Cheniere Energy Partners, LPNYSEMKT
Wed, Oct. 12, 2:57 PM
- Cheniere Energy (LNG -0.6%) and Cheniere Energy Partners (CQP -0.7%) are resumed with Outperform ratings at Credit Suisse, which says current prices present an attractive entry point to a story with potential for step-up in distribution and dividend growth by Q1 2018.
- The firm notes Cheniere’s seven-train portfolio has secured ~$4.25B/year in 20-year take-or-pay fees, with upside from monetizing marketing capacity and potential upside from opportunistic investments in the global liquefied natural gas landscape, and believes investor confidence should improve as construction and export cargoes progress.
- Credit Suisse suggests the safer CQP for conservative yield-focused investors, albeit with limited upside and catalysts, while investors with a long-term bullish view on commodity fundamentals should choose LNG, which has exposure to most of the growth optionality.
Fri, Sep. 16, 8:12 AM
- Cheniere Energy (LNG, CQP, CQH) announces substantial completion of Train 2 at the Sabine Pass liquefaction project in Louisiana.
- Commissioning has been completed, and development partner Bechtel is turning over care, custody and control of Train 2 to Cheniere.
- Financial results of liquefied natural gas sales from Train 2 going forward will be reflected in the statements of CQP and its affiliates.
Fri, Aug. 26, 1:54 PM
- Sentiment is improving and "recovery emerging” around energy MLPs, Citi's Faisel Khan says, citing Improving commodity prices and tighter credit spreads as the main reasons, as some companies are positioning for volume growth.
- The analyst offers six "value picks": TRGP, OKS, NS, BWP, TLLP and CQP.
- Khan's "key thematic picks" are Energy Products Partners (NYSE:EPD), as a play on growth in natural gas liquids, Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP) on growth in the Permian basin, and EnLink Midstream (NYSE:ENLC), as a play on Oklahoma expansion.
Tue, Aug. 9, 8:11 AM
Tue, May 31, 6:15 PM
- Cheniere Energy Partners (NYSEMKT:CQP) says it has completed commissioning of its first liquefaction train at the Sabine Pass liquefaction project in Louisiana.
- CQP says it is taking control of Train 1 "months ahead of the guaranteed completion date and on budget."
- CQP says it plans to construct up to five more liquefaction trains, which are in various stages of development and construction.
- BG Group owns rights to most of the supply to be produced from Train 1, and CQP expects the first major commercial delivery of LNG from Train 1 to BG to occur in November.
Tue, May 24, 5:47 PM
- Citigroup analysts Faisel Khan and George Wang rebut the bear argument against Cheniere Energy (NYSEMKT:LNG) proffered by critics such as Jim Chanos, suggesting two potential catalysts that could drive shares higher.
- First, Citi believes new LNG CEO Jack Fusco will provide visibility to the market on the timing of when the company will be profitable and when it will start returning capital to shareholders.
- Second, the firm notes that LNG’s marketing entity has contracts to sell 84 liquefied natural gas cargoes through 2018 that could be valued at $1B in gross revenue, and visibility on the margin for the cargoes could provide clarity on the potential cash flows from marketing.
- Citi maintains its Buy ratings for LNG, Cheniere Energy Partners (NYSEMKT:CQP) and Cheniere Energy Partners LP (NYSEMKT:CQH) with respective $47, $36 and $23 price targets.
Wed, May 11, 7:27 PM
- Bernstein analysts initiate several midstream and pipeline MLPs, estimating that less than 7% of MLPs $70B in service revenues are at risk in a $40/bbl oil environment; oil production volumes will likely fall this year, but midstream pipeline plays will mostly be unaffected, the firm says.
- On the other hand, the firm sees less long-term upside to MLPs than many investors expect, as after next year existing and in-progress gas and crude infrastructure will be sufficient to handle forward production through 2025.
- Bernstein prefers Enterprise Products Partners (NYSE:EPD) because of its significant committed market-based projects, and Williams Partners (NYSE:WPZ) and Williams Cos. (NYSE:WMB) on the belief they have been unfairly punished due to expected dividend cuts; the firm rates EPD, WPZ and WMB at Outperform.
- Bernstein ranks Kinder Morgan (NYSE:KMI), Spectra Energy (NYSE:SE), Spectra Energy Partners (NYSE:SEP), Energy Transfer Partners (NYSE:ETP), Energy Transfer Equity (NYSE:ETE), Cheniere Energy (NYSEMKT:LNG) and Cheniere Energy Partners (NYSEMKT:CQP) at Market Perform; the only name rated Underperform is Sunoco Logistics (NYSE:SXL).
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Thu, May 5, 5:23 PM
- Cheniere Energy (NYSEMKT:CQP): Q1 EPS of -$0.08 misses by $0.01.
- Revenue of $67.07M (-0.7% Y/Y) misses by $64.79M.
Fri, Mar. 11, 7:02 PM
- NGL Energy Partners (NYSE:NGL) fell more than 10% in today's trade after Goldman Sachs downgraded units to Sell from Neutral with a $6 price target, slashed from $12, but three other energy MLPs downgraded by the firm fared better.
