Cheniere Energy Partners Earnings: Distribution Payout for 2024 Reaffirmed at $3.25

We see no reason to change our $52 fair value estimate or wide moat rating for Cheniere Energy Partners after reviewing first-quarter results. Management reaffirmed the full-year distribution payout at a midpoint of $3.25 per unit, made up of a base-level payout of $3.10 per unit and the remainder a variable payout. In 2023, the base-level payout was the same, but the variable component was $1.04 per unit, compared with the current run rate of $0.14 per unit. The sharp decline in the variable payout is due to the need to fund the upcoming capital spending for the new Sabine Pass liquefied natural gas terminal expansion, so we see this as smart capital allocation. The project could cost $10 billion-plus, and we could see a final investment decision in 2026.