Cheniere Energy Partners, L.P.

What they do

CQP operates the Sabine Pass LNG Terminal in Louisiana, including liquefaction trains that produce LNG, and the Creole Trail Pipeline, an interstate natural gas pipeline. The partnership exports LNG, loading 108 cargoes (396 TBtu) in the second quarter of 2026 and 220 cargoes (808 TBtu) in the first half of 2026. Its subsidiary SPL owns the liquefaction project and operates with an independent capital structure subject to restricted payment covenants.

Revenue drivers

• LNG sales from the SPL Project — The primary revenue source is LNG produced at the Sabine Pass liquefaction facility, with 2026 second-quarter revenues of $2.6 billion and first-half revenues of $6.2 billion. Volumes recognized in income were 396 TBtu in Q2 2026 and 809 TBtu in H1 2026.
• Integrated Production Marketing (IPM) agreements — Long-term IPM agreements are tied to LNG production and generate fair-value derivative impacts; in Q2 2026 these changes produced approximately $367 million of favorable variances, while H1 2026 reflected $233 million of unfavorable variances.
• Creole Trail Pipeline transportation — The pipeline transports natural gas in interstate commerce and is regulated by FERC, though its financial contribution is not separately disclosed in the excerpts.
• Cash distributions to unitholders — CQP declared a Q2 2026 distribution of $0.820 per common unit ($0.775 base and $0.045 variable), paid August 14, 2026, and reconfirmed full-year 2026 guidance of $3.10–$3.40 per unit.

Recent performance

For the second quarter of 2026, CQP reported revenues of $2.6 billion, net income of $1.2 billion, and Adjusted EBITDA of $1.0 billion. For the first half of 2026, revenues were $6.2 billion, net income $1.3 billion, and Adjusted EBITDA $2.2 billion. Net income rose 110% in Q2 2026 and 13% in H1 2026 versus the prior-year periods, primarily on higher total margins per MMBtu of LNG delivered and, in Q2, $367 million of favorable derivative fair-value changes. LNG volumes loaded and recognized increased 13% in Q2 2026 and 7% in H1 2026.

Strategy

CQP is pursuing the SPL Expansion Project, which as of June 2025 includes a two-phased project with three liquefaction trains and expected peak production capacity of up to approximately 20 mtpa. In May 2026, Sabine Pass Liquefaction Stage V, LLC entered a lump-sum turnkey EPC contract with Bechtel for the first phase and released Bechtel for early engineering and procurement under a limited notice to proceed. In June 2026, CQP issued $1.0 billion of 5.350% Senior Notes due 2036 and $750 million of 6.050% Senior Notes due 2056, using a portion of proceeds to redeem $1.5 billion of SPL's 5.00% Senior Secured Notes due 2027. Management reconfirmed full-year 2026 distribution guidance of $3.10–$3.40 per common unit, maintaining a $3.10 base distribution.

Risks

• Restricted subsidiary cash flows — SPL must deposit all cash received into restricted accounts and is subject to debt covenants limiting distributions, which may constrain cash available to CQP.
• Regulatory and permitting risk — The Sabine Pass LNG Terminal and Creole Trail Pipeline are subject to extensive FERC, state, and local regulation, and failure to comply could result in penalties or loss of authorizations.
• LDEQ compliance matter — Subsidiaries are in discussions with the LDEQ to resolve alleged non-compliance with formaldehyde emission standards at Sabine Pass, though all 44 turbines met the standard for the 2025 testing period.
• Commodity price and derivative volatility — Net income included a $367 million favorable fair-value variance in Q2 2026 but a $233 million unfavorable variance in H1 2026 from derivative instruments, including IPM agreements.

Outlook

Management reconfirmed full-year 2026 distribution guidance of $3.10–$3.40 per common unit, with a $3.10 base distribution. The partnership continues to advance the SPL Expansion Project, having signed an EPC contract with Bechtel for the first phase and issued long-term notes in June 2026. The FERC in September 2025 terminated its proceeding to update the 1999 Policy Statement on natural gas facility certification.