Cheniere Partners Reports Fourth Quarter and Full Year 2024 Results and Introduces Full Year 2025 Distribution Guidance

Rhea-AI Summary

Cheniere Energy Partners (NYSE: CQP) reported its Q4 and full year 2024 financial results. The company generated revenues of $2.5 billion in Q4 and $8.7 billion for the full year. Net income reached $623 million in Q4 and $2.5 billion for 2024. Adjusted EBITDA was $890 million for Q4 and $3.6 billion for the full year.

The company declared a Q4 cash distribution of $0.820 per common unit, including a base amount of $0.775 and a variable amount of $0.045. Total cash distributions for 2024 were $3.25 per common unit. For 2025, CQP introduced distribution guidance of $3.25-$3.35 per common unit, maintaining the base distribution of $3.10.

Net income decreased by $283 million in Q4 and $1.7 billion for the full year compared to 2023, primarily due to unfavorable changes in derivative instruments' fair value. The company's total available liquidity stood at $2.2 billion as of December 31, 2024.

Positive

• Strong revenue generation of $8.7 billion for full year 2024
• Substantial net income of $2.5 billion for full year 2024
• Healthy Adjusted EBITDA of $3.6 billion for 2024
• Robust liquidity position of $2.2 billion
• Maintained consistent distribution policy with guidance of $3.25-$3.35 per unit for 2025

Negative

• Net income decreased by $1.7 billion compared to 2023
• Adjusted EBITDA decreased by $160 million in Q4 and $52 million for full year vs 2023
• Lower gross margins per MMBtu of LNG delivered

Insights

Financial Analyst

The financial results reveal a complex picture of Cheniere Partners' operational strength despite accounting-driven volatility. Q4 revenues of $2.5 billion and full-year revenues of $8.7 billion demonstrate robust operational execution, though net income declined primarily due to mark-to-market accounting effects rather than operational issues.

The company's Integrated Production Marketing agreements, while creating short-term earnings volatility due to mark-to-market accounting requirements, actually represent a sophisticated risk management strategy. These contracts provide stable long-term margins but must be marked to market each quarter, creating a temporary mismatch between gas purchase and LNG sale recognition. This accounting treatment resulted in a $251 million favorable change in 2024, compared to $1.8 billion in 2023.

The distribution framework shows strong financial discipline, with the $3.25-$3.35 guidance for 2025 built on a stable $3.10 base plus variable components. This structure provides unitholders with reliable income while maintaining financial flexibility for growth initiatives.

The SPL Expansion Project, targeting 20 mtpa of additional capacity, represents a significant growth catalyst. With regulatory applications submitted and FTA export authorization secured, this expansion could substantially increase CQP's market presence in the growing global LNG market.

Liquidity remains robust at $2.2 billion, providing ample flexibility for both operational needs and growth initiatives. The recent $350 million debt repayment demonstrates proactive balance sheet management, while maintaining significant available credit facilities totaling $1.776 billion.

The operational achievement of 2,840 cumulative LNG cargoes and 195 million tonnes exported highlights CQP's established market position and efficient execution capabilities. The consistent cargo deliveries and high utilization rates underscore the company's operational excellence in a technically challenging industry.

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE: CQP) today announced its financial results for fourth quarter and full year 2024.

HIGHLIGHTS

• During the three and twelve months ended December 31, 2024, Cheniere Partners generated revenues of $2.5 billion and $8.7 billion, net income of $623 million and $2.5 billion, and Adjusted EBITDA¹ of $890 million and $3.6 billion, respectively.

• With respect to the fourth quarter of 2024, Cheniere Partners declared a cash distribution of $0.820 per common unit to unitholders of record as of February 10, 2025, comprised of a base amount equal to $0.775 and a variable amount equal to $0.045. The common unit distribution and the related general partner distribution were paid on February 14, 2025. For full year 2024, Cheniere Partners paid total cash distributions of $3.25 per common unit, comprised of a base amount equal to $3.10 and a variable amount equal to $0.15.

