Highlights

  • Cheniere Energy Partners shows 33.68% EPS growth, 12.00 P/E and -1.44 PEG.
  • Second quarter net income was $1,161 million, against $553 million a year earlier.
  • The partnership sold $1.0 billion and $750 million of senior notes in June 2026.
  • On July 28, 2026, it declared a distribution of $0.820 per common unit.

Growth, P/E and PEG sit side by side at Cheniere Energy Partners (NYSE:CQP), an undervalued growth stock: basic earnings per share grew 33.68% over one year, the trailing twelve-month P/E ratio is 12.00 and the PEG ratio, on an expected basis, is -1.44, with units trading at USD 65.62 on October 28, 2026, down 0.21%. In its latest disclosures, the Sabine Pass LNG producer entered a turnkey EPC contract with Bechtel Energy in May, sold $1.0 billion and $750 million of senior notes in June, and reported second quarter 2026 net income of $1,161 million in its quarterly report filed in early August.

Based in Houston, Texas, Cheniere Energy Partners is a Delaware limited partnership formed by Cheniere. It owns the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, with liquefaction production capacity of over 30 mtpa of LNG, five LNG storage tanks, vaporizers and three marine berths, plus the 94-mile Creole Trail Pipeline. It supplies LNG to integrated energy companies, utilities and energy trading companies. The partnership has no employees and relies on services agreements with Cheniere affiliates. Cheniere owned 48.6% of its limited partner interest, 100% of its general partner interest and its incentive distribution rights at June 30, 2026.

Growth: Second Quarter Net Income, Revenues and LNG Volumes

Net income was $1,161 million in the second quarter against $553 million a year earlier, and $1,347 million for the first six months against $1,194 million. Basic and diluted net income per common unit was $2.14 against $0.91 in the quarter, and $2.33 against $1.99 for six months.

Total revenues were $2,583 million against $2,455 million in the quarter. Income from operations was $1,340 million against $715 million. Volumes recognized as revenues were 396 TBtu against 351 TBtu.

The partnership said the quarterly increase in net income was primarily due to $367 million of gains from changes in the fair value of derivative agreements, largely its long-term integrated production marketing agreements before their normal purchases and normal sales designation, and a $192 million increase in revenues net of cost of sales from higher production volume.

Valuation: P/E of 12.00, PEG of -1.44 and Cash Flow Figures

The P/E ratio of 12.00 is measured on trailing twelve-month earnings, and the PEG ratio of -1.44 on expected growth. Net cash provided by operating activities was $1,609 million for the first six months against $1,223 million. Total partners' equity was $754 million at June 30, 2026, against $414 million at December 31, 2025. The partnership stated that it has contracted approximately 90% of the total anticipated production from the Liquefaction Project through the mid-2030s.

Capital Returns, Notes and Liquidity

In June 2026 the partnership issued $1.0 billion of 5.350% Senior Notes due 2036 and $750 million of 6.050% Senior Notes due 2056. It used part of the proceeds to redeem in full $1.5 billion of SPL's 5.00% Senior Secured Notes due 2027. Total debt was $14,577 million at June 30, 2026, against $14,580 million at December 31, 2025.

Total available liquidity was $2,337 million, including $443 million of cash and cash equivalents and $1,871 million of available commitments under two revolving credit facilities of $1,000 million each.

The partnership paid $0.830 per common unit on February 13, 2026 and $0.790 on May 15, 2026. On July 28, 2026 it declared $0.820 per common unit for the second quarter, payable August 14, 2026, consisting of a base amount of $0.775 and a variable amount of $0.045.

Disclosed Risks and Outlook

Cost of natural gas feedstock rose $479 million between the six-month periods, largely on higher U.S. natural gas prices. Derivative fair-value changes were a negative $233 million between the six-month periods, which the partnership attributed primarily to elevated global natural gas price volatility tied in part to conflict in parts of the Middle East during 2026. It said derivatives not designated under the normal purchases and normal sales exception may continue to produce volatile results, and that SPL's debt agreements restrict its distributions and certain other payments. Legal proceedings had no material changes from the 2025 annual report.

For the SPL Expansion Project, with expected peak capacity of up to approximately 20 mtpa of LNG, the FERC environmental assessment, Section 3 order and construction certification and the DOE non-FTA export authorization were pending. The partnership expects a phased final investment decision in 2026 or 2027, subject to regulatory approvals and acceptable commercial and financing arrangements. It issued no earnings guidance.