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Cheniere Energy (CQP) Units Gain 2.2% Despite Q2 Earnings Miss

Cheniere Energy Partners, L.P.’s CQP units have gained 2.2% since the second-quarter 2022 earnings announcement on Aug 4. The upward price movement can be attributed to the hike in distribution, which signals its operational strength to investors.

The company reported second-quarter earnings per unit of 25 cents, missing the Zacks Consensus Estimate of 90 cents. The bottom line also declined from 73 cents per unit in the year-ago quarter.

Total quarterly revenues of $4,181 million were higher than the year-ago level of $1,889 million. The top line beat the Zacks Consensus Estimate of $3,735 million.

Weak quarterly earnings resulted from the higher cost of sales, and operating and maintenance expenses.

Cheniere Energy Partners, LP Price, Consensus and EPS Surprise

 

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

Cash Distribution

Cheniere Energy announced a cash distribution of $1.06 per common unit, comprising a base amount of 77.5 cents and a variable amount of 28.5 cents. The metric suggests a marginal improvement from the prior distribution. The common unit distribution will be paid out on Aug 12, 2022, to unitholders of record as of Aug 4, 2022.

Operations

Cheniere Energy sent 103 cargoes in the second quarter, up from 87 in the year-ago period. Total LNG volumes loaded in the quarter were 375 trillion British thermal units (TBtu), higher than the year-ago level of 313 TBtu.

Adjusted EBITDA in the second quarter was $977 million, up from the year-ago level of $690 million. Profits increased in the reported quarter due to a rise in the volumes of LNG delivered and increased prices per MMBtu of LNG delivered.

Costs and Expenses

The cost of sales for the quarter was $3,144 million, up from the year-ago period’s $888 million. Operating and maintenance expenses increased to $191 million from $168 million in second-quarter 2021.

Total costs and expenses for the quarter were $3,626 million, significantly up from $1,285 million in the June-end quarter of 2021.

Cash Flow

Cheniere Energy generated an operating net cash flow of $1,586 million for the first six months of 2022, higher than the year-ago level of $1,075 million.

Balance Sheet

As of Jun 30, 2022, the partnership had $1,111 million in cash and cash equivalents, declining from $1,156 million at the first-quarter end. Cheniere Energy had a net long-term debt of $15,693 million, lower than $17,184 million at the first-quarter end.

Guidance

For 2022, Cheniere Energy reiterated its guidance for distribution per unit at $4-$4.25.

Zacks Rank & Stocks to Consider

The partnership currently carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TotalEnergies SE TTE reported second-quarter 2022 operating earnings of $3.75 per share, meeting the Zacks Consensus Estimate. The outperformance resulted from an increase in commodity prices.

TotalEnergies has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. TTE is expected to see earnings growth of 107% in 2022.

RPC, Inc. RES reported adjusted earnings of 22 cents per share in the second quarter, beating the Zacks Consensus Estimate of 10 cents. The strong quarterly earnings were backed by higher activity levels in all the service lines and improved pricing.

RPC has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Value. RES is expected to see earnings growth of 1733.3% for 2022.

PBF Energy Inc. PBF reported second-quarter earnings of $10.58 per share, comfortably beating the Zacks Consensus Estimate of earnings of $7.36. The strong quarterly results were driven by increased contributions from the Refining segment.

PBF Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value and Growth. PBF is expected to see earnings growth of 764.4% in 2022.


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Cheniere Energy Partners, LP (CQP): Free Stock Analysis Report
 
RPC, Inc. (RES): Free Stock Analysis Report
 
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