Cheniere Energy Partners (CQP) AI Stock Analysis

• Market Cap: $28.48B
• Dividend Yield: 5.54%
• Average Volume (3M): 145.70K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.46
• Revenue Growth: 3.94%
• EPS Growth: 9.35%
• Country: US
• Employees: 1,530
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Midstream
• EPS (TTM): 1.08
• Shares Outstanding: 484,048,130
• 10 Day Avg. Volume: 130,615
• 30 Day Avg. Volume: 145,703
• PEG Ratio: -0.76
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $56.86
• Price Target Upside: -3.37% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: $61.00 ▲(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 Business Overview & Revenue Model

Company Description

Cheniere 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 Money

Cheniere 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.04B	8.70B	9.66B	17.21B	9.43B	6.17B
	Gross Profit
4.99B	4.45B	6.25B	4.47B	3.49B	3.03B
	EBIT
3.78B	3.28B	5.04B	3.38B	2.56B	1.59B
	EBITDA
4.49B	3.99B	5.75B	4.00B	3.13B	2.64B
	Net Income Common Stockholders
3.00B	2.51B	4.25B	1.58B	794.00M	815.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
118.41M	379.00M	575.00M	904.00M	876.00M	1.21B
	Total Assets
1.88B	17.45B	18.10B	19.63B	19.36B	19.14B
	Total Debt
2.18B	351.00M	15.99B	16.31B	17.27B	17.68B
	Net Debt
2.07B	-28.00M	15.42B	15.40B	16.40B	16.47B
	Total Liabilities
2.37B	17.96B	18.89B	21.76B	18.64B	18.61B
	Stockholders Equity
-408.02M	-509.00M	845.00M	-2.13B	718.00M	539.00M
Cash Flow		Free Cash Flow
2.76B	2.97B	2.89B	3.70B	1.64B	779.00M
	Operating Cash Flow
2.93B	2.97B	3.11B	4.15B	2.29B	1.75B
	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 Price: 58.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPLX	81 Outperform	$52.39B	11.85	32.54%	7.25%	5.53%	11.29%
WES	78 Outperform	$14.56B	11.42	39.79%	11.55%	11.48%	-5.67%
LNG	77 Outperform	$53.91B	17.76	63.13%	0.80%	-2.16%	-33.56%
TRGP	76 Outperform	$36.25B	30.70	46.37%	1.94%	6.05%	11.64%
PAA	64 Neutral	$12.27B	18.77	9.43%	8.00%	3.40%	-20.48%
CQP	59 Neutral	$28.48B	14.07	124.29%	5.54%	3.94%	9.35%
Sector *	57 Neutral	$7.23B	3.16	-4.49%	5.63%	0.82%	-49.15%

Cheniere Energy Partners Corporate Events

Cheniere Energy Partners Appoints Scott Peak to Board

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.