DALLAS, July 2, 2020 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® MLP High Income Index (the "Index") as part of normal index operations. After the markets close on July 10, 2020, the 30 constituents of the Index will be rebalanced, and the following changes will become effective on July 13, 2020:
Constituents added:
Noble Midstream Partners LP (NASDAQ: NBLX)
Delek Logistics Partners, LP (NYSE: DKL)
PBF Logistics LP (NYSE: PBFX)
Black Stone Minerals, L.P. (NYSE: BSM)
Constituents removed:
Targa Resources Corp. (NYSE: TRGP)
Enviva Partners, LP (NYSE: EVA)
Cheniere Energy, Inc. (NYSE: LNG)
KNOT Offshore Partners LP (NYSE: KNOP)
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts, providing active management in markets where inefficiencies exist.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX) and The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI). For more information, please visit http://www.cushingasset.com/indices.
For additional information contact:
Jon Abel
214-692-6334
http://www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing® Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-mlp-high-income-index-corrected-301087668.html
SOURCE Cushing® Asset Management, LP and Swank Capital, LLC
DALLAS, July 2, 2020 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® MLP High Income Index (the "Index") as part of normal index operations. After the markets close on July 10, 2020, the 30 constituents of the Index will be rebalanced, and the following changes will become effective on July 12, 2020:
Constituents added:
Noble Midstream Partners LP (NASDAQ: NBLX)
Delek Logistics Partners, LP (NYSE: DKL)
PBF Logistics LP (NYSE: PBFX)
Black Stone Minerals, L.P. (NYSE: BSM)
Constituents removed:
Targa Resources Corp. (NYSE: TRGP)
Enviva Partners, LP (NYSE: EVA)
Cheniere Energy, Inc. (NYSE: LNG)
KNOT Offshore Partners LP (NYSE: KNOP)
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts, providing active management in markets where inefficiencies exist.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX) and The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI). For more information, please visit http://www.cushingasset.com/indices.
For additional information contact:
Jon Abel
214-692-6334
http://www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing® Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-mlp-high-income-index-301087435.html
SOURCE Cushing® Asset Management, LP and Swank Capital, LLC
HOUSTON, Jan. 24, 2018 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE American: LNG) announced today that it plans to issue its earnings release with respect to fourth quarter and full year 2017 financial results on Wednesday, February 21, 2018 before the market opens. Cheniere will host a conference call for investors and analysts at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss fourth quarter and full year results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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 developing, constructing, and operating 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 September 30, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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.
CHENIERE CONTACTS: |
|
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media Relations |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-energy-inc-announces-timing-of-fourth-quarter-and-full-year-2017-earnings-release-and-conference-call-300587674.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Jan. 16, 2018 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) announced today that its subsidiary Cheniere Marketing, LLC ("Cheniere Marketing") has entered into a liquefied natural gas ("LNG") sale and purchase agreement ("SPA") with Trafigura Pte Ltd ("Trafigura"), under which Trafigura has agreed to purchase approximately 1 million tonnes per annum of LNG from Cheniere Marketing on a free on board basis for a term of 15 years beginning in 2019. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
"We are pleased to announce this long-term SPA with Trafigura, an important player in the global LNG market. We expect this SPA to help support Cheniere's expansion plans, and we look forward to a successful long-term relationship with Trafigura as a customer," said Jack Fusco, President and CEO. "With a flexible solution tailored to the needs of our customer, this agreement demonstrates Cheniere's capabilities as a leading global LNG supplier."
About Cheniere
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 developing, constructing, and operating 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 September 30, 2017, filed with the Securities and Exchange Commission.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management. Trafigura is owned by around 600 of its 3,935 employees who work in 62 offices in 35 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD136.4 billion in 2017. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit: www.trafigura.com
Trafigura's Global Press Office: +41 22 592 45 28 or media@trafigura.com
Forward-Looking Statements
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 or present facts or conditions, 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.
CHENIERE CONTACTS: | |
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media Relations |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-and-trafigura-sign-15-year-lng-sale-and-purchase-agreement-300582672.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Nov. 14, 2017 /PRNewswire/ --
Summary of Third Quarter 2017 Results (in millions, except LNG data) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues |
$ |
1,403 |
$ |
465 |
$ |
3,855 |
$ |
711 |
|||||||
Net loss1 |
$ |
(289) |
$ |
(101) |
$ |
(520) |
$ |
(720) |
|||||||
Consolidated Adjusted EBITDA2 |
$ |
442 |
$ |
67 |
$ |
1,297 |
$ |
19 |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
232.6 |
228.9 |
232.5 |
228.5 |
|||||||||||
LNG exported: |
|||||||||||||||
Number of cargoes |
44 |
18 |
135 |
33 |
|||||||||||
Volumes (TBtu) |
160 |
62 |
482 |
114 |
|||||||||||
LNG volumes loaded (TBtu) |
162 |
61 |
483 |
114 |
Summary 2017 Revised Full Year Guidance (in billions) | |||||||
2017 | |||||||
Consolidated Adjusted EBITDA2 |
$ |
1.8 |
- |
$ |
1.9 |
||
Distributable Cash Flow2 |
$ |
0.6 |
- |
$ |
0.7 |
Summary 2018 Full Year Guidance (in billions) | |||||||
2018 | |||||||
Consolidated Adjusted EBITDA2 |
$ |
1.9 |
- |
$ |
2.1 |
||
Distributable Cash Flow2 |
$ |
0.2 |
- |
$ |
0.4 |
Recent Highlights
Strategic
Operational
Financial
Liquefaction Projects Update
SPL Project |
CCL Project | ||||||||||
Liquefaction Train |
Trains 1-3 |
Train 4 |
Train 5 |
Train 6 |
Trains 1-2 |
Train 3 | |||||
Project Status |
Operational |
Operational |
Under Construction |
Permitted |
Under Construction |
Permitted | |||||
Expected Substantial Completion |
Complete |
Complete |
2H 2019 |
— |
T1 - 1H 2019 T2 - 2H 2019 |
— | |||||
Expected DFCD Window Start |
Complete |
1H 2018 |
2H 2019 |
— |
T1 - 1H 2019 T2 - 1H 2020 |
— | |||||
Construction operations at both the SPL Project and the CCL Project have returned to productivity levels achieved prior to Hurricane Harvey.
Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) reported a net loss1 of $289 million, or $1.24 per share (basic and diluted), for the three months ended September 30, 2017, compared to a net loss of $101 million, or $0.44 per share (basic and diluted), for the comparable 2016 period.
Cheniere reported a net loss of $520 million, or $2.24 per share (basic and diluted), for the nine months ended September 30, 2017, compared to a net loss of $720 million, or $3.15 per share (basic and diluted), for the comparable 2016 period.
During the three months ended September 30, 2017, the increase in net loss was primarily due to the increased allocation of net income to non-controlling interest due primarily to the non-cash impact of amortization of the beneficial conversion feature on Cheniere Partners' Class B units, increased interest expense, net of amounts capitalized, and increased derivative loss, net associated with interest rate derivative activity, which were partially offset by increased income from operations. During the nine months ended September 30, 2017, the decrease in net loss was primarily due to increased income from operations and decreased derivative loss, net associated with interest rate derivative activity, which were partially offset by increased allocation of net income to non-controlling interest and increased interest expense, net of amounts capitalized. The amortization of the beneficial conversion feature on Cheniere Partners' Class B units ceased upon the conversion of these units into common units on August 2, 2017, and there will be no further impact to net income (loss) attributable to non-controlling interest due to the amortization of the beneficial conversion feature.
During the three and nine months ended September 30, 2017, 44 and 135 LNG cargoes, respectively, were exported from the SPL Project, of which 5 and 12, respectively, were commissioning cargoes.
Consolidated Adjusted EBITDA2 for the three and nine months ended September 30, 2017 was $442 million and $1.3 billion, respectively, compared to $67 million and $19 million for the comparable 2016 periods. The increases in Consolidated Adjusted EBITDA during the respective periods were primarily due to increased income from operations.
"I'm pleased to report our strong third quarter results today, which are a product of continued execution and operational excellence across the company. In addition, we are again increasing our full year 2017 guidance and are introducing our guidance for full year 2018" said Jack Fusco, Cheniere's President and CEO. "The third quarter was highlighted by the commencement of our long-term contract with Gas Natural Fenosa and the successful commissioning of Train 4 at Sabine Pass. Train 4 recently achieved Substantial Completion, and we've now brought the first four Trains online in less than 17 months, all of them ahead of schedule and within budget.
"We are revising our 2017 guidance upward as operating results continue to exceed earlier expectations, and we have greater certainty on results as we approach the end of the year. Our 2018 guidance range is driven primarily by LNG production scenarios at Sabine Pass and expected market pricing for LNG during 2018."
LNG Volume Summary
The following table summarizes the volumes of operational and commissioning LNG cargoes that were loaded from the SPL Project and recognized on our Consolidated Financial Statements during the three and nine months ended September 30, 2017:
Three Months Ended September 30, 2017 |
Nine Months Ended September 30, 2017 | ||||||||||||||||||||
(in TBtu) |
Operational |
Commissioning |
Operational |
Commissioning | |||||||||||||||||
Volumes loaded during the current period |
144 |
18 |
439 |
44 | |||||||||||||||||
Volumes loaded during the prior period but recognized during the current period |
14 |
— |
19 |
— | |||||||||||||||||
Less: volumes loaded during the current period and in transit at the end of the period |
(7) |
(4) |
(7) |
(4) | |||||||||||||||||
Total volumes recognized in the current period |
151 |
14 |
451 |
40 | |||||||||||||||||
In addition, during the three and nine months ended September 30, 2017, we recognized volumes of 46 and 64 TBtu, respectively, on our Consolidated Financial Statements related to LNG cargoes sourced from third parties.
Summary of Financial Performance
Third Quarter 2017 Results
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners (NYSE American: CQP) as of September 30, 2017 consisted of 100% ownership of the general partner of Cheniere Partners and 82.7% ownership interest in Cheniere Energy Partners LP Holdings, LLC (NYSE American: CQH) which owned a 48.6% limited partner interest in Cheniere Partners on September 30, 2017.
Variances in results of operations for the three and nine months ended September 30, 2017, compared to the three and nine months ended September 30, 2016, were primarily driven by the timing of completion of Trains at the SPL Project and the length of each Train's operations within the periods being compared. Total revenues increased $938 million and $3.1 billion during the three and nine months ended September 30, 2017 as compared to the three and nine months ended September 30, 2016, respectively, primarily due to the increased volume of LNG sold that was recognized as revenues following the achievement of substantial completion of each Train, and to a lesser extent the increased volume of LNG sold that was sourced from third parties.
Total operating costs and expenses increased $656 million and $2.0 billion during the three and nine months ended September 30, 2017, respectively, compared to the three and nine months ended September 30, 2016. The increase in total operating costs and expenses was primarily due to an increase in cost of sales and, to a lesser extent, from increases in operating and maintenance expense and depreciation and amortization expense.
Selling, general and administrative ("SG&A") expense increased $5 million during the three months ended September 30, 2017 compared to the three months ended September 30, 2016, but decreased $18 million during the nine months ended September 30, 2017, compared to the nine months ended September 30, 2016. During the three months ended September 30, 2016, SG&A expense benefited from a cost reversal that was not repeated in the comparable 2017 period. The $18 million decrease in SG&A expense for the nine months ended September 30, 2017, compared to the nine months ended September 30, 2016 is primarily due to certain organizational changes implemented during 2016.
Included in SG&A expense were share-based compensation expenses of $13 million and $38 million for the three and nine months ended September 30, 2017, respectively, compared to $7 million and $31 million for the comparable 2016 periods.
Although we realized net income before non-controlling interest during the three and nine months ended September 30, 2017, we realized a net loss attributable to common stockholders during the periods as a result of the amortization of the beneficial conversion feature on Cheniere Partners' Class B units impacting net income attributed to non-controlling interest. The impact to net income (loss) attributable to non-controlling interest due to the non-cash amortization of the beneficial conversion feature was $370 million and $748 million during the three and nine months ended September 30, 2017, respectively, compared to $7 million and $10 million during the three and nine months ended September 30, 2016, respectively. The amortization of the beneficial conversion feature on Cheniere Partners' Class B units ceased upon the conversion of these units into common units on August 2, 2017, and there will be no further impact to net income (loss) attributable to non-controlling interest due to the amortization of the beneficial conversion feature. The share of Cheniere Partners' net income (loss) that is attributed to non-controlling interest holders has increased from August 2, 2017 as a result of the increased ownership percentage by non-controlling interest holders.
Capital Resources
As of September 30, 2017, we had cash and cash equivalents of $919 million available to Cheniere. In addition, we had current and non-current restricted cash of $1.7 billion (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $627 million for the SPL Project, $117 million for the CCL Project (defined below), $816 million for restricted purposes under the terms of Cheniere Partners' credit facilities and $96 million for other restricted purposes.
Liquefaction Projects
SPL Project
Through Cheniere Partners, we are developing up to six Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "SPL Project"). Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG. Trains 1 through 4 are operational, Train 5 is under construction, and Train 6 is being commercialized and has all necessary regulatory approvals in place.
CCL Project
We are developing up to three Trains near Corpus Christi, Texas (the "CCL Project"). Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG. Trains 1 and 2 are under construction, and Train 3 is being commercialized and has all necessary regulatory approvals in place.
Corpus Christi Expansion Project
We are developing up to seven midscale liquefaction trains adjacent to the CCL Project, each with an expected nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 1.4 mtpa of LNG. The total expected nominal production capacity of the seven midscale Trains is approximately 9.5 mtpa. We have initiated the regulatory approval process with respect to the Corpus Christi Expansion Project.
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and operating results for the third quarter on Tuesday, November 14, 2017, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
___________ | |
1 |
Net loss as used herein refers to Net loss attributable to common stockholders on our Consolidated Statements of Operations. |
2 |
Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for further details. |
About Cheniere
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 developing, constructing, and operating 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 September 30, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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 Tables Follow)
Cheniere Energy, Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(in millions, except per share data)(1) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues |
|||||||||||||||
LNG revenues |
$ |
1,332 |
$ |
399 |
$ |
3,646 |
$ |
512 |
|||||||
Regasification revenues |
65 |
64 |
195 |
194 |
|||||||||||
Other revenues |
5 |
2 |
12 |
5 |
|||||||||||
Other—related party |
1 |
— |
2 |
— |
|||||||||||
Total revenues |
1,403 |
465 |
3,855 |
711 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) |
824 |
253 |
2,140 |
353 |
|||||||||||
Operating and maintenance expense |
114 |
61 |
309 |
143 |
|||||||||||
Development expense |
3 |
2 |
7 |
5 |
|||||||||||
Selling, general and administrative expense |
64 |
59 |
179 |
197 |
|||||||||||
Depreciation and amortization expense |
92 |
49 |
252 |
106 |
|||||||||||
Restructuring expense |
— |
26 |
6 |
49 |
|||||||||||
Impairment expense and loss on disposal of assets |
9 |
— |
15 |
10 |
|||||||||||
Total operating costs and expenses |
1,106 |
450 |
2,908 |
863 |
|||||||||||
Income (loss) from operations |
297 |
15 |
947 |
(152) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(186) |
(148) |
(539) |
(330) |
|||||||||||
Loss on early extinguishment of debt |
(25) |
(26) |
(100) |
(83) |
|||||||||||
Derivative gain (loss), net |
(2) |
30 |
(37) |
(242) |
|||||||||||
Other income (expense) |
4 |
— |
11 |
(6) |
|||||||||||
Total other expense |
(209) |
(144) |
(665) |
(661) |
|||||||||||
Income (loss) before income taxes and non-controlling interest |
88 |
(129) |
282 |
(813) |
|||||||||||
Income tax benefit (provision) |
2 |
(2) |
1 |
(2) |
|||||||||||
Net income (loss) |
90 |
(131) |
283 |
(815) |
|||||||||||
Less: net income (loss) attributable to non-controlling interest |
379 |
(30) |
803 |
(95) |
|||||||||||
Net loss attributable to common stockholders |
$ |
(289) |
$ |
(101) |
$ |
(520) |
$ |
(720) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(1.24) |
$ |
(0.44) |
$ |
(2.24) |
$ |
(3.15) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
232.6 |
228.9 |
232.5 |
228.5 |
______________ | |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, filed with the Securities and Exchange Commission. |
Cheniere Energy, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in millions, except share data)(1) | |||||||
September 30, |
December 31, | ||||||
2017 |
2016 | ||||||
ASSETS |
(unaudited) |
||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
919 |
$ |
876 |
|||
Restricted cash |
1,590 |
860 |
|||||
Accounts and other receivables |
264 |
218 |
|||||
Accounts receivable—related party |
1 |
— |
|||||
Inventory |
133 |
160 |
|||||
Derivative assets |
12 |
24 |
|||||
Other current assets |
112 |
100 |
|||||
Total current assets |
3,031 |
2,238 |
|||||
Non-current restricted cash |
66 |
91 |
|||||
Property, plant and equipment, net |
23,466 |
20,635 |
|||||
Debt issuance costs, net |
159 |
277 |
|||||
Non-current derivative assets |
37 |
83 |
|||||
Goodwill |
77 |
77 |
|||||
Other non-current assets, net |
298 |
302 |
|||||
Total assets |
$ |
27,134 |
$ |
23,703 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
59 |
$ |
49 |
|||
Accrued liabilities |
722 |
637 |
|||||
Current debt |
41 |
247 |
|||||
Deferred revenue |
134 |
73 |
|||||
Derivative liabilities |
55 |
71 |
|||||
Total current liabilities |
1,011 |
1,077 |
|||||
Long-term debt, net |
24,923 |
21,688 |
|||||
Non-current deferred revenue |
2 |
5 |
|||||
Non-current derivative liabilities |
52 |
45 |
|||||
Other non-current liabilities |
63 |
49 |
|||||
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 September 30, 2017 and December 31, 2016 |
|||||||
Issued: 250.1 million shares at September 30, 2017 and December 31, 2016 |
|||||||
Outstanding: 237.8 million shares and 238.0 million shares at September 30, 2017 and December 31, 2016, respectively |
1 |
1 |
|||||
Treasury stock: 12.3 million shares and 12.2 million shares at September 30, 2017 and December 31, 2016, respectively, at cost |
(378) |
(374) |
|||||
Additional paid-in-capital |
3,238 |
3,211 |
|||||
Accumulated deficit |
(4,754) |
(4,234) |
|||||
Total stockholders' deficit |
(1,893) |
(1,396) |
|||||
Non-controlling interest |
2,976 |
2,235 |
|||||
Total equity |
1,083 |
839 |
|||||
Total liabilities and equity |
$ |
27,134 |
$ |
23,703 |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, filed with the Securities and Exchange Commission. |
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow per Share are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Consolidated Adjusted EBITDA represents net loss attributable to Cheniere before net income (loss) attributable to the non-controlling interest, interest, taxes, depreciation and amortization, adjusted for certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, as detailed in the following reconciliation. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance. We believe Consolidated Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.
Consolidated Adjusted EBITDA is calculated by taking net loss attributable to common stockholders before net income (loss) attributable to non-controlling interest, interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense and loss on disposal of assets, changes in the fair value of our commodity and foreign currency exchange ("FX") derivatives and non-cash compensation expense. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
Distributable Cash Flow is defined as cash received, or expected to be received, from Cheniere's ownership and interests in CQP, CQH and Cheniere Corpus Christi Holdings, LLC, cash received (used) by Cheniere's integrated marketing function (other than cash for capital expenditures) less interest, taxes and maintenance capital expenditures associated with Cheniere and not the underlying entities. Management uses this measure and believes it provides users of our financial statements a useful measure reflective of our business's ability to generate cash earnings to supplement the comparable GAAP measure.
