CHENIERE ENERGY HOUSTON, July 30, 2015 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) reported a net loss attributable to common stockholders of $118.5 million, or $0.52 per share (basic and diluted), for the three months ended June 30, 2015, compared to a net loss attributable to common stockholders of $201.9 million, or $0.90 per share (basic and diluted), for the comparable 2014 period. For the six months ended June 30, 2015, Cheniere reported a net loss attributable to common stockholders of $386.2 million, or $1.71 per share (basic and diluted), compared to a net loss attributable to common stockholders of $299.7 million, or $1.34 per share (basic and diluted), during the corresponding period of 2014.
Significant items for the three and six months ended June 30, 2015 were a gain of $21.9 million and a loss of $209.2 million, respectively, compared to losses of $189.8 million and $236.6 million for the comparable 2014 periods, respectively. Significant items for the three and six months ended June 30, 2015 related to derivative gains (losses) associated with the cancellation of, and fees related to, interest rate derivatives and changes in long-term LIBOR during the period, losses on early extinguishment of debt related to the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC ("SPL") primarily in connection with the refinancing of a portion of its credit facilities in March 2015, and development expenses primarily for the natural gas liquefaction and export facility being developed by us near Corpus Christi, Texas (the "CCL Project").
Included in general and administrative expense were non-cash compensation expenses of $43.0 million and $58.1 million for the three and six months ended June 30, 2015, respectively, compared to $24.6 million and $59.2 million for the comparable 2014 periods, respectively.
Results are reported on a consolidated basis and include our ownership interest in Cheniere Energy Partners, L.P. ("Cheniere Partners"), which is based on our 100% ownership of the general partner of Cheniere Partners and 80.1% ownership interest in Cheniere Energy Partners LP Holdings, LLC which owns a 55.9% limited partner interest in Cheniere Partners.
Recent Significant Events
-- In May 2015, we made a positive final investment decision ("FID") and
issued a notice to proceed ("NTP") with construction to Bechtel Oil, Gas
and Chemicals, Inc. ("Bechtel") for the first two natural gas
liquefaction trains ("Trains") and the related new facilities ("Stage
1") of the CCL Project.
-- In connection with the commencement of construction of Stage 1 of the
CCL Project, Cheniere Corpus Christi Holdings, LLC entered into an $8.4
billion credit facility to be used for costs associated with the
development, construction, operation and maintenance of Stage 1 of the
CCL Project and a 23-mile, 48" natural gas supply pipeline that will
interconnect the CCL Project with several interstate and intrastate
natural gas pipelines (the "Corpus Christi Pipeline").
-- Cheniere CCH Holdco II, LLC, our wholly owned subsidiary, issued $1.0
billion aggregate principal amount of 11% Senior Secured Notes due 2025,
which will be used to pay a portion of the capital costs associated with
Stage 1 of the CCL Project and the Corpus Christi Pipeline.
-- In June 2015, SPL made a positive FID and issued an NTP with
construction to Bechtel for Train 5 of the Sabine Pass Liquefaction
Project (defined below).
-- In connection with the commencement of construction of Train 5 of the
Sabine Pass Liquefaction Project, SPL entered into four credit
facilities totaling $4.6 billion, which replaced its existing credit
facilities, to fund a portion of the costs of developing, constructing,
and placing into operation Trains 1 through 5 of the Sabine Pass
Liquefaction Project.
-- In June 2015, we announced the development of an additional two Trains
at the CCL Project, bringing the total number of Trains under
development at the CCL Project to up to five, each with expected nominal
production capacity of approximately 4.5 million metric tonnes per annum
("mtpa") of LNG. We have initiated the regulatory process by filing the
National Environmental Policy Act ("NEPA") pre-filing request with the
U.S. Federal Energy Regulatory Commission ("FERC"), and requesting
authorization from the U.S. Department of Energy ("DOE") to export LNG
to both free trade agreement ("FTA") and non-FTA countries.
-- In June 2015, we announced an agreement in principle to partner with
Parallax Enterprises, LLC for the development of two mid-scale natural
gas liquefaction projects in Louisiana, each with expected nominal
production capacity of approximately 5.2 mtpa of LNG.
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners, we are developing up to six Trains, each with an expected nominal production capacity of approximately 4.5 mtpa of LNG, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "Sabine Pass Liquefaction Project").
