- Cheniere Energy Partners saw a strong start to 2022 with their operating cash flow increasing significantly year-on-year, which if continued will easily set a new record.
- They have rolled out a new unitholder returns policy that sees significantly higher distributions.
- Unless their financial performance deteriorates, they are tracking to produce ample excess free cash flow after distribution payments, thereby pointing towards even higher distributions.
- When looking ahead, the Russian invasion of Ukraine creates a very bullish outlook for LNG demand that they are well-positioned to meet.
- Since this stronger financial performance also resolves their very high leverage, I now believe that upgrading to a buy rating is appropriate.
For further details see:
Cheniere Energy Partners: War In Eastern Europe Changes The Equation