HOUSTON, July 30, 2015
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG)
reported a net loss attributable to common stockholders of
$118.5 million, or $0.52 per share (basic and diluted), for the
three months ended June 30, 2015,
compared to a net loss attributable to common stockholders of
$201.9 million, or $0.90 per share (basic and diluted), for the
comparable 2014 period. For the six months ended June 30, 2015, Cheniere reported a net loss
attributable to common stockholders of $386.2 million, or $1.71 per share (basic and diluted), compared to
a net loss attributable to common stockholders of $299.7 million, or $1.34 per share (basic and diluted), during the
corresponding period of 2014.
Significant items for the three and six months ended
June 30, 2015 were a gain of
$21.9 million and a loss of
$209.2 million, respectively,
compared to losses of $189.8 million
and $236.6 million for the comparable
2014 periods, respectively. Significant items for the three and six
months ended June 30, 2015 related to
derivative gains (losses) associated with the cancellation of, and
fees related to, interest rate derivatives 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") primarily in connection with the
refinancing of a portion of its credit facilities in March 2015, and development expenses primarily
for the natural gas liquefaction and export facility being
developed by us near Corpus Christi,
Texas (the "CCL Project").
Included in general and administrative expense were non-cash
compensation expenses of $43.0
million and $58.1 million for
the three and six months ended June 30,
2015, respectively, compared to $24.6
million and $59.2 million for
the comparable 2014 periods, respectively.
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 May 2015, we made a positive
final investment decision ("FID") and issued a notice to proceed
("NTP") with construction to Bechtel Oil, Gas and Chemicals, Inc.
("Bechtel") for the first two natural gas liquefaction trains
("Trains") and the related new facilities ("Stage 1") of the CCL
Project.
- In connection with the commencement of construction of Stage 1
of the CCL Project, Cheniere Corpus Christi Holdings, LLC entered
into an $8.4 billion credit facility
to be used for costs associated with the development, construction,
operation and maintenance of Stage 1 of the CCL Project and a
23-mile, 48" natural gas supply pipeline that will interconnect the
CCL Project with several interstate and intrastate natural gas
pipelines (the "Corpus Christi Pipeline").
- Cheniere CCH Holdco II, LLC, our wholly owned subsidiary,
issued $1.0 billion aggregate
principal amount of 11% Senior Secured Notes due 2025, which will
be used to pay a portion of the capital costs associated with Stage
1 of the CCL Project and the Corpus Christi Pipeline.
- In June 2015, SPL made a positive
FID and issued an NTP with construction to Bechtel for Train 5 of
the Sabine Pass Liquefaction Project (defined below).
- In connection with the commencement of construction of Train 5
of the Sabine Pass Liquefaction Project, SPL entered into four
credit facilities totaling $4.6
billion, which replaced its existing credit facilities, to
fund a portion of the costs of developing, constructing, and
placing into operation Trains 1 through 5 of the Sabine Pass
Liquefaction Project.
- In June 2015, we announced the
development of an additional two Trains at the CCL Project,
bringing the total number of Trains under development at the CCL
Project to up to five, each with expected nominal production
capacity of approximately 4.5 million metric tonnes per annum
("mtpa") of LNG. We have initiated the regulatory process by filing
the National Environmental Policy Act ("NEPA") pre-filing request
with the U.S. Federal Energy Regulatory Commission ("FERC"), and
requesting authorization from the U.S. Department of Energy ("DOE")
to export LNG to both free trade agreement ("FTA") and non-FTA
countries.
- In June 2015, we announced an
agreement in principle to partner with Parallax Enterprises, LLC
for the development of two mid-scale natural gas liquefaction
projects in Louisiana, each with
expected nominal production capacity of approximately 5.2 mtpa of
LNG.
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 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 development:
- Construction on Trains 1 and 2 began in August 2012, and as of June 30, 2015, the overall project completion
percentage for Trains 1 and 2 was approximately 92.2%, 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 June
30, 2015, the overall project completion percentage for
Trains 3 and 4 was approximately 69.2%, which is ahead of the
contractual schedule. We expect Trains 3 and 4 to become
operational in late 2016 and 2017, respectively.
- The permitting process for Trains 5 and 6 has been completed.
In April 2015, Cheniere Partners
received FERC authorization to site, construct, and operate Trains
5 and 6. In June 2015, Cheniere
Partners received authorization from the DOE to export LNG to
non-FTA countries.
- Construction on Train 5 began on June
30, 2015, and Train 6 is under development. We expect Train
5 to commence operations as early as 2018. We expect to commence
construction on Train 6 upon entering into acceptable commercial
arrangements and obtaining adequate financing.
