Cheniere Energy Partners Q3 Revenue Dips Slightly

TL;DR

Cheniere Energy Partners Q3 revenue down slightly to $1.48B, net income up to $526M. Assets at $6.09B.

AI Summary

Cheniere Energy Partners, L.P. reported revenues of $1.479 billion for the third quarter of 2024, a slight decrease from $1.564 billion in the same period last year. Net income attributable to Cheniere Energy Partners, L.P. was $526 million, down from $515 million in Q3 2023. The company's total assets stood at $6.094 billion as of September 30, 2024, compared to $6.830 billion at the end of 2023.

Why It Matters

This filing provides insight into Cheniere Energy Partners' financial performance, indicating a minor revenue decrease but a slight increase in net income, which could influence investor sentiment and future strategic decisions.

Risk Assessment

Risk Level: medium — The company operates in the volatile energy sector, subject to commodity price fluctuations and regulatory changes.

Key Numbers

• $1.479B — Q3 2024 Revenue (Represents current period top-line performance.)
• $526M — Q3 2024 Net Income (Indicates profitability for the quarter.)
• $6.094B — Total Assets (9/30/2024) (Shows the company's total resources at the end of the period.)
• $6.830B — Total Assets (12/31/2023) (Provides a comparison point for asset growth or decline.)

Key Players & Entities

• Cheniere Energy Partners, L.P. (company) — Filer and reporting entity
• 845 Texas Avenue, Suite 1250, Houston, TX 77002 (location) — Business and mailing address
• $1.479 billion (dollar_amount) — Q3 2024 revenue
• $1.564 billion (dollar_amount) — Q3 2023 revenue
• $526 million (dollar_amount) — Q3 2024 net income
• $515 million (dollar_amount) — Q3 2023 net income
• $6.094 billion (dollar_amount) — Total assets as of September 30, 2024
• $6.830 billion (dollar_amount) — Total assets as of December 31, 2023

FAQ

Filing Documents

• cqp-20240930.htm (10-Q) — 1354KB
• exhibit221cqp2024q3form10q.htm (EX-22.1) — 9KB
• exhibit311cqp2024q3form10q.htm (EX-31.1) — 9KB
• exhibit312cqp2024q3form10q.htm (EX-31.2) — 9KB
• exhibit321cqp2024q3form10q.htm (EX-32.1) — 5KB
• exhibit322cqp2024q3form10q.htm (EX-32.2) — 5KB
• cqp-20240930_g1.jpg (GRAPHIC) — 164KB
• 0001383650-24-000058.txt ( ) — 7452KB
• cqp-20240930.xsd (EX-101.SCH) — 51KB
• cqp-20240930_cal.xml (EX-101.CAL) — 47KB
• cqp-20240930_def.xml (EX-101.DEF) — 285KB
• cqp-20240930_lab.xml (EX-101.LAB) — 497KB
• cqp-20240930_pre.xml (EX-101.PRE) — 381KB
• cqp-20240930_htm.xml (XML) — 1305KB

Financial Information

Part I. Financial Information Item 1. Consolidated Financial Statements 3 Consolidated Statements of Operations 3 Consolidated Balance Sheets 4 Consolidated Statements of Partners' Deficit 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Note 1—Nature of Operations and Basis of Presentation 7 Note 2—Unitholders' Equity 7 Note 3—Trade and Other Receivables, Net of Current Expected Credit Losses 8 Note 4—Inventory 8 Note 5—Property, Plant and Equipment, Net of Accumulated Depreciation 9 Note 6—Derivative Instruments 9 Note 7—Accrued Liabilities 12 Note 8—Debt 13 Note 9—Revenues 15 Note 10—Related Party Transactions 17 Note 11—Net Income per Common Unit 17 Note 12—Customer Concentration 19 Note 13—Supplemental Cash Flow Information 19 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 5. Other Information 31 Item 6. Exhibits 31