Distributable Cash Flow per Share is calculated by dividing Distributable Cash Flow by the weighted average number of common shares outstanding.
We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be used for discretionary purposes such as common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures. Management uses this measure and believes it provides users of our financial statements a useful measure reflective of our business's ability to generate cash earnings to supplement the comparable GAAP measure. Distributable Cash Flow is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP, and should be evaluated only on a supplementary basis.
Consolidated Adjusted EBITDA
The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2017 and 2016 (in millions):
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(289) |
$ |
(101) |
$ |
(520) |
$ |
(720) |
|||||||
Net income (loss) attributable to non-controlling interest |
379 |
(30) |
803 |
(95) |
|||||||||||
Income tax provision (benefit) |
(2) |
2 |
(1) |
2 |
|||||||||||
Interest expense, net of capitalized interest |
186 |
148 |
539 |
330 |
|||||||||||
Loss on early extinguishment of debt |
25 |
26 |
100 |
83 |
|||||||||||
Derivative loss (gain), net |
2 |
(30) |
37 |
242 |
|||||||||||
Other expense (income) |
(4) |
— |
(11) |
6 |
|||||||||||
Income (loss) from operations |
$ |
297 |
$ |
15 |
$ |
947 |
$ |
(152) |
|||||||
Adjustments to reconcile income (loss) from operations to Consolidated Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
92 |
49 |
252 |
106 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
35 |
(3) |
63 |
23 |
|||||||||||
Total non-cash compensation expense |
9 |
6 |
20 |
32 |
|||||||||||
Impairment expense and loss on disposal of assets |
9 |
— |
15 |
10 |
|||||||||||
Consolidated Adjusted EBITDA |
$ |
442 |
$ |
67 |
$ |
1,297 |
$ |
19 |
Distributable Cash Flow
The following table reconciles our forecast Consolidated Adjusted EBITDA and Distributable Cash Flow to forecast Net loss attributable to common stockholders for 2017 and 2018 (in billions):
2017 |
2018 | ||||||||||||||
Net income (loss) attributable to common stockholders |
$ |
(0.4) |
- |
$ |
(0.3) |
$ |
(0.1) |
- |
$ |
0.1 |
|||||
Net income attributable to non-controlling interest |
0.9 |
- |
0.9 |
0.6 |
- |
0.6 |
|||||||||
Income tax provision (benefit) |
(0.0) |
(0.0) |
|||||||||||||
Interest expense, net of capitalized interest |
0.8 |
0.9 |
|||||||||||||
Loss on early extinguishment of debt |
0.1 |
0.0 |
|||||||||||||
Derivative loss (gain), net |
0.0 |
0.0 |
|||||||||||||
Other expense (income) |
0.0 |
0.0 |
|||||||||||||
Income from operations |
$ |
1.4 |
- |
$ |
1.5 |
$ |
1.4 |
- |
$ |
1.6 |
|||||
Adjustments to reconcile income from operations to Consolidated Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
0.4 |
0.5 |
|||||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
0.0 |
0.0 |
|||||||||||||
Total non-cash compensation expense |
0.0 |
0.0 |
|||||||||||||
Impairment expense and loss on disposal of assets |
0.0 |
0.0 |
|||||||||||||
Consolidated Adjusted EBITDA |
$ |
1.8 |
- |
$ |
1.9 |
$ |
1.9 |
- |
$ |
2.1 |
|||||
CQP/CQH minority interest |
(0.3) |
- |
(0.3) |
(0.6) |
- |
(0.6) |
|||||||||
SPL and CQP cash retained / interest expense / other |
(0.8) |
- |
(0.8) |
(0.9) |
- |
(0.9) |
|||||||||
CQP interest expense |
(0.1) |
(0.1) |
|||||||||||||
CEI interest expense |
(0.0) |
(0.0) |
|||||||||||||
CEI Distributable Cash Flow |
$ |
0.6 |
- |
$ |
0.7 |
$ |
0.2 |
- |
$ |
0.4 |
Note: Totals may not sum due to rounding |
CONTACTS:
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-reports-third-quarter-2017-results-raises-full-year-2017-guidance-and-provides-full-year-2018-guidance-300555114.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Oct. 23, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE American: LNG) announced today that it plans to issue its earnings release with respect to third quarter 2017 financial results on Tuesday, November 14, 2017 before the market opens. Cheniere will host a conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss third quarter results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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 developing, constructing, and operating 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 June 30, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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.
CHENIERE CONTACTS: |
|
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media Relations |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-energy-inc-announces-timing-of-third-quarter-2017-earnings-release-and-conference-call-300541622.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Aug. 31, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) announced today that Jack Fusco, President and Chief Executive Officer, is scheduled to present at the 2017 Barclays CEO Energy-Power Conference in New York City on September 7, 2017 at 9:45 AM, Eastern Time.
The presentation materials will be available on the Investor Relations section of the Cheniere website at www.cheniere.com prior to the opening of the market on September 7, 2017.
About Cheniere
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 developing, constructing, and operating 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 June 30, 2017, filed with the Securities and Exchange Commission.
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-energy-inc-to-present-at-2017-barclays-ceo-energy-power-conference-300512429.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Aug. 28, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) today provided updates on company operations resulting from Hurricane Harvey, and announced that it will make a $1 million donation to the American Red Cross to assist in the relief and recovery efforts following the storm.
"Our thoughts and prayers are with all of our neighbors and communities here in Texas and Louisiana that have been impacted by this devastating and continuing storm," said Jack Fusco, President and CEO of Cheniere. "While Cheniere has been lucky to avoid any major impacts from Harvey, many in our communities have a long road ahead to assess the damage and recover from this storm. To help in the relief efforts, Cheniere will donate $1 million to the Red Cross Harvey relief efforts."
Cheniere conducted initial assessments of impact from Hurricane Harvey. At Sabine Pass, LNG production operations continued through the storm. Early assessments of the Corpus Christi construction site by Cheniere and our EPC partner Bechtel showed only minor cosmetic impacts. Cheniere is currently working to contact all employees to ensure they are safe and assess their needs.
"Now that the storm has passed through our Corpus Christi construction site, we are pleased to report that Corpus Christi saw no major impacts, and no interruption of LNG production at Sabine Pass has been experienced," said Fusco. "Moving forward, Cheniere will focus on helping our hometown of Houston recover and the communities around Corpus Christi rebuild."
As the storm is expected to continue to impact the Houston area, Cheniere has activated its emergency office location in Dallas to support its gas supply and trading division and other essential functions to ensure obligations are met to continue producing LNG at Sabine Pass.
Cheniere's severe weather and safety teams remain activated and continue to monitor the remnants of Hurricane Harvey.
About Cheniere
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 developing, constructing, and operating 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 June 30, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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.
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-energy-inc-provides-update-on-hurricane-harvey-impacts-announces-1-million-donation-to-red-cross-relief-effort-300510017.html
SOURCE Cheniere Energy, Inc.
HOUSTON, Aug. 8, 2017 /PRNewswire/ --
Summary of Second Quarter 2017 Results (in millions, except LNG data) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues |
$ |
1,241 |
$ |
177 |
$ |
2,452 |
$ |
246 |
|||||||
Net loss1 |
$ |
(285) |
$ |
(298) |
$ |
(231) |
$ |
(619) |
|||||||
Consolidated Adjusted EBITDA2 |
$ |
371 |
$ |
(4) |
$ |
854 |
$ |
(48) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
232.5 |
228.3 |
232.4 |
228.2 |
|||||||||||
LNG exported: |
|||||||||||||||
Number of cargoes |
48 |
11 |
91 |
15 |
|||||||||||
Volumes (TBtu) |
170 |
38 |
322 |
52 |
|||||||||||
LNG volumes loaded (TBtu) |
167 |
38 |
321 |
53 |
Summary 2017 Revised Full Year Guidance (in billions, except per share amounts) | |||||||
2017 | |||||||
Consolidated Adjusted EBITDA2 |
$ |
1.6 |
- |
$ |
1.8 |
||
Distributable Cash Flow2 |
$ |
0.5 |
- |
$ |
0.7 |
||
Distributable Cash Flow per Share2 |
$ |
2.10 |
- |
$ |
2.80 |
Recent Highlights
Strategic
Operational
Financial
Liquefaction Projects Update
SPL Project |
CCL Project | ||||||
Liquefaction Train |
Trains 1-3 |
Train 4 |
Train 5 |
Train 6 |
Trains 1-2 |
Train 3 | |
Project Status |
Operational |
Commissioning |
Under |
Permitted |
Under |
Permitted | |
Expected Substantial Completion |
— |
2H 2017 |
2H 2019 |
— |
T1 - 1H 2019 T2 - 2H 2019 |
— | |
Expected DFCD Window Start |
Complete(1) |
1H 2018 |
2H 2019 |
— |
T1 - 1H 2019 T2 - 1H 2020 |
— |
(1) DFCD was achieved for Train 1 of the SPL Project in November 2016, for Train 2 of the SPL Project in August 2017, and for Train 3 of the SPL Project in June 2017. |
Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) reported a net loss1 of $285 million, or $1.23 per share (basic and diluted), for the three months ended June 30, 2017, compared to a net loss of $298 million, or $1.31 per share (basic and diluted), for the comparable 2016 period.
Cheniere reported a net loss of $231 million, or $0.99 per share (basic and diluted), for the six months ended June 30, 2017, compared to a net loss of $619 million, or $2.71 per share (basic and diluted), for the comparable 2016 period.
During the three months ended June 30, 2017, the decrease in net loss was primarily due to increased income from operations, decreased derivative loss, net and decreased loss on early extinguishment of debt, which were partially offset by an increased allocation of net income to non-controlling interest due primarily to the amortization of the beneficial conversion feature on Cheniere Partners' Class B units and increased interest expense, net of amounts capitalized. During the six months ended June 30, 2017, the decrease in net loss was primarily due to increased income from operations and decreased derivative loss, net, which were partially offset by increased allocation of net income to non-controlling interest, increased interest expense, net of amounts capitalized, and loss on early extinguishment of debt. During the three and six months ended June 30, 2017, 48 and 91 LNG cargoes, respectively, were exported from the SPL Project, of which zero and 7, respectively, were commissioning cargoes.
Consolidated Adjusted EBITDA2 for the three and six months ended June 30, 2017 was $371 million and $854 million, respectively, compared to a loss of $4 million and $48 million for the comparable 2016 periods. The increases in Consolidated Adjusted EBITDA during the respective periods were primarily due to increased income from operations.
"Today I'm pleased to announce our solid second quarter results, which are once again driven by execution and operational excellence across the company, and an increase in our full year 2017 guidance" said Jack Fusco, Cheniere's President and CEO. "The quarter was highlighted by the commencement of our long-term contract with KOGAS and securing equity financing for the Midship Project. Subsequent to the end of the quarter, our long-term contract with Gas Natural Fenosa commenced and first LNG production occurred from Train 4 at Sabine Pass.
"We are revising our 2017 guidance upward as our operating results year-to-date have exceeded our expectations, primarily due to LNG trains entering service ahead of schedule and the ramp-up in LNG production levels occurring faster than we'd forecast earlier this year. During the second half of 2017, our focus remains on bringing Train 4 at Sabine Pass online safely and efficiently, executing on our commercialization strategies, and delivering on our increased 2017 guidance."
LNG Volume Summary
The following table summarizes the volumes of operational and commissioning LNG cargoes that were loaded from the SPL Project and recognized on our Consolidated Financial Statements during the three and six months ended June 30, 2017:
Three Months Ended June 30, 2017 |
Six Months Ended June 30, 2017 | ||||||
(in TBtu) |
Operational |
Commissioning |
Operational |
Commissioning | |||
Volumes loaded during the current period |
167 |
— |
295 |
26 | |||
Volumes loaded during the prior period but recognized during the current period |
7 |
8 |
19 |
— | |||
Less: volumes loaded during the current period and in transit at the end of the period |
(14) |
— |
(14) |
— | |||
Total volumes recognized in the current period |
160 |
8 |
300 |
26 |
Summary of Financial Performance
Second Quarter 2017 Results
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE American: CQP) as of June 30, 2017 consisted of 100% ownership of the general partner of Cheniere Partners and 82.7% ownership interest in Cheniere Energy Partners LP Holdings, LLC (NYSE American: CQH) which owned a 55.9% limited partner interest in Cheniere Partners as of June 30, 2017 and an approximately 48.6% limited partner interest in Cheniere Partners upon the conversion of Class B units on August 2, 2017.
Variances in results of operations for the three and six months ended June 30, 2017, compared to the three and six months ended June 30, 2016, were primarily driven by the timing of completion of Trains and the length of each Train's operations within the periods being compared. Total revenues increased $1.1 billion and $2.2 billion during the three and six months ended June 30, 2017 as compared to the three and six months ended June 30, 2016, respectively, primarily due to the increased volume of LNG sold that was recognized as revenues. LNG revenues in the second quarter of 2017 exceeded $1 billion.
Total operating costs and expenses increased $714 million and $1.4 billion during the three and six months ended June 30, 2017, respectively, compared to the three and six months ended June 30, 2016. The increase in total operating costs and expenses was primarily due to an increase in cost of sales and, to a lesser extent, from increases in operating and maintenance expense and depreciation and amortization expense.
Selling, general and administrative expense decreased $11 million and $23 million during the three and six months ended June 30, 2017, compared to the three and six months ended June 30, 2016, respectively, primarily due to the implementation of certain changes in the organizational structure. Included in selling, general and administrative expense were share-based compensation expenses of $13 million and $25 million for the three and six months ended June 30, 2017, respectively, compared to $16 million and $24 million for the comparable 2016 periods.
Although we realized net income before non-controlling interest during the three and six months ended June 30, 2017, we realized a net loss attributable to common stockholders during the periods as a result of the amortization of the beneficial conversion feature on Cheniere Partners' Class B units impacting net income attributed to non-controlling interest.
Capital Resources
As of June 30, 2017, we had cash and cash equivalents of $796 million available to Cheniere. In addition, we had current and non-current restricted cash of $1.75 billion (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $1.28 billion for the SPL Project, $103 million for the CCL Project (defined below), $286 million for restricted purposes under the terms of Cheniere Partners' credit facilities and $82 million for other restricted purposes.
Liquefaction Projects
SPL Project
Through Cheniere Partners, we are developing up to six Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "SPL Project"). Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 million tonnes per annum ("mtpa") of LNG. Trains 1, 2, and 3 are operational, Train 4 is undergoing commissioning, Train 5 is under construction, and Train 6 is being commercialized and has all necessary regulatory approvals in place.
CCL Project
We are developing up to three Trains near Corpus Christi, Texas (the "CCL Project"). Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG. Trains 1 and 2 are under construction, and Train 3 is being commercialized and has all necessary regulatory approvals in place. Additionally, we are developing two additional Trains adjacent to the CCL Project and have initiated the regulatory approval process with respect to those Trains.
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and operating results for the second quarter on Tuesday, August 8, 2017, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
___________________________ | |
1 |
Net loss as used herein refers to Net loss attributable to common stockholders on our Consolidated Statements of Operations. |
2 |
Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for further details. |
About Cheniere
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 developing, constructing, and operating 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 June 30, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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 Tables Follow)
Cheniere Energy, Inc. | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
(in millions, except per share data)(1) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Revenues |
|||||||||||||||
LNG revenues |
$ |
1,171 |
$ |
110 |
$ |
2,314 |
$ |
113 |
|||||||
Regasification revenues |
65 |
65 |
130 |
130 |
|||||||||||
Other revenues |
4 |
2 |
7 |
3 |
|||||||||||
Other—related party |
1 |
— |
1 |
— |
|||||||||||
Total revenues |
1,241 |
177 |
2,452 |
246 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) |
692 |
85 |
1,316 |
100 |
|||||||||||
Operating and maintenance expense |
117 |
46 |
195 |
82 |
|||||||||||
Development expense |
1 |
1 |
4 |
3 |
|||||||||||
Selling, general and administrative expense |
61 |
72 |
115 |
138 |
|||||||||||
Depreciation and amortization expense |
90 |
33 |
160 |
57 |
|||||||||||
Restructuring expense |
— |
16 |
6 |
23 |
|||||||||||
Impairment expense |
— |
— |
— |
10 |
|||||||||||
Other |
6 |
— |
6 |
— |
|||||||||||
Total operating costs and expenses |
967 |
253 |
1,802 |
413 |
|||||||||||
Income (loss) from operations |
274 |
(76) |
650 |
(167) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(188) |
(106) |
(353) |
(182) |
|||||||||||
Loss on early extinguishment of debt |
(33) |
(56) |
(75) |
(57) |
|||||||||||
Derivative loss, net |
(36) |
(91) |
(35) |
(272) |
|||||||||||
Other income (expense) |
5 |
(7) |
7 |
(6) |
|||||||||||
Total other expense |
(252) |
(260) |
(456) |
(517) |
|||||||||||
Income (loss) before income taxes and non-controlling interest |
22 |
(336) |
194 |
(684) |
|||||||||||
Income tax benefit (provision) |
(1) |
1 |
(1) |
— |
|||||||||||
Net income (loss) |
21 |
(335) |
193 |
(684) |
|||||||||||
Less: net income (loss) attributable to non-controlling interest |
306 |
(37) |
424 |
(65) |
|||||||||||
Net loss attributable to common stockholders |
$ |
(285) |
$ |
(298) |
$ |
(231) |
$ |
(619) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(1.23) |
$ |
(1.31) |
$ |
(0.99) |
$ |
(2.71) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
232.5 |
228.3 |
232.4 |
228.2 |
_____________________ | |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed with the Securities and Exchange Commission. |
Cheniere Energy, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in millions, except share data)(1) | |||||||
June 30, |
December 31, | ||||||
2017 |
2016 | ||||||
ASSETS |
(unaudited) |
||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
796 |
$ |
876 |
|||
Restricted cash |
1,032 |
860 |
|||||
Accounts and other receivables |
283 |
218 |
|||||
Accounts receivable—related party |
1 |
— |
|||||
Inventory |
150 |
160 |
|||||
Derivative assets |
20 |
24 |
|||||
Other current assets |
86 |
100 |
|||||
Total current assets |
2,368 |
2,238 |
|||||
Non-current restricted cash |
716 |
91 |
|||||
Property, plant and equipment, net |
22,904 |
20,635 |
|||||
Debt issuance costs, net |
197 |
277 |
|||||
Non-current derivative assets |
43 |
83 |
|||||
Goodwill |
77 |
77 |
|||||
Other non-current assets, net |
295 |
302 |
|||||
Total assets |
$ |
26,600 |
$ |
23,703 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
62 |
$ |
49 |
|||
Accrued liabilities |
674 |
637 |
|||||
Current debt |
— |
247 |
|||||
Deferred revenue |
65 |
73 |
|||||
Derivative liabilities |
39 |
71 |
|||||
Total current liabilities |
840 |
1,077 |
|||||
Long-term debt, net |
24,654 |
21,688 |
|||||
Non-current deferred revenue |
3 |
5 |
|||||
Non-current derivative liabilities |
54 |
45 |
|||||
Other non-current liabilities |
45 |
49 |
|||||
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, 2017 and December 31, 2016 |
|||||||
Issued: 250.1 million shares at June 30, 2017 and December 31, 2016 |
|||||||
Outstanding: 237.8 million shares and 238.0 million shares at June 30, 2017 and December 31, 2016, respectively |
1 |
1 |
|||||
Treasury stock: 12.3 million shares and 12.2 million shares at June 30, 2017 and December 31, 2016, respectively, at cost |
(377) |
(374) |
|||||
Additional paid-in-capital |
3,228 |
3,211 |
|||||
Accumulated deficit |
(4,465) |
(4,234) |
|||||
Total stockholders' deficit |
(1,613) |
(1,396) |
|||||
Non-controlling interest |
2,617 |
2,235 |
|||||
Total equity |
1,004 |
839 |
|||||
Total liabilities and equity |
$ |
26,600 |
$ |
23,703 |
_________________________ | ||||
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2017, filed with the Securities and Exchange Commission. |
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow per Share are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Consolidated Adjusted EBITDA represents net loss attributable to Cheniere before net income (loss) attributable to the non-controlling interest, interest, taxes, depreciation and amortization, adjusted for certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, as detailed in the following reconciliation. Consolidated Adjusted EBITDA is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Consolidated Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance. We believe Consolidated Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.
