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Cheniere Energy Partners Increased Its Distribution

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Oct. 30 2017, Updated 1:40 p.m. ET

Cheniere Energy Partners’ 3Q17 distribution

Cheniere Energy’s (LNG) MLP subsidiary, Cheniere Energy Partners (CQP), announced a quarterly distribution increase for the first time since its IPO. The partnership declared a distribution of $0.44 per unit for the third quarter, which represents a $0.01 per unit (or 2.3%) increase compared to the previous quarter. Cheniere Energy, which currently depends on Cheniere Energy Partners for distribution income, is expected to benefit from the partnership’s distribution increase. Cheniere Energy receives distribution income through direct or indirect ownership of limited partnership interest, IDRs (incentive distribution rights), and GP (general partner) interest in Cheniere Energy Partners.

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Cheniere Energy’s distribution targets

Cheniere Energy expects to receive $6.5 billion in cash flow during the 2017–2021 period. It includes $0.8 billion from GP/IDRs interest in Cheniere Energy Partners, $0.8 billion distribution income from Cheniere Marketing, $1.2 billion distribution income from Corpus Christi Holdings, and $2.3 billion dividends from Cheniere Energy Partners Holdings (CQH). Cheniere Energy Partners Holdings is a holding company of Cheniere Energy Partners. Cheniere Energy expects to use $4 billion of the cash flows for dividend payments, buybacks, and more expansions.

In the next part, we’ll discuss Cheniere Energy’s recent market performance and price forecast.

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