HOUSTON, Oct. 30, 2014
/PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC
("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income
of $4.6 million and $13.6 million, or $0.02 and $0.06 per
common share, for the three and nine months ended September 30, 2014, respectively. Results include
distributions 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 of approximately 55.9% of the outstanding Cheniere
Partners limited partner interests as of September 30, 2014.
We completed our initial public offering in December 2013.
Cheniere Partners' Sabine Pass Liquefaction Project
Update
Cheniere Partners is developing and constructing natural gas
liquefaction facilities (the "Liquefaction Project") at the Sabine
Pass LNG terminal adjacent to the existing regasification
facilities through its wholly owned subsidiary, Sabine Pass
Liquefaction, LLC ("Sabine Pass Liquefaction").
Cheniere Partners continues to make progress on its 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.
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2014,
the overall project for Trains 1 and 2 was approximately 76%
complete, which is ahead of the contractual schedule. Based on
Cheniere Partners' current construction schedule, Cheniere Partners
anticipates that Train 1 will produce liquefied natural gas ("LNG")
as early as late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of September 30, 2014, the
overall project for Trains 3 and 4 was approximately 43% complete,
which is ahead of the contractual schedule. Cheniere Partners
expects Trains 3 and 4 to become operational in late 2016 and 2017,
respectively.
- Trains 5 and 6 are under development. Cheniere Partners has
entered into SPAs for approximately 3.75 mtpa in aggregate that
commence with the date of first commercial delivery for Train 5.
Cheniere Partners has received authorizations from the U.S.
Department of Energy ("DOE") to export 503 Bcf per year of LNG
volumes from Trains 5 and 6 to free trade agreement ("FTA")
countries. Authorization to export LNG to non-FTA countries is
pending. Federal Energy Regulatory Commission ("FERC")
authorization is also pending. Cheniere Partners will contemplate
making a final investment decision to commence construction on
Trains 5 and 6 based upon, among other things, entering into
acceptable commercial arrangements, receiving all regulatory
approvals and obtaining financing.
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:
2014/2015
|
|
- 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
|
|
2014/2015
|
|
Financing
|
|
|
|
|
|
2015
|
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
|
- Debt
commitments
|
|
Received
|
|
Received
|
|
|
|
FERC
authorization
|
|
|
|
|
|
|
|
- FERC
Order
|
|
Received
|
|
Received
|
|
2014/2015
|
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
2018/2019
|
|
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.
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, currently has natural gas liquefaction facilities under
construction. Additional information is available on the Cheniere
Partners Holdings website located at
www.chenierepartnersholdings.com.
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' and
Cheniere Partners Holdings' 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 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
|
STATEMENTS OF
INCOME
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Period from July
29, 2013 (Date of Inception) Through
|
|
Nine Months
Ended
|
|
Period from July
29, 2013 (Date of Inception) Through
|
|
September 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
Equity income from
investment in Cheniere Partners
|
$
|
5,084
|
|
|
$
|
—
|
|
|
$
|
15,253
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
199
|
|
|
—
|
|
|
916
|
|
|
—
|
|
General and
administrative expense—affiliate
|
254
|
|
|
—
|
|
|
761
|
|
|
—
|
|
Total
expenses
|
453
|
|
|
—
|
|
|
1,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
4,631
|
|
|
$
|
—
|
|
|
$
|
13,576
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share—basic and diluted
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.06
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
231,700
|
|
|
—
|
|
|
231,700
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.019
|
|
|
$
|
—
|
|
|
$
|
0.055
|
|
|
$
|
—
|
|
CHENIERE ENERGY
PARTNERS LP HOLDINGS, LLC
|
BALANCE
SHEETS
|
(in thousands,
except share amounts)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2013
|
ASSETS
|
|
(unaudited)
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
246
|
|
|
$
|
—
|
|
Accounts
receivable
|
|
114
|
|
|
161
|
|
Accounts
receivable—affiliate
|
|
—
|
|
|
70
|
|
Prepaid expenses and
other
|
|
64
|
|
|
—
|
|
Total current
assets
|
|
424
|
|
|
231
|
|
|
|
|
|
|
|
|
Other non-current
assets
|
|
818
|
|
|
122
|
|
Total
assets
|
|
$
|
1,242
|
|
|
$
|
353
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accrued
liabilities
|
|
$
|
189
|
|
|
$
|
95
|
|
Accrued
liabilities—affiliates
|
|
2
|
|
|
39
|
|
Total current
liabilities
|
|
191
|
|
|
134
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Common shares:
unlimited shares authorized, 231.7 million shares issued and
outstanding at September 30, 2014 and December 31, 2013
|
|
664,931
|
|
|
664,931
|
|
Director voting
share: 1 share authorized, issued and outstanding at September 30,
2014 and December 31, 2013
|
|
—
|
|
|
—
|
|
Additional
paid-in-capital
|
|
(271,757)
|
|
|
(271,757)
|
|
Accumulated
deficit
|
|
(392,123)
|
|
|
(392,955)
|
|
Total shareholders'
equity
|
|
1,051
|
|
|
219
|
|
Total liabilities and
shareholders' equity
|
|
$
|
1,242
|
|
|
$
|
353
|
|
CONTACTS:
Investors: Randy Bhatia:
713-375-5479 Christina Burke: 713-375-5104
Media: Faith Parker:
713-375-5663
SOURCE Cheniere Energy Partners LP Holdings, LLC