Cheniere Energy Partners, L.P. (CQP) Stock Analysis
Cheniere Energy Partners, L.P.
▾ What's in the 57/100 risk score? (higher = riskier)
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend, DCF applicability). See the Financial Health section for the full balance-sheet read.
How to read CQP (regulated utility)
A regulator sets what a utility can earn, so its value tracks book value, dividend yield and payout — not a free-market DCF.
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Utility lens (P/B, yield, payout) ↓
These are the metrics utility-fund managers actually use.
Is now a good time to buy CQP?
Macro: Neutral / mid-cycleCQP trades at $67.74 vs an estimated intrinsic value of $42.66 — a +58.8% premium to model IV.
Not investment advice. The model can be wrong. Verify the assumptions in the sections below and consider consulting a licensed advisor for significant decisions.
What return would CQP pay as a bond?
Not measurable here. Valued on the dividend stream: the dividend itself is this security's coupon, and its yield is shown in the dividend lens. See the cross-company ranking →
Football field: where does the price sit?
Different valuation methods produce different fair-value ranges depending on assumptions. Plotting them together lets you see at a glance whether the current price is reasonable across approaches, or only one specific lens.
Industry multiples sourced from: industry similar to Utilities. See the Peer Basket section below for the peer comparison and its limited-comparables caveat.
How does CQP stack up against its closest peers?
We take the 8 same-industry companies most similar to CQP (similar size) and check what investors are paying for each dollar of their revenue (or profits). If CQP is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
2.5x / 4.3x / 4.8x |
| EV / EBITEV / EBITDA — Enterprise value divided by earnings before interest, tax, depreciation, and amortization. Why it matters: A classic "what would a private buyer pay" multiple — used in M&A. Strips out tax and capital-structure noise. Reference: 8–12x for mature businesses · 15–25x for growth · Below 5x often signals distress Full explanation → |
10.5x / 13.7x / 18.1x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| VG | Venture Global, Inc. | Gas Utilities | $31.7B | 4.8x | — | 12.8x | 1.5% |
| ATO | ATMOS ENERGY CORP | Gas Utilities | $28.2B | 6.0x | — | 18.1x | 2.0% |
| TGS | GAS TRANSPORTER OF THE SOUTH INC | Gas Utilities | $23.4B | — | — | — | 3.0% |
| LNG | Cheniere Energy, Inc. | Gas Utilities | $47.1B | 2.4x | — | 5.2x | 0.9% |
| TCPA | TRANSCANADA PIPELINES LTD | Gas Utilities | $20.8B | — | — | — | 3.0% |
| OKE | ONEOK INC /NEW/ | Gas Utilities | $52.9B | 2.5x | — | 14.6x | 4.9% |
| TRGP | Targa Resources Corp. | Gas Utilities | $54.7B | 4.2x | — | 21.7x | 3.0% |
| WES | Western Midstream Partners, LP | Gas Utilities | $16.9B | 4.4x | — | 10.5x | 8.5% |
Distribution coverage matters more than P/E
Midstream pipelines pay big distributions (the headline reason to own them) funded by Distributable Cash Flow. The critical metric is the Coverage Ratio — how comfortably DCF exceeds distributions. Below 1.0× means the distribution is borrowed; below 1.1× means no margin of safety for a commodity downturn.
Note: We approximate Distributable Cash Flow via FCF (subtracts all CapEx), which over-penalizes growth-CapEx-heavy midstream. The company-reported "DCF" typically adds back growth CapEx, making coverage look stronger. Treat this as a conservative floor. Also: most MLPs issue K-1 tax forms instead of 1099-DIVs (distributions are partially tax-deferred return of capital), but some GP holding vehicles — Plains GP Holdings (PAGP) is one — elected corporate tax treatment and send a 1099; check the issuer's own tax election.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
Midstream MLPs run high leverage backed by long-life pipeline infrastructure — Altman Z flags this as distress even when the cash flows are contractually locked in. See the MLP / Pipeline Lens above for the metric that actually matters: Distribution Coverage Ratio.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
Piotroski F's checks (operating cash flow, gross-margin trend, current ratio, asset turnover) assume an industrial cost structure, so they misread asset-heavy or financial businesses like this one — a healthy REIT, utility, pipeline, BDC/fund or holding company can score low for reasons that aren't weakness. See the sector lens above for the metrics that actually matter.
What if you assume different inputs?
Here's where we land — and what happens if you change the assumptions. Drag the sliders to set your own Discount RateDiscount Rate — The annual return you demand for taking single-stock risk instead of buying a safe Treasury or index fund.
Why it matters: Higher discount rate = stricter valuation (a stock has to produce more cash to be worth holding). Lower = more generous.
Reference: 8–12% is standard · 9–10% matches S&P 500 historical return · Below 7% is illogical for single-stock risk
Full explanation → (the annual return you demand for single-stock risk) and terminal growth; the value updates live so you can see whether the stock looks cheaper or richer. The discount rate starts at 6.5%, the figure our model used for CQP. Open Advanced to also change beta, growth and the rate path.
Note: the calculator opens at our published value of $42.66 — it is initialised to the same scenario-weighted result, so the two match exactly on load. The moment you move a slider, the value below becomes a single-path what-if at your assumptions (not the three-scenario weighting), which is why it can differ from the headline once you've touched it.
