Cheniere Partners Declares Quarterly Distributions

Rhea-AI Summary

Cheniere Energy Partners (NYSE: CQP) has announced its quarterly distribution payments. The company declared a cash distribution of $0.820 per common unit for unitholders of record as of February 10, 2025, which includes a base amount of $0.775 and a variable amount of $0.045. The distributions will be paid on February 14, 2025.

The announcement includes important tax information for foreign investors, noting that 100% of Cheniere Partners' distributions to foreign investors are subject to US federal income tax withholding at the highest applicable effective tax rate, as they are attributable to income effectively connected with US trade or business.

Positive

• Maintained quarterly distribution of $0.820 per common unit
• Includes variable distribution component of $0.045 per unit

Negative

• None.

Insights

Financial Analyst

The declared quarterly distribution of $0.820 per common unit represents Cheniere Partners' ongoing commitment to providing substantial unitholder returns in the energy infrastructure sector. The distribution structure, split between a $0.775 base amount and a $0.045 variable component, reflects a balanced approach to capital allocation that provides both stability and upside participation for investors.

The variable portion of the distribution is particularly noteworthy as it indicates strong operational performance and healthy cash flows, enabling additional returns beyond the base distribution. For income-focused investors, this translates to an attractive yield, especially considering the current market environment.

The tax implications for foreign investors are significant, with 100% of distributions subject to US withholding at the highest applicable effective tax rate. This tax treatment stems from the company's classification of all distributions as effectively connected income (ECI) from US trade or business operations. While this may impact the net returns for international investors, it also reflects the substantial US-based infrastructure assets and operations underlying these distributions.

From a broader market perspective, Cheniere Partners' ability to maintain robust distributions underscores the resilience of well-positioned energy infrastructure companies in the current market environment. The company's role in LNG infrastructure continues to provide stable cash flows, supporting these consistent unitholder returns while maintaining operational flexibility through the variable component structure.

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE: CQP) today declared (i) 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, and (ii) the related distribution to its general partner. These distributions are payable on February 14, 2025.

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 September 30, 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/20250127795903/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 total distribution amount per unit announced by CQP for February 2025?

Cheniere Partners (CQP) announced a total distribution of $0.820 per common unit, consisting of a $0.775 base amount and a $0.045 variable amount.

When will CQP's February 2025 distribution be paid to unitholders?

The distribution will be paid on February 14, 2025, to unitholders of record as of February 10, 2025.

How much of CQP's distributions to foreign investors are subject to US tax withholding?

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

What is the base distribution amount for CQP's February 2025 payment?

The base distribution amount is $0.775 per common unit.

What is the variable distribution component of CQP's February 2025 payment?

The variable distribution component is $0.045 per common unit.