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Cheniere Energy Partners, LP (CQP) Down 0.6% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Cheniere Energy Partners, LP (CQP). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Cheniere Energy Partners, LP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Cheniere Partners Q1 Earnings Beat Estimates

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.

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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.

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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Cheniere Energy Partners, LP has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Cheniere Energy Partners, LP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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