HOUSTON, Feb. 21, 2014 /PRNewswire/ -- Cheniere
Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP)
reported a net loss of $61.3 million
and $258.1 million for the three
months and year ended December 31,
2013, respectively, compared to a net loss of $68.6 million and $175.4
million for the same periods in 2012, respectively.
Significant items for the three months and year ended December 31, 2013 were $26.7 million and $60.9
million, respectively, compared to $44.7 million and $82.8
million, respectively, for the comparable 2012 periods.
Significant items for the quarter related to development expenses,
derivative gains/losses and losses on early extinguishment of
debt. Development expenses were primarily for the
liquefaction facilities we are developing through Sabine Pass
Liquefaction, LLC ("Sabine Pass Liquefaction") at the Sabine Pass
LNG terminal adjacent to the existing regasification facilities
(the "Liquefaction Project"). Derivative gains/losses were
primarily the result of the change in fair value of Sabine Pass
Liquefaction's interest rate derivatives to hedge the exposure to
volatility in a portion of the floating-rate interest payments
under the four credit facilities. Loss on early
extinguishment of debt was related to Sabine Pass Liquefaction
amending and replacing its $3.6
billion credit facility with four credit facilities
aggregating $5.9 billion in
May 2013 and refinancing a portion of
the credit facilities in November
2013, resulting in aggregate available capacity of
approximately $5.0 billion.
Liquefaction Project Update
We continue to make progress on the Liquefaction Project, which
is being developed for up to six natural gas liquefaction trains
("Trains"), each with a nominal production capacity of
approximately 4.5 mtpa. We have received Federal Energy
Regulatory Commission ("FERC") and Department of Energy ("DOE")
approvals for Trains 1 through 4, and we have filed all required
regulatory applications with the FERC and DOE to develop Trains 5
and 6.
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of January 31, 2014, the overall project for Trains
1 and 2 was approximately 57.1% complete, which is ahead of the
contractual schedule. Based on our current construction
schedule, we anticipate that Train 1 will produce LNG by late
2015.
- Construction on Trains 3 and 4 began in May 2013, and as of January 31, 2014, the overall project for Trains
3 and 4 was approximately 21.6% complete. To date, soil
stabilization has been completed and pile driving, the next
critical path item, is underway. We expect Trains 3 and 4 to
become operational in late 2016 and 2017, respectively.
- We continue to make progress with the development of Trains 5
and 6. To date we have completed two LNG SPAs for
approximately 3.75 mtpa in aggregate of LNG volumes that commence
with the date of first commercial delivery for Train 5. In
September 2013, we filed a complete
application with the FERC. We have received authorizations
from the DOE to export 503 Bcf of LNG volumes from Trains 5 and 6
to FTA countries. Non-FTA authorization is pending.
Liquefaction
Project Timeline
|
|
|
|
Target
Date
|
Milestone
|
|
Trains
1 &
2
|
|
Trains
3 &
4
|
|
Trains
5 &
6
|
DOE export
authorization
|
|
Received
|
|
Received
|
|
Received
FTA
Pending
Non-FTA
|
Definitive commercial
agreements
|
|
Completed 7.7
mtpa
|
|
Completed
8.3 mtpa
|
|
T5:
Completed
T6: 2014
|
- BG Gulf Coast LNG,
LLC
|
|
4.2 mtpa
|
|
1.3 mtpa
|
|
|
- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
|
|
- KOGAS
|
|
|
|
3.5 mtpa
|
|
|
- GAIL (India)
Ltd.
|
|
|
|
3.5 mtpa
|
|
|
- Total Gas &
Power N.A.
