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Cheniere (CQP) Units Gain 2.8% Since Q1 Earnings Top Estimates

Cheniere Energy Partners, L.P.’s CQP units have gained 2.8% since it reported strong first-quarter 2023 earnings on May 2.

Cheniere recorded first-quarter 2023 earnings per unit of $1.43, beating the Zacks Consensus Estimate of 70 cents. The bottom line significantly increased from 73 cents per unit in the year-ago quarter.

Total quarterly revenues of $2,917 million were lower than the year-ago level of $3,328 million. The top line missed the Zacks Consensus Estimate of $3,014 million.

Strong quarterly earnings resulted from a rise in the volumes of LNG delivered and a lower cost of sales.

Cheniere Energy Partners, LP Price, Consensus and EPS Surprise

 

Cheniere Energy Partners, LP Price, Consensus and EPS Surprise
Cheniere Energy Partners, LP Price, Consensus and EPS Surprise

Cheniere Energy Partners, LP price-consensus-eps-surprise-chart | Cheniere Energy Partners, LP Quote

Operations

Cheniere sent 112 cargoes in the first quarter, up from 105 in the year-ago period. Total LNG volumes loaded in the quarter were 403 trillion British thermal units (TBtu), higher than the year-ago level of 385 TBtu.

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Adjusted EBITDA in the first quarter was $1,026 million, down from the year-ago level of $1,031 million. The decrease resulted from lower regasification revenues. The negatives were partially offset by a rise in the volumes of LNG delivered.

Costs and Expenses

The cost of sales for the quarter was $313 million, significantly down from the year-ago period’s $2,562 million. Yet, operating and maintenance expenses increased to $206 million from $170 million in first-quarter 2022.

Total costs and expenses for the quarter were $788 million, down from $2,966 million in the March-end quarter of 2022.

Cash Flow

In the first quarter, Cheniere generated an operating net cash flow of $847 million, higher than the year-ago quarter’s $800 million.

Balance Sheet

As of Mar 31, 2023, the partnership had $834 million in cash and cash equivalents, declining from $904 million at the fourth-quarter end. Cheniere had a net long-term debt of $16,145 million, lower than $16,198 million at the fourth-quarter end.

Guidance

For 2023, the Zacks Rank #3 (Hold) partnership stated its guidance for distribution per unit at $4-$4.25. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Glimpse of Other Midstream Companies’ Q1 Earnings

Kinder Morgan, Inc. KMI reported first-quarter 2023 adjusted earnings per share of 30 cents, beating the Zacks Consensus Estimate by a penny. Better-than-expected quarterly earnings were primarily aided by higher gathering and transport volumes.

For 2023, KMI projects a net income attributable to the midstream player of $2.5 billion. For this year, it expects a dividend of $1.13 per share, suggesting an increase of 2% from the prior-year reported figure.

Crestwood Equity Partners LP CEQP reported first-quarter adjusted earnings of 15 cents per unit, in line with the Zacks Consensus Estimate. The bottom line reversed from the year-ago quarter’s loss of 4 cents per unit.

For 2023, Crestwood expects adjusted EBITDA of $780-$860 million, suggesting an improvement from the $762.1 million reported in 2022. The partnership expects a free cash flow after paying distributions of $10-$90 million.

Enbridge Inc. ENB recorded first-quarter adjusted earnings per share of 63 cents, beating the Zacks Consensus Estimate of 62 cents. The bottom line declined from the year-ago quarter’s 66 cents.

For 2023, Enbridge projects EBITDA of C$15.9-C$16.5 billion, indicating an increase from the C$12 billion reported in 2022. The company expects distributable cash flow per share of C$5.25-C$5.65 for the year, the mid-point of which suggests an increase from the C$5.42 reported in 2022.

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