CCL Project
We are developing up to five Trains, each with an expected
nominal production capacity of approximately 4.5 mtpa of LNG, as
part of the CCL Project.
The Trains are in various stages of development:
- Construction on Trains 1 and 2 began in May 2015. Train 3 is under development. We have
entered into a Sale and Purchase Agreement ("SPA") for
approximately 0.8 mtpa of LNG volumes that commence with Train 3
and will contemplate making an FID to commence construction upon
entering into additional SPAs. To date, we have obtained sufficient
financing commitments and all necessary regulatory permits required
to support the development of three Trains.
- Trains 4 and 5 are under development. We have initiated the
regulatory process by filing the NEPA pre-filing request with the
FERC, and requesting authorization from the DOE to export LNG to
both FTA and non-FTA countries.
Timelines for Liquefaction Projects
|
|
Target
Date
|
|
|
SPL
|
|
CCL
|
Milestone
|
|
Trains 1 - 4
|
|
Trains 5 & 6
|
|
Trains
1 - 3
|
|
Trains 4 & 5
|
DOE export
authorization
|
|
Received
|
|
Received
|
|
Received
|
|
2017
|
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
|
|
|
- Électricité de
France, S.A.
|
|
|
|
|
|
0.77 mtpa
|
|
|
- EDP Energias de
Portugal S.A.
|
|
|
|
|
|
0.77 mtpa
|
|
|
EPC
contracts
|
|
Completed
|
|
T5:
Completed
T6: 2015
|
|
Completed
|
|
|
Financing
|
|
Completed
|
|
T5:
Completed
T6: 2015
|
|
Completed
|
|
|
FERC
authorization
|
|
Completed
|
|
Completed
|
|
Completed
|
|
2017
|
Issue Notice to
Proceed
|
|
Completed
|
|
T5:
Completed
T6: 2015
|
|
T1-T2:
Completed
T3: 2015
|
|
2017
|
Commence
operations
|
|
2015 -
2017
|
|
2018/2019
|
|
2018/2019
|
|
2021
|
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 of LNG. Construction has begun on Trains 1 through 5 of the
Sabine Pass Liquefaction Project. Cheniere is also developing
liquefaction facilities near Corpus
Christi, Texas. The CCL Project is being designed for up to
five Trains, with expected aggregate nominal production capacity of
approximately 22.5 mtpa of LNG, four LNG storage tanks with
capacity of approximately 13.5 Bcfe and two LNG carrier docks.
Construction has begun on the first two Trains of the CCL
Project. Cheniere has agreed in principle to partner
with Parallax Enterprises, LLC for the development of up
to 11 mtpa of LNG production capacity through Parallax's two
mid-scale natural gas liquefaction projects, Live Oak LNG and
Louisiana LNG.
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, 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 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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
|
|
|
LNG terminal
revenues
|
$
|
67,905
|
|
|
$
|
66,841
|
|
|
$
|
135,486
|
|
|
$
|
133,260
|
|
|
Marketing and trading
revenues (losses)
|
(706)
|
|
|
324
|
|
|
(44)
|
|
|
981
|
|
|
Other
|
826
|
|
|
480
|
|
|
952
|
|
|
954
|
|
|
Total
revenues
|
68,025
|
|
|
67,645
|
|
|
136,394
|
|
|
135,195
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
General and
administrative expense
|
107,856
|
|
|
67,720
|
|
|
165,873
|
|
|
141,528
|
|
|
Operating and
maintenance expense
|
18,877
|
|
|
29,409
|
|
|
56,030
|
|
|
43,096
|
|
|
Depreciation
expense
|
20,154
|
|
|
17,298
|
|
|
37,923
|
|
|
32,773
|
|
|
Development
expense
|
16,609
|
|
|
15,263
|
|
|
32,705
|
|
|
27,375
|
|
|
Other
|
109
|
|
|
90
|
|
|
441
|
|
|
170
|
|
|
Total operating costs
and expenses
|
163,605
|
|
|
129,780
|
|
|
292,972
|
|
|
244,942
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(95,580)
|
|
|
(62,135)
|
|
|
(156,578)
|
|
|
(109,747)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(85,486)
|
|
|
(43,789)
|
|
|
(145,098)
|
|
|
(84,059)
|
|
|
Loss on early
extinguishment of debt
|
(7,281)
|
|
|
(114,335)
|
|
|
(96,273)
|
|
|
(114,335)
|
|
|
Derivative gain
(loss), net
|
45,755
|
|
|
(60,178)
|
|
|
(80,181)
|
|
|
(94,859)
|
|
|
Other income
(expense)
|
283
|
|
|
(189)
|
|
|
655
|
|
|
121
|
|
|
Total other
expense
|
(46,729)
|
|
|
(218,491)
|
|
|
(320,897)
|
|
|
(293,132)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(142,309)
|
|
|
(280,626)
|
|
|
(477,475)
|
|
|
(402,879)
|
|
|
Income tax benefit
(provision)
|
507
|
|
|
(84)
|
|
|
(171)
|
|
|
(176)
|
|
|
Net loss
|
(141,802)
|
|
|
(280,710)
|
|
|
(477,646)
|
|
|
(403,055)
|
|
|
Less: net loss
attributable to non-controlling interest
|
(23,307)
|
|
|
(78,782)
|
|
|
(91,442)
|
|
|
(103,317)
|
|
|
Net loss attributable
to common stockholders
|
$
|
(118,495)
|
|
|
$
|
(201,928)
|
|
|
$
|
(386,204)
|
|
|
$
|
(299,738)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(0.52)
|
|
|
$
|
(0.90)
|
|
|
$
|
(1.71)
|
|
|
$
|
(1.34)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
226,481
|
|
|
223,602
|
|
|
226,405
|
|
|
223,406
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended June 30, 2015, filed with the Securities and Exchange
Commission.