• Introducing full year 2025 distribution guidance of $3.25 - $3.35 per common unit, maintaining a base distribution of $3.10 per common unit.

2025 FULL YEAR DISTRIBUTION GUIDANCE

	2025
Distribution per Unit	$	3.25	-	$	3.35

SUMMARY AND REVIEW OF FINANCIAL RESULTS

(in millions, except LNG data)	Three Months Ended December 31,									Year Ended December 31,
	2024			2023			% Change			2024			2023			% Change
Revenues	$	2,460		$	2,686		(8	)%		$	8,704		$	9,664		(10	)%
Net income	$	623		$	906		(31	)%		$	2,510		$	4,254		(41	)%
Adjusted EBITDA1	$	890		$	1,050		(15	)%		$	3,574		$	3,626		(1	)%
LNG exported:
Number of cargoes		110			115		(4	)%			431			425		1	%
Volumes (TBtu)		399			419		(5	)%			1,567			1,536		2	%
LNG volumes loaded (TBtu)		401			418		(4	)%			1,567			1,536		2	%

Net income decreased approximately $283 million and $1.7 billion during the three and twelve months ended December 31, 2024, respectively, as compared to the corresponding 2023 periods. The decreases were primarily attributable to approximately $129 million and $1.7 billion of unfavorable variances related to changes in fair value of our derivative instruments (further described below) for the three and twelve months ended December 31, 2024, respectively, as compared to the corresponding 2023 periods.

Adjusted EBITDA¹ decreased by approximately $160 million and $52 million during the three and twelve months ended December 31, 2024, respectively, as compared to the corresponding 2023 periods. The decreases were primarily due to lower gross margins per MMBtu of liquefied natural gas (“LNG”) delivered. The decrease during the twelve months ended December 31, 2024 was partially offset by higher volumes delivered compared to the prior period.

A portion of the derivative gains are attributable to the recognition at fair value of our long-term Integrated Production Marketing (“IPM”) agreements, natural gas supply contracts with pricing indexed to international gas and LNG prices. Our IPM agreements are structured to provide stable margins on purchases of natural gas and sales of LNG over the life of the agreements and have a fixed fee component, similar to that of LNG sold under our long-term, fixed fee LNG sale and purchase agreements. However, the long-term duration and international price basis of our IPM agreements make them particularly susceptible to fluctuations in fair market value from period to period. In addition, accounting requirements prescribe recognition of these long-term gas supply agreements at fair value each reporting period on a mark-to-market basis, but do not currently permit mark-to-market recognition of the corresponding sale of LNG, resulting in a mismatch of accounting recognition for the purchase of natural gas and sale of LNG. As a result of continued moderation of international gas price volatility and changes in international forward commodity curves during the three and twelve months ended December 31, 2024, we recognized approximately $13 million and $251 million, respectively, of non-cash favorable changes in fair value attributable to these IPM agreements, as compared to approximately $305 million and $1.8 billion of non-cash favorable changes in fair value in the corresponding 2023 periods.

During the three and twelve months ended December 31, 2024, we recognized as revenue 401 and 1,567 TBtu, respectively, of LNG loaded from the SPL Project (defined below).

Capital Resources

As of December 31, 2024, our total available liquidity was approximately $2.2 billion. We had cash and cash equivalents of approximately $270 million, restricted cash and cash equivalents of $109 million, $1.0 billion of available commitments under the Cheniere Partners Revolving Credit Facility, and $776 million of available commitments under the Sabine Pass Liquefaction, LLC (“SPL”) Revolving Credit Facility.

Recent Key Financial Transactions and Updates

During the three months ended December 31, 2024, SPL repaid $350 million in principal amount of its 5.625% Senior Secured Notes due 2025 with cash on hand.

SABINE PASS OVERVIEW

We own natural gas liquefaction facilities consisting of six liquefaction Trains, with a total production capacity of approximately 30 million tonnes per annum (“mtpa”) of LNG at the Sabine Pass LNG terminal in Cameron Parish, Louisiana (the “SPL Project”).

