Cheniere Partners Declares Quarterly Distributions

Rhea-AI Summary

Cheniere Energy Partners, L.P. (NYSE: CQP) has announced its quarterly distribution for unitholders. 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. This distribution will be payable on August 14, 2024, to unitholders of record as of August 7, 2024. The press release also serves as a qualified notice regarding US income tax withholding for foreign investors. It states that 100% of Cheniere Partners' distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate, as they are attributable to income effectively connected with a US trade or business.

Positive

• Declared quarterly cash distribution of $0.810 per common unit
• Distribution includes a base amount of $0.775 and a variable amount of $0.035

Negative

• None.

Insights

Financial Analyst

Cheniere Energy Partners' latest distribution announcement provides valuable insights for investors. The company declared a $0.810 per common unit cash distribution, consisting of a $0.775 base amount and a $0.035 variable component. This structure demonstrates a commitment to providing stable returns while allowing for potential upside based on performance.

The distribution yield, based on the current unit price, remains attractive in the current market environment. However, investors should note that the variable portion, while positive, is relatively small at 4.3% of the total distribution. This suggests a cautious approach to increasing payouts despite potentially favorable market conditions in the LNG sector.

Of particular interest is the tax withholding information provided. The company's statement that 100% of distributions to foreign investors are subject to US withholding tax is important for international unitholders. This tax treatment stems from Cheniere Partners' status as a publicly traded partnership earning income effectively connected with a US trade or business. While this may impact the net returns for foreign investors, it also underscores the company's strong US-based operations and revenue streams.

Overall, this distribution announcement reflects Cheniere Partners' stable financial position and commitment to unitholder returns. However, the modest variable component suggests a conservative financial strategy, possibly in anticipation of market uncertainties or planned capital expenditures.

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE: CQP) today declared (i) a cash distribution of $0.810 per common unit to unitholders of record as of August 7, 2024, comprised of a base amount equal to $0.775 and a variable amount equal to $0.035, and (ii) the related distribution to its general partner. These distributions are payable on August 14, 2024.

Publicly traded partnerships that earn net income in a calendar year that is effectively connected with the conduct of a US trade or business are generally required to withhold US income tax from distributions paid to foreign persons. The portion of our quarterly cash distributions that are paid to foreign persons will generally be subject to US withholding tax.

This press release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4 and 1.446(f)-4. Please note that 100 percent of Cheniere Partners’ distributions to foreign investors are attributable to income that is effectively connected with a US trade or business and subject to withholding under Treasury Regulation Sections 1.1446-1 – 1.1446-6. Accordingly, all of Cheniere Partners’ distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate. Furthermore, 100 percent of Cheniere Partners’ distributions to foreign investors is in excess of cumulative net income for purposes of Treasury Regulation Section 1.1446(f)-4(c)(2)(iii). Nominees are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors.

About Cheniere Partners

Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities consisting of six liquefaction Trains with a total production capacity of approximately 30 million tonnes per annum of liquefied natural gas (“LNG”). The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers, and three marine berths. Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate and intrastate pipelines.

For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding Cheniere Partners’ anticipated quarterly distributions and ability to make quarterly distributions at the base amount or any amount, (iii) statements regarding regulatory authorization and approval expectations, (iv) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (v) statements regarding the business operations and prospects of third-parties, (vi) statements regarding potential financing arrangements, (vii) statements regarding future discussions and entry into contracts, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners’ actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners’ periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725862343/en/

Cheniere Partners

Investors

Randy Bhatia 713-375-5479

Frances Smith 713-375-5753

Media Relations

Eben Burnham-Snyder 713-375-5764

Bernardo Fallas 713-375-5593

Source: Cheniere Energy Partners, L.P.

FAQ

What is the amount of Cheniere Partners' (CQP) quarterly distribution for August 2024?

Cheniere Partners (CQP) declared a quarterly cash distribution of $0.810 per common unit, consisting of a base amount of $0.775 and a variable amount of $0.035.

When is the payment date for Cheniere Partners' (CQP) August 2024 distribution?

The distribution is payable on August 14, 2024, to unitholders of record as of August 7, 2024.

Are Cheniere Partners' (CQP) distributions subject to US withholding tax for foreign investors?

Yes, 100% of Cheniere Partners' (CQP) distributions to foreign investors are subject to US federal income tax withholding at the highest applicable effective tax rate.

What is the purpose of the qualified notice in Cheniere Partners' (CQP) press release?

The qualified notice serves to inform nominees about US income tax withholding requirements for distributions paid to foreign investors, as per Treasury Regulation Sections 1.1446-4 and 1.446(f)-4.