Cheniere Energy Partners (CQH): Q3 Earnings to Surprise?
Cheniere Energy Partners LP Holdings LLC (CQH) is expected to report third-quarter 2014 results on Oct 30.
In the last two quarters, the partnership posted positive earnings surprises. Moreover, Cheniere Energy’s average surprise during the last four quarters was 108.33%. Let’s see how things are shaping up for this announcement.
Factors to Consider this Quarter
Cheniere Energy Partners by virtue of its 55.9% ownership in Cheniere Energy Partners LP (CQP) primarily operates Sabine Pass natural gas regasification and liquefaction facilities. Cheniere Energy Partners also operates Creole Trail Pipeline – located in Louisiana. Hence, this solid asset base might help Cheniere Energy Partners to earn sufficiently for its unitholders.
However, we remain concerned as the natural gas pricing environment was not favorable during the third quarter. Midstream activities like regasification and liquefaction operations are correlated with the natural gas price. As this commodity price was not so favorable, gas production is likely to have been less and midstream activities might have been lower as a consequence.
Earnings Whispers
Our proven model does not conclusively show that Cheniere Energy Partners is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: The Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents.
Zacks Rank. Cheniere Energy Partners carries a Zacks Rank #2 (Buy) which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
Stocks to Consider
Here are some companies for investors to consider, that, according to our model have the right combination of elements to post an earnings beat this quarter:
Murphy USA Inc. (MUSA) has an Earnings ESP of +20.51% and a Zacks Rank #1 (Strong Buy).
Cobalt International Energy Inc. (CIE) has an Earnings ESP of +11.11% and a Zacks Rank #1.
Read the Full Research Report on CQH
Read the Full Research Report on CIE
Read the Full Research Report on MUSA
Read the Full Research Report on CQP
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