HOUSTON, April 30, 2015
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG)
reported a net loss attributable to common stockholders of
$267.7 million, or $1.18 per share (basic and diluted), for the
three months ended March 31, 2015,
compared to a net loss attributable to common stockholders of
$97.8 million, or $0.44 per share (basic and diluted), for the
comparable 2014 period.
Results include significant items for the three months ended
March 31, 2015 of $231.0 million, compared to $46.8 million for the comparable 2014 period. The
significant items for the three months ended March 31, 2015 related to derivative losses due
primarily to contingent interest rate derivatives entered into and
changes in long-term LIBOR during the period, losses on early
extinguishment of debt related to the write-off of debt issuance
costs by Sabine Pass Liquefaction, LLC ("SPL") in connection with
the refinancing of a portion of its credit facilities in
March 2015, and for development
expenses primarily for the liquefaction facilities being developed
by us near Corpus Christi, Texas
(the "CCL Project").
Included in general and administrative expense were non-cash
compensation expenses of $15.2
million for the three months ended March 31, 2015, compared to $34.6 million for the comparable 2014 period.
Results are reported on a consolidated basis and include our
ownership interest in Cheniere Energy Partners, L.P. ("Cheniere
Partners"), which is based on our 100% ownership of the
general partner of Cheniere Partners and 80.1% ownership
interest in Cheniere Energy Partners LP Holdings, LLC which owns
a 55.9% limited partner interest in Cheniere
Partners.
Recent Significant Events
- In March 2015, SPL issued an
aggregate principal amount of $2.0
billion of 5.625% Senior Secured Notes due 2025. Net
proceeds from the offering are being used to pay a portion of the
capital costs associated with the construction of the first four
natural gas liquefaction trains ("Trains") of the SPL Project
(described below).
- In March 2015, we issued an
aggregate principal amount of $625.0
million Convertible Senior Notes due 2045 (the "2045
Convertible Senior Notes") through a registered direct offering.
The 2045 Convertible Senior Notes were issued with an original
issue discount of 20% and accrue interest at a rate of
4.25% per annum, which is payable semi-annually in arrears.
The net proceeds will be used for general corporate purposes.
- In April 2015, Cheniere Partners
received authorization from the Federal Energy Regulatory
Commission ("FERC") to site, construct and operate Trains 5 and 6
of the SPL Project.
Liquefaction Projects Update
SPL 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"), at the Sabine Pass LNG
terminal adjacent to the existing regasification facilities.
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of March 31, 2015, the
overall project completion percentage for Trains 1 and 2 was
approximately 87.2%, which is ahead of the contractual schedule.
Based on our current construction schedule, we anticipate that
Train 1 will produce LNG as early as late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of March 31, 2015, the
overall project completion percentage for Trains 3 and 4 was
approximately 62.6%, which is ahead of the contractual schedule. We
expect Trains 3 and 4 to become operational in late 2016 and 2017,
respectively.
- Trains 5 and 6 are under development. We have entered into SPAs
for approximately 3.75 mtpa in aggregate that commence with the
date of first commercial delivery for Train 5. We have
received authorizations from the 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. In April 2015, Cheniere
Partners received FERC authorization to site, construct, and
operate Trains 5 and 6.
We will contemplate making a final investment decision to
commence construction of Trains 5 and 6 based upon, among other
things, entering into EPC contracts, entering into acceptable
commercial arrangements, receiving all regulatory approvals and
obtaining adequate financing. We expect to commence construction on
Train 5 upon receiving all regulatory approvals and obtaining
financing followed by Train 6 upon entering into acceptable
commercial arrangements, receiving all regulatory approvals and
obtaining financing.
CCL Project
We continue to make progress on the development of the CCL
Project, which is being designed for up to three Trains with
expected aggregate nominal production capacity of approximately
13.5 mtpa of LNG.
- To date we have entered into SPAs aggregating approximately 7.6
mtpa of LNG volumes commencing with Trains 1 and 2, and
approximately 0.8 mtpa of LNG volumes commencing with Train 3.
- In December 2014, we received
authorization from the FERC to site, construct, and operate the CCL
Project. Subsequent to the issuance of the authorization, the FERC
received a rehearing request and has not yet ruled on this request.
We have received authorization from the U.S. Department of Energy
("DOE") to export up to approximately 767 Bcf per year of
domestically produced LNG to FTA countries. Authorization from the
DOE to export LNG to non-FTA countries is pending.
