CHENIERE ENERGY PARTNERS, L.P. HOUSTON, May 5, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) reported a net loss attributable to common stockholders of $320.8 million, or $1.41 per share (basic and diluted), for the three months ended March 31, 2016, compared to a net loss attributable to common stockholders of $267.7 million, or $1.18 per share (basic and diluted), for the comparable 2015 period.
Significant items for the three months ended March 31, 2016 totaled a loss of $192.6 million, compared to a loss of $215.9 million for the comparable 2015 period. Significant items for the three months ended March 31, 2016 related to derivative loss primarily as a result of a decrease in the forward LIBOR curve over the period, impairment expense, and loss on early extinguishment of debt associated with the write-off of debt issuance costs by Cheniere Creole Trail Pipeline, L.P. ("CTPL") as a result of the prepayment of its outstanding term loan. Significant items for the three months ended March 31, 2015 related to derivative loss due primarily to contingent interest rate derivatives entered into and changes in long-term LIBOR during the period, loss on early extinguishment of debt related to the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC in connection with the refinancing of a portion of its credit facilities, and impairment expense.
Included in general and administrative expense and marketing expense were non-cash compensation expenses of $10.5 million for the three months ended March 31, 2016, compared to $14.8 million for the comparable 2015 period.
Results are reported on a consolidated basis and include our ownership interest in Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP), 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 (NYSE MKT: CQH) which owns a 55.9% limited partner interest in Cheniere Partners.
2016 Highlights
-- In February, the first commissioning cargo with LNG produced at the
Sabine Pass Liquefaction Project (defined below) was successfully loaded
and exported. A total of four LNG commissioning cargoes were loaded and
exported during the three months ended March 31, 2016, and a total of
seven LNG commissioning cargoes have been loaded and exported to date.
-- In February, Cheniere Partners closed on up to approximately $2.8
billion of senior secured credit facilities (the "CQP Credit
Facilities"). The four-year credit facilities consist of a $450 million
CTPL tranche term loan, an approximately $2.1 billion Sabine Pass LNG,
L.P. ("SPLNG") tranche term loan, a $125 million debt service reserve
credit facility, and a $115 million revolving credit facility. The CTPL
tranche term loan was used to prepay the $400 million senior secured
term loan at CTPL subsequent to closing of the facilities. Remaining
proceeds from the facilities will be used by Cheniere Partners (i) to
redeem or repay the approximately $1.7 billion senior secured notes due
2016 and the $420 million senior secured notes due 2020 that were issued
by SPLNG, (ii) to pay associated transaction costs and make-whole
amounts, if any, and (iii) for general business purposes of Cheniere
Partners and its subsidiaries.
"The first quarter of 2016 was a very significant period for Cheniere, marking our transition from a development company into an operating one. We commenced LNG production and exports from Train 1 at Sabine Pass as part of commissioning activities, and to date we have exported seven cargoes of LNG to multiple destinations. Commissioning activities at Train 2 are underway and our remaining Trains under construction continue ahead of their respective contractual schedules and on budget," said Neal Shear, Cheniere's Interim President and CEO. "On the financial front, we took a significant step in improving our consolidated debt maturity profile, as the CQP Credit Facilities ensure there will be no debt maturities at Cheniere until 2020."
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 million tonnes per annum ("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 construction and development. Train 1 is expected to reach substantial completion imminently, after which Cheniere Partners expects to take over care, custody and control. Train 2 is undergoing the commissioning process. A Train is expected to achieve substantial completion upon the completion of construction, commissioning and successfully satisfying certain tests. Once a Train achieves substantial completion, results from LNG sales will be reflected in the statement of operations.
-- Construction on Trains 1 and 2 began in August 2012, and as of March 31,
2016, the overall project completion percentage for Trains 1 and 2 was
approximately 98.3%, which is ahead of the contractual schedule.
Cheniere Partners expects substantial completion of Train 1 to be
achieved in May 2016. The commissioning process on Train 2 has
commenced, and Cheniere Partners expects substantial completion of Train
2 to be achieved in September 2016.
-- Construction on Trains 3 and 4 began in May 2013, and as of March 31,
2016, the overall project completion percentage for Trains 3 and 4 was
approximately 83.8%, which is ahead of the contractual schedule.
Cheniere Partners expects Trains 3 and 4 to reach substantial completion
in 2017.
-- Construction on Train 5 began in June 2015, and as of March 31, 2016,
the overall project completion percentage for Train 5 was approximately
28.8%, which is ahead of the contractual schedule. Engineering,
procurement, subcontract work and Bechtel direct hire construction were
approximately 59.1%, 45.1%, 24.2% and 0.4% complete, respectively.
Cheniere Partners expects Train 5 to reach substantial completion in
2019.
-- Train 6 is currently under development, with all necessary regulatory
approvals in place. Cheniere Partners expects to make a final investment
decision and commence construction on Train 6 upon, among other things,
entering into an EPC contract, entering into acceptable commercial
arrangements, and obtaining adequate financing.
Sabine Pass Liquefaction Project
--------------------------------
Liquefaction Train Train 1 Train 2 Trains 3-4 Train 5
------------------ ------- ------- ---------- -------
Project Status Commissioning /
Producing LNG Commissioning 84% Overall Completion 29% Overall Completion
Expected Substantial
Completion 1H 2016 2H 2016 2017 2019
Corpus Christi LNG Terminal
We are developing up to three Trains, each with an expected nominal production capacity of approximately 4.5 mtpa of LNG, near Corpus Christi, Texas (the "CCL Project").
