CQP - Cheniere Energy Partners: Leverage Too High For A Single-Digit Yield
Introduction
Even though the total global cases of the coronavirus are still climbing, it nonetheless seems that global financial markets have returned to a somewhat uneasy state of calm, with many equity prices recovering towards their previous levels from early 2020. One such example is the Sabine Pass LNG facility owner, Cheniere Energy Partners (CQP), which also avoided reducing their distribution unlike many of their peers. Although the company's current distribution yield of 6.60% still seems enticing in this low interest rate world, once digging deeper, it appears insufficient considering the risks stemming