Cheniere Energy Partners Reports Decline in Financial Performance for Q3 and Nine Months Ended September 30, 2024

Cheniere Energy Partners, L.P. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for the third quarter were $2,055 million, down from $2,128 million, while revenues for the nine-month period decreased to $6,244 million from $6,978 million. The decline in revenue was primarily attributed to lower LNG pricing, influenced by decreasing Henry Hub prices.

Operating costs and expenses increased significantly, with total costs for the third quarter rising to $1,228 million from $1,140 million in the prior year. For the nine months, costs escalated to $3,776 million, up from $3,043 million. The increase in costs was largely due to unfavorable changes in the fair value of derivatives, which impacted both periods.

Net income for the third quarter fell to $635 million, a decrease of $156 million from $791 million in 2023. For the nine months, net income dropped to $1,887 million from $3,348 million, reflecting a decline of $1,461 million. Basic and diluted net income per common unit also decreased, with figures of $1.08 for the third quarter and $3.21 for the nine months, down from $1.19 and $5.53, respectively.

Cheniere's cash and cash equivalents as of September 30, 2024, were $331 million, a decrease from $575 million at the end of 2023. Total current assets also declined to $1,186 million from $1,581 million. However, common unitholders’ interest improved to $1,602 million from $1,038 million, and the total partners’ deficit narrowed to $(626) million from $(784) million.

In terms of strategic developments, Cheniere is pursuing an expansion project for additional liquefaction capacity and plans to adopt new segment reporting guidance for its annual report. The company issued $1.2 billion of 5.750% Senior Notes due 2034 in May 2024, using the proceeds to retire an equivalent amount of 5.625% Senior Secured Notes due 2025. Moody’s upgraded the issuer credit rating to Baa2 from Ba1 in May 2024, reflecting improved financial stability.

As of September 30, 2024, Cheniere holds Liquefaction Supply Derivatives with a forward notional amount of approximately 5,744 TBtu, down from 6,245 TBtu at the end of 2023. The company continues to maintain a strong operational capacity at its Sabine Pass LNG Terminal, which remains a key asset in its portfolio.