What is Cheniere Energy Partners LP Financial Strength?
Cheniere Energy Partners LP has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
Cheniere Energy Partners LP displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
Cheniere Energy Partners LP's Interest Coverage for the quarter that ended in Sep. 2024 was 4.16.
Cheniere Energy Partners LP's debt to revenue ratio for the quarter that ended in Sep. 2024 was 1.90.
As of today, Cheniere Energy Partners LP's Altman Z-Score is 2.10.
Competitive Comparison of Cheniere Energy Partners LP's Financial Strength
For the Oil & Gas Midstream subindustry, Cheniere Energy Partners LP's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cheniere Energy Partners LP's Financial Strength Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cheniere Energy Partners LP's Financial Strength distribution charts can be found below:
* The bar in red indicates where Cheniere Energy Partners LP's Financial Strength falls into.
Cheniere Energy Partners LP Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Cheniere Energy Partners LP has a Z-score of 2.10, indicating it is in Grey Zones. This implies that Cheniere Energy Partners LP is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 2.1 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cheniere Energy Partners LP (NYSE:CQP) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
Cheniere Energy Partners LP has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Cheniere Energy Partners LP Financial Strength Related Terms
Thank you for viewing the detailed overview of Cheniere Energy Partners LP's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Cheniere Energy Partners is the direct owner of the Sabine Pass LNG terminals as well as regasification facilities. It also owns the Creole Trail Pipeline, which connects the terminal to third-party gas suppliers. Cheniere Partners shares in the marketing fees generated by Cheniere Marketing from Sabine Pass marketed gas volumes.
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