|
Cheniere Energy,
Inc.
Consolidated
Balance Sheets
(in thousands,
except share data)(1)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,470,207
|
|
|
$
|
1,747,583
|
|
Restricted
cash
|
684,073
|
|
|
481,737
|
|
Accounts and interest
receivable
|
6,746
|
|
|
4,419
|
|
LNG
inventory
|
13,954
|
|
|
4,294
|
|
Other current
assets
|
88,382
|
|
|
20,844
|
|
Total current
assets
|
2,263,362
|
|
|
2,258,877
|
|
|
|
|
|
Non-current
restricted cash
|
739,145
|
|
|
550,811
|
|
Property, plant and
equipment, net
|
13,799,113
|
|
|
9,246,753
|
|
Debt issuance costs,
net
|
637,301
|
|
|
242,323
|
|
Non-current
derivative assets
|
21,363
|
|
|
11,744
|
|
Goodwill
|
76,819
|
|
|
76,819
|
|
Other non-current
assets
|
222,399
|
|
|
186,356
|
|
Total
assets
|
$
|
17,759,502
|
|
|
$
|
12,573,683
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
23,799
|
|
|
$
|
13,426
|
|
Accrued
liabilities
|
565,832
|
|
|
169,129
|
|
Deferred
revenue
|
26,671
|
|
|
26,655
|
|
Derivative
liabilities
|
23,937
|
|
|
23,247
|
|
Other current
liabilities
|
600
|
|
|
18
|
|
Total current
liabilities
|
640,839
|
|
|
232,475
|
|
|
|
|
|
Long-term debt,
net
|
14,854,794
|
|
|
9,806,084
|
|
Non-current deferred
revenue
|
11,500
|
|
|
13,500
|
|
Other non-current
liabilities
|
37,013
|
|
|
20,107
|
|
|
|
|
|
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, 2015 and December 31, 2014
|
|
|
|
Issued and
outstanding: 236.6 million shares and 236.7 million shares at June
30, 2015 and December 31, 2014, respectively
|
711
|
|
|
712
|
|
Treasury stock: 10.7
million shares and 10.6 million shares at June 30, 2015 and
December 31, 2014, respectively, at cost
|
(298,926)
|
|
|
(292,752)
|
|
Additional
paid-in-capital
|
3,014,483
|
|
|
2,776,702
|
|
Accumulated
deficit
|
(3,035,043)
|
|
|
(2,648,839)
|
|
Total stockholders'
deficit
|
(318,775)
|
|
|
(164,177)
|
|
Non-controlling
interest
|
2,534,131
|
|
|
2,665,694
|
|
Total
equity
|
2,215,356
|
|
|
2,501,517
|
|
Total liabilities and
equity
|
$
|
17,759,502
|
|
|
$
|
12,573,683
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended June 30, 2015, filed with the Securities and Exchange
Commission.
|
As of June 30, 2015, we had cash and cash equivalents of
$1,470.2 million available to
Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $1,423.2
million (which included current and non-current restricted
cash and cash equivalents available to Cheniere Partners, SPL,
Sabine Pass LNG, L.P., and Cheniere Corpus Christi Holdings, LLC.)
designated for the following purposes: $996.5 million for the Sabine Pass Liquefaction
Project, $19.0 million for Cheniere
Creole Trail Pipeline, L.P., $91.1
million for interest payments related to the Sabine Pass
LNG, L.P. senior secured notes, $92.0
million for the CCL Project, and $224.6 million for other restricted purposes.
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SOURCE Cheniere Energy, Inc.