Cheniere Energy Partners, L.P. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Derivative Instruments (Tables)

Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Assets and Liabilities

The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis, distinguished by the fair value hierarchy levels prescribed by GAAP (in millions):


	Fair Value Measurements as of
	March 31, 2026								December 31, 2025
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total

Liquefaction Supply Derivatives liability	$	—	$	(6)	$	(1,161)	$	(1,167)	$	—	$	(23)	$	(500)	$	(523)

Fair Value Measurement Inputs and Valuation Techniques

The following table includes quantitative information for the unobservable inputs for the Level 3 Liquefaction Supply Derivatives as of March 31, 2026:

Net Fair Value Liability

(in millions)

Valuation Approach

Significant Unobservable Input

Range of Significant Unobservable Inputs / Weighted Average (1)

Liquefaction Supply Derivatives

$(1,161)

Market approach incorporating present value techniques

Henry Hub basis spread

$(0.762) - $0.195 / $(0.032)

Option pricing model

International LNG pricing spread, relative to Henry Hub (2)

60% - 537% / 190%

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

(2)Spread contemplates U.S. dollar-denominated pricing.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table shows the changes in the fair value of the Level 3 Liquefaction Supply Derivatives (in millions):


	Three Months Ended March 31,
		2026		2025
Balance, beginning of period		$	(500)	$	(1,307)
Realized and change in fair value gains (losses) included in net income (1):
Included in cost of sales, existing deals (2)		(697)		(28)
Included in cost of sales, new deals (3)		(7)		14
Purchases and settlements:
Purchases (4)		—		—
Settlements (5)		43		46


Transfers out of level 3 (6)		—		—
Balance, end of period		$	(1,161)	$	(1,275)
Unfavorable changes in fair value relating to instruments still held at the end of the period		$	(704)	$	(14)

(1)Does not include the realized value associated with derivative instruments that settle through physical delivery, as settlement is equal to the contractually fixed price from trade date multiplied by contractual volume. See settlements line item in this table.

(2)Impact to earnings on deals that existed at the beginning of the period and continue to exist at the end of the period.

(3)Impact to earnings on deals that were entered into during the reporting period and continue to exist at the end of the period.

(4)Includes any day one gain (loss) recognized during the reporting period on deals that were entered into during the reporting period, which continue to exist at the end of the period.

(5)Roll-off in the current period of amounts recognized in our Consolidated Balance Sheets at the end of the previous period due to settlement of the underlying instruments in the current period.

(6)Transferred out of Level 3 as a result of observable market for the underlying natural gas purchase agreements.

Derivative Instruments, Gain (Loss)

The following table shows the effect and location of the Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations (in millions):


		Gain (Loss) Recognized in Consolidated Statements of Operations
Consolidated Statements of Operations Location (1)	Three Months Ended March 31,
		2026		2025
LNG revenues		$	1	$	—
Cost of sales		(666)		(18)

(1)Does not include the realized value associated with the Liquefaction Supply Derivatives that settle through physical delivery. Fair value fluctuations associated with our derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument.

Fair Value of Derivative Instruments by Balance Sheet Location

The following table shows the fair value and location of the Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions):




	Fair Value Measurements as of
Consolidated Balance Sheets Location	March 31, 2026		December 31, 2025
Current derivative assets	$	3	$	—
Derivative assets	464		541
Total derivative assets	467		541

Current derivative liabilities	(447)		(164)
Derivative liabilities	(1,187)		(900)
Total derivative liabilities	(1,634)		(1,064)

Derivative liability, net	$	(1,167)	$	(523)

Derivative Net Presentation on Consolidated Balance Sheets

The following table reconciles the fair value of our derivative assets and liabilities on a gross basis, by contract, to net amounts as presented on our Consolidated Balance Sheets after offsetting for any balances with the same counterparty under master netting arrangements or other relevant netting criteria under GAAP (in millions):


	Liquefaction Supply Derivatives
	March 31, 2026		December 31, 2025
Gross assets	$	576	$	663
Offsetting amounts	(109)		(122)
Net assets	$	467	$	541

Gross liabilities	$	(1,662)	$	(1,084)
Offsetting amounts	28		20
Net liabilities	$	(1,634)	$	(1,064)

Derivative Liability, Subject to Master Netting Offset, Collateral

The table below shows the collateral balances that are recorded within other current assets, net and other current liabilities that are not netted on our Consolidated Balance Sheets (in millions):


	Consolidated Balance Sheets Location	March 31,		December 31,
		2026		2025
Liquefaction Supply Derivatives	Other current assets, net	$	17	$	11
Liquefaction Supply Derivatives	Other current liabilities	—		(3)