Consolidated Adjusted EBITDA is calculated by taking net loss attributable to common stockholders before net income (loss) attributable to non-controlling interest, interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense and loss on sale of assets, changes in the fair value of our commodity and foreign currency exchange ("FX") derivatives and non-cash compensation expense. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
Distributable Cash Flow is defined as cash received, or expected to be received, from Cheniere's ownership and interests in CQP, CQH and Cheniere Corpus Christi Holdings, LLC, cash received (used) by Cheniere's integrated marketing function (other than cash for capital expenditures) less interest, taxes and maintenance capital expenditures associated with Cheniere and not the underlying entities. Management uses this measure and believes it provides users of our financial statements a useful measure reflective of our business's ability to generate cash earnings to supplement the comparable GAAP measure.
Distributable Cash Flow per Share is calculated by dividing Distributable Cash Flow by the weighted average number of common shares outstanding.
We believe Distributable Cash Flow is a useful performance measure for management, investors and other users of our financial information to evaluate our performance and to measure and estimate the ability of our assets to generate cash earnings after servicing our debt, paying cash taxes and expending sustaining capital, that could be used for discretionary purposes such as common stock dividends, stock repurchases, retirement of debt, or expansion capital expenditures. Management uses this measure and believes it provides users of our financial statements a useful measure reflective of our business's ability to generate cash earnings to supplement the comparable GAAP measure. Distributable Cash Flow is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
Non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or in lieu of an analysis of our results as reported under GAAP, and should be evaluated only on a supplementary basis.
Consolidated Adjusted EBITDA
The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2017 and 2016 (in millions):
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(285) |
$ |
(298) |
$ |
(231) |
$ |
(619) |
|||||||
Net income (loss) attributable to non-controlling interest |
306 |
(37) |
424 |
(65) |
|||||||||||
Income tax provision (benefit) |
1 |
(1) |
1 |
— |
|||||||||||
Interest expense, net of capitalized interest |
188 |
106 |
353 |
182 |
|||||||||||
Loss on early extinguishment of debt |
33 |
56 |
75 |
57 |
|||||||||||
Derivative loss, net |
36 |
91 |
35 |
272 |
|||||||||||
Other expense (income) |
(5) |
7 |
(7) |
6 |
|||||||||||
Income (loss) from operations |
$ |
274 |
$ |
(76) |
$ |
650 |
$ |
(167) |
|||||||
Adjustments to reconcile income (loss) from operations to Consolidated Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
90 |
33 |
160 |
57 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
(5) |
25 |
28 |
26 |
|||||||||||
Total non-cash compensation expense |
7 |
14 |
11 |
26 |
|||||||||||
Impairment expense and loss on sale of assets |
5 |
— |
5 |
10 |
|||||||||||
Consolidated Adjusted EBITDA |
$ |
371 |
$ |
(4) |
$ |
854 |
$ |
(48) |
Distributable Cash Flow
The following table reconciles our forecast Consolidated Adjusted EBITDA and Distributable Cash Flow to forecast Net loss attributable to common stockholders for 2017 (in billions, except per share data):
2017 | |||||||
Net loss attributable to common stockholders |
$ |
(0.6) |
- |
$ |
(0.4) |
||
Net income (loss) attributable to non-controlling interest |
0.9 |
- |
0.9 |
||||
Income tax provision (benefit) |
(0.0) |
||||||
Interest expense, net of capitalized interest |
0.8 |
||||||
Loss on early extinguishment of debt |
0.1 |
||||||
Derivative loss, net |
0.0 |
||||||
Other expense (income) |
0.0 |
||||||
Income (loss) from operations |
$ |
1.2 |
- |
$ |
1.4 |
||
Adjustments to reconcile income (loss) from operations to Consolidated Adjusted EBITDA: |
|||||||
Depreciation and amortization expense |
0.4 |
||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
0.0 |
||||||
Total non-cash compensation expense |
0.0 |
||||||
Impairment expense and loss on sale of assets |
0.0 |
||||||
Consolidated Adjusted EBITDA |
$ |
1.6 |
- |
$ |
1.8 |
||
CQP/CQH minority interest |
(0.3) |
- |
(0.4) |
||||
SPL and CQP cash retained / interest expense / other |
(0.7) |
- |
(0.7) |
||||
CQP interest expense |
(0.1) |
||||||
CEI interest expense |
(0.0) |
||||||
CEI Distributable Cash Flow |
$ |
0.5 |
- |
$ |
0.7 |
||
Weighted average number of shares outstanding (in millions) |
238 |
||||||
CEI Distributable Cash Flow per Share |
$ |
2.10 |
$ |
2.80 |
___________________ | ||||
Note: Totals may not sum due to rounding |
CONTACTS:
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-reports-second-quarter-2017-results-raises-full-year-guidance-300500741.html
SOURCE Cheniere Energy, Inc.
HOUSTON, July 20, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) announced today that it plans to issue its earnings release with respect to second quarter 2017 financial results on Tuesday, August 8, 2017 before the market opens. Cheniere will host a conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss second quarter results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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 developing, constructing, and operating 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, 2017, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, 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.
CHENIERE CONTACTS: |
|
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media Relations |
|
Eben Burnham-Snyder: |
713-375-5764 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cheniere-energy-inc-announces-timing-of-second-quarter-2017-earnings-release-and-conference-call-300491133.html
SOURCE Cheniere Energy, Inc.
HOUSTON and SEOUL, South Korea, June 25, 2017 /PRNewswire/ -- Cheniere Energy Inc. (NYSE MKT: LNG) and Korea Gas Corporation (KOGAS) today hailed the commencement of their 20-year Sales and Purchase Agreement (SPA) to supply U.S.-sourced LNG to KOGAS from the Sabine Pass Liquefaction facility in Louisiana. The SPA, which was originally signed in January of 2012, officially commenced on June 1, 2017, with the first cargo loading the following day.
Under the terms of the SPA, Cheniere shall sell and make available for delivery to KOGAS approximately 3.5 million tonnes of LNG per year, which represents more than 10 percent of South Korea's total annual demand.
Cheniere officials, led by CEO and President Jack Fusco, hosted KOGAS officials, led by CEO Seung-Hoon Lee, today at Cheniere's Sabine Pass Liquefaction facility.
"KOGAS is an ideal commercial partner as one of the largest buyers of LNG in the world and serves South Korea, an important economic and national ally of the United States," said Jack Fusco, President and CEO of Cheniere. "This is just the beginning of a long and productive relationship that will be beneficial to both companies and both countries, and we hope to continue to grow this relationship between KOGAS and Cheniere."
KOGAS president & CEO Mr. Seung-Hoon Lee said, "This long-term LNG SPA with Cheniere Energy will contribute significantly to improving the trade balance between the United States and Korea. Plus, the destination-free US LNG will greatly increase the flexibility and efficiency in the global LNG market."
KOGAS was incorporated by the Korean government in 1983 to engage in the development, production and distribution of liquefied natural gas. KOGAS has since grown to become one of the largest buyers of LNG and is the Republic of Korea's dominant gas provider. KOGAS operates four LNG terminals with the current storage capacity of 4.84 million tons in 69 storage tanks and a nationwide pipeline network that spans over 4,672 km. KOGAS imports LNG from around the world and supplies it to power generation plants, gas-utility companies and city gas companies throughout the country. It produces and supplies natural gas, purifies and sells gas-related by-products, builds and operates production facilities and distribution networks, and explores for, imports and exports natural gas for domestic and overseas markets.
In February 2016, Cheniere became the first company to ship LNG from the contiguous United States in over 50 years, and is currently the only exporter of U.S. LNG. Cheniere's unique business model provides a full-service LNG offering to customers worldwide, which includes acquiring, transporting, and processing pipeline gas, and providing LNG to customers either at the flange of the LNG terminal, or on a delivered basis to markets around the world.
Forward-Looking Statements:
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 or present facts or conditions, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives, including the use of proceeds from the offering. 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, June 2, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it has achieved important regulatory and financial milestones related to the development of its previously announced 200-mile 36-inch interstate natural gas pipeline project (the "Midship Project").
Midship Pipeline Company, LLC ("Midship") has filed an application for a Certificate of Public Convenience and Necessity with the Federal Energy Regulatory Commission ("FERC") with respect to the Midship Project. Midship currently targets receipt of FERC authorization in early 2018 and in-service of the Midship Project in late 2018 or early 2019.
"The filing of the FERC application is an important development for the Midship Project as we continue to progress the project forward. Midship is being developed to provide a solution to producers in the Anadarko Basin that will ensure their product can reach growing demand markets along the Gulf Coast, including LNG exports," said Jack A. Fusco, Cheniere's President and Chief Executive Officer. "The Midship Project demonstrates the capability and breadth of the Cheniere platform as we continue to execute on our project development plans."
In addition to filing the FERC application, Midship Holdings, LLC ("Midship Holdings") has entered into agreements with investment funds managed by EIG Global Energy Partners ("EIG") under which EIG-managed funds have committed to make an investment of up to $500 million (the "EIG Investment") in the Midship Project, subject to the terms and conditions contained in the applicable agreements. Subject to Midship Holdings making a positive Final Investment Decision with respect to the Midship Project, the EIG Investment, and equity contributed by Cheniere, is intended to ensure that the project has the equity funding expected to be required to develop and construct up to the full project design of 1,440,000 Dekatherms per day of throughput capacity. Credit Suisse acted as exclusive financial advisor to Cheniere on the EIG Investment.
"We are pleased to once again work with Cheniere on this important American energy infrastructure project," said Wallace Henderson, Managing Director of EIG. "EIG has previously worked with Cheniere on the Corpus Christi Liquefaction terminal, and is now excited to extend that successful relationship further along the LNG and midstream value chain."
The Midship Project is being developed to create pipeline capacity of up to 1,440,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, as well as access to downstream markets including the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana. As previously disclosed, Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation to support initial construction of approximately 1,000,000 Dekatherms per day of capacity.
Midship Holdings would require acceptable financing arrangements, which may include project financings and offerings by it or its subsidiaries of debt or equity, and regulatory and other approvals before the proposed project begins construction.
About Cheniere
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 developing, constructing, and operating 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, 2017, filed with the Securities and Exchange Commission.
About EIG
EIG specializes in private investments in energy and energy-related infrastructure on a global basis and has US$15.1 billion under management as of March 31, 2017. Since 1982, EIG has been one of the leading providers of institutional capital to the global energy industry, providing financing solutions across the balance sheet for companies and projects in the oil and gas, midstream, infrastructure, power and renewables sectors globally. During its 35-year history, EIG has invested US $23.7 billion in more than 315 portfolio investments in 36 countries. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For more information, please visit www.eigpartners.com.
Forward-Looking Statements
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 or present facts or conditions, 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.
CHENIERE CONTACTS: | |
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media Relations |
|
Eben Burnham-Snyder: |
713-375-5764 |
EIG CONTACTS: | |
Media Relations | |
Sard Verbinnen & Co | |
Robert Rendine / Brandon Messina | |
(212) 687-8080 |
SOURCE Cheniere Energy, Inc.
HOUSTON, May 15, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH"), has upsized and priced its previously announced offering of Senior Secured Notes due 2027 (the "CCH 2027 Notes"). The principal amount of the offering has been increased from the initially announced $1.0 billion to $1.5 billion. The CCH 2027 Notes will bear interest at a rate of 5.125% per annum and will mature on June 30, 2027. The CCH 2027 Notes are priced at par and the closing of the offering is expected to occur on May 19, 2017.
CCH intends to use the net proceeds from the offering (after deducting the initial purchasers' commissions and certain provisions, costs, prepayment premiums, fees and expenses) to prepay a portion of the principal amounts currently outstanding under CCH's term loan credit facility (the "CCH Credit Facility"). The CCH 2027 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facility, its outstanding senior secured notes due 2024, senior secured notes due 2025, and its obligations under its working capital facility.
The offer of the CCH 2027 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2027 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 or present facts or conditions, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives, including the use of proceeds from the offering. 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.
CONTACTS:
Investors
Randy Bhatia: 713-375-5479
Megan Light: 713-375-5492
Media
Eben Burnham-Snyder: 713-375-5764
SOURCE Cheniere Energy, Inc.
HOUSTON, May 15, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH") intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Secured Notes due 2027 ("CCH 2027 Notes").
CCH intends to use the net proceeds from the offering (after deducting the initial purchasers' commissions and certain provisions, costs, prepayment premiums, fees and expenses) to prepay a portion of the principal amounts currently outstanding under CCH's term loan credit facility (the "CCH Credit Facility"). The CCH 2027 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facility, its outstanding senior secured notes due 2024, senior secured notes due 2025, and its obligations under its working capital facility.
The offer of the CCH 2027 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2027 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 or present facts or conditions, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives, including the use of proceeds from the offering. 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.
Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
CONTACTS: |
|
Investors |
|
Randy Bhatia: |
713-375-5479 |
Megan Light: |
713-375-5492 |
Media |
|
Eben Burnham-Snyder: |
713-375-5764 |
SOURCE Cheniere Energy, Inc.
HOUSTON, April 25, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) announced today that it plans to issue its earnings release with respect to first quarter 2017 financial results on Thursday, May 4, 2017 before the market opens. Cheniere will host a conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss first quarter results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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 developing, constructing, and operating 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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 or present facts or conditions, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives. 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.
Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
SOURCE Cheniere Energy, Inc.
HOUSTON, April 3, 2017 /PRNewswire/ -- Cheniere Energy Partners, L.P. (NYSE MKT: CQP), a subsidiary of Cheniere Energy, Inc. (NYSE MKT: LNG), today announced that the 100th cargo of liquefied natural gas (LNG) has left the company's Sabine Pass liquefaction facility, marking a significant milestone in Cheniere's ramp-up of LNG operations.
Including the 100th cargo, which departed on Saturday from the Sabine Pass liquefaction facility, since the first shipment on February 24, 2016, Cheniere has delivered cargoes to 18 countries on five continents.
"This milestone for Cheniere is a testament to the global demand for American LNG, the hard work and dedication of Cheniere's workforce, and our unique business model that enables customers large and small to access this fuel," said Jack Fusco, Cheniere's President and CEO. "Our entire workforce shares in this milestone and in Cheniere's future success."
In February 2016, Cheniere became the first company to ship LNG from the contiguous United States in over 50 years, and is currently the only exporter of U.S. LNG. In addition to three fully-operational LNG trains at Sabine Pass, train four has entered the commissioning process and is expected to reach substantial completion in the second half of 2017. Train five is currently under construction, and is expected to become operational in 2019, and train six is fully permitted and being commercialized. In addition, Cheniere Energy currently has two trains under construction at its liquefaction project near Corpus Christi, Texas with operations at both trains expected to begin in 2019.
Across the liquefaction projects at Sabine Pass and Corpus Christi, Cheniere and its subsidiaries are expected to invest approximately $30 billion in U.S. energy infrastructure, create tens of thousands of jobs, promote domestic energy production, and reduce our trade deficit.
Cheniere's unique business model provides a full-service LNG offering to customers worldwide, which includes acquiring, transporting, and processing pipeline gas, and providing LNG to customers either at the tailgate of the LNG terminal, or on a delivered basis to markets around the world.
Forward-Looking Statements:
This press release contains certain statements that may include "forward-looking statements." All statements, other than statements of historical or present facts or conditions, 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.
SOURCE Cheniere Energy Partners, L.P.; Cheniere Energy, Inc.
HOUSTON, March 17, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that Midship Pipeline Company, LLC ("Midship"), a wholly owned subsidiary of Cheniere, has signed precedent agreements with foundation shippers to support construction of a 200 mile 36 inch interstate natural gas pipeline project (the "Midship Project") and has launched a binding open season ("Open Season") to solicit additional long-term commitments from shippers. The transactions contemplated by the precedent agreements are subject to satisfaction of various conditions.
The Midship Project is being developed to create pipeline capacity of up to 1,400,000 Dekatherms per day of firm transportation to connect production from the emerging STACK and SCOOP resource plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets. The Midship Project is expected to consist of approximately 200 miles of 36 inch diameter new mainline pipeline, several laterals, compressor stations and interconnects that will provide receipts from STACK and SCOOP processing plants and provide deliveries to Bennington, Oklahoma, the TexOk hub near Atlanta, Texas, and the Perryville Hub near Tallulah, Louisiana.
Midship has secured commitments from subsidiaries and/or affiliates of Cheniere, Devon Energy Corporation, Marathon Oil Corporation, and Gulfport Energy Corporation.
"We are pleased to help facilitate a market solution to STACK and SCOOP producers as they continue to make exciting progress in this important resource basin," said Jack Fusco, Cheniere's President and CEO. "Not only will the Midship Project help meet the Anadarko Basin's need for additional natural gas takeaway and serve demand along the Gulf Coast, it also demonstrates the uniquely integrated market solution Cheniere can provide by leveraging our LNG platform along the entire value chain."
The Open Season is expected to commence at 9:00 a.m. CDT on Friday, March 17, 2017 and end at 3:00 p.m. CDT on Thursday, March 30, 2017. Following the Open Season, Midship plans to submit its official FERC 7C application and currently targets in-service of the Midship Project in early 2019. Cheniere would require acceptable commercial and financing arrangements, which may include project financings and offerings by it or its subsidiaries of debt or equity, and regulatory and other approvals before the proposed project begins construction.
Forward-Looking Statements
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 facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives. 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, March 3, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it has closed on a new four-year $750 million Revolving Credit Facility (the "Revolving Credit Facility") with nine financial institutions. Borrowings under the Revolving Credit Facility will bear interest at a rate of London Interbank Offered Rate (LIBOR) plus 325 basis points per annum. Undrawn commitment fees are 75 basis points per annum.
Borrowings under the Revolving Credit Facility may be used by Cheniere to fund equity capital contributions to Cheniere CCH HoldCo II, LLC, a wholly-owned subsidiary of Cheniere, and for general corporate purposes, subject to certain restrictions.
Societe Generale is Administrative Agent, and Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc. and SG Americas Securities, LLC are Joint Lead Arrangers and Joint Bookrunners. The participating banks are Bank of America, N.A., Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Bank USA, HSBC Bank USA, National Association, Mizuho Bank, Ltd., Morgan Stanley Senior Funding, Inc., Royal Bank of Canada, Societe Generale and Sumitomo Mitsui Banking Corporation.
Forward-Looking Statements
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 facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives. 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, Feb. 28, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) reported net income1 of $109.7 million, or $0.48 per share (basic and diluted), for the three months ended December 31, 2016, compared to a net loss1 of $291.1 million, or $1.28 per share (basic and diluted), for the comparable 2015 period. Net Loss, As Adjusted2 was $78.1 million, or $0.34 per share (basic and diluted), for the three months ended December 31, 2016, compared to a Net Loss, As Adjusted of $154.8 million, or $0.68 per share (basic and diluted), for the comparable 2015 period.