Signatures

Signatures 32 i Table of Contents DEFINITIONS As used in this quarterly report, the terms listed below have the following meanings: Common Industry and Other Terms ASU Accounting Standards Update Bcf/d billion cubic feet per day Bcfe billion cubic feet equivalent DOE U.S. Department of Energy EPC engineering, procurement and construction ESG environmental, social and governance FASB Financial Accounting Standards Board FERC Federal Energy Regulatory Commission FID final investment decision FTA countries countries with which the United States has a free trade agreement providing for national treatment for trade in natural gas GAAP generally accepted accounting principles in the United States Henry Hub the final settlement price (in U.S. dollars per MMBtu) for the New York Mercantile Exchange's Henry Hub natural gas futures contract for the month in which a relevant cargo's delivery window is scheduled to begin IPM agreements integrated production marketing agreements in which the gas producer sells to us gas on a global LNG or natural gas index price, less a fixed liquefaction fee, shipping and other costs LNG liquefied natural gas, a product of natural gas that, through a refrigeration process, has been cooled to a liquid state, which occupies a volume that is approximately 1/600th of its gaseous state MMBtu million British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of one pound of water by one degree Fahrenheit mtpa million tonnes per annum non-FTA countries countries with which the United States does not have a free trade agreement providing for national treatment for trade in natural gas and with which trade is permitted SEC U.S. Securities and Exchange Commission SOFR Secured Overnight Financing Rate SPA LNG sale and purchase agreement TBtu trillion British thermal units; one British thermal unit measures the amount of energy required to raise the temperature of on

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS CHENIERE ENERGY PARTNERS, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per unit data) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues LNG revenues $ 1,479 $ 1,564 $ 4,653 $ 5,085 LNG revenues—affiliate 526 515 1,441 1,745 Regasification revenues 34 34 102 101 Other revenues 16 15 48 47 Total revenues 2,055 2,128 6,244 6,978 Operating costs and expenses Cost of sales (excluding items shown separately below) 773 682 2,398 1,598 Cost of sales—affiliate — 2 4 20 Operating and maintenance expense 200 211 610 680 Operating and maintenance expense—affiliate 41 38 123 120 Operating and maintenance expense—related party 15 14 44 44 General and administrative expense 2 2 8 8 General and administrative expense—affiliate 23 20 68 66 Depreciation and amortization expense 171 166 509 500 Other operating costs and expenses 2 4 10 6 Other operating costs and expenses—affiliate 1 1 2 1 Total operating costs and expenses 1,228 1,140 3,776 3,043 Income from operations 827 988 2,468 3,935 Other income (expense) Interest expense, net of capitalized interest ( 199 ) ( 205 ) ( 603 ) ( 620 ) Loss on modification or extinguishment of debt — ( 4 ) ( 3 ) ( 6 ) Interest and dividend income 7 12 25 39 Total other expense ( 192 ) ( 197 ) ( 581 ) ( 587 ) Net income $ 635 $ 791 $ 1,887 $ 3,348 Basic and diluted net income per common unit (1) $ 1.08 $ 1.19 $ 3.21 $ 5.53 Weighted average basic and diluted number of common units outstanding 484.0 484.0 484.0 484.0 (1) In computing basic and diluted net income per common unit, net income is reduced by the amount of undistributed net income allocated to participating securities other than common units, as required under the two-class method. See Note 11—Net Income per Common Unit . The accompanying notes are an integral part of these consolidated financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) NOTE 1— NATURE OF OPERATIONS AND BASIS OF PRESENTATION We own a natural gas liquefaction and export facility located in Cameron Parish, Louisiana at Sabine Pass (the "Sabine Pass LNG Terminal" ) which has six operational Trains, for a total production capacity of approximately 30 mtpa of LNG (the "Liquefaction Project" ). The Sabine Pass LNG Terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers and three marine berths. Additionally, the Sabine Pass LNG Terminal includes a 94 -mile natural gas supply pipeline that interconnects the Sabine Pass LNG Terminal with several large interstate and intrastate pipelines (the "Creole Trail Pipeline" ). We are pursuing an expansion project to provide additional liquefaction capacity, and we have commenced commercialization to support the additional liquefaction capacity associated with this potential expansion project. The development of this site or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before we make a positive FID. We do not have employees and thus we and our subsidiaries have various services agreements with affiliates of Cheniere in the ordinary course of business, including services required to construct, operate and maintain the Liquefaction Project, and administrative services. See Note 10—Related Party Transactions for additional details of the activity under these services agreements during the three and nine months ended September 30, 2024 and 2023. As of September 30, 2024, Cheniere owned 48.6 % of our limited partner interest in the form of 239.9 million of our common units. Cheniere also owns 100 % of our general partner interest and our incentive distribution rights ( "IDRs" ). Basis of Presentation The accompanying unaudited Consolidated Financial Statem