- Goldman sees material risk to NGL’s distributions given weak historical and projected cash flow conversion, high GAAP leverage of 7.2x vs. a peer average of 4.4x, and poor current coverage of ~0.6x.
- The firm expects volume pressure and limited organic growth opportunities to adversely impact NGL’s ability to conserve liquidity and maintain distributions.
- Cheniere Energy Partners (NYSEMKT:CQP), Summit Midstream Partners (NYSE:SMLP) and Western Gas Equity Partners (NYSE:WGP) posted gains or finished flat despite being downgraded to Neutral from Buy.
- Goldman notes that while CQP offers a total return opportunity of 18%, it is less attractive than that offered by Cheniere Energy (NYSEMKT:LNG) and Cheniere Energy Partners Holdings (NYSEMKT:CQH), which offer respective total return opportunities of 30% and 28%.
Tue, Mar. 8, 5:17 PM
- A U.S. bankruptcy judge says Sabine Oil & Gas (OTCPK:SOGCQ) can reject contracts with midstream companies it made before oil and gas prices plunged.
- But the judge says her ruling is not binding, potentially setting the stage for another legal battle over the pipeline operators' argument that the agreements cannot be broken because they are inextricably tied to the land on which Sabine operates.
- The ruling covers agreements with two companies, including an affiliate of Cheniere Energy (NYSEMKT:LNG), that gather natural gas for Sabine in specific geographic locations; Sabine has said that rejecting the contracts could save as much as $115M for the bankruptcy estate.
- Restructuring and energy experts have warned that a loss for Sabine's pipeline operators could inspire other bankrupt oil and gas producers to seek similar relief, spreading the distress that has plagued them to the midstream companies that process and transport oil and natural gas.
- Similar requests are pending in the chapter 11 cases of companies including Quicksilver Resources (OTCPK:KWKAQ) and Magnum Hunter Resources (OTCPK:MHRCQ); a Delaware judge is expected to rule on KWK's request by the end of the month.
- Pipeline stocks include: KMI, ENB, EEP, SE, SEP, WMB, ETE, ETP, OKS, PAA, PBA, MMP, CQP, BWP, BPL, WES, SXL, NS, NSH, TCP, NGL, DPM, GEL, HEP, APL, SEMG, TLLP, MMLP, TLP, SGU, BKEP
Fri, Mar. 4, 2:37 PM
- Cheniere Energy (LNG +3%) is initiated with an Overweight rating and $54 price target at J.P. Morgan, which cites cash flows stemming from blue-chip customer contracts and visible project catalysts.
- JPM credits LNG as the first North American mover, beginning its services two years before the next U.S. peer, which allows the company to have the scale and diversification in the Americas to potentially drive increasing market share, revenue growth and profit margins.
- The firm also highlights LNG’s value driven contracts, which remain favorable as there are no opportunities to change the fixed fees or re-sell contracts for customers, allowing the company to remain a market leader and drive value for shareholders in 2016.
- Cheniere Energy Partners (CQP -3%) and Cheniere Energy Partners (CQH +0.9%) also are initiated at Overweight.
Fri, Feb. 19, 8:38 AM
- Cheniere Energy Partners (NYSEMKT:CQP): Q4 EPS of $0.01 may not be comparable to consensus of -$0.12.
- Revenue of $67.27M (+1.1% Y/Y) beats by $1.05M.
Thu, Jan. 28, 2:58 PM
- Standard & Poor's raises its corporate credit rating on Cheniere Energy (LNG +1.3%) to BB- from B+ with a stable outlook,
- S&P says Cheniere has improved its business risk profile through managing key risks for successful construction and operation of its Sabine Pass Liquefaction project and by the successful debt and partial equity raise to build its Corpus Christi LNG project, which the firm says is "imperative... because of the inherent volatility in receiving residual cash flows."
- The ratings agency expects stable cash flow from Cheniere Energy Partners (CQP -1.8%), as construction at Sabine Pass is progressing in line with budget and schedule expectations.
Fri, Jan. 22, 5:00 PM
- Cheniere Energy (NYSEMKT:CQP) declares $0.425/share quarterly dividend, in line with previous.
- Forward yield 7.3%
- Payable Feb. 12; for shareholders of record Feb. 1; ex-div Jan. 28.
Thu, Jan. 14, 11:47 AM
- Cheniere Energy (LNG, CQP) says it has delayed the first export of liquefied natural gas from its plant at Sabine Pass, La., by about a month until late February or early March, citing “instrumentation issues” discovered during the final phases of plant commissioning that it will work to fix during the next few weeks.
- LNG interim CEO Neal Shear says the company remains ahead of the guaranteed contractual schedule with engineering and construction contractor Bechtel and anticipates meeting all contractual targets and completion dates.
- Cheniere plans to build at least six trains to produce LNG at the ~$15B Sabine Pass project by late 2018, allowing the terminal to supply more than 3.5B cf/day.
- LNG -1.8%, CQP -2.4%.
Dec. 28, 2015, 11:45 AM
- WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
- Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
- The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
- Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
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