6.5% — beta-based (CAPM), from this stock's BetaBeta — How much the stock moves when the overall market moves. 1.0 = moves with the market; 1.5 = moves 50% more than the market.
Why it matters: Higher beta = more volatile = should demand higher discount rate. Low beta stocks (utilities, consumer staples) move less.
Reference: Most stocks 0.5–1.5 · Defensives ~0.3 · High-vol tech ~1.5–2.0
Full explanation → of 0.35. The safe Treasury rate plus a premium scaled by how much more (or less) volatile the stock is than the market.
8.0% — sector/quality tier. A simpler hurdle set by industry and business durability: lower for stable, wide-moat companies; higher for speculative or micro-caps.
The headline value and this calculator start at 6.5% — the beta-based rate. Drag the slider to the other rate to see the full range.
A full intrinsic value isn't shown for CQP because it's valued with a dividend-discount model this quick calculator doesn't replicate — see our published value above and the sector lens for the right metrics.
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⚙ Advanced — tinker with every input (beta, growth, rate path, margin → full intrinsic value)
CQP is deeply overvalued, trading at a +58.8% premium to the model's intrinsic valueIntrinsic Value — Our DCF model's estimate of what each share is mathematically worth based on projected cash flows.
Why it matters: Compare to current price. Below IV = potentially undervalued. Above IV = priced for growth that must actually happen.
Reference: Model-derived; quality depends on data and assumptions.
Full explanation →. The market is paying up for its consistent profitability and positive operating cash flow, despite a low current ratio. The number one quantifiable risk is the current ratio of 0.78, indicating current liabilities exceed liquid assets.
As of 3 months ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real dilution cost even though it's non-cash). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Improvement in current ratio above 1.0
- Growth in long-term contract backlog
- Stability in global LNG demand and pricing
The trend, in plain numbers (FY2024 → FY2025, latest reported)
Straight from the financial statements — no model, no opinion. For a small or unprofitable company, the direction of these numbers usually tells you more than any single valuation.
- Revenue grew +24% to $10.76B.
- Net income grew +19% to $2.99B.
- Free cash flow fell to $2.57B.
Management & Leadership
Cheniere Energy Partners, L.P. is managed by its general partner, Cheniere Energy Partners GP, LLC. The CEO of Cheniere Energy, Inc., which sponsors CQP, is Jack Fusco, who has led the company since 2016. He has overseen significant expansion in LNG export capacity.
What They Make
Cheniere Energy Partners, L.P. owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline, providing natural gas liquefaction and export services primarily to international customers.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
The market prices CQP at a +38.5% premium, likely due to its consistent profitability (positive net income 5/5 yrs) and positive operating cash flow (5/5 yrs). Investors may be overlooking the current ratio of 0.78, which indicates a potential short-term liquidity concern.
Three Scenarios, Weighted
| Scenario | IV | Upside from today's price | Weight |
|---|---|---|---|
| Conservative | $36.21 | -46.5% | 40% |
| Base | $43.41 | -35.9% | 35% |
| Optimistic | $51.92 | -23.4% | 25% |
| Weighted | $42.66 | -37.0% | 100% |
Reading the last column: it is the move from today's price to each value (IV ÷ price − 1). The headline "premium/discount to model IV" measures the same gap from the value's side (price ÷ IV − 1), so the two percentages differ in size and sign by construction — e.g. a price 8% above value is a value 7.4% below price.
Business Model & Valuation
How They Make Money
The company is assumed to have a 3% dividend yield, as dividend data is sparse and the DDM model uses an estimated yield.
Dividend Discount Medium
Utility (Gas Utilities): dividend discount model - growth is regulated and yield is the primary driver.
Show advanced inputs
What this model does NOT do: this is a consolidated owner-earnings FCF model. Standalone segment assumptions: none. It does not project production volumes, realized commodity prices and unit cash costs independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Revenue has been growing at 3.3%/yr over four years, from $9435M to $10758M.
Geography & Markets
Cheniere Energy Partners operates primarily in the United States, with its Sabine Pass LNG terminal located in Louisiana. Its LNG exports serve a global customer base, though specific geographic revenue mix is not available.
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)32.9NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (2 notes — click to expand/collapse)
Guardrail Notes (2)
- No dividend data. Assuming 3% yield.
- Dividend data sparse; DDM using estimated yield. Confidence reduced.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Cheniere Energy Partners, L.P.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | EPS |
|---|---|---|---|
| 2025 | 10.8B | 3.0B | $6.17 |
| 2024 | 8.7B | 2.5B | $5.19 |
| 2023 | 9.7B | 4.3B | $8.79 |
| 2022 | 17.2B | 2.5B | $5.16 |
| 2021 | 9.4B | 1.6B | $3.37 |
Cash Flow (5yr)
| Year | Operating CF | CapEx | − SBC & adj. | Free Cash Flow |
|---|---|---|---|---|
| 2025 | 2.8B | 199.0M | — | 2.6B |
| 2024 | 3.0B | 154.0M | — | 2.8B |
| 2023 | 3.1B | 220.0M | — | 2.9B |
| 2022 | 4.1B | 451.0M | — | 3.7B |
| 2021 | 2.3B | 648.0M | — | 1.6B |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF's starting value is a TTM dividend, not this single year.
Balance Sheet
| Total Assets | 17.4B |
| Total Liabilities | 17.0B |
| Equity | — |
| Total Debt | 306.0M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.