Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) today announced its financial results for third quarter 2023.

HIGHLIGHTS

  • During the three and nine months ended September 30, 2023, Cheniere Partners generated revenues of $2.1 billion and $7.0 billion, net income of $791 million and $3.3 billion, and Adjusted EBITDA1 of $793 million and $2.6 billion, respectively.
  • With respect to the third quarter of 2023, Cheniere Partners declared a cash distribution of $1.03 per common unit to unitholders of record as of November 6, 2023, comprised of a base amount equal to $0.775 and a variable amount equal to $0.255. The common unit distribution and the related general partner distribution will be paid on November 14, 2023.
  • Reconfirming full year 2023 distribution guidance of $4.00 - $4.25 per common unit.

2023 FULL YEAR DISTRIBUTION GUIDANCE

 

2023

Distribution per Unit

$ 4.00

-

$ 4.25

SUMMARY AND REVIEW OF FINANCIAL RESULTS

(in millions, except LNG data)

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

Revenues

$

2,128

 

$

4,976

 

 

(57

)%

 

$

6,978

 

$

12,485

 

 

(44

)%

Net income

$

791

 

$

(514

)

 

nm

 

$

3,348

 

$

(13

)

 

nm

Adjusted EBITDA1

$

793

 

$

1,471

 

 

(46

)%

 

$

2,576

 

$

3,480

 

 

(26

)%

LNG exported:

 

 

 

 

 

 

 

 

 

 

 

Number of cargoes

 

100

 

 

103

 

 

(3

)%

 

 

310

 

 

311

 

 

%

Volumes (TBtu)

 

359

 

 

366

 

 

(2

)%

 

 

1,117

 

 

1,124

 

 

(1

)%

LNG volumes loaded (TBtu)

 

362

 

 

363

 

 

%

 

 

1,118

 

 

1,123

 

 

%

Net income (loss) was approximately $791 million and $3.3 billion for the three and nine months ended September 30, 2023, respectively, as compared to approximately $(514) million and $(13) million in the corresponding 2022 periods. The favorable changes were primarily due to non-cash favorable changes in fair value of commodity derivatives (further described below).

Adjusted EBITDA1 decreased by approximately $678 million and $904 million during the three and nine months ended September 30, 2023, respectively, as compared to the corresponding 2022 periods. The decrease in Adjusted EBITDA was primarily due to lower regasification revenues driven by the early termination of one of our terminal use agreements in 2022, as well as decreased total margins per MMBtu of LNG delivered.

Substantially all derivative gains (losses) are attributable to the recognition at fair value of our long-term Integrated Production Marketing (“IPM”) agreement with Tourmaline Oil Marketing Corp. (“Tourmaline”), a natural gas supply contract with pricing indexed to the Platts Japan Korea Marker (“JKM”). Our IPM agreement is structured to provide stable margins on purchases of natural gas and sales of LNG over the life of the agreement and has a fixed fee component, similar to that of LNG sold under our long-term, fixed fee LNG sale and purchase agreement (“SPA”). However, the long-term duration and international price basis of our IPM agreement makes it particularly susceptible to fluctuations in fair market value from period to period. In addition, accounting requirements prescribe recognition of this long-term gas supply agreement at fair value each reporting period on a mark-to-market basis, but do not currently permit mark-to-market recognition of the associated sale of LNG, resulting in a mismatch of accounting recognition for the purchase of natural gas and sale of LNG. As a result of continued moderation of international gas price volatility and declines in international forward commodity curves during the three and nine months ended September 30, 2023, we recognized approximately $217 million and $1.5 billion, respectively of non-cash favorable changes in fair value attributable to the Tourmaline IPM agreement.

During the three and nine months ended September 30, 2023, we recognized in income 362 TBtu and 1,118 TBtu of LNG, respectively, loaded from the SPL Project, none of which was related to commissioning activities.

___________________________ 1 Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.

Capital Resources

As of September 30, 2023, our total available liquidity was approximately $2.3 billion. We had cash and cash equivalents of approximately $499 million. In addition, we had current restricted cash and cash equivalents of $35 million, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $716 million of available commitments under the Sabine Pass Liquefaction, LLC (“SPL”) Revolving Credit Facility.

Recent Key Financial Transactions and Updates

In July 2023, SPL redeemed $1.4 billion of SPL’s 5.75% Senior Secured Notes due 2024 (the “2024 SPL Senior Notes”) using the proceeds from Cheniere Partners’ issuance of $1.4 billion aggregate principal amount of 5.95% Senior Notes due 2033 in June 2023.

In September 2023, SPL redeemed $50 million in principal amount of the 2024 SPL Senior Notes with cash on hand.

SABINE PASS OVERVIEW

We own natural gas liquefaction facilities consisting of six liquefaction Trains, with a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL Project”).

As of October 26, 2023, approximately 2,270 cumulative LNG cargoes totaling approximately 155 million tonnes of LNG have been produced, loaded, and exported from the SPL Project.