For the twelve months ended December 31, 2016, Cheniere reported a net loss of $610.0 million, or $2.67 per share (basic and diluted), compared to a net loss of $975.1 million, or $4.30 per share (basic and diluted), for the comparable 2015 period. For the twelve months ended December 31, 2016, Net Loss, As Adjusted was $447.2 million, or $1.95 per share (basic and diluted), compared to a Net Loss, As Adjusted of $653.3 million, or $2.88 per share (basic and diluted), for the comparable 2015 period.
For the three and twelve months ended December 31, 2016, Net Loss, As Adjusted excludes the impact of changes in the fair value of our interest rate, commodity and foreign currency exchange ("FX") derivatives, loss on early extinguishment of debt, restructuring expense, amortization of the beneficial conversion feature related to certain Class B units of Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) and impairment expense. Loss on early extinguishment of debt was associated with the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC ("SPL") and Cheniere Corpus Christi Holdings, LLC ("CCH") in connection with the refinancing of a portion of their credit facilities, by Sabine Pass LNG, L.P. ("SPLNG") as a result of the redemption of its senior notes, and by Cheniere Creole Trail Pipeline, L.P. as a result of the prepayment of its outstanding term loan. For the three and twelve months ended December 31, 2015, Net Loss, As Adjusted excludes the impact of changes in the fair value of interest rate, commodity and FX derivatives, loss on early extinguishment of debt related to the write-off of debt issuance costs by SPL primarily in connection with the refinancing of a portion of its credit facilities, the write-off of debt issuance costs by CCH primarily in connection with the termination of a portion of its credit facility and note commitments, restructuring expense, amortization of the beneficial conversion feature and impairment expense.
"The fourth quarter of 2016 was another milestone quarter for Cheniere, as today we report financial results driven by nearly a full quarter of LNG production from the first two Trains at Sabine Pass," said Jack Fusco, Cheniere's President and CEO. "Transition and execution will remain central themes for Cheniere in 2017, as we expect Trains 3 and 4 at Sabine Pass to begin commercial operations, with Train 3 having produced its first commissioning cargo in January. The financial and operational results we are reporting today reflect our employees' steadfast dedication to execution on our goals."
Fourth Quarter 2016 Highlights
Fourth Quarter and Full Year 2016 Results
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners as of December 31, 2016 consisted of 100% ownership of the general partner of Cheniere Partners and 82.6% ownership interest in Cheniere Partners Holdings which owns a 55.9% limited partner interest in Cheniere Partners.
Adjusted EBITDA2 for the three and twelve months ended December 31, 2016 was $134.2 million and $153.6 million, respectively, compared to losses of $90.6 million and $228.6 million, respectively, for the comparable 2015 periods. During the three months ended December 31, 2016, a total of 24 LNG cargoes were loaded and exported from the Sabine Pass Liquefaction Project, none of which were commissioning cargoes.
Total operating costs and expenses increased $139.7 million and $592.3 million during the three and twelve months ended December 31, 2016 compared to the three and twelve months ended December 31, 2015, respectively, generally as a result of the commencement of operations of Train 1 and Train 2 of the Sabine Pass Liquefaction Project in May and September 2016, respectively. Depreciation and amortization expense increased during the three and twelve months ended December 31, 2016 from the comparable 2015 periods as we began depreciation of our assets related to Train 1 and Train 2 of the Sabine Pass Liquefaction Project upon reaching substantial completion. Selling, general and administrative expense during the three and twelve months ended December 31, 2016 decreased from the comparable 2015 periods, primarily due to the timing of share-based compensation recognition and the recognition of certain employee-related costs within restructuring expense during the three and twelve months ended December 31, 2016 historically reported in selling, general and administrative expense, a reduction in certain professional services fees, and reallocation of costs from selling, general and administrative activities to operating and maintenance activities following commencement of operations at the Sabine Pass Liquefaction Project.
As a result of restructuring efforts initiated in 2015, during the three and twelve months ended December 31, 2016 we recorded $12.2 million and $61.4 million, respectively, of restructuring charges and other costs associated with restructuring and operational efficiency initiatives compared to $60.8 million for each of the three and twelve months ended December 31, 2015 for which the majority of these charges required, or will require, cash expenditure. Included in these amounts are $3.9 million and $46.9 million for share-based compensation for the three and twelve months ended December 31, 2016, respectively, and $57.9 million for each of the three and twelve months ended December 31, 2015. Charges related to restructuring efforts were recorded within restructuring expense on our Consolidated Statements of Operations and substantially all related to severance and other employee-related costs.
Included in selling, general and administrative expense were share-based compensation expenses of $7.0 million and $38.2 million for the three and twelve months ended December 31, 2016, respectively, compared to $17.2 million and $102.4 million for the comparable 2015 periods, respectively.
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners, we are developing up to six Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "Sabine Pass Liquefaction Project"). Each train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 million tonnes per annum ("mtpa") of LNG.
The Trains are in various stages of operation, construction, and development.
Sabine Pass Liquefaction Project | |||||||
Liquefaction Train |
Train 1 |
Train 2 |
Trains 3-4 |
Train 5 | |||
Project Status |
Operational |
Operational |
96% Overall Completion |
52% Overall Completion | |||
Expected Substantial Completion |
- |
- |
T3 - 1Q 2017 T4 - 2H 2017 |
2H 2019 | |||
Corpus Christi LNG Terminal
We are developing up to three Trains near Corpus Christi, Texas (the "CCL Project"). Each train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG.
The Trains are in various stages of construction and development:
Additionally, we are developing two additional trains 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 |
49% Overall Completion |
Expected Substantial Completion |
T1 - 1H 2019 T2 - 2H 2019 |
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and operating results for the fourth quarter and full year on Tuesday, February 28, 2017, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
1 Reported as Net income (loss) attributable to common stockholders on our Consolidated Statements of Operations.
2 Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for further details.
About Cheniere
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 developing, constructing, and operating 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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) | |||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
December 31, |
December 31, (1) | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Revenues |
|||||||||||||||
LNG revenues |
$ |
504,140 |
$ |
1,667 |
$ |
1,016,133 |
$ |
66 |
|||||||
Regasification revenues |
67,262 |
65,832 |
265,405 |
265,720 |
|||||||||||
Other revenues |
184 |
933 |
1,629 |
5,099 |
|||||||||||
Total revenues |
571,586 |
68,432 |
1,283,167 |
270,885 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Cost (cost recovery) of sales (excluding depreciation and amortization expense shown separately below) |
229,358 |
7,044 |
581,917 |
(15,033) |
|||||||||||
Operating and maintenance expense |
72,731 |
23,404 |
216,220 |
94,800 |
|||||||||||
Development expense |
2,129 |
4,501 |
6,838 |
42,141 |
|||||||||||
Selling, general and administrative expense |
62,693 |
99,888 |
259,692 |
363,093 |
|||||||||||
Depreciation and amortization expense |
67,960 |
23,119 |
174,042 |
82,680 |
|||||||||||
Restructuring expense |
12,213 |
60,769 |
61,409 |
60,769 |
|||||||||||
Impairment expense |
477 |
90,744 |
10,572 |
91,317 |
|||||||||||
Other |
1,655 |
84 |
1,844 |
431 |
|||||||||||
Total operating costs and expenses |
449,216 |
309,553 |
1,312,534 |
720,198 |
|||||||||||
Income (loss) from operations |
122,370 |
(241,121) |
(29,367) |
(449,313) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(158,033) |
(83,419) |
(488,390) |
(322,083) |
|||||||||||
Loss on early extinguishment of debt |
(52,605) |
(27,907) |
(135,142) |
(124,180) |
|||||||||||
Derivative gain (loss), net |
232,098 |
38,484 |
(10,130) |
(203,639) |
|||||||||||
Other income |
5,708 |
1,188 |
144 |
1,804 |
|||||||||||
Total other income (expense) |
27,168 |
(71,654) |
(633,518) |
(648,098) |
|||||||||||
Income (loss) before income taxes and non-controlling interest |
149,538 |
(312,775) |
(662,885) |
(1,097,411) |
|||||||||||
Income tax benefit (provision) |
3 |
198 |
(1,908) |
96 |
|||||||||||
Net income (loss) |
149,541 |
(312,577) |
(664,793) |
(1,097,315) |
|||||||||||
Less: net income (loss) attributable to non-controlling interest |
39,834 |
(21,480) |
(54,802) |
(122,206) |
|||||||||||
Net income (loss) attributable to common stockholders |
$ |
109,707 |
$ |
(291,097) |
$ |
(609,991) |
$ |
(975,109) |
|||||||
Net income (loss) per share attributable to common stockholders—basic and diluted |
$ |
0.48 |
$ |
(1.28) |
$ |
(2.67) |
$ |
(4.30) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
229,705 |
227,658 |
228,768 |
226,903 |
(1) |
Please refer to the Cheniere Energy, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission. | ||||||||
Cheniere Energy, Inc. Consolidated Balance Sheets (in thousands, except share data)(1) | |||||||
December 31, | |||||||
2016 |
2015 | ||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
875,836 |
$ |
1,201,112 |
|||
Restricted cash |
859,898 |
503,397 |
|||||
Accounts and other receivables |
217,925 |
5,749 |
|||||
Inventory |
160,161 |
18,125 |
|||||
Derivative assets |
23,750 |
3,416 |
|||||
Other current assets |
100,748 |
50,787 |
|||||
Total current assets |
2,238,318 |
1,782,586 |
|||||
Non-current restricted cash |
90,819 |
31,722 |
|||||
Property, plant and equipment, net |
20,635,294 |
16,193,907 |
|||||
Debt issuance costs, net |
276,551 |
378,677 |
|||||
Non-current derivative assets |
82,861 |
30,887 |
|||||
Goodwill |
76,819 |
76,819 |
|||||
Other non-current assets, net |
302,075 |
314,455 |
|||||
Total assets |
$ |
23,702,737 |
$ |
18,809,053 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
48,577 |
$ |
22,820 |
|||
Accrued liabilities |
637,097 |
427,199 |
|||||
Current debt, net |
247,467 |
1,673,379 |
|||||
Deferred revenue |
72,631 |
26,669 |
|||||
Derivative liabilities |
70,673 |
35,201 |
|||||
Other current liabilities |
224 |
— |
|||||
Total current liabilities |
1,076,669 |
2,185,268 |
|||||
Long-term debt, net |
21,687,532 |
14,920,427 |
|||||
Non-current deferred revenue |
5,500 |
9,500 |
|||||
Non-current derivative liabilities |
45,106 |
79,387 |
|||||
Other non-current liabilities |
49,534 |
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 December 31, 2016 and 2015 |
|||||||
Issued: 250.1 million shares and 247.3 million shares at December 31, 2016 and 2015, respectively |
|||||||
Outstanding: 238.0 million shares and 235.6 million shares at December 31, 2016 and 2015, respectively |
714 |
708 |
|||||
Treasury stock: 12.2 million shares and 11.6 million shares at December 31, 2016 and 2015, respectively, at cost |
(374,324) |
(353,927) |
|||||
Additional paid-in-capital |
3,211,124 |
3,075,317 |
|||||
Accumulated deficit |
(4,233,939) |
(3,623,948) |
|||||
Total stockholders' deficit |
(1,396,425) |
(901,850) |
|||||
Non-controlling interest |
2,234,821 |
2,463,253 |
|||||
Total equity |
838,396 |
1,561,403 |
|||||
Total liabilities and equity |
$ |
23,702,737 |
$ |
18,809,053 |
(1) |
Please refer to the Cheniere Energy, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission. | ||||
As of December 31, 2016, we had cash and cash equivalents of $875.8 million available to Cheniere. In addition, we had current and non-current restricted cash of $950.7 million (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $270.5 million for the CCL Project, $358.0 million for the Sabine Pass Liquefaction Project, $247.0 million for restricted purposes under the terms of Cheniere Partners' credit facilities and $75.2 million for other restricted purposes.
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Adjusted EBITDA, Net Loss, As Adjusted and Net Loss per share, As Adjusted are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Adjusted EBITDA represents net income (loss) attributable to Cheniere before net income (loss) attributable to the non-controlling interest, interest, taxes, depreciation and amortization, adjusted for certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, as detailed in the following reconciliation. Adjusted EBITDA is not intended to represent cash flows from operations or net income (loss) as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance. We believe Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.
Adjusted EBITDA is calculated by taking net income (loss) attributable to common stockholders before net income (loss) attributable to non-controlling interest, interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, changes in the fair value of our commodity and FX derivatives and non-cash compensation expense. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
Net Loss, As Adjusted represents net income (loss) attributable to common stockholders and Net Loss per share, As Adjusted represents Cheniere's basic and diluted earnings per share, in each case adjusted for certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, net of the portion attributable to non-controlling interests, including changes in the fair value of our interest rate, commodity and FX derivatives, the effects of modifications or extinguishments of debt, amortization of the beneficial conversion feature of certain CQP Class B units, costs related to restructuring activities, and impairment expense. Net Loss, As Adjusted and Net Loss per share, As Adjusted are presented because we believe they are useful tools for assessing the operating performance of Cheniere. Net Loss, As Adjusted and Net Loss per share, As Adjusted are not intended to represent net income (loss) attributable to common stockholders and net income (loss) per share attributable to common stockholders, the most comparable U.S. GAAP measures, respectively, as indicators of operating performance, and are not necessarily comparable to measures reported by other companies.
Adjusted EBITDA
The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and twelve months ended December 31, 2016 and 2015 (in thousands):
Three Months Ended |
Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net income (loss) attributable to common stockholders |
$ |
109,707 |
$ |
(291,097) |
$ |
(609,991) |
$ |
(975,109) |
|||||||
Net income (loss) attributable to non-controlling interest |
39,834 |
(21,480) |
(54,802) |
(122,206) |
|||||||||||
Income tax provision (benefit) |
(3) |
(198) |
1,908 |
(96) |
|||||||||||
Interest expense, net of capitalized interest |
158,033 |
83,419 |
488,390 |
322,083 |
|||||||||||
Loss on early extinguishment of debt |
52,605 |
27,907 |
135,142 |
124,180 |
|||||||||||
Derivative loss (gain), net |
(232,098) |
(38,484) |
10,130 |
203,639 |
|||||||||||
Other income |
(5,708) |
(1,188) |
(144) |
(1,804) |
|||||||||||
Income (loss) from operations |
$ |
122,370 |
$ |
(241,121) |
$ |
(29,367) |
$ |
(449,313) |
|||||||
Adjustments to reconcile income (loss) from operations to Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
67,960 |
23,119 |
174,042 |
82,680 |
|||||||||||
Gain from changes in fair value of commodity and FX derivatives, net |
(59,877) |
(698) |
(36,982) |
(32,893) |
|||||||||||
Total non-cash compensation expense |
3,290 |
37,309 |
35,305 |
79,583 |
|||||||||||
Impairment expense |
477 |
90,744 |
10,572 |
91,317 |
|||||||||||
Adjusted EBITDA |
$ |
134,220 |
$ |
(90,647) |
$ |
153,570 |
$ |
(228,626) |
Net Loss, As Adjusted and Net Loss per share, As Adjusted
The following tables reconcile our Net Loss, As Adjusted and Net Loss per share, As Adjusted to U.S. GAAP results for the three and twelve months ended December 31, 2016 and 2015 (in thousands, except per share data):
Three Months Ended |
Year Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net income (loss) attributable to common stockholders |
$ |
109,707 |
$ |
(291,097) |
$ |
(609,991) |
$ |
(975,109) |
|||||||
Add: |
|||||||||||||||
Restructuring expense |
12,213 |
60,769 |
61,409 |
60,769 |
|||||||||||
Impairment expense |
477 |
90,744 |
10,572 |
91,317 |
|||||||||||
Loss on early extinguishment of debt |
52,605 |
27,907 |
135,142 |
124,180 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
(246,049) |
(45,091) |
(34,135) |
101,703 |
|||||||||||
Gain from changes in fair value of commodity and FX derivatives, net |
(59,877) |
(698) |
(36,982) |
(32,893) |
|||||||||||
Amortization of beneficial conversion feature allocated to Class B units of CQP not owned by Cheniere |
24,603 |
162 |
33,925 |
225 |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
(28,228) |
(2,460) |
7,144 |
23,515 |
|||||||||||
Net Loss, As Adjusted |
$ |
(78,093) |
$ |
(154,844) |
$ |
(447,204) |
$ |
(653,323) |
|||||||
Net income (loss) per share attributable to common stockholders—basic and diluted |
$ |
0.48 |
$ |
(1.28) |
$ |
(2.67) |
$ |
(4.30) |
|||||||
Add: |
|||||||||||||||
Restructuring expense |
0.05 |
0.27 |
0.27 |
0.27 |
|||||||||||
Impairment expense |
— |
0.40 |
0.05 |
0.40 |
|||||||||||
Loss on early extinguishment of debt |
0.23 |
0.12 |
0.59 |
0.55 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
(1.07) |
(0.20) |
(0.15) |
0.45 |
|||||||||||
Gain from changes in fair value of commodity and FX derivatives, net |
(0.26) |
— |
(0.16) |
(0.14) |
|||||||||||
Amortization of beneficial conversion feature allocated to Class B units of CQP not owned by Cheniere |
0.11 |
— |
0.15 |
— |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
(0.12) |
(0.01) |
0.03 |
0.10 |
|||||||||||
Net Loss per share, As Adjusted—basic and diluted(1) |
$ |
(0.34) |
$ |
(0.68) |
$ |
(1.95) |
$ |
(2.88) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
229,705 |
227,658 |
228,768 |
226,903 |
(1) |
Numbers may not foot due to rounding. | |
Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
SOURCE Cheniere Energy, Inc.
HOUSTON, Feb. 28, 2017 /PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income of $4.5 million, or $0.02 per common share, for the three months ended December 31, 2016, compared to net income of $4.6 million, or $0.02 per common share, for the comparable 2015 period. For the twelve months ended December 31, 2016, Cheniere Partners Holdings reported net income of $17.8 million, or $0.08 per common share, compared to net income of $18.2 million, or $0.08 per common share, during the corresponding period in 2015. Results include the distribution received from our limited partner interests in Cheniere Energy Partners, L.P. ("Cheniere Partners"), a publicly traded limited partnership (NYSE MKT: CQP).
Our only business consists of owning Cheniere Partners common units, Class B units and subordinated units representing an aggregate approximately 55.9% limited partner interest in Cheniere Partners as of December 31, 2016.
Fourth Quarter 2016 Highlights
Sabine Pass Liquefaction Project Update
Through Cheniere Partners, we are developing up to six Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the "Sabine Pass Liquefaction Project"). Each train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 million tonnes per annum ("mtpa") of LNG.
The Trains are in various stages of operation, construction, and development.
Sabine Pass Liquefaction Project | ||||
Liquefaction Train |
Train 1 |
Train 2 |
Trains 3-4 |
Train 5 |
Project Status |
Operational |
Operational |
96% Overall |
52% Overall |
Expected Substantial Completion |
- |
- |
T3 - 1Q 2017 T4 - 2H 2017 |
2019 |
Dividends
When Cheniere Partners makes cash distributions to us with respect to our Cheniere Partners units, we will pay dividends to our shareholders consisting of the cash that we receive from Cheniere Partners, less income taxes and reserves established by our Board of Directors.
On February 8, 2017 we announced that our Board of Directors declared a quarterly cash dividend of $0.020 per common share representing limited liability company interests in Cheniere Partners Holdings. The dividend will be payable on February 28, 2017 to shareholders of record as of the close of business on February 17, 2017.