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) The general partner interest is entitled to at least 2 % of all distributions made by us. In addition, the general partner holds IDRs, which allow the general partner to receive a higher percentage of quarterly distributions of available cash from operating surplus as additional target levels are met, but may transfer these rights separately from its general partner interest. The higher percentages range from 15 % to 50 %, inclusive of the general partner interest. Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash, which, as defined in our partnership agreement, is generally our cash on hand at the end of a quarter less the amount of any reserves established by our general partner. All distributions we have paid to date have been made from accumulated operating surplus as defined in the partnership agreement. As of September 30, 2024, our total securities beneficially owned in the form of common units were held 48.6 % by Cheniere, 41.5 % by CQP Target Holdco L.L.C. ( "CQP Target Holdco" ) and other affiliates of Blackstone Inc. ( "Blackstone" ) and Brookfield Asset Management Inc. ( "Brookfield" ) and 7.9 % by the public. All of our 2 % general partner interest was held by Cheniere. CQP Target Holdco's equity interests are 50.0 % owned by BIP Chinook Holdco L.L.C., an affiliate of Blackstone, and 50.0 % owned by BIF IV Cypress Aggregator (Delaware) LLC, an affiliate of Brookfield. The ownership of CQP Target Holdco, Blackstone and Brookfield are based on their most recent filings with the SEC. NOTE 3— TRADE AND OTHER RECEIVABLES, NET OF CURRENT EXPECTED CREDIT LOSSES Trade and other receivables, net of current expected credit losses, consisted of the following (in millions): September 30, December 31, 2024 2023 Trade receivables $ 233 $ 364 Other receivables 6 9 Total trade and other receivables, net of current

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) NOTE 5— PROPERTY, PLANT AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION Property, plant and equipment, net of accumulated depreciation consisted of the following (in millions): September 30, December 31, 2024 2023 LNG terminal Terminal and interconnecting pipeline facilities $ 20,250 $ 20,176 Construction-in-process 211 189 Accumulated depreciation ( 4,669 ) ( 4,173 ) Total LNG terminal, net of accumulated depreciation 15,792 16,192 Fixed assets Fixed assets 32 29 Accumulated depreciation ( 27 ) ( 26 ) Total fixed assets, net of accumulated depreciation 5 3 Assets under finance leases Tug vessels 74 23 Accumulated depreciation ( 3 ) ( 6 ) Total assets under finance leases, net of accumulated depreciation 71 17 Property, plant and equipment, net of accumulated depreciation $ 15,868 $ 16,212 Depreciation expense was $ 169 million and $ 166 million during the three months ended September 30, 2024 and 2023, respectively, and $ 505 million and $ 497 million during the nine months ended September 30, 2024 and 2023, respectively. NOTE 6— DERIVATIVE INSTRUMENTS We have commodity derivatives consisting of natural gas supply contracts, including those under our IPM agreements, for the operation of the Liquefaction Project and expansion project, as well as the associated economic hedges (collectively, the "Liquefaction Supply Derivatives" ). We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow, fair value or net investment hedging instruments, and changes in fair value are recorded within our Consolidated Statements of Operations to the extent not utilized for the commissioning process, in which case such changes are capitalized. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recur

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) results may differ from these estimates and judgments. We derive our volatility assumptions based on observed historical settled global LNG market pricing or accepted proxies for global LNG market pricing as well as settled domestic natural gas pricing. Such volatility assumptions also contemplate, as of the balance sheet date, observable forward curve data of such indices, as well as evolving available industry data and independent studies. In developing our volatility assumptions, we acknowledge that the global LNG industry is inherently influenced by events such as unplanned supply constraints, geopolitical incidents, unusual climate events including drought and uncommonly mild, by historical standards, winters and summers, and real or threatened disruptive operational impacts to global energy infrastructure. Our current estimate of volatility includes the impact of otherwise rare events unless we believe market participants would exclude such events on account of their assertion that those events were specific to our company and deemed within our control. Our fair value estimates incorporate market participant-based assumptions pertaining to certain contractual uncertainties, including those related to the availability of market information for delivery points, as well as the timing of satisfaction of certain events or development of infrastructure to support natural gas gathering and transport. We may recognize changes in fair value through earnings that could significantly impact our results of operations if and when such uncertainties are resolved. The Level 3 fair value measurements of our natural gas positions within the Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas and international LNG prices. The following table includes quantitative information for the unobservable inputs for the Level 3 Liquefaction Supply Derivatives as

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—CONTINUED (unaudited) (3) Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period. (4) Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period which continue to exist at the end of the period. (5) Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period. (6) Transferred out of Level 3 as a result of observable market for the underlying natural gas purchase agreements. Liquefaction Supply Derivatives We hold Liquefaction Supply Derivatives which are primarily indexed to the natural gas market and international LNG indices. As of September 30, 2024, the remaining fixed terms of the Liquefaction Supply Derivatives ranged up to approximately 15 years, some of which commence or accelerate upon the satisfaction of certain events or development of infrastructure to support natural gas gathering and transport. The forward notional amount for the Liquefaction Supply Derivatives was approximately 5,744 TBtu and 6,245 TBtu

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