Cheniere Partners (CQP) Q2 Earnings Beat, Revenues Fall Y/Y

Core Viewpoint - Cheniere Energy Partners, L.P. (CQP) reported strong second-quarter earnings, exceeding expectations, but faced challenges with revenue and gross margins [1][2]. Financial Performance - Earnings per unit for Q2 2024 were 95 cents, surpassing the Zacks Consensus Estimate of 83 cents and up from 84 cents in the same quarter last year [1]. - Total revenues for the quarter were $1.89 billion, down from $1.93 billion year-over-year and below the Zacks Consensus Estimate of $2.04 billion [1]. - Adjusted EBITDA reached $832 million, a 10% increase from $757 million in the previous year, but fell short of the estimate of $954 million [4]. Operational Highlights - The company loaded 103 cargoes in Q2, a 5% increase from 98 cargoes in the same period last year, exceeding the estimate of 100 [3]. - Total LNG volume for the quarter was 372 trillion British thermal units (TBtu), up from 353 TBtu year-over-year and above the estimate of 359 TBtu [3]. Costs and Expenses - Cost of sales increased to $661 million from $603 million in the prior year [5]. - Operating and maintenance expenses decreased to $210 million from $263 million year-over-year [5]. - Total operating costs and expenses were $1.13 billion, slightly up from $1.12 billion in the same quarter last year and lower than the estimate of $1.16 billion [5]. Balance Sheet - As of June 30, 2024, the partnership had $351 million in cash and cash equivalents and a net long-term debt of $14.8 billion [6]. Outlook - The partnership maintained its 2024 distribution guidance, expecting to distribute between $3.15 and $3.35 per common unit, with a base distribution set at $3.10 [7]. - The company is working on the SPL Expansion Project to increase total production capacity by up to 20 million metric tons per annum (Mtpa) of LNG [7].