Cheniere(US:CQP)2024-10-30 21:40Financial Performance - LNG revenues for the three months ended September 30, 2024, were $1,479 million, a decrease of $85 million compared to $1,564 million in the same period of 2023 [96]. - Total revenues decreased by $73 million to $2,055 million for the three months ended September 30, 2024, compared to $2,128 million in the same period of 2023 [101]. - Net income declined by $156 million to $635 million for the three months ended September 30, 2024, compared to $791 million in the same period of 2023 [99]. - The company experienced a decrease in revenues of $73 million and $734 million for the three and nine months ended September 30, 2024, respectively, primarily due to lower pricing per MMBtu [101]. - Total revenues for the nine months ended September 30, 2024, were $559 million, compared to $150 million for the same period in 2023, indicating a significant increase [117]. - Net cash provided by operating activities was $2,092 million for the nine months ended September 30, 2024, slightly down from $2,193 million in the same period of 2023 [118]. - The company reported a net income of $1 million for the nine months ended September 30, 2024, indicating a significant decrease from previous periods [117]. Cash Distribution - The company declared a cash distribution of $0.810 per common unit for Q3 2024, consisting of a base amount of $0.775 and a variable amount of $0.035 per unit [93]. - Cash distributions to unitholders for the nine months ended September 30, 2024, included a distribution of $0.810 per common unit declared on October 25, 2024 [125]. Liquefaction Project and Capacity - Approximately 2,700 cumulative LNG cargoes totaling over 185 million tonnes have been produced, loaded, and exported from the Liquefaction Project as of October 25, 2024 [92]. - The company has contracted approximately 80% of the total anticipated production from the Liquefaction Project, with a weighted average remaining life of about 14 years as of September 30, 2024 [88]. - 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 necessary authorizations [89][91]. - The Sabine Pass LNG Terminal has a total production capacity of approximately 30 mtpa of LNG, supported by six operational Trains [84]. - The company has a significant land position at the Sabine Pass LNG Terminal, providing opportunities for future liquefaction capacity expansion [89]. Financial Position and Liquidity - The company had total available liquidity of $2,177 million as of September 30, 2024, including cash and cash equivalents of $331 million and available commitments under credit facilities of $1,766 million [106]. - Total assets decreased from $3,781 million as of December 31, 2023, to $3,538 million as of September 30, 2024, representing a decline of approximately 6.4% [116]. - Total liabilities increased from $5,942 million as of December 31, 2023, to $7,169 million as of September 30, 2024, reflecting an increase of approximately 20.7% [116]. Operating Costs and Expenses - Operating costs and expenses increased by $88 million to $1,228 million for the three months ended September 30, 2024, compared to $1,140 million in the same period of 2023 [102]. - Operating costs and expenses totaled $349 million for the nine months ended September 30, 2024, compared to $198 million for the same period in 2023 [117]. - The company reported a decrease in maintenance expense of $70 million for the nine months ended September 30, 2024, compared to the same period of 2023 [100]. Debt and Financing Activities - In May 2024, the company issued $1.2 billion of 5.750% Senior Notes due 2034, which were used to retire $1.2 billion of 5.625% Senior Secured Notes due 2025 [93]. - 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 nine months ended September 30, 2024 [121]. - Net cash used in financing activities was $2,200 million for the nine months ended September 30, 2024, compared to $2,479 million in the same period of 2023, showing a decrease of approximately 11.3% [120]. Credit Rating - Moody's upgraded the company's issuer credit rating to Baa2 from Ba1 in May 2024, with a stable outlook [93]. Operational Focus - The company focuses on safety, operational excellence, and customer satisfaction, aiming for further growth in customer contracts [89]. - The company has operational regasification facilities with a capacity of approximately 4 Bcf/d [84]. Fair Value of Derivatives - The fair value of Liquefaction Supply Derivatives was $(1,364) million as of September 30, 2024, reflecting a change in fair value of $334 million [128]. Other - LNG volumes loaded and recognized as revenues increased by 15 TBtu to 377 TBtu for the three months ended September 30, 2024, compared to 362 TBtu in the same period of 2023 [97].