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Cheniere Energy reshuffles executive team

EditorAhmed Abdulazez Abdulkadir
Published 10/03/2024, 11:31 AM
CQP
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HOUSTON, TX – Cheniere Energy Partners , L.P. (NYSE:CQP) announced executive changes within its leadership, as detailed in a recent SEC filing. Anatol Feygin, the company's Executive Vice President and Chief Commercial Officer, has been appointed to the Board of Directors of Cheniere Energy (NYSE:LNG) Partners GP, LLC, the general partner of the Partnership. This strategic move took effect on Tuesday.

Concurrently, Corey Grindal has stepped down from his role as Executive Vice President and Chief Operating Officer of the General Partner and as a member of the Board. The changes in the executive team align with the rights of Cheniere GP Holding Company, LLC under the governing agreement of the General Partner to appoint certain directors to the Board.

The filing emphasized that Mr. Feygin is not involved in any transaction that would require disclosure under SEC regulations. The appointment and resignation were carried out in accordance with the company's internal governance policies and procedures.

In other recent news, Cheniere Energy has signed a 20-year supply agreement with Galp Trading, a subsidiary of Portuguese energy company Galp Energia. The sale and purchase agreement (SPA) outlines that Galp will buy roughly 0.5 million tonnes of LNG each year from Cheniere Marketing for two decades. The deliveries, contingent on a positive Final Investment Decision about the Sabine Pass Liquefaction Expansion Project's second train, are expected to start in the early 2030s.

The SPA also includes provisions for a limited number of early cargoes to be supplied to Galp before the commencement of the second train operations. The pricing structure of the SPA is tied to the Henry Hub price index, with an added fixed liquefaction fee. The agreement is free-on-board, meaning Galp will handle transportation and insurance once the LNG is loaded onto the shipping vessel.

These recent developments highlight Cheniere Energy's ongoing efforts to expand its liquefaction services and explore new opportunities within the LNG value chain. Jack Fusco, President and CEO of Cheniere, expressed satisfaction with the agreement, noting that it would support the Sabine Pass Liquefaction Expansion Project and indicate progress in its development. The SPL Expansion Project aims to boost LNG capacity by up to approximately 20 million tonnes per annum, including potential debottlenecking opportunities.

InvestingPro Insights

As Cheniere Energy Partners, L.P. (NYSE:CQP) undergoes these executive changes, it's worth noting some key financial insights from InvestingPro. The company currently boasts a market capitalization of $23.75 billion, reflecting its significant presence in the LNG industry. CQP's P/E ratio stands at 10.21, suggesting a relatively attractive valuation compared to many of its peers.

InvestingPro Tips highlight CQP's strong dividend history, having maintained dividend payments for 18 consecutive years and raised them for 7 consecutive years. This track record may be particularly appealing to income-focused investors in the energy sector. Additionally, analysts predict the company will remain profitable this year, which aligns with its current operating income of $3.73 billion for the last twelve months as of Q2 2024.

It's worth noting that CQP's revenue for the same period was $9.003 billion, with a robust gross profit margin of 50.18%. These figures underscore the company's operational efficiency, which could be crucial as it navigates the leadership transition.

For investors seeking more comprehensive analysis, InvestingPro offers 9 additional tips for CQP, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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