We will contemplate making a final investment decision to
commence construction of the CCL Project based upon, among other
things, entering into acceptable commercial arrangements, receiving
all regulatory approvals and obtaining adequate financing. To date,
we have obtained financing commitments sufficient to support the
financing of all three Trains. We expect to receive the remaining
regulatory approvals during the first half of 2015. We expect to
commence construction on the first two Trains in due course upon
receiving all regulatory approvals followed by the third Train upon
entering into additional sale and purchase agreements.
Timelines for
Liquefaction Projects
|
|
|
|
|
|
Target
Date
|
|
|
SPL
|
|
CCL
|
Milestone
|
|
Trains 1 - 4
|
|
Trains 5 & 6
|
|
Trains
1 - 3
|
DOE export
authorization
|
|
Received
|
|
Received
FTA
Pending
Non-FTA
|
|
Received FTA
Pending Non-FTA
|
Definitive commercial
agreements
|
|
Completed
16.0
mtpa
|
|
T5:
Completed
T6: 2015
|
|
T1-T2:
Completed
T3: 2015
|
- BG Gulf Coast LNG,
LLC
|
|
5.5 mtpa
|
|
|
|
|
- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
|
|
- KOGAS
|
|
3.5
mtpa
|
|
|
|
|
- GAIL (India)
Ltd.
|
|
3.5
mtpa
|
|
|
|
|
- Total Gas &
Power N.A.
|
|
|
|
2.0 mtpa
|
|
|
- Centrica
plc
|
|
|
|
1.75 mtpa
|
|
|
- PT Pertamina
(Persero)
|
|
|
|
|
|
1.52 mtpa
|
- Endesa,
S.A.
|
|
|
|
|
|
2.25 mtpa
|
- Iberdrola,
S.A.
|
|
|
|
|
|
0.76 mtpa
|
- Gas Natural Fenosa
LNG SL
|
|
|
|
|
|
1.50 mtpa
|
- Woodside Energy
Trading Singapore
|
|
|
|
|
|
0.85 mtpa
|
- Electricite de
France, S.A.
|
|
|
|
|
|
0.77 mtpa
|
- EDP Energias de
Portugal S.A.
|
|
|
|
|
|
0.77 mtpa
|
EPC
contracts
|
|
Completed
|
|
2015
|
|
Completed
|
Financing
|
|
Completed
|
|
2015
|
|
2015
|
- Equity
commitments
|
|
|
|
|
|
Received
|
- Debt
commitments
|
|
|
|
|
|
Received
|
FERC
authorization
|
|
Completed
|
|
|
|
|
- FERC
Order
|
|
|
|
Received
|
|
Received
|
- Certificate to
commence construction
|
|
|
|
2015
|
|
2015
|
Issue Notice to
Proceed
|
|
Completed
|
|
2015
|
|
2015
|
Commence
operations
|
|
2015 -
2017
|
|
2018/2019
|
|
2018/2019
|
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses, and owns and operates the Sabine Pass
LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG terminal. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six Trains, each of which is
expected to have a nominal production capacity of approximately 4.5
mtpa. Construction has begun on Trains 1 through 4 at the SPL
Project. Cheniere has also initiated a project to develop
liquefaction facilities near Corpus
Christi, Texas. The CCL Project is being designed for up to
three Trains, with expected aggregate nominal production capacity
of approximately 13.5 mtpa of LNG, three LNG storage tanks with
capacity of approximately 10.1 Bcfe and two LNG carrier docks.
Commencement of construction for the CCL Project is subject, but
not limited, to obtaining regulatory approvals, entering into
long-term customer contracts sufficient to underpin financing of
the project, obtaining financing, and Cheniere making a final
investment decision. Cheniere believes that LNG exports from the
CCL Project could commence as early as 2018.
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, 2015, filed with the Securities and
Exchange Commission.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Included among "forward-looking statements" are, among other
things, (i) statements regarding Cheniere's business strategy,
plans and objectives, including the 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 thousands,
except per share data)(1)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
LNG terminal
revenues
|
$
|
67,581
|
|
|
$
|
66,419
|
|
Marketing and trading
revenues
|
662
|
|
|
657
|
|
Other
|
126
|
|
|
474
|
|
Total
revenues
|
68,369
|
|
|
67,550
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
General and
administrative expense
|
58,017
|
|
|
73,808
|
|
Operating and
maintenance expense
|
37,153
|
|
|
13,687
|
|
Depreciation
expense
|
17,769
|
|
|
15,475
|
|
Development
expense
|
16,096
|
|
|
12,112
|
|
Other
|
332
|
|
|
80
|
|
Total operating costs
and expenses
|
129,367
|
|
|
115,162
|
|
|
|
|
|
Loss from
operations
|
(60,998)
|
|
|
(47,612)
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
Interest expense,
net
|
(59,612)
|
|
|
(40,270)
|
|
Loss on early
extinguishment of debt
|
(88,992)
|
|
|
ā
|
|
Derivative loss,
net
|
(125,936)
|
|
|
(34,681)
|
|
Other
income
|
372
|
|
|
310
|
|
Total other
expense
|
(274,168)
|
|
|
(74,641)
|
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(335,166)
|
|
|
(122,253)
|
|
Income tax
provision
|
(678)
|
|
|
(92)
|
|
Net loss
|
(335,844)
|
|
|
(122,345)
|
|
Less: net loss
attributable to non-controlling interest
|
(68,135)
|
|
|
(24,535)
|
|
Net loss attributable
to common stockholders
|
$
|
(267,709)
|
|
|
$
|
(97,810)
|
|
|
|
|
|
Net loss per share
attributable to common stockholdersābasic and diluted
|
$
|
(1.18)
|
|
|
$
|
(0.44)
|
|
|
|
|
|
Weighted average
number of common shares outstandingābasic and diluted
|
226,328
|
|
|
223,207
|
|
Cheniere Energy,
Inc.