|
|
|
|
|
|
2.0 mtpa
|
- Centrica
plc
|
|
|
|
|
|
1.75 mtpa
|
EPC
contract
|
|
Completed
|
|
Completed
|
|
2015
|
Financing
|
|
|
|
|
|
2015
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
- Debt
commitments
|
|
Received
|
|
Received
|
|
|
FERC
authorization
|
|
|
|
|
|
|
- FERC
Order
|
|
Received
|
|
Received
|
|
2015
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
2018/2019
|
Quarter and Year End 2013 Results
For the quarter and year ended December
31, 2013, Cheniere Partners reported income from operations
of $5.4 million and a loss from
operations of $32.7 million,
respectively, compared to income of $14.5
million and $38.2 million for
the respective comparable periods in 2012. Net operating
losses were primarily affected by operating and maintenance
expenses and general and administrative expenses. The
increase in operating and maintenance expenses of $34.4 million for the year ended December 31, 2013 compared to the comparable 2012
period resulted primarily from costs incurred to purchase LNG to
maintain the cryogenic readiness of the regasification facilities
at the Sabine Pass LNG terminal, increased LNG terminal maintenance
and repair costs, increased fuel costs at the Sabine Pass LNG
terminal and increased costs to manage the operation and
maintenance of the regasification facilities at the Sabine Pass LNG
terminal under Sabine Pass LNG's long-term operation and
maintenance agreement with a wholly owned subsidiary of Cheniere
Partners.
Increases in general and administrative expenses of $15.5 million and $68.0
million for the three months and year ended December 31, 2013, respectively, compared to the
comparable 2012 periods were primarily due to increased costs
incurred to manage the construction of Trains 1 through 4.
Sabine Pass Liquefaction entered into a management services
agreement in which it is required to pay a wholly owned subsidiary
of Cheniere Energy, Inc. ("Cheniere Energy") a monthly fee based
upon the capital expenditures incurred in the previous month for
the Liquefaction Project. For the three months and year ended
December 31, 2013, the costs incurred
to manage the construction of Trains 1 through 4 were $19.7 million and $92.6
million, respectively. These payments are funded from
proceeds received from the equity and debt financings for the
Liquefaction Project.
Distributions to Unitholders
We will pay a cash distribution per common unit of $0.425 to unitholders of record as of
February 3, 2014, and the related
general partner distribution on February 14,
2014.
We estimate that the annualized distribution to common
unitholders for fiscal year 2014 will be $1.70 per unit.
Cheniere Partners owns 100 percent of the Sabine Pass LNG
terminal located on the Sabine
Pass deep water shipping channel less than four miles from
the Gulf Coast. The Sabine Pass LNG terminal has facilities
that include 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 capacity of up
to 265,000 cubic meters and vaporizers with regasification capacity
of approximately 4.0 Bcf/d.
Cheniere Partners is developing natural gas liquefaction
facilities at the Sabine Pass LNG terminal adjacent to the existing
regasification facilities, the Liquefaction Project. Cheniere
Partners plans to construct over time up to six natural gas Trains,
which are in various stages of development. Each Train is
expected to have a nominal production capacity of approximately 4.5
mtpa. The overall project completion of Trains 1 and 2 is
approximately 57.1% as of January 31,
2014. The overall project completion of Trains 3 and 4 is
approximately 21.6% as of January 31,
2014. Sabine Pass Liquefaction recently began the development
of Trains 5 and 6 and commenced the regulatory process in February
2013. Sabine Pass Liquefaction has entered into six
third-party LNG sale and purchase agreements ("SPAs") that in the
aggregate equate to 19.75 mtpa and commence with the date of first
commercial delivery of Trains 1 through 5 as specified in the
respective SPAs. Cheniere Partners has placed documentation
pertaining to the Liquefaction Project, including the applications
and supporting studies, on its website located at
http://www.cheniereenergypartners.com.
For additional information, please refer to the Cheniere Energy
Partners, L.P. website at www.cheniereenergypartners.com and Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, 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 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 construction and
operation of liquefaction facilities, (ii) statements regarding
expectations regarding regulatory authorizations and approvals,
(iii) statements expressing beliefs and expectations regarding the
development of Cheniere Partners' LNG terminal and liquefaction
business, (iv) statements regarding the business operations and
prospects of third parties, (v) statements regarding potential
financing arrangements, and (vi) statements regarding future
discussions and entry into contracts. Although Cheniere Partners
believes that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Cheniere Partners' actual results could differ materially from
those anticipated in these forward-looking statements as a result
of a variety of factors, including those discussed in Cheniere
Partners' periodic reports that are filed with and available from
the Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Other than as required under the
securities laws, Cheniere Partners does not assume a duty to update
these forward-looking statements.
