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Cheniere Energy Partners LP (CQP)
NYSE:CQP
US Market

Cheniere Energy Partners (CQP) AI Stock Analysis

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CQ

Cheniere Energy Partners

(NYSE:CQP)

Rating:59Neutral
Price Target:
$61.00
â–²(3.67%Upside)
Cheniere Energy Partners' overall stock score reflects strong cash flow management and a fair valuation. However, significant financial risks from high leverage and negative equity, combined with revenue volatility, warrant caution. Technical indicators show mixed signals, with a stable long-term trend but short-term weakness.
Positive Factors
Debt Management
The partnership repaid $350MM of its 5.625% senior secured notes due 2025 with cash on hand.
Distribution Guidance
Management provided 2025 distribution per unit guidance, in line with consensus and above our estimate.
Distribution Performance
CQP’s Q3 distribution was $0.82/unit, slightly above our estimate of $0.81/unit.
Negative Factors
Earnings Performance
Q4 results missed on lower volumes/margin.
EBITDA Shortfall
Adjusted EBITDA of $890MM was below consensus of $949MM and our estimate of $936MM.
Valuation Concerns
Given what we see as limited upside even including foreseeable growth, we don't think the units are priced correctly.

Cheniere Energy Partners (CQP) vs. SPDR S&P 500 ETF (SPY)

Cheniere Energy Partners Business Overview & Revenue Model

Company DescriptionCheniere Energy Partners, L.P., through its subsidiaries, owns and operates natural gas liquefaction and export facility at the Sabine Pass liquefied natural gas (LNG) terminal located in Cameron Parish, Louisiana. The company's regasification facilities include five LNG storage tanks with an aggregate capacity of approximately 17 billion cubic feet equivalent; two marine berths that accommodate vessels with capacity of up to 266,000 cubic meters; and vaporizers with regasification capacity of approximately 4 billion cubic feet per day. It also owns a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with various interstate pipelines. Cheniere Energy Partners GP, LLC serves as the general partner of the company. The company was founded in 2003 and is headquartered in Houston, Texas.
How the Company Makes MoneyCheniere Energy Partners generates revenue primarily through the sale of liquefied natural gas under long-term contracts with a diverse range of customers, including energy companies and utilities across the globe. The company charges fees for liquefaction services, where customers pay for the conversion of natural gas into LNG. Additionally, Cheniere benefits from capacity reservation fees and take-or-pay contracts, ensuring stable cash flows by obligating customers to pay for reserved capacity regardless of whether they use it. Key partnerships with major energy firms and strategic location advantages at the Sabine Pass terminal further enhance the company's competitive position and revenue generation potential.

Cheniere Energy Partners Financial Statement Overview

Summary
Cheniere Energy Partners exhibits strengths in generating strong cash flows and maintaining high profitability margins. However, the high leverage and negative equity indicate financial risks that could impact future operations. Despite strong cash management, revenue volatility and balance sheet concerns warrant caution.
Income Statement
65
Positive
Cheniere Energy Partners shows strong gross profit margins, consistently above 30%, indicating efficient cost management. However, revenue has been volatile, with a notable decline from 2022 to 2023. Net profit margin improved significantly in 2024, but the revenue drop poses a risk to sustained profitability.
Balance Sheet
40
Negative
The company's balance sheet reflects a highly leveraged position, with a negative equity in 2024, signaling financial instability. Although total debt has decreased, the equity ratio remains negative, indicating potential financial risk if liabilities are not managed carefully.
Cash Flow
70
Positive
Cheniere Energy Partners demonstrates strong free cash flow generation, with consistent growth over the years. The operating cash flow to net income ratio is healthy, highlighting effective cash generation from operations. However, the use of cash for financing activities indicates reliance on debt or equity to fund operations, which could be a concern.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.04B8.70B9.66B17.21B9.43B6.17B
Gross Profit
4.99B4.45B6.25B4.47B3.49B3.03B
EBIT
3.78B3.28B5.04B3.38B2.56B1.59B
EBITDA
4.49B3.99B5.75B4.00B3.13B2.64B
Net Income Common Stockholders
3.00B2.51B4.25B1.58B794.00M815.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
118.41M379.00M575.00M904.00M876.00M1.21B
Total Assets
1.88B17.45B18.10B19.63B19.36B19.14B
Total Debt
2.18B351.00M15.99B16.31B17.27B17.68B
Net Debt
2.07B-28.00M15.42B15.40B16.40B16.47B
Total Liabilities
2.37B17.96B18.89B21.76B18.64B18.61B
Stockholders Equity
-408.02M-509.00M845.00M-2.13B718.00M539.00M
Cash FlowFree Cash Flow
2.76B2.97B2.89B3.70B1.64B779.00M
Operating Cash Flow
2.93B2.97B3.11B4.15B2.29B1.75B
Investing Cash Flow
-170.00M-162.00M-227.00M-451.00M-648.00M-972.00M
Financing Cash Flow
-3.36B-3.06B-3.25B-3.68B-1.98B-1.43B

Cheniere Energy Partners Technical Analysis

Technical Analysis Sentiment
Positive
Last Price58.84
Price Trends
50DMA
59.05
Negative
100DMA
60.34
Negative
200DMA
54.99
Positive
Market Momentum
MACD
-0.08
Negative
RSI
50.92
Neutral
STOCH
69.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CQP, the sentiment is Positive. The current price of 58.84 is above the 20-day moving average (MA) of 58.55, below the 50-day MA of 59.05, and above the 200-day MA of 54.99, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 50.92 is Neutral, neither overbought nor oversold. The STOCH value of 69.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CQP.

Cheniere Energy Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$52.39B11.8532.54%7.25%5.53%11.29%
WEWES
78
Outperform
$14.56B11.4239.79%11.55%11.48%-5.67%
LNLNG
77
Outperform
$53.91B17.7663.13%0.80%-2.16%-33.56%
76
Outperform
$36.25B30.7046.37%1.94%6.05%11.64%
PAPAA
64
Neutral
$12.27B18.779.43%8.00%3.40%-20.48%
CQCQP
59
Neutral
$28.48B14.07124.29%5.54%3.94%9.35%
57
Neutral
$7.23B3.16-4.49%5.63%0.82%-49.15%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CQP
Cheniere Energy Partners
58.84
12.66
27.41%
LNG
Cheniere Energy
243.09
86.58
55.32%
PAA
Plains All American
17.44
1.16
7.13%
TRGP
Targa Resources
167.10
49.50
42.09%
WES
Western Midstream Partners
38.18
1.40
3.81%
MPLX
MPLX
51.32
13.22
34.70%

Cheniere Energy Partners Corporate Events

Executive/Board Changes
Cheniere Energy Partners Appoints Scott Peak to Board
Neutral
Apr 2, 2025

Cheniere Energy Partners announced the appointment of Scott Peak to its Board of Directors and Executive Committee, effective April 1, 2025. This move follows the rights of CQP Holdco LP to appoint directors and coincides with the resignation of Matthew Runkle from the Board, Executive Committee, and CMI SPA Committee, potentially impacting the company’s governance and strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.