The Trains are in various stages of development:
-- Construction on Trains 1 and 2 began in August 2012, and as of June 30,
2015, the overall project completion percentage for Trains 1 and 2 was
approximately 92.2%, 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 June 30,
2015, the overall project completion percentage for Trains 3 and 4 was
approximately 69.2%, 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, Cheniere Partners received FERC authorization to site, construct,
and operate Trains 5 and 6. In June 2015, Cheniere Partners received
authorization from the DOE to export LNG to non-FTA countries.
-- Construction on Train 5 began on June 30, 2015, and Train 6 is under
development. 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.
CCL Project
We are developing up to five Trains, each with an expected nominal production capacity of approximately 4.5 mtpa of LNG, as part of the CCL Project.
The Trains are in various stages of development:
-- Construction on Trains 1 and 2 began in May 2015. Train 3 is under
development. We have entered into a Sale and Purchase Agreement ("SPA")
for approximately 0.8 mtpa of LNG volumes that commence with Train 3 and
will contemplate making an FID to commence construction upon entering
into additional SPAs. To date, we have obtained sufficient financing
commitments and all necessary regulatory permits required to support the
development of three Trains.
-- Trains 4 and 5 are under development. We have initiated the regulatory
process by filing the NEPA pre-filing request with the FERC, and
requesting authorization from the DOE to export LNG to both FTA and
non-FTA countries.
Timelines for Liquefaction Projects
Target Date
-----------
SPL CCL
--- ---
Milestone Trains Trains Trains Trains
1 - 4 5 & 6 1 - 3 4 & 5
--- ----- ----- ----- -----
DOE export
authorization Received Received Received 2017
Definitive
commercial
agreements Completed T5: Completed T1-T2: Completed
16.0 mtpa T6: 2015 T3: 2015
-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
-PT Pertamina
(Persero) 1.52 mtpa
- Endesa, S.A. 2.25 mtpa
- Iberdrola, S.A. 0.76 mtpa
-Gas Natural
Fenosa LNG SL 1.50 mtpa
-Woodside Energy
Trading
Singapore 0.85 mtpa
-Électricité de
France, S.A. 0.77 mtpa
-EDP Energias de
Portugal S.A. 0.77 mtpa
EPC contracts Completed T5: Completed Completed
T6: 2015
Financing Completed T5: Completed Completed
T6: 2015
FERC
authorization Completed Completed Completed 2017
Issue Notice to
Proceed Completed T5: Completed T1-T2: 2017
T6: 2015 Completed
T3: 2015
Commence
operations 2015 - 2017 2018/2019 2018/2019 2021
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses and owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related business opportunities both upstream and downstream of the Sabine Pass LNG terminal. Through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing a liquefaction project at the Sabine Pass LNG terminal adjacent to the existing regasification facilities for up to six Trains, each of which is expected to have a nominal production capacity of approximately 4.5 mtpa of LNG. Construction has begun on Trains 1 through 5 of the Sabine Pass Liquefaction Project. Cheniere is also developing liquefaction facilities near Corpus Christi, Texas. The CCL Project is being designed for up to five Trains, with expected aggregate nominal production capacity of approximately 22.5 mtpa of LNG, four LNG storage tanks with capacity of approximately 13.5 Bcfe and two LNG carrier docks. Construction has begun on the first two Trains of the CCL Project. Cheniere has agreed in principle to partner with Parallax Enterprises, LLC for the development of up to 11 mtpa of LNG production capacity through Parallax's two mid-scale natural gas liquefaction projects, Live Oak LNG and Louisiana LNG.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, filed with the Securities and Exchange Commission.
This press release contains certain statements that may include "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's 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's LNG terminal and pipeline businesses, including liquefaction facilities, (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 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's 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's 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 does not assume a duty to update these forward-looking statements.
