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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:56Neutral
Price Target:
$58.00
â–²(1.86%Upside)
The overall stock score of 56 reflects strong cash flow and profitability, offset by high leverage and negative equity. The technical indicators show a bearish trend, limiting upside potential. Valuation is reasonable with a good dividend yield, providing some support to the stock.
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. (CQP) is a leading energy company primarily engaged in the liquefied natural gas (LNG) sector. The company owns and operates the Sabine Pass LNG terminal in Louisiana, which is one of the largest LNG production facilities in the world. Cheniere Energy Partners focuses on the development, construction, and operation of LNG terminals and related infrastructure, facilitating the export of LNG globally.
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 demonstrates strong cash flow generation and high profitability margins. However, the company is highly leveraged with negative equity, posing significant financial risks. Revenue volatility also raises concerns about future profitability.
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
4.49B3.96B5.75B4.00B3.13B2.64B
Net Income Common Stockholders
3.00B2.51B4.25B1.58B794.00M815.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
333.00M270.00M575.00M904.00M876.00M1.21B
Total Assets
17.50B17.45B18.10B19.63B19.36B19.14B
Total Debt
15.84B15.11B15.99B16.31B17.27B17.68B
Net Debt
15.51B14.84B15.42B15.40B16.40B16.47B
Total Liabilities
18.32B17.96B18.89B21.76B18.64B18.61B
Stockholders Equity
851.00M-509.00M845.00M-2.13B718.00M539.00M
Cash FlowFree Cash Flow
2.76B2.81B2.89B3.70B1.64B779.00M
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
Negative
Last Price56.94
Price Trends
50DMA
58.66
Negative
100DMA
60.30
Negative
200DMA
55.15
Positive
Market Momentum
MACD
-0.33
Positive
RSI
46.10
Neutral
STOCH
20.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CQP, the sentiment is Negative. The current price of 56.94 is below the 20-day moving average (MA) of 58.45, below the 50-day MA of 58.66, and above the 200-day MA of 55.15, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CQP.

Cheniere Energy Partners Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$51.99B11.7632.54%7.51%5.53%11.29%
80
Outperform
$35.82B30.3446.37%2.42%6.05%11.64%
WEWES
78
Outperform
$14.48B11.3539.79%9.59%11.48%-5.67%
LNLNG
77
Outperform
$51.04B16.8163.13%0.87%-2.16%-33.56%
PAPAA
68
Neutral
$12.43B19.019.43%8.60%3.40%-20.48%
58
Neutral
$7.37B3.39-4.49%10.01%0.82%-49.15%
CQCQP
56
Neutral
$27.56B13.62124.29%5.76%3.94%9.35%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CQP
Cheniere Energy Partners
57.49
11.40
24.73%
LNG
Cheniere Energy
235.00
78.01
49.69%
PAA
Plains All American
17.87
2.02
12.74%
TRGP
Targa Resources
169.78
50.64
42.50%
WES
Western Midstream Partners
38.61
2.67
7.43%
MPLX
MPLX
51.65
13.60
35.74%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.