Shares of Cheniere Energy Partners LP Holdings, LLC (CQH) witnessed a fall of over 3% on the NYSE following the announcement of its common shares offering. The company put on sale 10,100,000 of its outstanding shares in an underwritten public offering at $23.25 per share.
Cheniere Energy Partners Holdings plans to utilize the net proceeds of about $230 million from the offering to buy back part of its shares held by Cheniere Energy, Inc. (LNG).
The offering is expected to close on Nov 18. It is likely to have a dilutive effect on the stock price. Moreover, following the settlement of the offer and utilization of the funds to buy back shares, the parent company Cheniere Energy will hold about an 80.1% stake in Cheniere Partners Holdings, down from its current stake of 84.5%. The news did not seem to go well with investors.
Cheniere Energy Partners Holdings’ financial results are dependent on Cheniere Energy Partners, L.P. (CQP) – in which it holds 55.9% limited partner stake – as it does not have any asset base of its own. Thus, the company indirectly holds interest in CQP’s liquefied natural gas regasification and natural gas liquefaction facilities.
On Oct 30, Cheniere Energy Partners Holdings reported third-quarter 2014 earnings of 2 cents per share, in line with the Zacks Consensus Estimate.
Earlier this month, Cheniere Energy Partners Holdings declared a quarterly cash dividend of 1.9 cents, which is payable to shareholders on Dec 1.
Houston, TX-based Cheniere Energy Partners Holdings currently carries a Zacks Rank #3 (Hold). Meanwhile, one could consider a better-ranked player from the same industry like Oiltanking Partners, L.P. (OILT). The stock has a Zacks Rank #2 (Buy).
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