On May 15, 2014, midstream player
Cheniere Energy Partners LP
) 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
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
Holly Energy Partners LP
Pembina Pipeline Corporation
). All the stocks sport a Zacks Rank #1 (Strong Buy).
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