Investor Conference Call and Webcast
Cheniere Energy, Inc. will host a conference call to discuss its financial and operating results for the fourth quarter and full year on Tuesday, February 28, 2017, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners Holdings.
About Cheniere Partners Holdings
Cheniere Partners Holdings owns a 55.9% limited partner interest in Cheniere Partners. Cheniere Partners Holdings' only business consists of owning Cheniere Partners units and, accordingly, its results of operations and financial condition are dependent on the performance of Cheniere Partners. Cheniere Partners owns and operates LNG regasification facilities and, adjacent to these facilities, plans to construct over time up to six Trains with an expected aggregate nominal production capacity of approximately 27 mtpa before taking into account planned maintenance and production reliability. Trains 1 and 2 have commenced commercial operations, Train 3 is undergoing commissioning, Trains 4 and 5 are under construction, and Train 6 is fully permitted.
For additional information, please refer to the Cheniere Partners Holdings website at www.cheniere.com and Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements." 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 Partners' and Cheniere Partners Holdings' 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 Holdings 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 Holdings' 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 Holdings' 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 Holdings does not assume a duty to update these forward-looking statements.
(Financial Table Follows)
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Equity income from investment in Cheniere Partners |
$ |
5,085 |
$ |
5,085 |
$ |
20,338 |
$ |
20,338 |
|||||||
Expenses |
|||||||||||||||
General and administrative expense |
306 |
275 |
1,511 |
1,150 |
|||||||||||
General and administrative expense—affiliate |
257 |
254 |
1,029 |
1,015 |
|||||||||||
Total expenses |
563 |
529 |
2,540 |
2,165 |
|||||||||||
Net income |
$ |
4,522 |
$ |
4,556 |
$ |
17,798 |
$ |
18,173 |
|||||||
Net income per common share—basic and diluted |
$ |
0.02 |
$ |
0.02 |
$ |
0.08 |
$ |
0.08 |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
231,700 |
231,700 |
231,700 |
231,700 |
|||||||||||
Cash dividends declared per common share |
$ |
0.020 |
$ |
0.020 |
$ |
0.080 |
$ |
0.079 |
(1) |
Please refer to the Cheniere Energy Partners LP Holdings, LLC Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission. |
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share amounts) (1) | ||||||||
December 31, | ||||||||
2016 |
2015 | |||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
219 |
$ |
917 |
||||
Receivables |
153 |
157 |
||||||
Other current assets |
51 |
26 |
||||||
Total current assets |
423 |
1,100 |
||||||
Other non-current assets |
— |
95 |
||||||
Total assets |
$ |
423 |
$ |
1,195 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ |
78 |
$ |
106 |
||||
Accrued liabilities—affiliate |
— |
6 |
||||||
Total current liabilities |
78 |
112 |
||||||
Shareholders' equity |
||||||||
Common shares: unlimited shares authorized, 231.7 million shares issued and outstanding at December 31, 2016 and 2015 |
664,931 |
664,931 |
||||||
Director voting share: 1 share authorized, issued and outstanding at December 31, 2016 and 2015 |
— |
— |
||||||
Additional paid-in-capital |
(271,757) |
(271,757) |
||||||
Accumulated deficit |
(392,829) |
(392,091) |
||||||
Total shareholders' equity |
345 |
1,083 |
||||||
Total liabilities and shareholders' equity |
$ |
423 |
$ |
1,195 |
(1) |
Please refer to the Cheniere Energy Partners LP Holdings, LLC Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission. |
CONTACT:
Investors: Randy Bhatia: 713-375-5479
Media: Faith Parker: 713-375-5663
SOURCE Cheniere Energy Partners LP Holdings, LLC
HOUSTON, Feb. 10, 2017 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) announced today that it plans to issue its earnings release with respect to fourth quarter and full year 2016 financial results on Tuesday, February 28, 2017 before the market opens. Cheniere will host a conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss fourth quarter and full year results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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 developing, constructing and operating liquefaction projects near Corpus Christi, Texas and at the Sabine Pass LNG terminal, respectively. Trains 1 and 2 of the liquefaction project at the Sabine Pass LNG terminal have commenced commercial operations. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
Forward-Looking Statements
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.
SOURCE Cheniere Energy, Inc.
HOUSTON, Dec. 9, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it has terminated negotiations with the conflicts committee of the board of directors of Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) regarding Cheniere's previously announced non-binding proposal to acquire all of the publicly held shares of Cheniere Partners Holdings not already owned by Cheniere in a stock-for-stock merger transaction.
The proposed transaction was subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement by the board of directors of Cheniere, the board of directors of Cheniere Partners Holdings and a conflicts committee established by the board of directors of Cheniere Partners Holdings. As previously announced, the consideration initially offered by Cheniere was 0.5049 Cheniere shares for each outstanding publicly-held share of Cheniere Partners Holdings, which represented a premium of approximately 3.0% over the closing price of Cheniere Partners Holdings' shares based on the closing prices of Cheniere Partners Holdings' shares and of Cheniere's shares as of September 29, 2016, or a premium of approximately 7.0% over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016. After more than 6 weeks of negotiations, and despite raising the offer to an exchange ratio of 0.54 (representing a premium of approximately 10% over the closing price of Cheniere Partners Holdings' shares based on the closing prices of Cheniere Partners Holdings' shares and of Cheniere's shares as of September 29, 2016, or a premium of approximately 14% over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016), Cheniere has determined that no acceptable definitive agreement can be reached with the conflicts committee at this time.
Cheniere currently owns 80.1% of the issued and outstanding shares of Cheniere Partners Holdings. Cheniere may, subject to market and general economic conditions and other factors, purchase additional shares of Cheniere Partners Holdings in the open market or in privately negotiated transactions from time to time.
About Cheniere
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 developing, constructing, and operating 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 September 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, statements using words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," the negative of such terms or other comparable terminology generally involve forward-looking statements. The forward-looking statements contained herein (including statements regarding Cheniere's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not statements of historical fact) are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe that such estimates are reasonable, they are inherently uncertain and involve a number of risks and uncertainties beyond our control. In addition, assumptions may prove to be inaccurate. We caution that the forward-looking statements contained herein are not guarantees of future performance and that such statements may not be realized or the forward-looking statements or events may not occur. Actual results may differ materially from those anticipated or implied in forward-looking statements as a result of numerous factors, including, but not limited to, factors affecting future results disclosed in Cheniere's filings with the SEC (available at the SEC's website at www.sec.gov), including but not limited to those discussed under Item 1A, "Risk Factors", in Cheniere's Annual Report on Form 10-K for the year ended December 31, 2015. These forward-looking statements speak only as of the date made, and other than as required by law, we undertake no obligation to update or revise any forward-looking statement or provide reasons why actual results may differ, whether as a result of new information, future events or otherwise.
SOURCE Cheniere Energy, Inc.
HOUSTON, Dec. 5, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH"), has upsized and priced its previously announced offering of Senior Secured Notes due 2025 (the "CCH 2025 Notes"). The principal amount of the offering has been increased from the initially announced $1.0 billion to $1.5 billion. The CCH 2025 Notes will bear interest at a rate of 5.875% per annum and will mature on March 31, 2025. The CCH 2025 Notes are priced at par and the closing of the offering is expected to occur on December 9, 2016.
CCH intends to use the net proceeds from the offering (after deducting the initial purchasers' commissions and certain provisions, costs, prepayment premiums, fees and expenses) to prepay a portion of the principal amounts currently outstanding under CCH's credit facilities (the "CCH Credit Facilities"). The CCH 2025 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facilities and its outstanding senior secured notes due 2024.
The offer of the CCH 2025 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2025 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives, including the use of proceeds from the offering. 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, Dec. 5, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH") intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Secured Notes due 2025 ("CCH 2025 Notes").
CCH intends to use the net proceeds from the offering (after deducting the initial purchasers' commissions and certain provisions, costs, prepayment premiums, fees and expenses) to prepay a portion of the principal amounts currently outstanding under CCH's credit facilities (the "CCH Credit Facilities"). The CCH 2025 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facilities and its outstanding senior secured notes due 2024.
The offer of the CCH 2025 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2025 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, statements regarding Cheniere's business strategy, plans and objectives, including the use of proceeds from the offering. 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, Nov. 3, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) reported a net loss1 of $100.4 million, or $0.44 per share (basic and diluted), for the three months ended September 30, 2016, compared to a net loss of $297.8 million, or $1.31 per share (basic and diluted), for the comparable 2015 period. Net Loss, As Adjusted2 was $94.2 million, or $0.41 per share (basic and diluted), for the three months ended September 30, 2016, compared to a Net Loss, As Adjusted of $164.6 million, or $0.72 per share (basic and diluted), for the comparable 2015 period.
For the nine months ended September 30, 2016, Cheniere reported a net loss of $719.7 million, or $3.15 per share (basic and diluted), compared to a net loss of $684.0 million, or $3.02 per share (basic and diluted), for the comparable 2015 period. For the nine months ended September 30, 2016, Net Loss, As Adjusted was $369.1 million, or $1.62 per share (basic and diluted), compared to a Net Loss, As Adjusted of $498.5 million, or $2.20 per share (basic and diluted), for the comparable 2015 period.
For the three and nine months ended September 30, 2016, Net Loss, As Adjusted excludes the impact of changes in the fair value of our interest rate, commodity and FX derivatives, loss on early extinguishment of debt, restructuring expense, amortization of the beneficial conversion feature related to certain Class B units of Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) and impairment expense. Loss on early extinguishment of debt was associated with the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC ("SPL") and Cheniere Corpus Christi Holdings, LLC ("CCH") in connection with the refinancing of a portion of their credit facilities and by Cheniere Creole Trail Pipeline, L.P. as a result of the prepayment of its outstanding term loan. For the three and nine months ended September 30, 2015, Net Loss, As Adjusted excludes the impact of changes in the fair value of interest rate, commodity and FX derivatives, loss on early extinguishment of debt related to the write-off of debt issuance costs by SPL primarily in connection with the refinancing of a portion of its credit facilities in March 2015, amortization of the beneficial conversion feature and impairment expense.
"The third quarter of 2016 was significant for Cheniere on multiple fronts. Our transition to operations continues, highlighted in the third quarter by the substantial completion of Train 2 at Sabine Pass and the generation of approximately $67 million in Adjusted EBITDA2. Commissioning activities commenced on Train 3, and our remaining Trains under construction continue on time and on budget," said Jack Fusco, Cheniere's President and CEO. "In addition, we continued to manage our debt maturity profile by successfully issuing bonds to prepay outstanding borrowings under credit facilities for the Sabine Pass liquefaction project, with the issuing entity having earned its first investment-grade credit rating during the quarter."
Third Quarter 2016 Highlights
Third Quarter and Year to Date 2016 Results
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Partners consists of 100% ownership of the general partner of Cheniere Partners and 80.1% ownership interest in Cheniere Partners Holdings which owns a 55.9% limited partner interest in Cheniere Partners.
Adjusted EBITDA for the three and nine months ended September 30, 2016 was $67.3 million and $19.4 million, respectively, compared to losses of $51.5 million and $138.0 million, respectively, for the comparable 2015 periods. During the three months ended September 30, 2016, Train 2 of the Sabine Pass Liquefaction Project achieved substantial completion. Prior to substantial completion, amounts received from the sale of commissioning cargoes were offset against LNG terminal construction-in-process because these amounts were earned during the testing phase for the construction of Trains 1 and 2 of the Sabine Pass Liquefaction Project. We expect sales of LNG cargoes from future liquefaction trains ("Trains") to be reported in the same manner. During the three months ended September 30, 2016, a total of 18 cargoes were loaded and exported from the Sabine Pass Liquefaction Project, 3 of which were Train 2 commissioning cargoes.
Total operating costs and expenses increased $332.3 million and $452.7 million during the three and nine months ended September 30, 2016 compared to the three and nine months ended September 30, 2015, respectively, generally as a result of the commencement of operations of Train 1 and Train 2 of the Sabine Pass Liquefaction Project in May and September 2016, respectively. Depreciation and amortization expense increased during the three and nine months ended September 30, 2016 as we began depreciation of our assets related to Train 1 and Train 2 of the Sabine Pass Liquefaction Project upon reaching substantial completion. Selling, general and administrative expense during the three and nine months ended September 30, 2016 decreased from the comparable 2015 periods, which was primarily due to the timing of share-based compensation recognition and the recognition of certain employee-related costs within restructuring expense during the three and nine months ended September 30, 2016 historically reported in selling, general and administrative expense, a reduction in certain professional services fees, and reallocation of costs from selling, general and administrative activities to operating and maintenance activities following commencement of operations at the Sabine Pass Liquefaction Project.
As a result of restructuring efforts initiated in 2015, we recorded $26.2 million and $49.2 million of restructuring charges and other costs associated with restructuring and operational efficiency initiatives during the three and nine months ended September 30, 2016, respectively, for which the majority of these charges required, or will require, cash expenditure. Included in these amounts are $20.9 million and $42.9 million for share-based compensation. All charges were recorded within restructuring expense on our Consolidated Statements of Operations and substantially all related to severance and other employee-related costs.
Included in selling, general and administrative expense were share-based compensation expenses of $7.5 million and $31.2 million for the three and nine months ended September 30, 2016, respectively, compared to $27.1 million and $85.2 million for the comparable 2015 periods, respectively.
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 operation, construction, and development.
Sabine Pass Liquefaction Project | ||||
Liquefaction Train |
Train 1 |
Train 2 |
Trains 3-4 |
Train 5 |
Project Status |
Operational |
Operational |
92% Overall |
43% Overall |
Expected Substantial Completion |
- |
- |
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:
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 |
43% Overall Completion |
Expected Substantial Completion |
2019 |
Recent Developments
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and operating results for the third quarter on Thursday, November 3, 2016, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
1 Reported as Net loss attributable to common stockholders on our Consolidated Statements of Operations.
2 Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for further details.
About Cheniere
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 developing, constructing, and operating 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 September 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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. Furthermore, in connection with our proposal to Cheniere Partners Holdings, there can be no assurance that any discussions that may occur between us and Cheniere Partners Holdings will result in the entry into of a definitive agreement concerning a transaction or, if such a definitive agreement is reached, will result in the consummation of a transaction provided for in such definitive agreement. 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 |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Revenues |
|||||||||||||||
Regasification revenues |
$ |
66,970 |
$ |
66,597 |
$ |
198,143 |
$ |
199,888 |
|||||||
LNG revenues (losses) |
398,554 |
(1,557) |
511,993 |
(1,601) |
|||||||||||
Other revenues |
149 |
1,019 |
1,445 |
4,166 |
|||||||||||
Total revenues |
465,673 |
66,059 |
711,581 |
202,453 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Cost (cost recovery) of sales (excluding depreciation and amortization expense shown separately below) |
252,343 |
(24,214) |
352,559 |
(22,077) |
|||||||||||
Operating and maintenance expense |
61,610 |
17,963 |
143,489 |
71,396 |
|||||||||||
Development expense |
1,546 |
4,935 |
4,709 |
37,640 |
|||||||||||
Selling, general and administrative expense |
59,418 |
97,332 |
196,999 |
263,205 |
|||||||||||
Depreciation and amortization expense |
49,212 |
21,638 |
106,082 |
59,561 |
|||||||||||
Restructuring expense |
26,241 |
— |
49,196 |
— |
|||||||||||
Impairment expense |
— |
396 |
10,095 |
572 |
|||||||||||
Other |
27 |
83 |
189 |
348 |
|||||||||||
Total operating costs and expenses |
450,397 |
118,133 |
863,318 |
410,645 |
|||||||||||
Income (loss) from operations |
15,276 |
(52,074) |
(151,737) |
(208,192) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(148,053) |
(93,566) |
(330,357) |
(238,664) |
|||||||||||
Loss on early extinguishment of debt |
(25,765) |
— |
(82,537) |
(96,273) |
|||||||||||
Derivative gain (loss), net |
29,327 |
(161,482) |
(242,228) |
(242,123) |
|||||||||||
Other income (expense) |
437 |
(39) |
(5,564) |
616 |
|||||||||||
Total other expense |
(144,054) |
(255,087) |
(660,686) |
(576,444) |
|||||||||||
Loss before income taxes and non-controlling interest |
(128,778) |
(307,161) |
(812,423) |
(784,636) |
|||||||||||
Income tax benefit (provision) |
(1,638) |
69 |
(1,911) |
(102) |
|||||||||||
Net loss |
(130,416) |
(307,092) |
(814,334) |
(784,738) |
|||||||||||
Less: net loss attributable to non-controlling interest |
(29,974) |
(9,284) |
(94,636) |
(100,726) |
|||||||||||
Net loss attributable to common stockholders |
$ |
(100,442) |
$ |
(297,808) |
$ |
(719,698) |
$ |
(684,012) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(0.44) |
$ |
(1.31) |
$ |
(3.15) |
$ |
(3.02) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
228,924 |
227,126 |
228,463 |
226,648 |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Securities and Exchange Commission. |
Cheniere Energy, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except share data)(1) | |||||||
September 30, |
December 31, | ||||||
2016 |
2015 | ||||||
ASSETS |
(unaudited) |
||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
990,132 |
$ |
1,201,112 |
|||
Restricted cash |
827,545 |
503,397 |
|||||
Accounts and other receivables |
154,167 |
5,749 |
|||||
Inventory |
63,853 |
18,125 |
|||||
Other current assets |
69,030 |
54,203 |
|||||
Total current assets |
2,104,727 |
1,782,586 |
|||||
Non-current restricted cash |
31,128 |
31,722 |
|||||
Property, plant and equipment, net |
19,891,666 |
16,193,907 |
|||||
Debt issuance costs, net |
294,059 |
378,677 |
|||||
Non-current derivative assets |
11,247 |
30,887 |
|||||
Goodwill |
76,819 |
76,819 |
|||||
Other non-current assets |
279,434 |
314,455 |
|||||
Total assets |
$ |
22,689,080 |
$ |
18,809,053 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
38,569 |
$ |
22,820 |
|||
Accrued liabilities |
699,996 |
427,199 |
|||||
Current debt, net |
1,781,511 |
1,673,379 |
|||||
Deferred revenue |
26,709 |
26,669 |
|||||
Derivative liabilities |
61,829 |
35,201 |
|||||
Other current liabilities |
264 |
— |
|||||
Total current liabilities |
2,608,878 |
2,185,268 |
|||||
Long-term debt, net |
19,033,513 |
14,920,427 |
|||||
Non-current deferred revenue |
6,500 |
9,500 |
|||||
Non-current derivative liabilities |
268,601 |
79,387 |
|||||
Other non-current liabilities |
65,849 |
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 September 30, 2016 and December 31, 2015 |
|||||||
Issued and outstanding: 235.1 million shares and 235.6 million shares at September 30, 2016 and December 31, 2015, respectively |
705 |
708 |
|||||
Treasury stock: 12.1 million shares and 11.6 million shares at September 30, 2016 and December 31, 2015, respectively, at cost |
(372,531) |
(353,927) |
|||||
Additional paid-in-capital |
3,112,753 |
3,075,317 |
|||||
Accumulated deficit |
(4,343,646) |
(3,623,948) |
|||||
Total stockholders' deficit |
(1,602,719) |
(901,850) |
|||||
Non-controlling interest |
2,308,458 |
2,463,253 |
|||||
Total equity |
705,739 |
1,561,403 |
|||||
Total liabilities and equity |
$ |
22,689,080 |
$ |
18,809,053 |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Securities and Exchange Commission. |
As of September 30, 2016, we had cash and cash equivalents of $990.1 million available to Cheniere. In addition, we had current and non-current restricted cash of $858.7 million (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $192.8 million for the CCL Project, $325.6 million for the Sabine Pass Liquefaction Project, $127.5 million for restricted purposes under the terms of Cheniere Partners' credit facilities, $129.1 million for interest payments related to the Sabine Pass LNG, L.P. senior secured notes and $83.7 million for other restricted purposes.
