CHENIERE ENERGY HOUSTON, Oct. 30, 2015 /PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) reported a net loss of $24.1 million and $262.9 million for the three and nine months ended September 30, 2015, respectively, compared to a net loss of $43.2 million and $339.2 million for the same periods in 2014, respectively.
Significant items for the three months ended September 30, 2015 resulted in a gain of $21.1 million and are related to derivative loss associated with the changes in long-term LIBOR during the period, and development expense, offset by changes in operating and maintenance expense associated with the increase in fair value of certain natural gas purchase agreements related to gas procurement for the liquefaction project currently under construction at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "Sabine Pass Liquefaction Project"). Significant items for the nine months ended September 30, 2015 resulted in a loss of $113.8 million and are related to loss on early extinguishment of debt, derivative losses primarily due to the termination of interest rate swaps, and development expense, partially offset by changes in operating and maintenance expense described above.
General and administrative expense (including affiliate) increased by $2.5 million and $7.4 million for the three and nine months ended September 30, 2015, respectively, compared to the corresponding 2014 periods, primarily due to an increase in management fees incurred under certain management service agreements with wholly owned subsidiaries of Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG). Our wholly-owned subsidiary, Sabine Pass Liquefaction, LLC ("SPL") is required to pay monthly fees to an affiliate of Cheniere based upon the capital expenditures incurred in the previous month for construction of the first five natural gas liquefaction trains ("Trains") of the Sabine Pass Liquefaction Project. Operating and maintenance expense (including affiliate) decreased by $40.8 million and $30.9 million for the three and nine months ended September 30, 2015, respectively, compared to the corresponding 2014 periods, primarily due to the increase in fair value of certain natural gas purchase agreements related to gas procurement for the Sabine Pass Liquefaction Project.
Recent Significant Events
-- SPL entered into a $1.2 billion working capital facility that will be
used primarily for certain working capital requirements related to
developing and placing into operation the Sabine Pass Liquefaction
Project.
Sabine Pass Liquefaction Project Update
We continue to make progress on the Sabine Pass Liquefaction Project, which is being developed for up to six Trains, each with an expected nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG.
The Trains are in various stages of development:
-- Construction on Trains 1 and 2 began in August 2012, and as of September
30, 2015, the overall project completion percentage for Trains 1 and 2
was approximately 95.2%, which is ahead of the contractual schedule.
Based on our current construction schedule, we anticipate that Train 1
will produce LNG as early as late 2015.
-- Construction on Trains 3 and 4 began in May 2013, and as of September
30, 2015, the overall project completion percentage for Trains 3 and 4
was approximately 73.6%, which is ahead of the contractual schedule. We
expect Trains 3 and 4 to become operational in late 2016 and 2017,
respectively.
-- The permitting process for Trains 5 and 6 has been completed. In April
2015, we received U.S. Federal Energy Regulatory Commission ("FERC")
authorization to site, construct, and operate Trains 5 and 6. In June
2015, we received authorization from the U.S. Department of Energy
("DOE") to export LNG to non-free trade agreement countries.
-- Construction on Train 5 began on June 30, 2015, and we expect Train 5 to
commence operations as early as 2018. We expect to commence construction
on Train 6 upon entering into acceptable commercial arrangements and
obtaining adequate financing.
Sabine Pass Liquefaction Project Timeline
Target Date
-----------
Milestone Trains Trains
1 - 4 5 & 6
--- ----- -----
DOE export authorization Received Received
Definitive commercial
agreements Completed T5: Completed
16.0 mtpa T6: 2015/2016
- BG Gulf Coast LNG, LLC 5.5 mtpa
- Gas Natural Fenosa 3.5 mtpa
- KOGAS 3.5 mtpa
- GAIL (India) Ltd. 3.5 mtpa
- Total Gas & Power N.A. 2.0 mtpa
- Centrica plc 1.75 mtpa
EPC contracts Completed T5: Completed
T6: 2015/2016
Financing Completed T5: Completed
T6: 2015/2016
FERC authorization Completed Completed
Issue Notice to Proceed Completed T5: Completed
T6: 2015/2016
Commence operations 2015 - 2017 2018/2019
Distributions to Unitholders
We estimate that the annualized distribution to common unitholders for fiscal year 2015 will be $1.70 per unit.
We will pay a cash distribution per common unit of $0.425 to unitholders of record as of November 2, 2015, and the related general partner distribution on November 13, 2015.
Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on the Sabine Pass deepwater shipping channel less than four miles from the Gulf Coast. The Sabine Pass LNG terminal includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 Bcfe, two docks that can accommodate vessels with nominal capacity of up to 266,000 cubic meters and vaporizers with regasification capacity of approximately 4.0 Bcf/d.
Cheniere Partners is developing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere Partners plans to construct over time up to six natural gas Trains, which are in various stages of development. Each Train is expected to have a nominal production capacity of approximately 4.5 mtpa of LNG. The overall project completion percentage of Trains 1 and 2 is approximately 95.2% as of September 30, 2015. The overall project completion percentage of Trains 3 and 4 is approximately 73.6% as of September 30, 2015. Construction commenced on Train 5 in June 2015. Cheniere Partners has received all regulatory approvals to construct and operate Train 6. Cheniere Partners has entered into six third-party LNG Sale and Purchase Agreements ("SPAs") that in the aggregate equate to approximately 19.75 mtpa of LNG and commence with the date of first commercial delivery of Trains 1 through 5 as specified in the respective SPAs.
