Cheniere(CQP) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights This section provides an overview of Cheniere Partners' Q2 2025 financial performance, distribution guidance, and key operational developments Second Quarter 2025 Financial Highlights Cheniere Partners reported Q2 2025 revenues of $2.5 billion, net income of $553 million, and Adjusted EBITDA of $0.7 billion, with decreases primarily due to planned maintenance activities | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | % Change | | :----- | :----------------- | :----------------- | :------- | | Revenues | $2,455 | $1,894 | 30% | | Net income | $553 | $570 | (3)% | | Adjusted EBITDA | $726 | $832 | (13)% | | LNG Exported (Cargoes) | 98 | 103 | (5)% | | LNG Exported (TBtu) | 352 | 373 | (6)% | - Decreases in net income and Adjusted EBITDA were primarily attributable to planned maintenance activities during Q2 2025, resulting in higher operating expenses and lower volumes recognized in income, partially offset by higher gross margins per MMBtu of LNG delivered[6] 2025 Distribution Guidance and Declaration The company reconfirmed its full-year 2025 distribution guidance of $3.25 - $3.35 per common unit and declared a Q2 2025 cash distribution of $0.820 per common unit | Metric | Value | | :----- | :---- | | Full Year 2025 Distribution Guidance per Unit | $3.25 - $3.35 | | Base Distribution per Common Unit (Annualized) | $3.10 | | Q2 2025 Cash Distribution per Common Unit | $0.820 | | Q2 2025 Base Amount per Common Unit | $0.775 | | Q2 2025 Variable Amount per Common Unit | $0.045 | Key Operational and Strategic Developments Cheniere Partners updated its SPL Expansion Project application to reflect a two-phased project and achieved a significant milestone by loading its 3,000th LNG cargo - Updated the SPL Expansion Project's FERC application in June 2025 to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure, maintaining an expected total peak production capacity of up to approximately 20 million tonnes per annum (mtpa) of LNG[5][10] - Produced and loaded its 3,000th LNG cargo in July 2025 since commencing export operations at the Sabine Pass LNG terminal in February 2016[5][9] Financial Performance Review This section details Cheniere Partners' financial results, including statements of operations, balance sheets, and reconciliation of non-GAAP measures Summary of Financial Results For the three and six months ended June 30, 2025, Cheniere Partners experienced significant revenue growth but a slight decline in net income and Adjusted EBITDA compared to the prior year, primarily due to maintenance activities | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | % Change | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | % Change | | :----- | :--------------------------- | :--------------------------- | :------- | :--------------------------- | :--------------------------- | :------- | | Revenues | $2,455 million | $1,894 million | 30% | $5,444 million | $4,189 million | 30% | | Net income | $553 million | $570 million | (3)% | $1,194 million | $1,252 million | (5)% | | Adjusted EBITDA | $726 million | $832 million | (13)% | $1,764 million | $1,832 million | (4)% | | LNG Exported (Cargoes) | 98 | 103 | (5)% | 210 | 217 | (3)% | | LNG Exported (TBtu) | 352 | 373 | (6)% | 758 | 791 | (4)% | - The decrease in net income and Adjusted EBITDA was primarily due to planned maintenance activities in Q2 2025, leading to higher operating expenses and lower recognized volumes, partially offset by improved gross margins per MMBtu[6] Consolidated Statements of Operations The consolidated statements of operations show a substantial increase in total revenues for both the three and six months ended June 30, 2025, driven by LNG revenues, while net income saw a slight decrease due to higher operating costs, particularly cost of sales and operating and maintenance expense | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Revenues | $2,455 | $1,894 | $5,444 | $4,189 | | Cost of sales | $1,196 | $661 | $2,899 | $1,625 | | Operating & maintenance expense | $289 | $210 | $492 | $410 | | Total operating costs and expenses | $1,740 | $1,128 | $3,903 | $2,548 | | Income from operations | $715 | $766 | $1,541 | $1,641 | | Net income | $553 | $570 | $1,194 | $1,252 | | Basic and diluted net income per common unit | $0.91 | $0.95 | $1.99 | $2.13 | Consolidated Balance Sheets As of June 30, 2025, Cheniere Partners reported total assets of $16.93 billion and total liabilities of $17.27 billion, with a total partners' deficit of $(340) million, with current assets and liabilities both decreasing compared to December 31, 2024 | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Total current assets | $1,017 | $1,325 | | Property, plant and equipment, net | $15,540 | $15,760 | | Total assets | $16,930 | $17,453 | | Total current liabilities | $1,655 | $1,712 | | Long-term debt, net | $14,213 | $14,761 | | Total liabilities | $17,270 | $17,962 | | Total partners' deficit | $(340) | $(509) | Reconciliation of Non-GAAP Measures (Adjusted EBITDA) Adjusted EBITDA, a non-GAAP measure, was $726 million for Q2 2025, down from $832 million in Q2 2024, with reconciliation showing adjustments from net income, primarily for interest expense, depreciation and amortization, and changes in fair value of commodity derivatives | Metric (in millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income | $553 | $570 | $1,194 | $1,252 | | Interest expense, net | $188 | $202 | $378 | $404 | | Depreciation and amortization expense | $171 | $170 | $342 | $338 | | Gain from changes in fair value of commodity derivatives, net | $(160) | $(104) | $(119) | $(147) | | Adjusted EBITDA | $726 | $832 | $1,764 | $1,832 | - Adjusted EBITDA is commonly used to assess financial performance without regard to financing methods, capital structures, or historical cost basis, and is adjusted for certain non-cash items and non-operating income or expense items[25][26] Capital Resources and Debt Management This section outlines Cheniere Partners' liquidity position and recent debt optimization activities Capital Resources and Debt Management Summary As of June 30, 2025, Cheniere Partners