Cheniere Energy Partners Prices Senior Notes - Analyst Blog

On May 15, 2014, midstream player Cheniere Energy Partners LP CQP declared the pricing of 5.625% senior notes by Sabine Pass Liquefaction, LLC, its fully owned affiliate.  The offering of the secured notes − about to mature by Apr 15, 2023 – is anticipated to close by May 20, 2014. The senior secured notes worth $500 million will likely be priced at 101.5% of the par value.

The offering's net proceeds will likely bear capital expenses related to the manufacture of the first four liquefaction trains. The trains will be constructed at the Cameron Parish, LA based facility of Sabine Pass. The proceeds will also be used to pay off debts and costs related to the offering of the notes.

On May 1, Cheniere Energy Partners reported first-quarter results. The partnership incurred a loss of 6 cents per unit against the year-ago profit of 10 cents. Increased expenses related to operating and maintaining activities hampered the results. The first-quarter loss however bettered the Zacks Consensus Estimate of a loss of 86 cents.

Cheniere Energy Partners − trading at a 52-week range of $24.35–$34.43 per unit – currently has a market capitalization of roughly $11.26 billion. Last Thursday, the partnership closed at $32.89 per unit, after the pricing of the notes was announced. Presently, Cheniere Energy Partners is trading at $33.34 per unit.

Cheniere Energy Partners currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the oil production and pipeline sector like EQT Midstream Partners LP EQM, Holly Energy Partners LP HEP and Pembina Pipeline Corporation PBA. All the stocks sport a Zacks Rank #1 (Strong Buy).
 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CHENIERE ENERGY CQP: Get Free Report
 
EQT MIDSTRM PTR EQM: Free Stock Analysis Report
 
HOLLY EGY PTNRS HEP: Free Stock Analysis Report
 
PEMBINA PIPELN PBA: Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research