Cheniere(US:CQP)2025-08-06 21:52Production and Capacity - As of August 1, 2025, approximately 3,030 cumulative LNG cargoes totaling approximately 210 million tonnes of LNG have been produced, loaded, and exported from the Liquefaction Project [121]. - The Sabine Pass LNG Terminal has a total production capacity of over 30 mtpa of LNG as of June 30, 2025 [110]. - The SPL Expansion Project is expected to have a total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities [120]. - Approximately 90% of the total anticipated production from the Liquefaction Project is contracted through long-term SPAs and IPM agreements with a weighted average remaining life of approximately 13 years as of June 30, 2025 [114]. - The company aims to achieve value accretive returns through long-term commercial contracts, targeting approximately 90% of current and planned liquefaction capacity [115]. - The company has increased available liquefaction capacity at its Liquefaction Project as a result of debottlenecking and other optimization projects [116]. Financial Performance - LNG revenues increased by $403 million (27.7%) to $1,857 million for the three months ended June 30, 2025, compared to $1,454 million in 2024, and by $950 million (29.9%) to $4,124 million for the six months ended June 30, 2025, compared to $3,174 million in 2024 [123]. - Total revenues rose by $561 million (29.6%) to $2,455 million for the three months ended June 30, 2025, and by $1.3 billion (30.9%) to $5,444 million for the six months ended June 30, 2025, compared to the same periods in 2024 [126]. - Net income decreased by $17 million (3.0%) to $553 million for the three months ended June 30, 2025, and by $58 million (4.6%) to $1,194 million for the six months ended June 30, 2025, compared to the same periods in 2024 [125]. - Operating costs and expenses increased by $612 million (54.3%) to $1,740 million for the three months ended June 30, 2025, and by $1.4 billion (54.9%) to $3,903 million for the six months ended June 30, 2025, compared to the same periods in 2024 [127]. - Operating and maintenance expenses increased by $79 million (37.6%) to $289 million for the three months ended June 30, 2025, and by $82 million (20.0%) to $492 million for the six months ended June 30, 2025, compared to the same periods in 2024 [125]. Debt and Liquidity - The average debt balance decreased from $16.0 billion in the six months ended June 30, 2024, to $15.1 billion in the same period of 2025, reflecting a decrease in total indebtedness [128]. - The total available liquidity as of June 30, 2025, was $1,929 million, consisting of cash and cash equivalents, restricted cash, and available commitments under credit facilities [136]. - The company expects to meet its long-term cash requirements through operating cash flows and potential future debt or equity offerings [134]. - The company’s long-term debt remained stable at approximately $6,735 million as of June 30, 2025, compared to $6,731 million at the end of 2024 [145]. - Proceeds from issuances of debt and borrowings were $265 million in the first half of 2025, a significant drop from $1,228 million in 2024 [152]. Regulatory and Market Conditions - The SPL Expansion Project requires regulatory approvals and acceptable commercial and financing arrangements before a positive FID can be made [116]. - Fitch Ratings upgraded the issuer credit rating of CQP to BBB from BBB- with a stable outlook in February 2025 [122]. Asset and Liability Changes - Total assets decreased from $3,502 million on December 31, 2024, to $3,384 million on June 30, 2025, representing a decline of approximately 3.4% [145]. - Total current liabilities increased from $325 million on December 31, 2024, to $359 million on June 30, 2025, reflecting a rise of approximately 10.5% [145]. - Net cash provided by operating activities decreased from $1,401 million in 2024 to $1,223 million in 2025, a decline of approximately 12.7% [148]. - The company reported a net income of $(20) million for the six months ended June 30, 2025, compared to a positive income in the previous period [146]. - Other income—affiliate increased by $22 million for both the three and six months ended June 30, 2025, compared to the same periods in 2024 [128]. - The fair value of Liquefaction Supply Derivatives was $(1,147) million as of June 30, 2025, with a change in fair value of $297 million compared to December 31, 2024 [159]. Distributions - The company declared distributions of $0.820 and $1.64 per common unit for the three and six months ended June 30, 2025, respectively [122]. - Cash distributions to unitholders for the period included $0.820 per common unit, totaling $397 million for the first quarter of 2025 [155].