had total available liquidity of $1.929 billion, including cash and available credit facilities, and completed key financial transactions in July 2025 to optimize its debt structure | Metric (in millions) | June 30, 2025 | | :------------------- | :------------ | | Cash and cash equivalents | $108 | | Restricted cash and cash equivalents | $36 | | Available commitments under credit facilities | $1,785 | | Total available liquidity | $1,929 | - In July 2025, Cheniere Partners issued $1.0 billion of 5.550% Senior Notes due 2035, using the net proceeds and cash on hand to redeem $1.0 billion of SPL's 5.875% Senior Secured Notes due 2026[8] - During the six months ended June 30, 2025, SPL repaid the remaining $300 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand[8] Operational Overview and Expansion This section details the Sabine Pass LNG terminal's operational capacity and the progress of the SPL Expansion Project Sabine Pass LNG Terminal Operations The Sabine Pass LNG terminal has a total production capacity of over 30 mtpa of LNG and has cumulatively produced, loaded, and exported approximately 3,030 LNG cargoes as of August 1, 2025 - Cheniere Partners owns natural gas liquefaction facilities at the Sabine Pass LNG terminal with a total production capacity of over 30 mtpa of LNG[9][14] - 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 SPL Project[9] SPL Expansion Project Update Cheniere Partners is developing the SPL Expansion Project, aiming for an additional peak production capacity of up to approximately 20 mtpa of LNG, with its FERC application updated in June 2025 to reflect a two-phased project - Developing an expansion adjacent to the SPL Project with an expected total peak production capacity of up to approximately 20 mtpa of LNG, inclusive of estimated debottlenecking opportunities[10] - In June 2025, the SPL Expansion Project's FERC application was updated to reflect a two-phased project, inclusive of three liquefaction trains and supporting infrastructure[5][10] - Received authorization from the Department of Energy (DOE) in October 2024 to export LNG to Free-Trade Agreement (FTA) countries[10] Distributions to Unitholders This section provides details on Cheniere Partners' Q2 2025 cash distribution and full-year 2025 distribution guidance Distributions to Unitholders Details Cheniere Partners declared a Q2 2025 cash distribution of $0.820 per common unit and reconfirmed its full-year 2025 distribution guidance of $3.25 - $3.35 per common unit | Metric | Value | | :----- | :---- | | Q2 2025 Cash Distribution per Common Unit | $0.820 | | Q2 2025 Base Amount per Common Unit | $0.775 | | Q2 2025 Variable Amount per Common Unit | $0.045 | | Full Year 2025 Distribution Guidance per Unit | $3.25 - $3.35 | | Full Year 2025 Base Distribution per Common Unit | $3.10 | - The variable amount of the distribution takes into consideration amounts reserved for annual debt repayment, capital allocation goals, anticipated capital expenditures to be funded with cash, and cash reserves[11] Additional Information This section includes details on the investor conference call, company overview, non-GAAP financial measures, forward-looking statements, and contacts Investor Conference Call Cheniere Energy, Inc. will host a conference call on August 7, 2025, to discuss Q2 2025 financial and operating results, with a listen-only webcast and accompanying slide presentation available on their website - Cheniere Energy, Inc. (NYSE: LNG) will host a conference call to discuss its financial and operating results for the second quarter 2025 on Thursday, August 7, 2025, at 11 a.m. Eastern time / 10 a.m. Central time[13] - A listen-only webcast of the call and an accompanying slide presentation may be accessed through www.cheniere.com, with an archived recording made available on the website following the call[13] About Cheniere Partners Cheniere Partners owns the Sabine Pass LNG terminal in Louisiana, which includes liquefaction facilities with over 30 mtpa capacity, operational regasification facilities, and the Creole Trail Pipeline - Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities with a total production capacity of over 30 mtpa of LNG[14] - The Sabine Pass LNG terminal also has operational regasification facilities, including five LNG storage tanks, vaporizers, and three marine berths, and Cheniere Partners also owns the Creole Trail Pipeline[14] Use of Non-GAAP Financial Measures (Explanation) The report uses Adjusted EBITDA as a non-GAAP financial measure to facilitate comparisons of operating performance. It is presented as a supplement to, not a substitute for, U.S. GAAP measures and is reconciled to net income - Adjusted EBITDA is a non-GAAP financial measure used to facilitate comparisons of operating performance across periods, serving as a supplement to and not a substitute for U.S. GAAP measures of performance[16][25] - It is calculated by taking net income before interest expense, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and changes in the fair value of commodity derivatives[26] Forward-Looking Statements The press release contains forward-looking statements regarding financial guidance, business strategy, regulatory approvals, and future operations. These statements involve assumptions, risks, and uncertainties, and actual results may differ materially - This press release contains certain statements that may include 'forward-looking statements' regarding Cheniere Partners' financial and operational guidance, business strategy, plans and objectives, and regulatory expectations[17] - These forward-looking statements involve assumptions, risks, and uncertainties, and actual results could differ materially from those anticipated due to various factors, including those discussed in Cheniere Partners' periodic reports filed with the SEC[17] Contacts Contact information for investor relations and media relations is provided for inquiries regarding Cheniere Partners | Category | Name | Phone | | :------- | :--- | :---- | | Investors | Randy Bhatia | 713-375-5479 | | | Frances Smith | 713-375-5753 | | Media Relations | Randy Bhatia | 713-375-5479 | | | Bernardo Fallas | 713-375-5593 |