Cheniere Energy Partners: Wells Fargo lowers PT to $56, maintains Underweight rating.

Cheniere Energy Partners: Wells Fargo lowers PT to $56, maintains Underweight rating.

Wells Fargo & Company has recently revised its price target for Cheniere Energy Partners, L.P. (NYSE:CQP) to $56, while maintaining an "underweight" rating. This move comes after the company's second-quarter earnings report, which showed a decline in earnings per unit (EPS) and a miss on the Zacks Consensus Estimate.

According to the earnings report, Cheniere Energy Partners recorded EPS of 91 cents in the second quarter of 2025, falling short of the Zacks Consensus Estimate of 96 cents. The company's total quarterly revenues of $2.5 billion also surpassed the Zacks Consensus Estimate of $2.4 billion. However, the weak quarterly earnings can be attributed to lower LNG volumes loaded and higher total operating costs and expenses [1].

The company's adjusted EBITDA totaled $726 million in the second quarter, down 13% from the year-ago level of $832 million. The decrease can be attributed 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 [1].

Wells Fargo's decision to lower the price target reflects the market's concerns about the company's recent performance and the potential impact of higher operating costs and lower LNG volumes on its future earnings. The company's current Zacks Rank is #3 (Hold), and investors interested in the energy sector may look at better-ranked stocks like Antero Midstream Corporation AM, Delek Logistics Partners, LP DKL, and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present [1].

Investors should closely monitor Cheniere Energy Partners' earnings and operating costs to assess the impact of these factors on the company's future performance. The company's 2025 full-year distribution guidance remains unchanged at $3.25-$3.35 per common unit, with a base distribution of $3.10 [1].

References:
[1] https://finance.yahoo.com/news/cheniere-partners-q2-earnings-miss-115500175.html