As of February 14, 2025, approximately 2,840 cumulative LNG cargoes totaling over 195 million tonnes of LNG have been produced, loaded, and exported from the SPL Project.

SPL Expansion Project

We are developing an expansion adjacent to the SPL Project with an expected total production capacity of up to approximately 20 mtpa of LNG (the “SPL Expansion Project”), inclusive of estimated debottlenecking opportunities. In February 2024, certain of our subsidiaries submitted an application to the Federal Energy Regulatory Commission for authorization to site, construct and operate the SPL Expansion Project, as well as an application to the Department of Energy requesting authorization to export LNG to Free-Trade Agreement (“FTA”) and non-FTA countries, both of which applications exclude debottlenecking. In October 2024, we received authorization from the DOE to export LNG to FTA countries.

DISTRIBUTIONS TO UNITHOLDERS

In January 2025, we declared a cash distribution of $0.820 per common unit to unitholders of record as of February 10, 2025, comprised of a base amount equal to $0.775 ($3.10 annualized) and a variable amount equal to $0.045, which takes into consideration, among other things, amounts reserved for annual debt repayment and capital allocation goals, anticipated capital expenditures to be funded with cash, and cash reserves to provide for the proper conduct of the business. The common unit distribution and the related general partner distribution was paid on February 14, 2025.

INVESTOR CONFERENCE CALL AND WEBCAST

Cheniere Energy, Inc. (NYSE: LNG) will host a conference call to discuss its financial and operating results for fourth quarter and full year 2024 on Thursday, February 20, 2025, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation will include financial and operating results or other information regarding Cheniere Partners.

1 Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for further details.

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 mtpa of 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 Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains a non-GAAP financial measure. Adjusted EBITDA is a non-GAAP financial measure that is used to facilitate comparisons of operating performance across periods. This non-GAAP measure should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP, and the reconciliation from these results should be carefully evaluated.

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.

(Financial Tables Follow)

Cheniere Energy Partners, L.P.
Consolidated Statements of Operations
(in millions, except per unit data)(1)
	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
	2024				2023				2024				2023
Revenues
LNG revenues	$	1,897			$	1,906			$	6,550			$	6,991
LNG revenues—affiliate		513				730				1,954				2,475
Regasification revenues		33				34				135				135
Other revenues		17				16				65				63
Total revenues		2,460				2,686				8,704				9,664
Operating costs and expenses
Cost of sales (excluding items shown separately below)		1,172				1,123				3,570				2,721
Cost of sales—affiliate		—				2				4				22
Operating and maintenance expense		214				199				824				879
Operating and maintenance expense—affiliate		49				46				172				166
Operating and maintenance expense—related party		14				18				58				62
General and administrative expense		2				2				10				10
General and administrative expense—affiliate		22				23				90				89
Depreciation and amortization expense		171				172				680				672
Other operating costs and expenses		4				—				14				6
Other operating costs and expenses—affiliate		—				—				2				1
Total operating costs and expenses		1,648				1,585				5,424				4,628
Income from operations		812				1,101				3,280				5,036
Other income (expense)
Interest expense, net of capitalized interest		(197	)			(203	)			(800	)			(823	)
Loss on modification or extinguishment of debt		—				—				(3	)			(6	)
Interest and dividend income		8				8				33				46
Other income, net		—				—				—				1
Total other expense		(189	)			(195	)			(770	)			(782	)
Net income	$	623			$	906			$	2,510			$	4,254
Basic and diluted net income per common unit(1)	$	1.05			$	1.42			$	4.25			$	6.95
Weighted average basic and diluted number of common units outstanding		484.0				484.0				484.0				484.0