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Adjusted EBITDA, Net Loss, As Adjusted and Net Loss per share, As Adjusted are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Adjusted EBITDA represents net loss attributable to Cheniere before net loss attributable to the non-controlling interest, interest, taxes, depreciation and amortization, adjusted for certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, as detailed in the following reconciliation. Adjusted EBITDA is not intended to represent cash flows from operations or net loss as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance. We believe Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance enables comparability to prior period performance and trend analysis.
Adjusted EBITDA is calculated by taking net loss attributable to common stockholders before net loss attributable to non-controlling interest, interest expense, net of capitalized interest, changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense, changes in the fair value of our commodity and foreign currency exchange ("FX") derivatives and non-cash compensation expense. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
Net Loss, As Adjusted represents net loss attributable to common stockholders and Net Loss per share, As Adjusted represents Cheniere's basic and diluted earnings per share, in each case adjusted for certain non-cash items, other non-operating income or expense items and other items not otherwise predictive or indicative of ongoing operating performance, net of the portion attributable to non-controlling interests, including changes in the fair value of our interest rate, commodity and FX derivatives, the effects of modifications or extinguishments of debt, amortization of the beneficial conversion feature of certain CQP Class B units, costs related to restructuring activities, and impairment expense. Net Loss, As Adjusted and Net Loss per share, As Adjusted are presented because we believe they are useful tools for assessing the operating performance of Cheniere. Net Loss, As Adjusted and Net Loss per share, As Adjusted are not intended to represent net loss attributable to common stockholders and net loss per share attributable to common stockholders, the most comparable U.S. GAAP measures, respectively, as indicators of operating performance, and are not necessarily comparable to measures reported by other companies.
Adjusted EBITDA
The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2016 and 2015 (in thousands):
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(100,442) |
$ |
(297,808) |
$ |
(719,698) |
$ |
(684,012) |
|||||||
Net loss attributable to non-controlling interest |
(29,974) |
(9,284) |
(94,636) |
(100,726) |
|||||||||||
Income tax provision (benefit) |
1,638 |
(69) |
1,911 |
102 |
|||||||||||
Interest expense, net of capitalized interest |
148,053 |
93,566 |
330,357 |
238,664 |
|||||||||||
Loss on early extinguishment of debt |
25,765 |
— |
82,537 |
96,273 |
|||||||||||
Derivative loss (gain), net |
(29,327) |
161,482 |
242,228 |
242,123 |
|||||||||||
Other expense (income) |
(437) |
39 |
5,564 |
(616) |
|||||||||||
Income (loss) from operations |
$ |
15,276 |
$ |
(52,074) |
$ |
(151,737) |
$ |
(208,192) |
|||||||
Adjustments to reconcile loss from operations to Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
49,212 |
21,638 |
106,082 |
59,561 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
(2,784) |
(32,658) |
22,918 |
(32,195) |
|||||||||||
Total non-cash compensation expense |
5,551 |
11,214 |
32,015 |
42,274 |
|||||||||||
Impairment expense |
— |
396 |
10,095 |
572 |
|||||||||||
Adjusted EBITDA |
$ |
67,255 |
$ |
(51,484) |
$ |
19,373 |
$ |
(137,980) |
Net Loss, As Adjusted and Net Loss per share, As Adjusted
The following tables reconcile our Net Loss, As Adjusted and Net Loss per share, As Adjusted to U.S. GAAP results for the three and nine months ended September 30, 2016 and 2015 (in thousands, except per share data):
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(100,442) |
$ |
(297,808) |
$ |
(719,698) |
$ |
(684,012) |
|||||||
Add: |
|||||||||||||||
Restructuring expense |
26,241 |
— |
49,196 |
— |
|||||||||||
Impairment expense |
— |
396 |
10,095 |
572 |
|||||||||||
Loss on early extinguishment of debt |
25,765 |
— |
82,537 |
96,273 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
(41,503) |
155,993 |
211,914 |
146,794 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
(2,784) |
(32,658) |
22,918 |
(32,195) |
|||||||||||
Amortization of beneficial conversion feature allocated to Class B units of CQP not owned by Cheniere |
6,819 |
46 |
9,322 |
63 |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
8,312 |
(9,421) |
35,366 |
25,970 |
|||||||||||
Net Loss, As Adjusted |
$ |
(94,216) |
$ |
(164,610) |
$ |
(369,082) |
$ |
(498,475) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(0.44) |
$ |
(1.31) |
$ |
(3.15) |
$ |
(3.02) |
|||||||
Add: |
|||||||||||||||
Restructuring expense |
0.11 |
— |
0.22 |
— |
|||||||||||
Impairment expense |
— |
— |
0.04 |
— |
|||||||||||
Loss on early extinguishment of debt |
0.11 |
— |
0.36 |
0.42 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
(0.18) |
0.69 |
0.93 |
0.65 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
(0.01) |
(0.14) |
0.10 |
(0.14) |
|||||||||||
Amortization of beneficial conversion feature allocated to Class B units of CQP not owned by Cheniere |
0.03 |
— |
0.04 |
— |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
0.04 |
(0.04) |
0.15 |
0.11 |
|||||||||||
Net Loss per share, As Adjusted—basic and diluted(1) |
$ |
(0.41) |
$ |
(0.72) |
$ |
(1.62) |
$ |
(2.20) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
228,924 |
227,126 |
228,463 |
226,648 |
(1) |
Numbers may not foot due to rounding. |
SOURCE Cheniere Energy, Inc.
HOUSTON, Nov. 3, 2016 /PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income of $4.3 million, or $0.02 per common share, for the three months ended September 30, 2016, compared to net income of $4.6 million, or $0.02 per common share, for the comparable 2015 period. For the nine months ended September 30, 2016, Cheniere Partners Holdings reported net income of $13.3 million, or $0.06 per common share, compared to net income of $13.6 million, or $0.06 per common share, during the corresponding period in 2015. Results include the distribution received from our limited partner interests in Cheniere Energy Partners, L.P. ("Cheniere Partners"), a publicly traded limited partnership (NYSE MKT: CQP).
Our only business consists of owning Cheniere Partners common units, Class B units and subordinated units representing an aggregate approximately 55.9% limited partner interest in Cheniere Partners as of September 30, 2016.
Third Quarter 2016 Highlights
Sabine Pass Liquefaction Project Update
Through Cheniere Partners, we are developing up to six liquefaction trains ("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 operation, construction, and development.
Sabine Pass Liquefaction Project
| ||||
Liquefaction Train |
Train 1 |
Train 2 |
Trains 3-4 |
Train 5 |
Project Status |
Operational |
Operational |
92% Overall Completion |
43% Overall Completion |
Expected Substantial Completion |
- |
- |
2017 |
2019 |
Dividends
When Cheniere Partners makes cash distributions to us with respect to our Cheniere Partners units, we will pay dividends to our shareholders consisting of the cash that we receive from Cheniere Partners, less income taxes and reserves established by our Board of Directors.
Investor Conference Call and Webcast
Cheniere Energy, Inc. will host a conference call to discuss its financial and operating results for the third quarter on Thursday, November 3, 2016, at 11 a.m. Eastern time / 10 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners Holdings.
About Cheniere Partners Holdings
Cheniere Partners Holdings owns a 55.9% limited partner interest in Cheniere Partners. Cheniere Partners Holdings' only business consists of owning Cheniere Partners units and, accordingly, its results of operations and financial condition are dependent on the performance of Cheniere Partners. Cheniere Partners owns and operates LNG regasification facilities and, adjacent to these facilities, plans to construct over time up to six Trains with an expected aggregate nominal production capacity of approximately 27 mtpa. Trains 1 and 2 have commenced commercial operations, Train 3 is undergoing commissioning, Trains 4 and 5 are under construction, and Train 6 is fully permitted.
For additional information, please refer to the Cheniere Partners Holdings website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements." 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 Partners' and Cheniere Partners Holdings' 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. Furthermore, in connection with Cheniere's proposal, there can be no assurance that any discussions that may occur between us and Cheniere will result in the entry into of a definitive agreement concerning a transaction or, if such a definitive agreement is reached, will result in the consummation of a transaction provided for in such definitive agreement. Although Cheniere Partners Holdings 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 Holdings' 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 Holdings' 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 Holdings does not assume a duty to update these forward-looking statements.
(Financial Table Follows)
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(in thousands, except per share data) (1) | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Equity income from investment in Cheniere Partners |
$ |
5,084 |
$ |
5,084 |
$ |
15,253 |
$ |
15,253 |
|||||||
Expenses |
|||||||||||||||
General and administrative expense |
484 |
275 |
1,205 |
875 |
|||||||||||
General and administrative expense—affiliate |
258 |
253 |
772 |
761 |
|||||||||||
Total expenses |
742 |
528 |
1,977 |
1,636 |
|||||||||||
Net income |
$ |
4,342 |
$ |
4,556 |
$ |
13,276 |
$ |
13,617 |
|||||||
Net income per common share—basic and diluted |
$ |
0.02 |
$ |
0.02 |
$ |
0.06 |
$ |
0.06 |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
231,700 |
231,700 |
231,700 |
231,700 |
|||||||||||
Cash dividends declared per common share |
$ |
0.020 |
$ |
0.020 |
$ |
0.060 |
$ |
0.059 |
(1) |
Please refer to the Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Securities and Exchange Commission. |
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(in thousands, except share amounts) (1) | ||||||||
September 30, |
December 31, | |||||||
2016 |
2015 | |||||||
ASSETS |
(unaudited) |
|||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
460 |
$ |
917 |
||||
Receivables |
157 |
157 |
||||||
Other current assets |
106 |
26 |
||||||
Total current assets |
723 |
1,100 |
||||||
Other non-current assets |
— |
95 |
||||||
Total assets |
$ |
723 |
$ |
1,195 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ |
266 |
$ |
106 |
||||
Accrued liabilities—affiliate |
— |
6 |
||||||
Total current liabilities |
266 |
112 |
||||||
Shareholders' equity |
||||||||
Common shares: unlimited shares authorized, 231.7 million shares issued and outstanding at September 30, 2016 and December 31, 2015 |
664,931 |
664,931 |
||||||
Director voting share: 1 share authorized, issued and outstanding at September 30, 2016 and December 31, 2015 |
— |
— |
||||||
Additional paid-in-capital |
(271,757) |
(271,757) |
||||||
Accumulated deficit |
(392,717) |
(392,091) |
||||||
Total shareholders' equity |
457 |
1,083 |
||||||
Total liabilities and shareholders' equity |
$ |
723 |
$ |
1,195 |
(1) |
Please refer to the Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, filed with the Securities and Exchange Commission. |
CONTACTS:
Investors: Randy Bhatia: 713-375-5479
Media: Faith Parker: 713-375-5663
SOURCE Cheniere Energy Partners LP Holdings, LLC
HOUSTON, Oct. 7, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) announced today that it plans to release third quarter 2016 financial results on Thursday, November 3, 2016 before the market opens. Cheniere will host a conference call for investors and analysts at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) to discuss third quarter results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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. Train 1 of the liquefaction project at the Sabine Pass LNG terminal has commenced commercial operations and Train 2 has achieved substantial completion. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
Forward-Looking Statements
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.
SOURCE Cheniere Energy, Inc.; Cheniere Energy Partners, L.P.; Cheniere Energy Partners LP Holdings, LLC
HOUSTON, Sept. 30, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that it has submitted a proposal to the board of directors of Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) to acquire the publicly held shares of Cheniere Partners Holdings not already owned by Cheniere in a stock for stock exchange. Subject to negotiation and execution of a definitive agreement, Cheniere is proposing consideration of 0.5049 Cheniere shares for each outstanding publicly-held share of Cheniere Partners Holdings as part of a transaction that would be structured as a merger of Cheniere Partners Holdings with a wholly-owned subsidiary of Cheniere. The proposed consideration represents a value of $21.90 per common share of Cheniere Partners Holdings, or a premium of approximately 3.0% over the closing price of Cheniere Partners Holdings' shares, based on the closing prices of Cheniere Partners Holdings' shares and of Cheniere's shares as of September 29, 2016, or a premium of approximately 7.0% over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016.
"We believe the proposed transaction is attractive to investors in Cheniere Partners Holdings who, as new LNG shareholders, would have the opportunity to participate in the future success of the entire Cheniere complex," said Jack A. Fusco, President and Chief Executive Officer of Cheniere. "In addition, shareholders of Cheniere Partners Holdings would receive an attractive premium over its recent trading levels and a significant increase in the trading liquidity of their investment."
The proposed transaction is subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and transactions contemplated thereunder by the board of directors of Cheniere, the board of directors of Cheniere Partners Holdings and a conflicts committee established by the board of directors of Cheniere Partners Holdings, and the consummation of the proposed transaction would be subject to customary closing conditions. There can be no assurance that any such approvals will be forthcoming, that a definitive agreement will be executed or that any transaction will be consummated.
About Cheniere
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 developing, constructing, and operating 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 June 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, statements using words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," the negative of such terms or other comparable terminology generally involve forward-looking statements. The forward-looking statements contained herein (including statements regarding the proposed transaction and its effects, benefits and costs, savings, opinions, forecasts, projections, expected timetable for completion, expected distribution, and any other statements regarding Cheniere Partners Holdings' and Cheniere's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not statements of historical fact) are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe that such estimates are reasonable, they are inherently uncertain and involve a number of risks and uncertainties beyond our control. In addition, assumptions may prove to be inaccurate. We caution that the forward-looking statements contained herein are not guarantees of future performance and that such statements may not be realized or the forward-looking statements or events may not occur. Actual results may differ materially from those anticipated or implied in forward-looking statements as a result of numerous factors, including, but not limited to, the negotiation and execution, and the terms and conditions, of a definitive agreement relating to the proposed transaction and the ability of Cheniere or Cheniere Partners Holdings to enter into or consummate such an agreement; the risk that the proposed merger does not occur; negative effects from the pendency of the proposed merger; the ability to realize expected cost savings and benefits; failure to obtain the required vote of Cheniere Partners Holdings' shareholders; the timing to consummate the proposed transaction; the impact of regulatory changes; and other factors affecting future results disclosed in Cheniere's and Cheniere Partners Holdings' respective filings with the SEC (available at the SEC's website at www.sec.gov), including but not limited to those discussed under Item 1A, "Risk Factors", in Cheniere's Annual Report on Form 10-K for the year ended December 31, 2015 and Cheniere Partners Holdings' Annual Report on Form 10-K for the year ended December 31, 2015. These forward-looking statements speak only as of the date made, and other than as required by law, we undertake no obligation to update or revise any forward-looking statement or provide reasons why actual results may differ, whether as a result of new information, future events or otherwise.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of a proxy or of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed transaction between Cheniere and Cheniere Partners Holdings. In the event that the parties enter into a definitive agreement with respect to the proposed transaction, the parties intend to file a registration statement on Form S-4, containing a proxy statement/prospectus (the "S-4") with the SEC. This communication is not a substitute for the registration statement, definitive proxy statement/prospectus or any other documents that Cheniere or Cheniere Partners Holdings may file with the SEC or send to shareholders in connection with the proposed transaction. INVESTORS AND SHAREHOLDERS OF CHENIERE PARTNERS HOLDINGS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS IF AND WHEN FILED, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
When available, investors and security holders will be able to obtain copies of the S-4, including the proxy statement/prospectus and any other documents that may be filed with the SEC in the event that the parties enter into a definitive agreement with respect to the proposed transaction free of charge at the SEC's website at http://www.sec.gov. Copies of documents filed with the SEC by Cheniere will also be made available free of charge on Cheniere's website at www.cheniere.com. Copies of documents filed with the SEC by Cheniere Partners Holdings will also be made available free of charge on Cheniere Partners Holdings' website at www.cheniere.com.
Participants in the Solicitation
Cheniere, Cheniere Partners Holdings and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies from Cheniere Partners Holdings' shareholders with respect to the proposed transaction. Information about Cheniere Partners Holdings' directors and executive officers is set forth in Cheniere Partners Holdings' 2015 annual report on Form 10-K, which was filed with the SEC on February 19, 2016, and in Cheniere Partners' Holdings current reports on Form 8-K, which were filed with the SEC on May 12, 2016, June 6, 2016, and September 19, 2016. Information about Cheniere's directors and executive officers is set forth in Cheniere's proxy statement for its 2016 Annual Meeting of Shareholders, which was filed with the SEC on April 21, 2016, and in Cheniere's current reports on Form 8-K, which were filed with the SEC on May 12, 2016, June 6, 2016, and September 19, 2016. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction if and when they become available. Investors should read the proxy statement/prospectus carefully if and when it becomes available before making any voting or investment decisions.
CONTACTS:
Investors: Randy Bhatia: 713-375-5479
Media: Faith Parker: 713-375-5663
SOURCE Cheniere Energy, Inc.
HOUSTON, Sept. 30, 2016 /PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) announced today that its board of directors has received a proposal from Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) pursuant to which Cheniere would acquire the publicly held shares of Cheniere Partners Holdings not already owned by Cheniere in a stock for stock exchange. Subject to negotiation and execution of a definitive agreement, Cheniere is proposing consideration of 0.5049 Cheniere shares for each issued and outstanding publicly-held share of Cheniere Partners Holdings as part of a transaction that would be structured as a merger of Cheniere Partners Holdings with a wholly-owned subsidiary of Cheniere. The proposed consideration represents a value of $21.90 per common share of Cheniere Partners Holdings, or a premium of approximately 3.0% over the closing price of Cheniere Partners Holdings' shares, based on the closing prices of Cheniere Partners Holdings' shares and of Cheniere's shares as of September 29, 2016, or a premium of approximately 7.0% over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016.
Cheniere owns 80.1% of the issued and outstanding shares of Cheniere Partners Holdings.
The proposed transaction is subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and transactions contemplated thereunder by the board of directors of Cheniere, the board of directors of Cheniere Partners Holdings and a conflicts committee established by the board of directors of Cheniere Partners Holdings, and the consummation of the proposed transaction would be subject to customary closing conditions. There can be no assurance that any such approvals will be forthcoming, that a definitive agreement will be executed or that any transaction will be consummated.
About Cheniere Partners Holdings
Cheniere Partners Holdings owns a 55.9% limited partner interest in Cheniere Energy Partners, L.P. (NYSE MKT: CQP) ("Cheniere Partners"), a publicly traded limited partnership. Cheniere Partners Holdings' only business consists of owning Cheniere Partners units and, accordingly, its results of operations and financial condition are dependent on the performance of Cheniere Partners. Cheniere Partners owns and operates liquefied natural gas ("LNG") regasification facilities and, adjacent to these facilities, plans to construct over time up to six natural gas liquefaction trains ("Trains") with an expected aggregate nominal production capacity of approximately 27 mtpa. Trains 1 and 2 have achieved substantial completion. Train 3 is undergoing commissioning, Trains 4 and 5 are under construction, and Train 6 is fully permitted.