|
Consolidated
Balance Sheets
|
(in thousands,
except share data)(1)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,158,338
|
|
|
$
|
1,747,583
|
|
Restricted cash and
cash equivalents
|
457,456
|
|
|
481,737
|
|
Accounts and interest
receivable
|
32,503
|
|
|
4,419
|
|
LNG
inventory
|
16,282
|
|
|
4,294
|
|
Prepaid expenses and
other
|
38,480
|
|
|
20,844
|
|
Total current
assets
|
2,703,059
|
|
|
2,258,877
|
|
|
|
|
|
Non-current
restricted cash and cash equivalents
|
1,856,524
|
|
|
550,811
|
|
Property, plant and
equipment, net
|
9,852,970
|
|
|
9,246,753
|
|
Debt issuance costs,
net
|
217,363
|
|
|
242,323
|
|
Non-current
derivative assets
|
472
|
|
|
11,744
|
|
Goodwill
|
76,819
|
|
|
76,819
|
|
Other non-current
assets
|
215,840
|
|
|
186,356
|
|
Total
assets
|
$
|
14,923,047
|
|
|
$
|
12,573,683
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
20,953
|
|
|
$
|
13,426
|
|
Accrued
liabilities
|
255,815
|
|
|
169,147
|
|
Deferred
revenue
|
26,653
|
|
|
26,655
|
|
Derivative
liabilities
|
18,046
|
|
|
23,247
|
|
Total current
liabilities
|
321,467
|
|
|
232,475
|
|
|
|
|
|
Long-term debt,
net
|
12,117,880
|
|
|
9,806,084
|
|
Non-current deferred
revenue
|
12,500
|
|
|
13,500
|
|
Other non-current
liabilities
|
116,829
|
|
|
20,107
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred stock,
$0.0001 par value, 5.0 million shares authorized, none
issued
|
ā
|
|
|
ā
|
|
Common stock, $0.003
par value
|
|
|
|
Authorized: 480.0
million shares at March 31, 2015 and December 31, 2014
|
|
|
|
Issued and
outstanding: 236.7 million shares at March 31, 2015 and December
31, 2014
|
712
|
|
|
712
|
|
Treasury stock: 10.7
million shares and 10.6 million shares at March 31, 2015 and
December 31, 2014, respectively, at cost
|
(296,523)
|
|
|
(292,752)
|
|
Additional
paid-in-capital
|
2,989,221
|
|
|
2,776,702
|
|
Accumulated
deficit
|
(2,916,548)
|
|
|
(2,648,839)
|
|
Total stockholders'
deficit
|
(223,138)
|
|
|
(164,177)
|
|
Non-controlling
interest
|
2,577,509
|
|
|
2,665,694
|
|
Total
equity
|
2,354,371
|
|
|
2,501,517
|
|
Total liabilities and
equity
|
$
|
14,923,047
|
|
|
$
|
12,573,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended March 31, 2015, filed with the Securities and Exchange
Commission.
|
As of March 31, 2015, we had cash and cash equivalents of
$2,158.3 million available to
Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $2,314.0
million (which included current and non-current restricted
cash and cash equivalents available to Cheniere Partners, SPL and
Sabine Pass LNG, L.P.) designated for the following purposes:
$1,953.7 million for the SPL Project,
$28.1 million for Cheniere Creole
Trail Pipeline, L.P., $129.1 million
for interest payments related to the Sabine Pass LNG senior secured
notes, and $203.1 million for other
restricted purposes.
Logo -
http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheniere-energy-inc-reports-first-quarter-2015-results-300075541.html
SOURCE Cheniere Energy, Inc.