For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed with the Securities and Exchange Commission.
This press release contains certain statements that may include "forward-looking statements." All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere Partners' business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere Partners' LNG terminal and liquefaction business, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, and (vi) statements regarding future discussions and entry into contracts. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners' actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners' periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.
(Financial Tables Follow)
Cheniere Energy Partners, L.P.
Consolidated Statements of Operations
(in thousands, except per unit data) (1)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2015 2014 2015 2014
---- ---- ---- ----
Revenues
Revenues $66,596 $66,890 $199,804 $199,933
Revenues-affiliate 941 700 2,952 2,206
---
Total revenues 67,537 67,590 202,756 202,139
Operating costs and expenses
Operating and maintenance
expense (income) (22,782) 21,041 17,840 54,750
Operating and maintenance
expense-affiliate 8,081 5,016 20,355 14,307
Depreciation expense 16,687 14,781 47,557 43,821
Development expense 113 1,383 2,631 8,671
Development expense-affiliate 152 329 562 723
General and administrative
expense 3,673 2,448 11,269 10,048
General and administrative
expense-affiliate 25,692 24,454 80,761 74,579
------ ------ ------ ------
Total operating costs and
expenses 31,616 69,452 180,975 206,899
------ ------ ------- -------
Income (loss) from operations 35,921 (1,862) 21,781 (4,760)
Other income (expense)
Interest expense, net of
amounts capitalized (49,360) (46,884) (142,353) (130,943)
Loss on early extinguishment
of debt - - (96,273) (114,335)
Derivative gain (loss), net (10,872) 5,379 (46,541) (89,222)
Other income 179 127 535 63
--- --- --- ---
Total other expense (60,053) (41,378) (284,632) (334,437)
------- ------- -------- --------
Net loss $(24,132) $(43,240) $(262,851) $(339,197)
-------- -------- --------- ---------
Basic and diluted net income
(loss) per common unit $0.18 $0.08 $(0.44) $(0.83)
===== ===== ====== ======
Weighted average number of
common units outstanding used
for basic and diluted net
income (loss) per common unit
calculation 57,081 57,079 57,081 57,079
(1) Please refer
to the
Cheniere
Energy
Partners,
L.P.
Quarterly
Report on
Form 10-Q for
the quarter
ended
September 30,
2015, filed
with the
Securities
and Exchange
Commission.
Cheniere Energy Partners, L.P.
Consolidated Balance Sheets
(in thousands, except per unit data) (1)
September 30, December 31,
2015 2014
---- ----
ASSETS (unaudited)
Current assets
Cash and cash equivalents $170,433 $248,830
Restricted cash 391,495 195,702
Accounts and interest receivable 95 333
Accounts receivable-affiliate 2,566 3,651
Advances to affiliate 54,995 27,323
LNG inventory 7,145 4,293
Other current assets 16,055 6,388
------ -----
Total current assets 642,784 486,520
Non-current restricted cash 76,107 544,465
Property, plant and equipment, net 11,299,725 8,978,356
Debt issuance costs, net 307,099 241,909
Non-current derivative assets 30,657 11,744
Other non-current assets 190,960 124,521
------- -------
Total assets $12,547,332 $10,387,515
=========== ===========
LIABILITIES AND PARTNERS' EQUITY
Current liabilities
Accounts payable $7,096 $8,598
Accrued liabilities 352,457 136,578
Due to affiliates 32,851 18,952
Deferred revenue 26,653 26,655
Deferred revenue-affiliate 708 708
Derivative liabilities 7,388 23,247
Other current liabilities 267 18
--- ---
Total current liabilities 427,420 214,756
Long-term debt, net 11,244,002 8,991,333
Non-current deferred revenue 10,500 13,500
Non-current derivative liabilities 8,832 267
Other non-current liabilities 1,177 2,185
Other non-current liabilities-
affiliate 61,691 34,745
Partners' equity
Common unitholders' interest (57.1
million units issued and
outstanding at September 30, 2015
and December 31, 2014) 346,443 495,597
Class B unitholders' interest
(145.3 million units issued and
outstanding at September 30, 2015
and December 31, 2014) (37,981) (38,216)
Subordinated unitholders' interest
(135.4 million units issued and
outstanding at September 30, 2015
and December 31, 2014) 467,054 648,414
General partner's interest (2%
interest with 6.9 million units
issued and outstanding at
September 30, 2015 and December
31, 2014) 18,194 24,934
------ ------
Total partners' equity 793,710 1,130,729
Total liabilities and partners'
equity $12,547,332 $10,387,515
=========== ===========
(1) Please refer
to the
Cheniere
Energy
Partners,
L.P.
Quarterly
Report on
Form 10-Q for
the quarter
ended
September 30,
2015, filed
with the
Securities
and Exchange
Commission.
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SOURCE Cheniere Energy Partners, L.P.