For additional information, please refer to the Cheniere Partners Holdings website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
This press release includes "forward-looking statements". In particular, statements using words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," the negative of such terms or other comparable terminology generally involve forward-looking statements. The forward-looking statements contained herein (including statements regarding the proposed transaction and its effects, benefits and costs, savings, opinions, forecasts, projections, expected timetable for completion, expected distribution, and any other statements regarding Cheniere Partners Holdings' and Cheniere's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not statements of historical fact) are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe that such estimates are reasonable, they are inherently uncertain and involve a number of risks and uncertainties beyond our control. In addition, assumptions may prove to be inaccurate. We caution that the forward-looking statements contained herein are not guarantees of future performance and that such statements may not be realized or the forward-looking statements or events may not occur. Actual results may differ materially from those anticipated or implied in forward-looking statements as a result of numerous factors, including, but not limited to, the negotiation and execution, and the terms and conditions, of a definitive agreement relating to the proposed transaction and the ability of Cheniere or Cheniere Partners Holdings to enter into or consummate such an agreement; the risk that the proposed merger does not occur; negative effects from the pendency of the proposed merger; the ability to realize expected cost savings and benefits; failure to obtain the required vote of Cheniere Partners Holdings' shareholders; the timing to consummate the proposed transaction; the impact of regulatory changes; and other factors affecting future results disclosed in Cheniere's and Cheniere Partners Holdings' respective filings with the SEC (available at the SEC's website at www.sec.gov), including but not limited to those discussed under Item 1A, "Risk Factors", in Cheniere's Annual Report on Form 10-K for the year ended December 31, 2015 and Cheniere Partners Holdings' Annual Report on Form 10-K for the year ended December 31, 2015. These forward-looking statements speak only as of the date made, and other than as required by law, we undertake no obligation to update or revise any forward-looking statement or provide reasons why actual results may differ, whether as a result of new information, future events or otherwise.
Additional Information and Where to Find It
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of a proxy or of any vote or approval. This communication may be deemed to be solicitation material in respect of the proposed transaction between Cheniere and Cheniere Partners Holdings. In the event that the parties enter into a definitive agreement with respect to the proposed transaction, the parties intend to file a registration statement on Form S-4, containing a proxy statement/prospectus (the "S-4") with the SEC. This communication is not a substitute for the registration statement, definitive proxy statement/prospectus or any other documents that Cheniere or Cheniere Partners Holdings may file with the SEC or send to shareholders in connection with the proposed transaction. INVESTORS AND SHAREHOLDERS OF CHENIERE PARTNERS HOLDINGS ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT/PROSPECTUS IF AND WHEN FILED, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
When available, investors and security holders will be able to obtain copies of the S-4, including the proxy statement/prospectus and any other documents that may be filed with the SEC in the event that the parties enter into a definitive agreement with respect to the proposed transaction free of charge at the SEC's website at http://www.sec.gov. Copies of documents filed with the SEC by Cheniere will also be made available free of charge on Cheniere's website at www.cheniere.com. Copies of documents filed with the SEC by Cheniere Partners Holdings will also be made available free of charge on Cheniere Partners Holdings' website at www.cheniere.com.
Participants in the Solicitation
Cheniere, Cheniere Partners Holdings and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies from Cheniere Partners Holdings' shareholders with respect to the proposed transaction. Information about Cheniere Partners Holdings' directors and executive officers is set forth in Cheniere Partners Holdings' 2015 annual report on Form 10-K, which was filed with the SEC on February 19, 2016, and in Cheniere Partners' Holdings current reports on Form 8-K, which were filed with the SEC on May 12, 2016, June 6, 2016, and September 19, 2016. Information about Cheniere's directors and executive officers is set forth in Cheniere's proxy statement for its 2016 Annual Meeting of Shareholders, which was filed with the SEC on April 21, 2016, and in Cheniere's current reports on Form 8-K, which were filed with the SEC on May 12, 2016, June 6, 2016, and September 19, 2016. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction if and when they become available. Investors should read the proxy statement/prospectus carefully if and when it becomes available before making any voting or investment decisions.
CONTACTS:
Investors: Randy Bhatia: 713-375-5479
Media: Faith Parker: 713-375-5663
SOURCE Cheniere Energy Partners LP Holdings, LLC
HOUSTON, Sept. 23, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that Jack Fusco, President and Chief Executive Officer, and Anatol Feygin, Executive Vice President and Chief Commercial Officer, will participate in the Wolfe Research Power & Gas Leaders Conference in New York City on September 27, 2016. Mr. Fusco will present at the conference at 1:00pm ET.
Presentation materials will be available on the Investor Relations section of the Cheniere website at www.cheniere.com prior to the opening of the market on Tuesday, September 27, 2016.
About Cheniere
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 developing, constructing, and operating 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.
SOURCE Cheniere Energy, Inc.
HOUSTON, Sept. 19, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) President and Chief Executive Officer Jack Fusco today announced his new executive leadership team.
Michael Wortley, currently Senior Vice President and Chief Financial Officer, will become Executive Vice President and Chief Financial Officer, responsible for guiding long-term financial strategy and increasing financial transparency.
Anatol Feygin, currently Senior Vice President, Strategy and Corporate Development will become Executive Vice President and Chief Commercial Officer, responsible for optimizing Cheniere's assets and margin capture by focusing on continued innovation and underwriting new liquefaction capacity.
Tom Bullis will become Executive Vice President and Chief Administrative Officer, responsible for enabling functional organizations from Human Resources and Information Technology to Supply Chain with best-in-class services that contribute to Cheniere's success.
Ed Lehotsky will become Senior Vice President, Engineering and Construction, responsible for executing on the construction of Cheniere's platform safely, on time, and on budget.
Doug Shanda will become Senior Vice President, Operations, responsible for safe, efficient, and reliable operations.
Chad Zamarin will become Senior Vice President, Pipeline, responsible for pipeline construction and operations.
Sean Markowitz will become General Counsel and Corporate Secretary, responsible for fostering a culture of compliance and communication, advising the organization as to the critical areas of legal exposure and protecting Cheniere from legal risk.
Corey Grindal will become Senior Vice President, Gas Supply, responsible for natural gas strategy, infrastructure, and operations.
"I am excited to announce Cheniere's new executive team, who will help us achieve our vision to be recognized as the premier global LNG company," said CEO Jack Fusco. "This is a natural evolution for the company as we transition from a development to an operating company and align our vision with shareholders," he added.
For more information on our Executive Team please visit www.cheniere.com.
About Cheniere
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 developing, constructing, and operating 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.
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SOURCE Cheniere Energy, Inc.
HOUSTON, Sept. 1, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that Jack Fusco, President and Chief Executive Officer, and Michael Wortley, Senior Vice President and Chief Financial Officer, will participate in the Barclays CEO Energy-Power Conference in New York City on September 6-7, 2016. Mr. Fusco will present at the conference on Tuesday, September 6, 2016 at 1:05pm ET.
Meeting materials and a link to a webcast of the presentation will be available on the Investor Relations section of the Cheniere website at www.cheniere.com prior to the opening of the market on Tuesday, September 6, 2016.
About Cheniere
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 developing, constructing, and operating 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.
Logo - http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
SOURCE Cheniere Energy, Inc.
HOUSTON, Aug. 9, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) reported a net loss1 of $298.4 million, or $1.31 per share (basic and diluted), for the three months ended June 30, 2016, compared to a net loss of $118.5 million, or $0.52 per share (basic and diluted), for the comparable 2015 period. Net Loss, As Adjusted2 was $140.2 million, or $0.61 per share (basic and diluted), for the three months ended June 30, 2016, compared to a Net Loss, As Adjusted of $211.2 million, or $0.93 per share (basic and diluted), for the comparable 2015 period.
For the six months ended June 30, 2016, Cheniere reported a net loss of $619.3 million, or $2.71 per share (basic and diluted), compared to a net loss of $386.2 million, or $1.71 per share (basic and diluted), for the comparable 2015 period. For the six months ended June 30, 2016, Net Loss, As Adjusted was $278.3 million, or $1.22 per share (basic and diluted), compared to a Net Loss, As Adjusted of $333.9 million, or $1.47 per share (basic and diluted), for the comparable 2015 period.
For the three and six months ended June 30, 2016, Net Loss, As Adjusted excludes the impact of changes in the fair value of our interest rate, commodity and FX derivatives, loss on early extinguishment of debt, share-based compensation related to employee separations, and impairment expense (recovery). Loss on early extinguishment of debt was associated with the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC ("SPL") and Cheniere Corpus Christi Holdings, LLC ("CCH") in connection with the refinancing of a portion of their credit facilities and by Cheniere Creole Trail Pipeline, L.P. as a result of the prepayment of its outstanding term loan. For the three and six months ended June 30, 2015, Net Loss, As Adjusted excludes the impact of changes in the fair value of interest rate, commodity and FX derivatives, loss on early extinguishment of debt related to the write-off of debt issuance costs by SPL primarily in connection with the refinancing of a portion of its credit facilities in March 2015, and impairment expense.
"The second quarter of 2016 saw Cheniere's continued transition from a development company into an operating one. During the quarter we took over care, custody, and control of Train 1 of the Sabine Pass Liquefaction Project and commenced commercial sales of LNG. After substantial completion, we exported 5 cargoes of LNG under our contract with BG Gulf Coast LNG, LLC (Shell) as of the end of the second quarter. Commissioning activities at Train 2 continue with first LNG achieved in late July, and our remaining Trains under construction continue on time and on budget," said Jack Fusco, Cheniere's President and CEO. "On the financial front, we continued to manage our debt maturity profile by successfully issuing bonds to prepay a portion of the outstanding borrowings under credit facilities for both the Sabine Pass Liquefaction Project and the CCL Project."
Second Quarter 2016 Highlights
Second Quarter and Year to Date 2016 Results
Adjusted EBITDA2 for the three and six months ended June 30, 2016 was a loss of $3.7 million and $47.9 million, respectively, compared to a loss of $60.5 million and $86.5 million, respectively, for the comparable 2015 periods. During the three months ended June 30, 2016, we began recognizing LNG revenues and cost of sales from the Sabine Pass Liquefaction Project (defined below) following the substantial completion of the first liquefaction train ("Train 1"). Prior to substantial completion, amounts received from the sale of commissioning cargoes were offset against LNG terminal construction-in-process because these amounts were earned during the testing phase for the construction of Train 1 of the Sabine Pass Liquefaction Project. We expect sales of LNG cargoes from future liquefaction trains ("Trains") to be reported in the same manner.
Total operating costs and expenses increased $89.4 million and $120.4 million during the three and six months ended June 30, 2016 compared to the three and six months ended June 30, 2015, respectively, generally as a result of the commencement of operations of Train 1 of the Sabine Pass Liquefaction Project. Depreciation and amortization expense increased during the three and six months ended June 30, 2016 as we began depreciation of our assets related to Train 1 of the Sabine Pass Liquefaction Project upon reaching substantial completion. General and administrative expense during the three and six months ended June 30, 2016 decreased from the comparable 2015 period, which was partially due to a decrease in share-based compensation as a result of vesting of restricted stock awards in the second half of 2015, and partially due to a reallocation of resources from general and administrative activities to operating and maintenance activities following commencement of operations at the Sabine Pass Liquefaction Project.
Included in marketing expense and general and administrative expense were share-based compensation expenses of $31.5 million and $45.8 million for the three and six months ended June 30, 2016, respectively, compared to $43.0 million and $58.1 million for the comparable 2015 periods, respectively.
Our financial results are reported on a consolidated basis. Our ownership interest in Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) consists of 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.
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 operation, construction, and development.
Sabine Pass Liquefaction Project | ||||
Liquefaction Train |
Train 1 |
Train 2 |
Trains 3-4 |
Train 5 |
Project Status |
Operational |
Commissioning |
87% Overall Completion |
38% Overall Completion |
Expected Substantial Completion |
- |
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:
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 |
37% Overall Completion |
Expected Substantial Completion |
2019 |
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and operating results for the second quarter on Tuesday, August 9, 2016, at 10 a.m. Eastern time / 9 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website.
1 |
Reported as Net loss attributable to common stockholders on our Consolidated Statements of Operations. |
2 |
Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for further details. |
About Cheniere
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. Train 1 of the liquefaction project at the Sabine Pass LNG terminal has commenced commercial operations. 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 June 30, 2016, filed with the Securities and Exchange Commission.
Forward-Looking Statements
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, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Revenues |
|||||||||||||||
Regasification revenues |
$ |
65,622 |
$ |
66,489 |
$ |
131,173 |
$ |
133,291 |
|||||||
LNG revenues (losses) |
110,735 |
(706) |
113,439 |
(44) |
|||||||||||
Other revenues |
470 |
2,242 |
1,296 |
3,147 |
|||||||||||
Total revenues |
176,827 |
68,025 |
245,908 |
136,394 |
|||||||||||
Operating costs and expenses |
|||||||||||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) |
85,709 |
1,444 |
100,216 |
2,137 |
|||||||||||
Operating and maintenance expense |
45,562 |
17,727 |
81,879 |
53,433 |
|||||||||||
Development expense |
1,616 |
16,609 |
3,163 |
32,705 |
|||||||||||
Marketing expense |
26,225 |
20,379 |
51,203 |
33,425 |
|||||||||||
General and administrative expense |
61,409 |
87,477 |
109,333 |
132,448 |
|||||||||||
Depreciation and amortization expense |
32,781 |
20,154 |
56,870 |
37,923 |
|||||||||||
Impairment expense (recovery) |
(71) |
— |
10,095 |
176 |
|||||||||||
Other |
50 |
109 |
162 |
265 |
|||||||||||
Total operating costs and expenses |
253,281 |
163,899 |
412,921 |
292,512 |
|||||||||||
Loss from operations |
(76,454) |
(95,874) |
(167,013) |
(156,118) |
|||||||||||
Other income (expense) |
|||||||||||||||
Interest expense, net of capitalized interest |
(105,967) |
(85,486) |
(182,304) |
(145,098) |
|||||||||||
Loss on early extinguishment of debt |
(55,315) |
(7,281) |
(56,772) |
(96,273) |
|||||||||||
Derivative gain (loss), net |
(90,621) |
46,049 |
(271,555) |
(80,641) |
|||||||||||
Other income (expense) |
(6,930) |
283 |
(6,001) |
655 |
|||||||||||
Total other expense |
(258,833) |
(46,435) |
(516,632) |
(321,357) |
|||||||||||
Loss before income taxes and non-controlling interest |
(335,287) |
(142,309) |
(683,645) |
(477,475) |
|||||||||||
Income tax benefit (provision) |
343 |
507 |
(273) |
(171) |
|||||||||||
Net loss |
(334,944) |
(141,802) |
(683,918) |
(477,646) |
|||||||||||
Less: net loss attributable to non-controlling interest |
(36,526) |
(23,307) |
(64,662) |
(91,442) |
|||||||||||
Net loss attributable to common stockholders |
$ |
(298,418) |
$ |
(118,495) |
$ |
(619,256) |
$ |
(386,204) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(1.31) |
$ |
(0.52) |
$ |
(2.71) |
$ |
(1.71) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
228,323 |
226,481 |
228,231 |
226,405 |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission. |
Cheniere Energy, Inc. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands, except share data)(1) | |||||||
June 30, |
December 31, | ||||||
2016 |
2015 | ||||||
ASSETS |
(unaudited) |
||||||
Current assets |
|||||||
Cash and cash equivalents |
$ |
1,049,478 |
$ |
1,201,112 |
|||
Restricted cash |
724,458 |
503,397 |
|||||
Accounts and other receivables |
74,283 |
5,749 |
|||||
Inventory |
66,322 |
18,125 |
|||||
Other current assets |
75,941 |
54,203 |
|||||
Total current assets |
1,990,482 |
1,782,586 |
|||||
Non-current restricted cash |
31,726 |
31,722 |
|||||
Property, plant and equipment, net |
18,729,177 |
16,193,907 |
|||||
Debt issuance costs, net |
336,474 |
378,677 |
|||||
Non-current derivative assets |
20,715 |
30,887 |
|||||
Goodwill |
76,819 |
76,819 |
|||||
Other non-current assets |
251,458 |
314,455 |
|||||
Total assets |
$ |
21,436,851 |
$ |
18,809,053 |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||
Current liabilities |
|||||||
Accounts payable |
$ |
48,676 |
$ |
22,820 |
|||
Accrued liabilities |
589,604 |
427,199 |
|||||
Current debt, net |
1,677,476 |
1,673,379 |
|||||
Deferred revenue |
26,709 |
26,669 |
|||||
Derivative liabilities |
72,002 |
35,201 |
|||||
Other current liabilities |
54 |
— |
|||||
Total current liabilities |
2,414,521 |
2,185,268 |
|||||
Long-term debt, net |
17,789,074 |
14,920,427 |
|||||
Non-current deferred revenue |
7,500 |
9,500 |
|||||
Non-current derivative liabilities |
311,207 |
79,387 |
|||||
Other non-current liabilities |
50,382 |
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 June 30, 2016 and December 31, 2015 |
|||||||
Issued and outstanding: 235.7 million shares and 235.6 million shares at June 30, 2016 and December 31, 2015, respectively |
707 |
708 |
|||||
Treasury stock: 11.8 million shares and 11.6 million shares at June 30, 2016 and December 31, 2015, respectively, at cost |
(357,491) |
(353,927) |
|||||
Additional paid-in-capital |
3,105,728 |
3,075,317 |
|||||
Accumulated deficit |
(4,243,204) |
(3,623,948) |
|||||
Total stockholders' deficit |
(1,494,260) |
(901,850) |
|||||
Non-controlling interest |
2,358,427 |
2,463,253 |
|||||
Total equity |
864,167 |
1,561,403 |
|||||
Total liabilities and equity |
$ |
21,436,851 |
$ |
18,809,053 |
(1) |
Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, filed with the Securities and Exchange Commission. |
As of June 30, 2016, we had cash and cash equivalents of $1,049.5 million available to Cheniere. In addition, we had current and non-current restricted cash of $756.2 million (which included current and non-current restricted cash available to us and our subsidiaries) designated for the following purposes: $223.1 million for the CCL Project, $263.1 million for the Sabine Pass Liquefaction Project, $110.0 million for restricted purposes under the terms of Cheniere Partners' credit facilities, $91.1 million for interest payments related to the Sabine Pass LNG, L.P. senior secured notes and $68.9 million for other restricted purposes.
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Adjusted EBITDA, Net Loss, As Adjusted and Net Loss per share, As Adjusted are non-GAAP financial measures that we use to facilitate comparisons of operating performance across periods. These non-GAAP measures should be viewed as a supplement to and not a substitute for our U.S. GAAP measures of performance and the financial results calculated in accordance with U.S. GAAP and reconciliations from these results should be carefully evaluated.
Adjusted EBITDA represents net loss attributable to Cheniere before net loss attributable to the non-controlling interest, interest, taxes, depreciation and amortization, adjusted for certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance, as detailed in the following reconciliation. Adjusted EBITDA is not intended to represent cash flows from operations or net loss as defined by U.S. GAAP and is not necessarily comparable to similarly titled measures reported by other companies.
We believe Adjusted EBITDA provides relevant and useful information to management, investors and other users of our financial information in evaluating the effectiveness of our operating performance in a manner that is consistent with management's evaluation of business performance. We believe Adjusted EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, depreciation and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, the exclusion of certain non-cash items, other non-operating income or expense items, and items not otherwise predictive or indicative of ongoing operating performance, enables comparability to prior period performance and trend analysis.
Adjusted EBITDA is calculated by taking net loss attributable to common stockholders before net loss attributable to non-controlling interest, interest expense, net of capitalized interest, including changes in the fair value and settlement of our interest rate derivatives, taxes, depreciation and amortization, and adjusting for the effects of certain non-cash items, other non-operating income or expense items, and other items not otherwise predictive or indicative of ongoing operating performance, including the effects of modification or extinguishment of debt, impairment expense (recovery), changes in the fair value of our commodity and foreign currency exchange ("FX") derivatives and non-cash compensation expense. We believe the exclusion of these items enables investors and other users of our financial information to assess our sequential and year-over-year performance and operating trends on a more comparable basis and is consistent with management's own evaluation of performance.
