Cheniere Energy Partners, LP Common Units
CQP · NYSE
Next quarter
Reports Oct 29, 2026.
Consensus is $1.02 EPS for Sep 2026 across 4 estimates, ranging $0.94 to $1.14.
CQP Jun 2026
- 15.79%
- $0.95
- $1.10
- —
- $2.58B
Reported results
- $2.58B
- $1.34B
- 51.88%
- $1.16B
Highlights
- Earnings beat: Reported EPS was $1.10 versus $0.95 consensus, a 15.79% surprise; GAAP net income per common unit was $2.14 versus $0.91 a year ago.
- Operating rebound: Revenue rose 5% year over year to $2.58 billion, while operating income increased 87% to $1.34 billion and net income more than doubled to $1.16 billion.
- Higher volumes: LNG volumes recognized as revenue increased 13% to 396 TBtu, or 108 cargoes versus 98 in the year-ago quarter, as last year’s major maintenance did not recur.
- Derivative benefit: Second-quarter net income included approximately $367 million of favorable derivative fair-value variances, primarily from IPM agreements, while Adjusted EBITDA rose 35% to $983 million.
- Sequential improvement: Versus Q1 2026, revenue fell from $3.60 billion to $2.58 billion, but operating income rose from $361 million to $1.34 billion and net income from $186 million to $1.16 billion.
- Distribution maintained: CQP declared a $0.820 per-unit distribution, comprising a $0.775 base and $0.045 variable amount, and reaffirmed 2026 guidance of $3.10-$3.40 per unit.
- Expansion advanced: CQP signed a lump-sum EPC contract with Bechtel for the first phase of the SPL Expansion Project and issued a limited notice to proceed; the phase includes Train 7 with capacity above 6 mtpa.
- Balance-sheet actions: CQP issued $1.75 billion of senior notes at 5.350% due 2036 and 6.050% due 2056, using part of the proceeds to redeem $1.5 billion of SPL notes due 2027.
Analysis
Cheniere Energy Partners delivered a strong second quarter against the supplied $0.95 EPS consensus, with reported EPS of $1.10 and a 15.79% beat. Revenue of $2.58 billion increased 5% from $2.46 billion a year ago but declined 28% from $3.60 billion in Q1 2026. GAAP net income rose 110% year over year to $1.16 billion from $553 million and increased sharply from $186 million in the prior quarter; operating income was $1.34 billion versus $715 million a year ago and $361 million in Q1. The supplied reported EPS differs from the filing’s GAAP net income per common unit of $2.14, reflecting a different earnings basis.
The print was defined by a volume recovery and favorable mark-to-market effects. Recognized LNG volumes rose 13% year over year to 396 TBtu, helped by the absence of large-scale maintenance that reduced the year-ago quarter’s output. Adjusted EBITDA increased 35% to $983 million. Net income also benefited from approximately $367 million of favorable derivative variances, although CQP’s June designation of IPM agreements under the normal-purchases-and-normal-sales exception should reduce future fair-value volatility. CQP maintained its $3.10-$3.40 full-year distribution guidance, while moving the roughly 20-mtpa SPL expansion toward construction through Bechtel’s early engineering and procurement work.
Quarterly financial performance
- Revenue: Total revenue was $2.583 billion, up $128 million, or 5%, from $2.455 billion in Q2 2025. Higher production contributed $305 million, partly offset by a $167 million pricing decline tied mainly to lower Henry Hub prices.
- Profitability: Operating income reached $1.340 billion versus $715 million a year earlier, while net income was $1.161 billion versus $553 million. Adjusted EBITDA increased $257 million, or 35%, to $983 million.
- Sequential comparison: Revenue declined $1.017 billion from Q1’s $3.60 billion, but operating income increased $979 million and net income increased $975 million, reflecting the prior quarter’s unusually weak result and the second quarter’s favorable derivative marks.
- Cash generation: Six-month operating cash flow increased to $1.609 billion from $1.223 billion, while capital spending rose to $299 million from $131 million, including $99 million for the SPL Expansion Project.
LNG volumes and margins
CQP recognized 396 TBtu of LNG loaded in the quarter, up from 351 TBtu in Q2 2025, with 108 cargoes versus 98. Management attributed the increase primarily to the absence of planned large-scale maintenance that affected the year-ago quarter. For the first half, recognized volumes increased 7% to 809 TBtu, supporting a $343 million year-over-year increase in revenue net of cost of sales excluding derivative fair-value changes. Higher U.S. natural gas pricing also contributed to the first-half revenue increase, while feedstock costs rose $479 million.
Derivative accounting change
Derivative valuation was a major swing factor in the quarter. CQP recorded approximately $367 million of favorable fair-value variance year over year, largely from long-term IPM agreements before their accounting designation changed. The six-month comparison was less favorable, with approximately $233 million of unfavorable derivative variance. In June, CQP designated the IPM agreements under the normal-purchases-and-normal-sales exception, removing them from recurring mark-to-market accounting and establishing $520 million of net deferred gains and losses to be amortized over the remaining contract terms. Management estimates $57 million of related gain amortization in 2026 and $520 million in total.
Distribution and liquidity
- Distribution: The declared Q2 distribution was $0.820 per common unit, up from $0.790 for Q1 2026. It includes a $0.775 base amount, equivalent to $3.10 annualized, and a $0.045 variable amount.
- Guidance: Full-year 2026 distribution guidance was reaffirmed at $3.10-$3.40 per unit, with the base distribution maintained at $3.10.
- Liquidity: At June 30, CQP had $443 million of cash, $23 million of restricted cash and $1.871 billion of available revolver commitments, for total available liquidity of $2.337 billion.
- Debt refinancing: CQP issued $1.0 billion of 5.350% notes due 2036 and $750 million of 6.050% notes due 2056. It used part of the proceeds to redeem SPL’s $1.5 billion of 5.00% notes due 2027; total debt was $14.577 billion at quarter-end versus $14.580 billion at year-end.
SPL expansion project
CQP advanced the proposed SPL Expansion Project, which has expected peak capacity of up to approximately 20 mtpa across a phased development. In May, SPL Stage V signed a lump-sum, turnkey EPC contract with Bechtel and issued a limited notice to proceed for early engineering and procurement. The first phase includes a single Train 7, a boil-off-gas re-liquefaction unit and related infrastructure, with expected production capacity above 6 mtpa. A positive FID remains subject to regulatory approvals, commercial arrangements and financing; FERC and DOE authorization for exports to non-free-trade-agreement countries remained pending.