_____________
(1)	Please refer to the Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission.

Cheniere Energy Partners, L.P.
Consolidated Balance Sheets
(in millions, except unit data) (1)
	December 31,
	2024				2023
ASSETS
Current assets
Cash and cash equivalents	$	270			$	575
Restricted cash and cash equivalents		109				56
Trade and other receivables, net of current expected credit losses		380				373
Trade and other receivables—affiliate		164				278
Trade receivables, net of current expected credit losses—related party		1				—
Advances to affiliates		101				84
Inventory		151				142
Current derivative assets		84				30
Other current assets, net		65				43
Total current assets		1,325				1,581
Property, plant and equipment, net of accumulated depreciation		15,760				16,212
Operating lease assets		79				81
Derivative assets		98				40
Other non-current assets, net		191				188
Total assets	$	17,453			$	18,102
LIABILITIES AND PARTNERS’ DEFICIT
Current liabilities
Accounts payable	$	62			$	69
Accrued liabilities		838				806
Accrued liabilities—related party		5				5
Current debt, net of unamortized discount and debt issuance costs		351				300
Due to affiliates		63				55
Deferred revenue		120				114
Deferred revenue—affiliate		3				3
Current derivative liabilities		250				196
Other current liabilities		20				18
Total current liabilities		1,712				1,566
Long-term debt, net of unamortized discount and debt issuance costs		14,761				15,606
Derivative liabilities		1,213				1,531
Other non-current liabilities		252				160
Other non-current liabilities—affiliate		24				23
Total liabilities		17,962				18,886
Commitments and contingencies
Partners’ deficit
Common unitholders’ interest (484.0 million units issued and outstanding at both December 31, 2024 and 2023)		1,821				1,038
General partner’s interest (2% interest with 9.9 million units issued and outstanding at both December 31, 2024 and 2023)		(2,330	)			(1,822	)
Total partners’ deficit		(509	)			(784	)
Total liabilities and partners’ deficit	$	17,453			$	18,102

_____________
(1)	Please refer to the Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Measures
Regulation G Reconciliations

Adjusted EBITDA

The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and twelve months ended December 31, 2024 and 2023 (in millions):

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2024				2023				2024				2023
Net income	$	623			$	906			$	2,510			$	4,254
Interest expense, net of capitalized interest		197				203				800				823
Loss on modification or extinguishment of debt		—				—				3				6
Interest and dividend income		(8	)			(8	)			(33	)			(46	)
Other income, net		—				—				—				(1	)
Income from operations	$	812			$	1,101			$	3,280			$	5,036
Adjustments to reconcile income from operations to Adjusted EBITDA:
Depreciation and amortization expense		171				172				680				672
Gain from changes in fair value of commodity derivatives, net (1)		(95	)			(223	)			(388	)			(2,084	)
Other		2				—				2				2
Adjusted EBITDA	$	890			$	1,050			$	3,574			$	3,626

_____________
(1)	Change in fair value of commodity derivatives prior to contractual delivery or termination

Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our Consolidated Financial Statements to assess the financial performance of our assets without regard to financing methods, capital structures, or historical cost basis. Adjusted EBITDA is not intended to represent cash flows from operations or net income as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.

We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management’s evaluation of financial and operating performance.

Adjusted EBITDA is calculated by taking net income before interest expense, net of capitalized interest, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, gain or loss on disposal of assets, and changes in the fair value of our commodity derivatives prior to contractual delivery or termination. The change in fair value of commodity derivatives is considered in determining Adjusted EBITDA given that the timing of recognizing gains and losses on these derivative contracts differs from the recognition of the related item economically hedged. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management’s own evaluation of performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219650380/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 was Cheniere Partners' (CQP) revenue for full year 2024?

Cheniere Partners generated revenues of $8.7 billion for the full year 2024.

What is CQP's distribution guidance for 2025?

CQP introduced full year 2025 distribution guidance of $3.25-$3.35 per common unit, maintaining a base distribution of $3.10 per common unit.

How much did CQP's net income decrease in 2024 compared to 2023?

CQP's net income decreased by approximately $1.7 billion during the twelve months ended December 31, 2024, compared to 2023.

What was CQP's total available liquidity as of December 31, 2024?

CQP's total available liquidity was approximately $2.2 billion as of December 31, 2024.

What was CQP's Q4 2024 cash distribution per unit?

CQP declared a Q4 2024 cash distribution of $0.820 per common unit, comprising a base amount of $0.775 and a variable amount of $0.045.