(Financial Table Follows)
Cheniere Energy
Partners, L.P.
|
Selected Financial
Information
|
(in thousands,
except per unit data) (1)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
66,199
|
|
|
$
|
66,201
|
|
|
$
|
265,251
|
|
|
$
|
256,361
|
|
Revenues—affiliate
|
|
800
|
|
|
1,164
|
|
|
2,940
|
|
|
8,137
|
|
Total
revenues
|
|
66,999
|
|
|
67,365
|
|
|
268,191
|
|
|
264,498
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Operating and
maintenance expense
|
|
7,206
|
|
|
|
16,229
|
|
|
59,957
|
|
|
|
36,292
|
|
Operating and
maintenance expense—affiliate
|
|
5,770
|
|
|
4,054
|
|
|
29,304
|
|
|
18,540
|
|
Depreciation
expense
|
|
14,336
|
|
|
14,653
|
|
|
57,486
|
|
|
57,788
|
|
Development
expense
|
|
3,165
|
|
|
2,190
|
|
|
11,322
|
|
|
37,559
|
|
Development
expense—affiliate
|
|
207
|
|
|
312
|
|
|
1,402
|
|
|
2,677
|
|
General and
administrative expense
|
|
3,049
|
|
|
|
3,081
|
|
|
11,570
|
|
|
|
12,316
|
|
General and
administrative expense—affiliate
|
|
27,838
|
|
|
12,336
|
|
|
129,836
|
|
|
61,081
|
|
Total
expenses
|
|
61,571
|
|
|
52,855
|
|
|
300,877
|
|
|
226,253
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
5,428
|
|
|
14,510
|
|
|
(32,686)
|
|
|
38,245
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(43,594)
|
|
|
(41,092)
|
|
|
(178,400)
|
|
|
(171,646)
|
|
Loss on early
extinguishment of debt
|
|
(51,066)
|
|
|
(42,587)
|
|
|
(131,576)
|
|
|
(42,587)
|
|
Derivative gain
(loss), net
|
|
27,742
|
|
|
346
|
|
|
83,448
|
|
|
58
|
|
Other
|
|
224
|
|
|
210
|
|
|
1,097
|
|
|
499
|
|
Total other
expense
|
|
(66,694)
|
|
|
(83,123)
|
|
|
(225,431)
|
|
|
(213,676)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(61,266)
|
|
|
$
|
(68,613)
|
|
|
$
|
(258,117)
|
|
|
$
|
(175,431)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per common unit
|
|
$
|
(0.01)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.03)
|
|
|
$
|
0.27
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
income per common unit calculation
|
|
57,079
|
|
|
39,488
|
|
|
54,235
|
|
|
33,470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
Cash and cash
equivalents
|
$
|
351,032
|
|
$
|
419,292
|
|
Restricted cash and
cash equivalents
|
227,652
|
|
92,519
|
|
LNG
inventory
|
10,430
|
|
2,625
|
|
Other current assets
(2)
|
24,014
|
|
18,687
|
|
Non-current
restricted cash and cash equivalents
|
1,025,056
|
|
272,425
|
|
Property, plant and
equipment, net
|
6,383,939
|
|
3,219,592
|
|
Debt issuance costs,
net
|
313,944
|
|
220,949
|
|
Non-current
derivative assets
|
98,123
|
|
—
|
|
Other
assets
|
82,593
|
|
19,698
|
|
Total
assets
|
$
|
8,516,783
|
|
$
|
4,265,787
|
|
|
|
|
|
Current liabilities
(2)
|
265,887
|
|
155,836
|
|
Long-term debt, net
of discount
|
6,576,273
|
|
2,167,113
|
|
Deferred revenue,
including affiliate
|
17,500
|
|
21,500
|
|
Long-term derivative
liability
|
—
|
|
26,424
|
|
Other liabilities
(2)
|
17,379
|
|
14,936
|
|
Total partners'
capital
|
1,639,744
|
|
1,879,978
|
|
Total liabilities and
partners' capital
|
$
|
8,516,783
|
|
$
|
4,265,787
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the
fiscal year ended December 31, 2013, filed with the Securities and
Exchange Commission.
|
(2)
|
Amounts include
transactions between Cheniere Energy Partners, L.P. and Cheniere
Energy, Inc. or subsidiaries of Cheniere Energy, Inc.
|
SOURCE Cheniere Energy Partners, L.P.