Cheniere Energy Partners: Sell Rating Due to Underperformance and Cautious Future Prospects

Wells Fargo analyst Michael Blum has maintained their bearish stance on CQP stock, giving a Sell rating yesterday.

Michael Blum has given his Sell rating due to a combination of factors impacting Cheniere Energy Partners. The company’s Q4 results fell short of expectations, primarily due to lower volumes and margins, resulting in an adjusted EBITDA that was below both consensus and internal estimates. This underperformance reflects challenges in export volumes, which were slightly less than anticipated.
Additionally, while the 2025 distribution guidance was in line with market expectations, it was only marginally above Blum’s estimates, which assumed a significant reduction in variable distribution to support a potential expansion project. Furthermore, despite a slight beat in Q3 distribution over estimates, the year-over-year decline and significant debt repayments paint a cautious picture for future capital allocation and growth prospects.

Blum covers the Energy sector, focusing on stocks such as Kinder Morgan, Cheniere Energy Partners, and Energy Transfer. According to TipRanks, Blum has an average return of 10.5% and a 64.00% success rate on recommended stocks.

In another report released yesterday, Stifel Nicolaus also downgraded the stock to a Sell with a $51.00 price target.