Cheniere(US:CQP)2024-08-07 21:41LNG Production and Capacity - As of August 2, 2024, approximately 2,600 cumulative LNG cargoes totaling approximately 180 million tonnes of LNG have been produced, loaded, and exported from the Liquefaction Project[82]. - The Sabine Pass LNG Terminal has a total production capacity of approximately 30 mtpa of LNG and operational regasification capacity of approximately 4 Bcf/d[75]. - The company is developing the SPL Expansion Project with a total production capacity of up to approximately 20 mtpa of LNG, with applications submitted for authorization to site, construct, and operate the project[79][81]. - The company has increased available liquefaction capacity at its Liquefaction Project through debottlenecking and optimization projects[79]. - The company has a significant land position at the Sabine Pass LNG Terminal, providing opportunities for further liquefaction capacity expansion[79]. - As of June 30, 2024, the company has a total of five LNG storage tanks with an aggregate capacity of approximately 17 Bcfe[75]. Financial Performance - LNG revenues for the three months ended June 30, 2024, were $1,454 million, a $39 million increase from $1,415 million in the same period of 2023[84]. - Total revenues decreased by $39 million to $1,894 million for the three months ended June 30, 2024, compared to $1,933 million in 2023, and by $661 million to $4,189 million for the six months ended June 30, 2024, compared to $4,850 million in 2023[84]. - Net income for the three months ended June 30, 2024, was $570 million, down $52 million from $622 million in the same period of 2023, and down $1.3 billion to $1,252 million for the six months ended June 30, 2024, compared to $2,557 million in 2023[87]. - Total revenues for the six months ended June 30, 2024, were $375 million, a decrease from $1,538 million in the same period of 2023[104]. - Net income for the six months ended June 30, 2024, was $12 million, compared to $1,401 million in the prior year[104]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were $351 million, with total available liquidity amounting to $2,181 million[92]. - The company expects to meet its long-term cash requirements through operating cash flows and potential debt or equity offerings[91]. - Cash provided by operating activities for the six months ended June 30, 2024, was $1,401 million, down from $1,538 million in the same period of 2023[105]. - The company reported a decrease in cash and cash equivalents to $351 million as of June 30, 2024, from $575 million as of December 31, 2023[103]. Debt and Financing - In May 2024, the company issued $1.2 billion aggregate principal amount of 5.750% Senior Notes due 2034, which were used to retire $1.2 billion of 5.625% Senior Secured Notes due 2025[82]. - The company issued $1.2 billion of 2034 CQP Senior Notes and used the proceeds to retire $1.2 billion of 2025 SPL Senior Notes during the six months ended June 30, 2024[109]. Operating Costs and Expenses - Operating costs and expenses increased by $645 million for the six months ended June 30, 2024, primarily due to a $1.4 billion unfavorable variance from changes in fair value of derivatives[89]. - Operating costs and expenses totaled $234 million for the six months ended June 30, 2024, compared to $1,538 million in the same period of 2023[104]. Market and Credit Ratings - Moody's upgraded the company's issuer credit rating to Baa2 from Ba1 and revised the outlook to stable from positive in May 2024[82]. - The decline in net income was primarily attributed to unfavorable changes in fair value and settlements of derivatives, particularly related to the IPM agreement with Tourmaline Oil Marketing Corp[87]. - The company anticipates continued volatility in results of operations due to the recognition of derivative instruments at fair value, which may impact future earnings[90]. Derivatives and Fair Value - The fair value of Liquefaction Supply Derivatives was $(1,510) million as of June 30, 2024, reflecting a change in fair value of $339 million[115]. - The company reported a decrease in LNG revenues net of cost of sales, which remained relatively consistent between the six months ended June 30, 2024, and 2023, excluding changes in fair value and settlements of derivatives[88]. Cash Distributions - For the second quarter of 2024, the company declared a cash distribution of $0.810 per common unit, consisting of a base amount of $0.775 and a variable amount of $0.035 per unit[82]. - Cash distributions to unitholders for the period included $0.810 per common unit declared on July 26, 2024, for the second quarter of 2024[112].