The Trains are in various stages of construction and development:
-- Construction on Trains 1 and 2 began in May 2015, and as of March 31,
2016, the overall project completion percentage for Trains 1 and 2 was
approximately 32.5%, which is ahead of the contractual schedule.
Engineering, procurement and construction were approximately 97.1%,
46.0% and 4.6% complete, respectively. We expect Trains 1 and 2 to reach
substantial completion in 2019.
-- Train 3 is under development, with all necessary regulatory approvals in
place. We have entered into an LNG Sale and Purchase Agreement ("SPA")
for approximately 0.8 mtpa of LNG volumes that commence with Train 3 and
expect to commence construction upon entering into additional SPAs and
obtaining adequate financing.
Additionally, we are developing Trains 4 and 5 adjacent to the CCL Project and have initiated the regulatory approval process with respect to those Trains.
Corpus Christi LNG Terminal
Liquefaction Train Trains 1-2
------------------ ----------
Project Status 33% Overall Completion
Expected Substantial Completion 2019
Cheniere Energy, Inc., a Houston-based energy company primarily engaged in LNG-related businesses, owns and operates the Sabine Pass LNG terminal in Louisiana. Directly and through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is constructing and developing liquefaction projects near Corpus Christi, Texas and at the Sabine Pass LNG terminal, respectively. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
For additional information, please refer to the Cheniere website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, 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
March 31,
---------
Revenues 2016 2015
---- ----
Regasification
revenues $65,551 $66,802
LNG revenues 2,704 662
Other revenues 826 905
--- ---
Total revenues 69,081 68,369
Operating costs and expenses
Cost of sales
(excluding
depreciation and
amortization expense
shown separately
below) 14,507 693
Operating and
maintenance expense 36,317 35,706
Development expense 1,547 16,096
Marketing expense 24,978 13,046
General and
administrative
expense 47,924 44,971
Depreciation and
amortization expense 24,089 17,769
Impairment expense 10,166 176
Other 112 156
--- ---
Total operating costs
and expenses 159,640 128,613
------- -------
Loss from operations (90,559) (60,244)
Other income (expense)
Interest expense, net
of capitalized
interest (76,337) (59,612)
Loss on early
extinguishment of
debt (1,457) (88,992)
Derivative loss, net (180,934) (126,690)
Other income 929 372
--- ---
Total other expense (257,799) (274,922)
-------- --------
Loss before income
taxes and non-
controlling interest (348,358) (335,166)
Income tax provision (616) (678)
---- ----
Net loss (348,974) (335,844)
Less: net loss
attributable to non-
controlling interest (28,136 (68,135
------- -------
Net loss attributable
to common
stockholders $(320,838) $(267,709)
========= =========
Net loss per share
attributable to
common stockholders-
basic and diluted $(1.41) $(1.18)
====== ======
Weighted average
number of common
shares outstanding-
basic and diluted 228,138 226,328
___________________
(1) Please refer to the Cheniere Energy, Inc.
Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016, filed with
the Securities and Exchange Commission.
Cheniere Energy, Inc.
Consolidated Balance Sheets
(in thousands, except share data)(1)
March 31, December 31,
ASSETS 2016 2015
---- ----
(unaudited)
Current assets
1,201,112
Cash and cash
equivalents $1,094,833 $
Restricted cash 732,551 503,397
Accounts and
interest
receivable 23,979 5,749
Inventory 31,243 18,125
Other current
assets 63,509 54,203
------ ------
Total current
assets 1,946,115 1,782,586
Non-current
restricted cash 31,724 31,722
Property, plant
and equipment,
net 17,674,548 16,193,907
Debt issuance
costs, net 409,894 378,677
Non-current
derivative assets 29,361 30,887
Goodwill 76,819 76,819
Other non-current
assets 262,486 314,455
------- -------
Total assets $20,430,947 $18,809,053
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $35,398 $22,820
Accrued
liabilities 670,584 427,199
Current debt, net 1,785,318 1,673,379
Deferred revenue 26,669 26,669
Derivative
liabilities 50,561 35,201
Other current
liabilities 93 -
--- ---
Total current
liabilities 2,568,623 2,185,268
Long-term debt,
net 16,348,099 14,920,427
Non-current
deferred revenue 8,500 9,500
Non-current
derivative
liabilities 239,372 79,387
Other non-current
liabilities 61,668 53,068
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
March 31, 2016 and December 31, 2015
Issued and
outstanding:
235.5 million
shares and 235.6
million shares at
March 31, 2016
and December 31,
2015,
respectively 707 708
Treasury stock:
11.7 million
shares and 11.6
million shares at
March 31, 2016
and December 31,
2015,
respectively, at
cost (354,903) (353,927)
Additional paid-
in-capital 3,088,648 3,075,317
Accumulated
deficit (3,944,786) (3,623,948)
---------- ----------
Total
stockholders'
deficit (1,210,334) (901,850)
Non-controlling
interest 2,415,019 2,463,253
--------- ---------
Total equity 1,204,685 1,561,403
--------- ---------
Total liabilities
and equity $20,430,947 $18,809,053
=========== ===========
___________________
(1) Please refer to the Cheniere Energy, Inc.
Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016, filed with
the Securities and Exchange Commission.
As of March 31, 2016, we had cash and cash equivalents of $1,094.8 million available to Cheniere. In addition, we had current and non-current restricted cash of $764.3 million (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $295.3 million for the CCL Project, $177.6 million for the Sabine Pass Liquefaction Project, $108.9 million for the 2016 CQP Credit Facilities, $129.1 million for interest payments related to the SPLNG senior secured notes and $53.4 million for other restricted purposes.
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SOURCE Cheniere Energy, Inc.
