Cheniere Energy Partners LP CQP

Morningstar Rating
$59.75 +0.95 (1.62%)
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Company Report

Cheniere Energy Partners Has Opportunities With New Potential Sabine Pass Expansion

Cheniere Energy Partners sits between North American natural gas producers and global liquefied natural gas consumers. It seeks to strike long-term purchase agreements with producers and consumers alike. These agreements allow the firm to lock in a consistent spread between the cost of gas and the fees it charges customers. Of the volumes Cheniere produces, 90% are linked to these arrangements. The agreements, in part pioneered by Cheniere, last two decades. Their long duration and strength give investors high confidence in their cash generation.

Price vs Fair Value

CQP is trading at a 361% premium.
Price
$59.75
Fair Value
$75.44
Uncertainty
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1-Star Price
$69.12
5-Star Price
$28.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Cheniere’s size and reputation in the industry are substantial and it has successfully contracted volumes over multidecade time frames.

Bears

The MLP structure is out of favor and creates complexities that most investors would prefer to avoid.

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Trading Information

Previous Close Price
$58.80
Day Range
$57.7760.01
52-Week Range
$49.5370.64
Bid/Ask
$24.03 / $95.00
Shares Outstanding
484.05M
Market Cap
$28.92B
Volume/Avg
290,535 / 124,094

Key Statistics

Price/Earnings (Normalized)
20.69
Price/Sales
2.69
Dividend Yield (Trailing)
4.94%
Dividend Yield (Forward)
4.94%
Total Yield
5.17%

Company Profile

Cheniere Energy Partners is a liquified natural gas producer operating one facility in Sabine Pass, Louisiana. It generates most of its revenue through long-term contracts with customers on a fixed- and variable-fee payout structure. It also generates revenue by selling uncontracted LNG to customers on a short or one-time basis. The profit generated through those activities is split with parent and operator Cheniere Energy.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
0

Competitors

Valuation

Metric
CQP
LNG
WMB
Price/Earnings (Normalized)
20.6919.4732.44
Price/Book Value
392.1513.506.80
Price/Sales
2.692.577.40
Price/Cash Flow
9.677.2413.72
Price/Earnings
CQP
LNG
WMB

Financial Strength

Metric
CQP
LNG
WMB
Quick Ratio
0.290.350.66
Current Ratio
0.420.570.83
Interest Coverage
4.384.753.60
Quick Ratio
CQP
LNG
WMB

Profitability

Metric
CQP
LNG
WMB
Return on Assets (Normalized)
14.43%8.97%4.80%
Return on Equity (Normalized)
66.61%21.69%
Return on Invested Capital (Normalized)
20.95%12.98%8.77%
Return on Assets
CQP
LNG
WMB

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Cheniere Energy Inc
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QlmssrssVbv$51B

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