Cheniere Energy Partners (CQP) - Cabot Wealth Network

Cheniere Energy Partners (CQP)


Cheniere Energy Partners (CQP) is a master limited partnership that owns and operates the Sabine Pass LNG receipt terminal, as well as the Creole Trail Pipeline in Cameron Parish, Louisiana. The company is the limited partner of Cheniere Energy Inc. (LNG).

The prospects for CQP are great, especially considering it’s already inked various deals for LNG shipments abroad, and the Sabine Pass Facility will begin to fulfill these contracts at the end of the year.

This is part of the reason we are buying shares now: The LP will soon start raking in steady and reliable cash flow, which will directly affect the distributions paid out to unit-holders. Moreover, we’re looking at even more value added as shares move higher over the long term.

CQP is on the verge of some major growth catalysts right now. First—and perhaps most important—is the fact that LNG exports are expected to start this January.

Moreover, Cheniere Energy recently reported that it expects to receive natural gas to convert into super-chilled liquid at its first U.S. LNG export terminal before year-end.

It’s only a matter of time now before Cheniere’s first LNG plant starts up, and the company expects to have a new production train starting up every six months until mid-2019. This means it will have seven total lines of gas liquefaction accounting for approximately half of the 65 million tonnes per year of LNG export capacity currently under construction in the United States.

Major oil and gas companies are lining up to buy up the LNG coming out of Sabine Pass. The company is looking at approximately $2.9 billion in fixed-fee revenue per year for the next two decades!

Analysts expect CQP to generate $288.9 million in revenue in 2015, then surge 415% to $1.49 billion in 2016. Furthermore, CQP is also expected to post positive earnings of $0.31 per share next year. We’re taking our position now ahead of this growth.

Finally, we absolutely cannot forget the solid quarterly distributions that CQP currently offers: $0.425 per common unit.

Cheniere Energy Partners is currently rated a BUY for us under $35.

Keith Kohl, High Yield Energy Report,, 877-303-4259, October 2015


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