SPL Expansion Project

We are developing an expansion adjacent to the SPL Project with a potential production capacity of up to 20 mtpa of LNG (the “SPL Expansion Project”). In May 2023, certain of our subsidiaries entered the pre-filing review process with the Federal Energy Regulatory Commission (“FERC”) under the National Environmental Policy Act, and in April 2023, executed a contract with Bechtel to provide the Front-End Engineering and Design for the SPL Expansion Project.

DISTRIBUTIONS TO UNITHOLDERS

In October 2023, we declared a cash distribution of $1.03 per common unit to unitholders of record as of November 6, 2023, comprised of a base amount equal to $0.775 ($3.10 annualized) and a variable amount equal to $0.255, which takes into consideration, among other things, amounts reserved for annual debt repayment and capital allocation goals, anticipated capital expenditures to be funded with cash, and cash reserves to provide for the proper conduct of the business. The common unit distribution and the related general partner distribution will be paid on November 14, 2023.

INVESTOR CONFERENCE CALL AND WEBCAST

Cheniere Energy, Inc. will host a conference call to discuss its financial and operating results for third quarter 2023 on Thursday, November 2, 2023, at 10 a.m. Eastern time / 9 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners.

About Cheniere Partners

Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities consisting of six liquefaction Trains with a total production capacity of approximately 30 mtpa of LNG. The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers, and three marine berths. Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate and intrastate pipelines.

For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. This non-GAAP measure should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP, and the reconciliation from these results should be carefully evaluated.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding Cheniere Partners’ anticipated quarterly distributions and ability to make quarterly distributions at the base amount or any amount, (iii) statements regarding regulatory authorization and approval expectations, (iv) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (v) statements regarding the business operations and prospects of third-parties, (vi) statements regarding potential financing arrangements, and (vii) statements regarding future discussions and entry into contracts. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners’ actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners’ periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.

(Financial Tables Follow)

Cheniere Energy Partners, L.P.

Consolidated Statements of Operations

(in millions, except per unit data)(1)

(unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenues

 

 

 

 

 

 

 

LNG revenues

$

1,564

 

 

$

3,130

 

 

$

5,085

 

 

$

8,577

 

LNG revenues—affiliate

 

515

 

 

 

1,376

 

 

 

1,745

 

 

 

3,268

 

LNG revenues—related party

 

 

 

 

 

 

 

 

 

 

4

 

Regasification revenues

 

34

 

 

 

455

 

 

 

101

 

 

 

591

 

Other revenues

 

15

 

 

 

15

 

 

 

47

 

 

 

45

 

Total revenues

 

2,128

 

 

 

4,976

 

 

 

6,978

 

 

 

12,485

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

Cost of sales (excluding items shown separately below)

 

682

 

 

 

4,739

 

 

 

1,598

 

 

 

10,445

 

Cost of sales—affiliate

 

2

 

 

 

104

 

 

 

20

 

 

 

166

 

Cost of sales—related party

 

 

 

 

 

 

 

 

 

 

1

 

Operating and maintenance expense

 

211

 

 

 

189

 

 

 

680

 

 

 

550

 

Operating and maintenance expense—affiliate

 

38

 

 

 

39

 

 

 

120

 

 

 

118

 

Operating and maintenance expense—related party

 

14

 

 

 

18

 

 

 

44

 

 

 

45

 

General and administrative expense

 

2

 

 

 

3

 

 

 

8

 

 

 

3

 

General and administrative expense—affiliate

 

20

 

 

 

23

 

 

 

66

 

 

 

70

 

Depreciation and amortization expense

 

166

 

 

 

160

 

 

 

500

 

 

 

469

 

Other

 

4

 

 

 

 

 

 

6

 

 

 

 

Other—affiliate

 

1

 

 

 

 

 

 

1

 

 

 

 

Total operating costs and expenses

 

1,140

 

 

 

5,275

 

 

 

3,043

 

 

 

11,867

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

988

 

 

 

(299

)

 

 

3,935

 

 

 

618

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

Interest expense, net of capitalized interest

 

(205

)

 

 

(222

)

 

 

(620

)

 

 

(641

)

Loss on modification or extinguishment of debt

 

(4

)

 

 

 

 

 

(6

)

 

 

 

Interest and dividend income

 

12

 

 

 

7

 

 

 

39

 

 

 

10

 

Total other expense

 

(197

)

 

 

(215

)

 

 

(587

)

 

 

(631

)

 

 

 

 

 

 

 

 

Net income (loss)

$

791

 

 

$

(514

)

 

$

3,348

 

 

$

(13

)

 

 

 

 

 

 

 

 

Basic and diluted net income (loss) per common unit(1)

$

1.19

 

 

$

(1.49

)

 

$

5.53

 

 

$

(1.36

)

 

 

 

 

 

 

 

 

Weighted average basic and diluted number of common units outstanding

 

484.0

 

 

 

484.0

 

 

 

484.0

 

 

 

484.0

 

______________________________

(1)  

Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the Securities and Exchange Commission.

Cheniere Energy Partners, L.P.