(Financial Table Follows)
Cheniere Energy, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)(1)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2015 2014 2015 2014
---- ---- ---- ----
Revenues
LNG terminal
revenues $67,905 $66,841 $135,486 $133,260
Marketing and
trading revenues
(losses) (706) 324 (44) 981
Other 826 480 952 954
---
Total revenues 68,025 67,645 136,394 135,195
Operating costs
and expenses
General and
administrative
expense 107,856 67,720 165,873 141,528
Operating and
maintenance
expense 18,877 29,409 56,030 43,096
Depreciation
expense 20,154 17,298 37,923 32,773
Development
expense 16,609 15,263 32,705 27,375
Other 109 90 441 170
---
Total operating
costs and
expenses 163,605 129,780 292,972 244,942
-------
Loss from
operations (95,580) (62,135) (156,578) (109,747)
Other income
(expense)
Interest expense,
net (85,486) (43,789) (145,098) (84,059)
Loss on early
extinguishment of
debt (7,281) (114,335) (96,273) (114,335)
Derivative gain
(loss), net 45,755 (60,178) (80,181) (94,859)
Other income
(expense) 283 (189) 655 121
---
Total other
expense (46,729) (218,491) (320,897) (293,132)
--------
Loss before income
taxes and non-
controlling
interest (142,309) (280,626) (477,475) (402,879)
Income tax benefit
(provision) 507 (84) (171) (176)
---
Net loss (141,802) (280,710) (477,646) (403,055)
Less: net loss
attributable to
non-controlling
interest (23,307) (78,782) (91,442) (103,317)
--------
Net loss
attributable to
common
stockholders $(118,495) $(201,928) $(386,204) $(299,738)
===
Net loss per share
attributable to
common
stockholders-
basic and diluted $(0.52) $(0.90) $(1.71) $(1.34)
===
Weighted average
number of common
shares
outstanding-
basic and diluted 226,481 223,602 226,405 223,406
(1) Please refer
to the
Cheniere
Energy,
Inc.
Quarterly
Report on
Form 10-Q
for the
quarter
ended June
30, 2015,
filed with
the
Securities
and
Exchange
Commission.
Cheniere Energy, Inc.
Consolidated Balance Sheets
(in thousands, except share data)(1)
June 30, December 31,
2015 2014
---- ----
ASSETS (unaudited)
Current assets
Cash and cash equivalents $1,470,207 $1,747,583
Restricted cash 684,073 481,737
Accounts and interest receivable 6,746 4,419
LNG inventory 13,954 4,294
Other current assets 88,382 20,844
------ ------
Total current assets 2,263,362 2,258,877
Non-current restricted cash 739,145 550,811
Property, plant and equipment,
net 13,799,113 9,246,753
Debt issuance costs, net 637,301 242,323
Non-current derivative assets 21,363 11,744
Goodwill 76,819 76,819
Other non-current assets 222,399 186,356
------- -------
Total assets $17,759,502 $12,573,683
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $23,799 $13,426
Accrued liabilities 565,832 169,129
Deferred revenue 26,671 26,655
Derivative liabilities 23,937 23,247
Other current liabilities 600 18
--- ---
Total current liabilities 640,839 232,475
Long-term debt, net 14,854,794 9,806,084
Non-current deferred revenue 11,500 13,500
Other non-current liabilities 37,013 20,107
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par
value, 5.0 million shares
authorized, none issued - -
Common stock, $0.003 par value
Authorized: 480.0 million shares at June 30, 2015 and
December 31, 2014
Issued and outstanding: 236.6
million shares and 236.7 million
shares at June 30, 2015 and
December 31, 2014, respectively 711 712
Treasury stock: 10.7 million
shares and 10.6 million shares
at June 30, 2015 and December
31, 2014, respectively, at cost (298,926) (292,752)
Additional paid-in-capital 3,014,483 2,776,702
Accumulated deficit (3,035,043) (2,648,839)
---------- ----------
Total stockholders' deficit (318,775) (164,177)
Non-controlling interest 2,534,131 2,665,694
--------- ---------
Total equity 2,215,356 2,501,517
--------- ---------
Total liabilities and equity $17,759,502 $12,573,683
=========== ===========
(1) Please refer
to the
Cheniere
Energy,
Inc.
Quarterly
Report on
Form 10-Q
for the
quarter
ended June
30, 2015,
filed with
the
Securities
and
Exchange
Commission.
As of June 30, 2015, we had cash and cash equivalents of $1,470.2 million available to Cheniere. In addition, we had current and non-current restricted cash and cash equivalents of $1,423.2 million (which included current and non-current restricted cash and cash equivalents available to Cheniere Partners, SPL, Sabine Pass LNG, L.P., and Cheniere Corpus Christi Holdings, LLC.) designated for the following purposes: $996.5 million for the Sabine Pass Liquefaction Project, $19.0 million for Cheniere Creole Trail Pipeline, L.P., $91.1 million for interest payments related to the Sabine Pass LNG, L.P. senior secured notes, $92.0 million for the CCL Project, and $224.6 million for other restricted purposes.
Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cheniere-energy-inc-reports-second-quarter-2015-results-300121583.html
SOURCE Cheniere Energy, Inc.
