Revenues
LNG revenues
$
1,897
$
1,906
$
6,550
$
6,991
LNG revenues—affiliate
513
730
1,954
2,475
Regasification revenues
33
34
135
135
Other revenues
17
16
65
63
Total revenues
2,460
2,686
8,704
9,664
Operating costs and expenses
Cost of sales (excluding items shown
separately below)
1,172
1,123
3,570
2,721
Cost of sales—affiliate
—
2
4
22
Operating and maintenance expense
214
199
824
879
Operating and maintenance
expense—affiliate
49
46
172
166
Operating and maintenance expense—related
party
14
18
58
62
General and administrative expense
2
2
10
10
General and administrative
expense—affiliate
22
23
90
89
Depreciation and amortization expense
171
172
680
672
Other operating costs and expenses
4
—
14
6
Other operating costs and
expenses—affiliate
—
—
2
1
Total operating costs and expenses
1,648
1,585
5,424
4,628
Income from operations
812
1,101
3,280
5,036
Other income (expense)
Interest expense, net of capitalized
interest
(197
)
(203
)
(800
)
(823
)
Loss on modification or extinguishment of
debt
—
—
(3
)
(6
)
Interest and dividend income
8
8
33
46
Other income, net
—
—
—
1
Total other expense
(189
)
(195
)
(770
)
(782
)
Net income
$
623
$
906
$
2,510
$
4,254
Basic and diluted net income per common
unit(1)
$
1.05
$
1.42
$
4.25
$
6.95
Weighted average basic and diluted number
of common units outstanding
484.0
484.0
484.0
484.0
_____________
(1)
Please refer to the Cheniere Energy Partners, L.P. Annual Report
on Form 10-K for the year ended December 31, 2024, filed with the
Securities and Exchange Commission.
Cheniere Energy Partners,
L.P.
Consolidated Balance
Sheets
(in millions, except unit
data) (1)
December 31,
2024
2023
ASSETS
Current assets
Cash and cash equivalents
$
270
$
575
Restricted cash and cash equivalents
109
56
Trade and other receivables, net of
current expected credit losses
380
373
Trade and other receivables—affiliate
164
278
Trade receivables, net of current expected
credit losses—related party
1
—
Advances to affiliates
101
84
Inventory
151
142
Current derivative assets
84
30
Other current assets, net
65
43
Total current assets
1,325
1,581
Property, plant and equipment, net of
accumulated depreciation
15,760
16,212
Operating lease assets
79
81
Derivative assets
98
40
Other non-current assets, net
191
188
Total assets
$
17,453
$
18,102
LIABILITIES AND PARTNERS’
DEFICIT
Current liabilities
Accounts payable
$
62
$
69
Accrued liabilities
838
806
Accrued liabilities—related party
5
5
Current debt, net of unamortized discount
and debt issuance costs
351
300
Due to affiliates
63
55
Deferred revenue
120
114
Deferred revenue—affiliate
3
3
Current derivative liabilities
250
196
Other current liabilities
20
18
Total current liabilities
1,712
1,566
Long-term debt, net of unamortized
discount and debt issuance costs
14,761
15,606
Derivative liabilities
1,213
1,531
Other non-current liabilities
252
160
Other non-current
liabilities—affiliate
24
23
Total liabilities
17,962
18,886
Commitments and contingencies
Partners’ deficit
Common unitholders’ interest (484.0
million units issued and outstanding at both December 31, 2024 and
2023)
1,821
1,038
General partner’s interest (2% interest
with 9.9 million units issued and outstanding at both December 31,
2024 and 2023)
(2,330
)
(1,822
)
Total partners’ deficit
(509
)
(784
)
Total liabilities and partners’
deficit
$
17,453
$
18,102
_____________
(1)
Please refer to the Cheniere Energy Partners, L.P. Annual Report
on Form 10-K for the year ended December 31, 2024, filed with the
Securities and Exchange Commission.
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
Adjusted EBITDA
The following table reconciles our Adjusted EBITDA to U.S. GAAP
results for the three and twelve months ended December 31, 2024 and
2023 (in millions):
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Net income
$
623
$
906
$
2,510
$
4,254
Interest expense, net of capitalized
interest
197
203
800
823
Loss on modification or extinguishment of
debt
—
—
3
6
Interest and dividend income
(8
)
(8
)
(33
)
(46
)
Other income, net
—
—
—
(1
)
Income from operations
$
812
$
1,101
$
3,280
$
5,036
Adjustments to reconcile income from
operations to Adjusted EBITDA:
Depreciation and amortization expense
171
172
680
672
Gain from changes in fair value of
commodity derivatives, net (1)
(95
)
(223
)
(388
)
(2,084
)
Other
2
—
2
2
Adjusted EBITDA
$
890
$
1,050
$
3,574
$
3,626
_____________
(1)
Change in fair value of commodity
derivatives prior to contractual delivery or termination
Adjusted EBITDA is commonly used as a supplemental financial
measure by our management and external users of our Consolidated
Financial Statements to assess the financial performance of our
assets without regard to financing methods, capital structures, or
historical cost basis. Adjusted EBITDA is not intended to represent
cash flows from operations or net income as defined by U.S. GAAP
and is not necessarily comparable to similarly titled measures
reported by other companies.
We believe Adjusted EBITDA provides relevant and useful
information to management, investors and other users of our
financial information in evaluating the effectiveness of our
operating performance in a manner that is consistent with
management’s evaluation of financial and operating performance.
Adjusted EBITDA is calculated by taking net income before
interest expense, net of capitalized interest, depreciation and
amortization, and adjusting for the effects of certain non-cash
items, other non-operating income or expense items and other items
not otherwise predictive or indicative of ongoing operating
performance, including the effects of modification or
extinguishment of debt, impairment expense, gain or loss on
disposal of assets, and changes in the fair value of our commodity
derivatives prior to contractual delivery or termination. The
change in fair value of commodity derivatives is considered in
determining Adjusted EBITDA given that the timing of recognizing
gains and losses on these derivative contracts differs from the
recognition of the related item economically hedged. We believe the
exclusion of these items enables investors and other users of our
financial information to assess our sequential and year-over-year
performance and operating trends on a more comparable basis and is
consistent with management’s own evaluation of performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219650380/en/
Cheniere Partners Investors Randy
Bhatia, 713-375-5479 Frances Smith, 713-375-5753
Media Relations Eben
Burnham-Snyder, 713-375-5764 Bernardo Fallas, 713-375-5593
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