Consolidated Balance Sheets

(in millions, except unit data) (1)

 

 

September 30,

 

December 31,

 

 

2023

 

 

 

2022

 

ASSETS

(unaudited)

 

 

Current assets

 

 

 

Cash and cash equivalents

$

499

 

 

$

904

 

Restricted cash and cash equivalents

 

35

 

 

 

92

 

Trade and other receivables, net of current expected credit losses

 

287

 

 

 

627

 

Trade receivables—affiliate

 

167

 

 

 

551

 

Advances to affiliate

 

141

 

 

 

177

 

Inventory

 

131

 

 

 

160

 

Current derivative assets

 

34

 

 

 

24

 

Margin deposits

 

 

 

 

35

 

Other current assets, net

 

60

 

 

 

50

 

Total current assets

 

1,354

 

 

 

2,620

 

 

 

 

 

Property, plant and equipment, net of accumulated depreciation

 

16,341

 

 

 

16,725

 

Operating lease assets

 

83

 

 

 

89

 

Debt issuance costs, net of accumulated amortization

 

17

 

 

 

8

 

Derivative assets

 

111

 

 

 

28

 

Other non-current assets, net

 

166

 

 

 

163

 

Total assets

$

18,072

 

 

$

19,633

 

 

 

 

 

LIABILITIES AND PARTNERS’ DEFICIT

 

 

 

Current liabilities

 

 

 

Accounts payable

$

50

 

 

$

32

 

Accrued liabilities

 

641

 

 

 

1,378

 

Accrued liabilities—related party

 

5

 

 

 

6

 

Current debt, net of discount and debt issuance costs

 

349

 

 

 

 

Due to affiliates

 

42

 

 

 

74

 

Deferred revenue

 

151

 

 

 

144

 

Deferred revenue—affiliate

 

1

 

 

 

3

 

Current operating lease liabilities

 

11

 

 

 

10

 

Current derivative liabilities

 

294

 

 

 

769

 

Other current liabilities

 

5

 

 

 

5

 

Total current liabilities

 

1,549

 

 

 

2,421

 

 

 

 

 

Long-term debt, net of discount and debt issuance costs

 

15,600

 

 

 

16,198

 

Operating lease liabilities

 

74

 

 

 

80

 

Finance lease liabilities

 

15

 

 

 

18

 

Derivative liabilities

 

1,731

 

 

 

3,024

 

Other non-current liabilities

 

52

 

 

 

 

Other non-current liabilities—affiliate

 

24

 

 

 

23

 

 

 

 

 

Partners’ deficit

 

 

 

Common unitholders’ interest (484.0 million units issued and outstanding at both September 30, 2023 and December 31, 2022)

 

647

 

 

 

(1,118

)

General partner’s interest (2% interest with 9.9 million units issued and outstanding at both September 30, 2023 and December 31, 2022)

 

(1,620

)

 

 

(1,013

)

Total partners’ deficit

 

(973

)

 

 

(2,131

)

Total liabilities and partners’ deficit

$

18,072

 

 

$

19,633

 

______________________________

(1)  

Please refer to the Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Measures Regulation G Reconciliations

Adjusted EBITDA

The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2023 and 2022 (in millions):

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income (loss)

$

791

 

 

$

(514

)

 

$

3,348

 

 

$

(13

)

Interest expense, net of capitalized interest

 

205

 

 

 

222

 

 

 

620

 

 

 

641

 

Loss on modification or extinguishment of debt

 

4

 

 

 

 

 

 

6

 

 

 

 

Interest and dividend income

 

(12

)

 

 

(7

)

 

 

(39

)

 

 

(10

)

Income (loss) from operations

$

988

 

 

$

(299

)

 

$

3,935

 

 

$

618

 

Adjustments to reconcile income (loss) from operations to Adjusted EBITDA:

 

 

 

 

 

 

 

Depreciation and amortization expense

 

166

 

 

 

160

 

 

 

500

 

 

 

469

 

Loss (gain) from changes in fair value of commodity derivatives, net (1)

 

(361

)

 

 

1,610

 

 

 

(1,861

)

 

 

2,393

 

Other

 

 

 

 

 

 

 

2

 

 

 

 

Adjusted EBITDA

$

793

 

 

$

1,471

 

 

$

2,576

 

 

$

3,480

 

______________________________

(1) Change in fair value of commodity derivatives prior to contractual delivery or termination

Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of financial and operating performance.

Adjusted EBITDA is calculated by taking net income (loss) before interest expense, net of capitalized interest, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense and loss on disposal of assets, and changes in the fair value of our commodity derivatives prior to contractual delivery or termination. The change in fair value of commodity derivatives is considered in determining Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management’s own evaluation of performance.

Cheniere Partners Investors Randy Bhatia, 713-375-5479 Frances Smith, 713-375-5753 Media Relations Eben Burnham-Snyder, 713-375-5764 Bernardo Fallas, 713-375-5593

Cheniere Energy Partners (AMEX:CQP)
Graphique Historique de l'Action
De Jan 2024 à Fév 2024 Plus de graphiques de la Bourse Cheniere Energy Partners
Cheniere Energy Partners (AMEX:CQP)
Graphique Historique de l'Action
De Fév 2023 à Fév 2024 Plus de graphiques de la Bourse Cheniere Energy Partners