Cheniere Energy Partners (CQP -0.77%), a major liquefied natural gas exporter and operator of the Sabine Pass LNG Terminal, released its second quarter 2025 results on August 7, 2025. The most important headline was strong revenue growth of 30% year over year, but Both revenue and GAAP earnings per share fell short of analyst forecasts. The company reported GAAP revenue of $2.455 billion, compared to consensus estimates of $2.57 billion, and GAAP earnings per share were $0.82, compared to an anticipated $0.94. Operational headwinds related to scheduled maintenance weighed on earnings, but the distributor reaffirmed its full-year payout guidance. The quarter revealed robust underlying demand and business fundamentals, but margin pressure and slightly lower volumes tested short-term performance.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $0.91 | $0.94 | $0.95 | (4.2%) |
| Revenue | $2.46 billion | $2.57 billion | $1.89 billion | 30.0 % |
| Net Income | $553 million | $570 million | (3.0%) | |
| Adjusted EBITDA | $726 million | $832 million | (12.7 %) | |
| LNG Exported – Number of Cargoes | 98 | 103 | (4.9 %) |
Source: Analyst estimates for the quarter provided by FactSet.
Business Model and Core Focus
Cheniere Energy Partners operates one of the world's largest liquefied natural gas (LNG) export facilities, the Sabine Pass LNG Terminal, located on the U.S. Gulf Coast. Its business revolves around converting natural gas into LNG for export to global markets. Revenue comes from long-term contracts with buyers worldwide, offering stability through fixed fees and limited exposure to price swings in spot natural gas markets.
In recent years, the company has focused on scaling up its production and export capabilities to meet growing global demand. Expanding the terminal’s capacity, maintaining regulatory compliance, and ensuring high levels of plant utilization are central to its long-term success. The ongoing SPL Expansion Project and a heavy emphasis on contract-backed sales are key strategic priorities. Efficient operations and reliable infrastructure remain vital amid changing market and regulatory pressures.
Quarter Highlights: Financial and Operational Developments
Revenue (GAAP) rose 30% compared to Q2 2024, but this gain was not enough to outpace rising costs and lower production volumes. Net income dipped 3% (GAAP), and Adjusted EBITDA—a non-GAAP key profit measure that strips out some non-cash items—declined 12.7%. The company exported 98 LNG cargoes, a 4.9% decrease compared to Q2 2024, as scheduled maintenance reduced throughput. The drop in exported volumes reflects unavoidable downtime due to the upkeep of the Sabine Pass facility’s equipment, and it also meant fewer cargoes to recognize as income.
Maintenance not only limited production but also increased the cost of sales (GAAP), which reached $1,196 million in Q2 2025, up sharply from $661 million in Q2 2024. This increase outpaced revenue growth. The company attributed lower net income and adjusted EBITDA to these planned interruptions, noting, “periods were primarily attributable to planned maintenance activities during the three months ended June 30, 2025 resulting in higher operating expenses and lower volumes recognized in income during the period.”
Despite short-term cost and volume pressures, the company continued to benefit from the scale and reliability of the Sabine Pass facility. As of August 2025, over 3,000 cargoes and about 210 million tonnes of LNG have been shipped since 2016. This underscores the terminal’s operational track record. In June 2025, Cheniere Partners updated its application for the SPL Expansion Project to outline a two-phase plan. Regulatory progress remained on schedule, with updated filings submitted to the Federal Energy Regulatory Commission (FERC) to preserve the next stage of capacity growth, targeting up to 20 million tonnes per annum (mtpa) of new LNG output.
The structure of long-term sales and purchase agreements (SPAs), covering about 80% of annual production with a weighted average remaining life of approximately 13 years as of December 31, 2024, helped maintain solid cash flows. The company declared a Q2 2025 distribution of $0.82 per common unit, including a base and a small variable component—and reaffirmed its full-year 2025 distribution guidance of $3.25 to $3.35 per common unit. This stability in investor returns continues to be supported by predictable cash from these multi-year contracts.
Looking Ahead: Guidance and Investor Considerations
Management reiterated its full-year 2025 distribution guidance, projecting a payout between $3.25 and $3.35 per common unit, with a base distribution of $3.10 for 2025. The reaffirmed guidance signals that management expects steady contracted cash flows to offset near-term cost and volume headwinds.
Investors should watch ongoing developments in the SPL Expansion Project, further regulatory milestones, and potential changes in global LNG demand. The company’s heavy use of scheduled maintenance underscores its long-term focus but can cause short-term disruption in volumes and profits. Cheniere Energy Partners does pay a quarterly distribution; the most recent dividend was declared at $0.82 per unit.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