Net Loss, As Adjusted represents net loss attributable to Cheniere common shareholders and Net Loss per share, As Adjusted represents Cheniere's basic and diluted earnings per share, in each case adjusted for certain non-recurring items or other items not predictive or indicative of ongoing operating performance, net of the portion attributable to non-controlling interests, including changes in the fair value of our interest rate, commodity and FX derivatives, the effects of modifications or extinguishments of debt, share-based compensation related to employee separations, impairment expense (recovery) and other adjustments. Net Loss, As Adjusted and Net Loss per share, As Adjusted are presented because we believe they are useful tools for assessing the operating performance of Cheniere. Net Loss, As Adjusted and Net Loss per share, As Adjusted are not intended to represent net loss attributable to common stockholders and net loss per share attributable to common stockholders, the most comparable U.S. GAAP measures, respectively, as indicators of operating performance, and are not necessarily comparable to measures reported by other companies.
Net Loss, As Adjusted and Net Loss per share, As Adjusted
The following tables reconcile our Net Loss, As Adjusted and Net Loss per share, As Adjusted to U.S. GAAP results for the three and six months ended June 30, 2016 and 2015 (in thousands, except per share data):
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(298,418) |
$ |
(118,495) |
$ |
(619,256) |
$ |
(386,204) |
|||||||
Add: |
|||||||||||||||
Impairment expense (recovery) |
(71) |
— |
10,095 |
176 |
|||||||||||
Loss on early extinguishment of debt |
55,315 |
7,281 |
56,772 |
96,273 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
80,352 |
(98,407) |
253,417 |
(9,199) |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
25,415 |
(144) |
25,702 |
463 |
|||||||||||
Share-based compensation related to employee separations |
15,647 |
— |
22,060 |
— |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
18,404 |
1,471 |
27,053 |
35,390 |
|||||||||||
Net Loss, As Adjusted |
$ |
(140,164) |
$ |
(211,236) |
$ |
(278,263) |
$ |
(333,881) |
|||||||
Net loss per share attributable to common stockholders—basic and diluted |
$ |
(1.31) |
$ |
(0.52) |
$ |
(2.71) |
$ |
(1.71) |
|||||||
Add: |
|||||||||||||||
Impairment expense (recovery) |
— |
— |
0.04 |
— |
|||||||||||
Loss on early extinguishment of debt |
0.24 |
0.03 |
0.25 |
0.43 |
|||||||||||
Loss (gain) from changes in fair value of interest rate derivatives, net |
0.35 |
(0.43) |
1.11 |
(0.04) |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
0.11 |
— |
0.11 |
— |
|||||||||||
Share-based compensation related to employee separations |
0.07 |
— |
0.10 |
— |
|||||||||||
Less: |
|||||||||||||||
Adjustments attributable to non-controlling interest |
0.08 |
0.01 |
0.12 |
0.16 |
|||||||||||
Net Loss per share, As Adjusted—basic and diluted(1) |
$ |
(0.61) |
$ |
(0.93) |
$ |
(1.22) |
$ |
(1.47) |
|||||||
Weighted average number of common shares outstanding—basic and diluted |
228,323 |
226,481 |
228,231 |
226,405 |
(1) |
Numbers may not foot due to rounding. |
Adjusted EBITDA
The following table reconciles our Adjusted EBITDA to U.S. GAAP results for the three and six months ended June 30, 2016 and 2015 (in thousands):
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Net loss attributable to common stockholders |
$ |
(298,418) |
$ |
(118,495) |
$ |
(619,256) |
$ |
(386,204) |
|||||||
Net loss attributable to non-controlling interest |
(36,526) |
(23,307) |
(64,662) |
(91,442) |
|||||||||||
Income tax provision (benefit) |
(343) |
(507) |
273 |
171 |
|||||||||||
Interest expense, net of capitalized interest |
105,967 |
85,486 |
182,304 |
145,098 |
|||||||||||
Loss on early extinguishment of debt |
55,315 |
7,281 |
56,772 |
96,273 |
|||||||||||
Derivative loss (gain), net |
90,621 |
(46,049) |
271,555 |
80,641 |
|||||||||||
Other expense (income) |
6,930 |
(283) |
6,001 |
(655) |
|||||||||||
Loss from operations |
$ |
(76,454) |
$ |
(95,874) |
$ |
(167,013) |
$ |
(156,118) |
|||||||
Adjustments to reconcile loss from operations to Adjusted EBITDA: |
|||||||||||||||
Depreciation and amortization expense |
32,781 |
20,154 |
56,870 |
37,923 |
|||||||||||
Loss (gain) from changes in fair value of commodity and FX derivatives, net |
25,415 |
(144) |
25,702 |
463 |
|||||||||||
Total non-cash compensation expense |
14,613 |
15,340 |
26,464 |
31,060 |
|||||||||||
Impairment expense (recovery) |
(71) |
— |
10,095 |
176 |
|||||||||||
Adjusted EBITDA |
$ |
(3,716) |
$ |
(60,524) |
$ |
(47,882) |
$ |
(86,496) |
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SOURCE Cheniere Energy, Inc.
HOUSTON, July 7, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) announced today that it plans to release second quarter 2016 financial results on Tuesday, August 9, 2016 before the market opens. Cheniere will host a conference call for investors and analysts at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss second quarter results.
A listen-only webcast of the call and accompanying slide presentation will be available on the Company's website at www.cheniere.com.
After completion of the webcast, a replay will be available on the Company's website.
About Cheniere
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. Train 1 of the liquefaction project at the Sabine Pass LNG terminal has commenced commercial operations. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
Forward-Looking Statements
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.
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SOURCE Cheniere Energy, Inc.; Cheniere Energy Partners, L.P.; Cheniere Energy Partners LP Holdings, LLC
HOUSTON, June 23, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that Jack Fusco, President and Chief Executive Officer, and Michael Wortley, Senior Vice President and Chief Financial Officer, will participate in the J.P. Morgan Inaugural Energy Equity Investor Conference in New York City on June 27-28, 2016.
The meeting materials will be available on the Investor Relations section of the Cheniere website at www.cheniere.com prior to the opening of the market on Monday, June 27, 2016.
About Cheniere
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. Train 1 of the liquefaction project at the Sabine Pass LNG terminal has commenced commercial operations. Cheniere is also exploring a limited number of opportunities directly related to its existing LNG business.
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SOURCE Cheniere Energy, Inc.; Cheniere Energy Partners, L.P.; Cheniere Energy Partners LP Holdings, LLC
HOUSTON, June 6, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere" or the "Company") (NYSE MKT: LNG) held its annual meeting of shareholders on June 2, 2016. Three proposals, as described in the Company's Proxy Statement dated April 21, 2016 (the "2016 Proxy Statement"), were voted upon at the meeting.
Shareholders elected all ten members standing for re-election to the Board of Directors (the "Board") of the Company. The Board members are G. Andrea Botta, Neal A. Shear, Vicky A. Bailey, Nuno Brandolini, Jonathan Christodoro, David I. Foley, David B. Kilpatrick, Samuel Merksamer, Donald F. Robillard, Jr., and Heather R. Zichal. Each of the nominated directors was elected as a director to serve for a one-year term until the 2017 annual meeting of shareholders or until his or her successor is duly elected and qualified. In addition, the Board appointed Jack A. Fusco, the President and Chief Executive Officer of the Company, as a member of the Board.
In an advisory and non-binding vote, approximately 83% of the shares entitled to vote on the matter voted for the compensation paid for 2015 to the Company's executive officers named in the Summary Compensation Table, as disclosed in the 2016 Proxy Statement.
The shareholders ratified the appointment of KPMG LLP as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2016, with approximately 99% of shares entitled to vote on the matter voting in favor.
About Cheniere Energy, Inc.
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.
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 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.
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SOURCE Cheniere Energy, Inc.
HOUSTON, May 18, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH"), has closed the previously announced offering of $1.25 billion aggregate principal amount of 7.00% Senior Secured Notes due 2024 (the "CCH 2024 Notes").
CCH intends to use the net proceeds from the offering to prepay a portion of the principal amounts currently outstanding under CCH's credit facility (the "CCH Credit Facility") and to pay fees and expenses incurred in connection with this offering and the prepayment. The CCH 2024 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facility.
The offer of the CCH 2024 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2024 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 facts, 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 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 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.
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SOURCE Cheniere Energy, Inc.
HOUSTON, May 12, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH"), has upsized and priced its previously announced offering of Senior Secured Notes due 2024 (the "CCH 2024 Notes"). The principal amount of the offering has been increased from the initially announced $1.0 billion to $1.25 billion. The CCH 2024 Notes will bear interest at a rate of 7.00% per annum and will mature on June 30, 2024. The CCH 2024 Notes are priced at par and the closing of the offering is expected to occur on May 18, 2016.
CCH intends to use the net proceeds from the offering to prepay a portion of the principal amounts currently outstanding under CCH's credit facility (the "CCH Credit Facility") and to pay fees and expenses incurred in connection with this offering and the prepayment. The CCH 2024 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facility.
The offer of the CCH 2024 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2024 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 facts, 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 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 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.
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SOURCE Cheniere Energy, Inc.
HOUSTON, May 12, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its Board of Directors has appointed Jack A. Fusco as President and Chief Executive Officer, effective immediately. Mr. Fusco succeeds Neal A. Shear, who has served as Cheniere's interim President and Chief Executive Officer since December 2015. Mr. Fusco joins Cheniere from Calpine Corporation, where he most recently served as Executive Chairman of the Board of Directors.
"Jack has spent over thirty years in the energy industry and has significant experience leading companies with large-scale, asset-intensive portfolios and implementing corporate strategies focused on capital allocation, strategic developments and optimizing shareholder value. This experience will translate well as we make our transition into one of the top global LNG companies with a platform substantially underpinned with long-term sale and purchase agreements," said G. Andrea Botta, Chairman of the Board.
Mr. Botta continued, "The Board of Directors would like to thank Neal for his leadership during his term as interim President and CEO. During this period, Cheniere began exporting LNG from the first train completed at Sabine Pass; construction of the additional trains continues on time and on budget. Neal will continue to serve on the Board of Directors and will be a special advisor to the CEO, ensuring an orderly transition."
"Cheniere is well-positioned for success as a global LNG market leader and I look forward to building upon the many successes achieved to date. Our priorities will be focused on continued execution and completion of the LNG trains, both under construction and under development, and further commercialization of our LNG portfolio," said Mr. Fusco. "Finally, I look forward to working with the Cheniere team as we seek to create long-term value for our shareholders."
Most recently, Mr. Fusco served as Chief Executive Officer and a member of the Board of Directors of Calpine from August 2008 to May 2014 and as Executive Chairman from May 2014 through May 11, 2016. Mr. Fusco was recruited by Calpine's key shareholders in 2008, just as that company was emerging from bankruptcy. Calpine is now America's largest generator of electricity from natural gas, safely and reliably meeting the needs of an economy that demands cleaner, more fuel-efficient and dependable sources of electricity. As CEO of Calpine, Mr. Fusco managed a team of approximately 2,300 employees and led one of the largest purchasers of natural gas in America, a successful developer of new gas-fired power generation facilities and a company that has prudently managed the inherent commodity trading and balance sheet risks associated with being a merchant power producer. He will continue to serve as a director on the board of Calpine.
Mr. Fusco's career of over thirty years in the energy industry began with his employment at Pacific Gas & Electric Company upon graduation from California State University, Sacramento with a Bachelor of Science in Mechanical Engineering in 1984. He joined Goldman Sachs thirteen years later as a Vice President with responsibility for commodity trading and marketing of wholesale electricity, a role that led to the creation of Orion Power Holdings, an independent power producer that Mr. Fusco helped found with backing from Goldman Sachs, where he served as President and Chief Executive Officer from 1998-2002. In 2004, he was asked to serve as Chairman and Chief Executive Officer of Texas Genco LLC by a group of private institutional investors, and successfully managed the transition of that business from a subsidiary of a regulated utility to a strong and profitable independent company, generating a more than 5-fold return for shareholders upon its merger with NRG in 2006.
Cheniere has granted one-time employee inducement awards of 236,381 restricted shares to Mr. Fusco as of May 12, 2016.
Under Mr. Fusco's employment agreement with the company, he has agreed to purchase $10,000,000 worth of Cheniere's common shares by no later than December 31, 2016.
The aforementioned inducement awards have been approved by Cheniere's compensation committee without shareholder approval as an "employee inducement" award under Section 711(a) of the NYSE MKT LLC Company Guide. This press release is made in compliance with Section 711(a) of the NYSE MKT LLC Company Guide. The employee inducement awards were issued as a material inducement to Mr. Fusco's entering into employment with Cheniere under and pursuant to the Company's 2015 Employee Inducement Incentive Plan and applicable award agreements. The restricted shares vest 25% on December 31, 2016 and 75% in equal installments every six months through the third anniversary of the grant date subject to Mr. Fusco's continued employment; provided that up to 152,812 of the restricted shares vest on Mr. Fusco's termination of employment due to disability or death, and the portion of the restricted shares scheduled to vest within one year following a termination of Mr. Fusco's employment by the Company without "cause" or by Mr. Fusco for "good reason" (as those terms are defined in Mr. Fusco's employment agreement) continue to vest notwithstanding Mr. Fusco's termination.
About Cheniere Energy, Inc.
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 and its intent to transition into an operating company with stable and growing positive cash flow underpinned by long-term offtake agreements with investment grade energy companies worldwide, (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.
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SOURCE Cheniere Energy, Inc.; Cheniere Energy Partners, L.P.; Cheniere Energy Partners LP Holdings, LLC
HOUSTON, May 10, 2016 /PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG) announced today that its wholly owned subsidiary, Cheniere Corpus Christi Holdings, LLC ("CCH") intends to offer, subject to market and other conditions, $1.0 billion principal amount of Senior Secured Notes due 2024 ("CCH 2024 Notes").
CCH intends to use the net proceeds from the offering to prepay a portion of the principal amounts currently outstanding under CCH's credit facilities (the "CCH Credit Facilities") and to pay fees and expenses incurred in connection with this offering. The CCH 2024 Notes will be secured by a first priority security interest in substantially all of the assets of CCH and its subsidiaries and by a pledge of all of the equity interests in CCH and will rank pari passu in right of payment with all existing and future senior secured indebtedness of CCH, including borrowings under the CCH Credit Facilities.
The offer of the CCH 2024 Notes has not been registered under the Securities Act of 1933, as amended (the "Securities Act") and the CCH 2024 Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
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 facts, 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 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 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.
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SOURCE Cheniere Energy, Inc.
HOUSTON, Jan. 25, 2016 /PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) announced today that it has engaged 13 financial institutions to act as Joint Lead Arrangers, Mandated Lead Arrangers (collectively the "Arrangers") and other participants to assist in the structuring and arranging of senior secured credit facilities in an aggregate principal amount of up to approximately $2.8 billion. Proceeds from these new credit facilities are intended to be used by Cheniere Partners to prepay the $400 million senior secured term loan at Cheniere Creole Trail Pipeline, L.P. ("CCTP"), 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 Sabine Pass LNG, L.P. ("SPLNG"), pay associated transaction fees, expenses, and make-whole amounts, if applicable, and for general business purposes of Cheniere Partners and its subsidiaries. SPLNG and CCTP are both wholly-owned subsidiaries of Cheniere Partners.
The 13 Arrangers and other participants are The Bank of Tokyo-Mitsubishi UFJ, Ltd., ABN AMRO Capital USA LLC, Société Générale, Industrial and Commercial Bank of China Limited, New York Branch, Intesa Sanpaolo, S.P.A. New York Branch, JPMorgan Chase Bank, N.A., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Morgan Stanley Senior Funding, Inc., Bank of America, N.A., Credit Suisse, HSBC Bank USA, N.A. and Commonwealth Bank of Australia.
"Cheniere Partners is pleased to have the continued support of its key relationship banks for this refinancing. Upon closing of this transaction and after subsequent repayment of our outstanding CCTP and SPLNG obligations, the earliest debt maturity at Cheniere Partners will be in 2020," said Neal Shear, Chairman of the Board and interim CEO of Cheniere Partners.
Through SPLNG, Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on the Sabine-Neches Waterway 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 billion cubic feet equivalent (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 also owns a 94-mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines, (the "Creole Trail Pipeline"). The Creole Trail Pipeline is owned by CCTP.
Cheniere Partners, through its subsidiary, Sabine Pass Liquefaction, LLC ("SPL"), is developing and constructing natural gas liquefaction facilities at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Cheniere Partners, through SPL, plans to construct over time up to six liquefaction trains, which are in various stages of development. Each liquefaction train is expected to have a nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG. SPL 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 Cheniere Partners' 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.
SOURCE Cheniere Energy Partners, L.P.
HOUSTON, Jan. 14, 2016 /PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) announced today that it expects to export the first liquefied natural gas ("LNG") commissioning cargo from its Sabine Pass liquefaction project located in Cameron Parish, Louisiana in late February or March 2016. The first commissioning cargo was initially expected to occur by late January.
Construction for Train 1 was completed well ahead of the guaranteed contractual schedule and within budget. However, instrumentation issues were discovered during the final phases of plant commissioning and cool down that will require some additional work over the next few weeks.
"We are now expecting the first cargo in late February or March," said Neal Shear, Interim President and CEO. "With construction of Train 1 finished, we remain well ahead of the guaranteed contractual schedule with Bechtel and anticipate no issues in meeting all contractual targets and guaranteed completion dates. Additionally, construction for Trains 2-5 continues to be on an accelerated schedule and these trains are expected to come on-line on a staggered basis. Bechtel will hand over care, custody and control of each train as they complete its scope of work."
According to Bechtel, "Bechtel has been continually working towards completing the first unit and working through a few items that will provide assurance to Cheniere Partners that plant reliability and performance will be as expected. These last few items are in final resolution and full LNG production is planned for late February 2016."
Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on the Sabine-Neches Waterway 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 billion cubic feet equivalent (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 and constructing 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 liquefaction trains, which are in various stages of development. Each liquefaction train is expected to have a nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG. 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.
SOURCE Cheniere Energy Partners, L.P.
Cheniere Corpus Christi Pipeline Project - Stage 1 (subscriber access)
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Cheniere Corpus Christi Pipeline, LP
Cheniere Corpus Christi Pipeline Project - Stage 3 (subscriber access)
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Cheniere Corpus Christi Pipeline, LP
Corpus Christi LNG Stage 1 Project (subscriber access)
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Corpus Christi Liquefaction LLC
Corpus Christi LNG Stage 2 Project (subscriber access)
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Corpus Christi LNG Stage 3 Project (subscriber access)
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Corpus Christi LNG Train 1 (subscriber access)
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Corpus Christi LNG Train 10 (subscriber access)
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Corpus Christi Liquefaction LLC
Corpus Christi Liquefaction Midscale Trains 8 & 9 Project (subscriber access)
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Cheniere Energy, Inc.
Corpus Christi Liquefaction Project (subscriber access)
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MIDSHIP Project (subscriber access)
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Cheniere Energy, Inc.
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Sabine Pass LNG Expansion Project (subscriber access)
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Cheniere Energy Partners LP
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Sabine Pass Train 3 (subscriber access)
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Sabine Pass Train 4 (subscriber access)
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Sabine Pass Train 5 (subscriber access)
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