HOUSTON, Oct. 30, 2015
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT:
LNG) reported a net loss attributable to common stockholders of
$297.8 million, or $1.31 per share (basic and diluted), for the
three months ended September 30,
2015, compared to a net loss attributable to common
stockholders of $89.6 million, or
$0.40 per share (basic and diluted),
for the comparable 2014 period. For the nine months ended
September 30, 2015, Cheniere reported
a net loss attributable to common stockholders of $684.0 million, or $3.02 per share (basic and diluted), compared to
a net loss attributable to common stockholders of $389.3 million, or $1.74 per share (basic and diluted), during the
corresponding period of 2014.
Significant items for the three months ended September 30, 2015 resulted in a loss of
$134.2 million and are related to
derivative loss primarily associated with the changes in long-term
LIBOR during the period, and development expense, partially offset
by changes in operating and maintenance expense associated with the
increase in fair value of certain natural gas purchase agreements
related to gas procurement for the liquefaction project currently
under construction at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities (the "Sabine Pass Liquefaction
Project"). Significant items for the nine months ended September 30, 2015 resulted in a loss of
$343.8 million and are related to
derivative loss, loss on early extinguishment of debt, and
development expense, partially offset by changes in operating and
maintenance expense described above.
Included in general and administrative expense were non-cash
compensation expenses of $27.1
million and $85.2 million for
the three and nine months ended September
30, 2015, respectively, compared to $21.2 million and $80.4
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") (NYSE MKT: CQP), 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 (NYSE MKT: CQH) which owns
a 55.9% limited partner interest in Cheniere
Partners.
Recent Significant Events
- In July 2015, we entered into a
liquefied natural gas ("LNG") Sale and Purchase Agreement ("SPA")
with Central El Campesino for approximately 0.6 million tonnes per
annum ("mtpa") through our subsidiary, Cheniere Marketing
International LLP ("Cheniere Marketing"). Volumes are to be
delivered ex-ship ("DES") for 20 years beginning in 2019 from the
liquefaction project currently under construction near Corpus Christi, Texas (the "Corpus Christi
Liquefaction Project").
- Cheniere Marketing entered into LNG sales arrangements with
Électricité de France, S.A.
("EDF") for the delivery of LNG cargoes on a DES basis. The sales
arrangements with EDF cover the delivery of up to approximately 189
million MMBtus total through 2018.
- Sabine Pass Liquefaction, LLC ("SPL") entered into a
$1.2 billion working capital facility
that will be used primarily for certain working capital
requirements related to developing and placing into operation the
Sabine Pass Liquefaction Project.
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners, we are developing up to six natural
gas liquefaction trains ("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 Trains are in various stages of development:
- Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2015, the overall project
completion percentage for Trains 1 and 2 was approximately 95.2%,
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 September 30, 2015, the overall project
completion percentage for Trains 3 and 4 was approximately 73.6%,
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 U.S. Federal Energy Regulatory Commission ("FERC")
authorization to site, construct, and operate Trains 5 and 6. In
June 2015, Cheniere Partners received
authorization from the U.S. Department of Energy ("DOE") to export
LNG to non-free trade agreement ("non-FTA") countries.
- Construction on Train 5 began on June
30, 2015, and 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.
Corpus Christi Liquefaction 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 Corpus Christi Liquefaction Project.
The Trains are in various stages of development:
- Construction on Trains 1 and 2 began in May 2015. As of September
30, 2015, the overall project completion percentage for
Trains 1 and 2 was approximately 22.8%, with engineering,
procurement and construction approximately 82.0%, 32.0% and less
than 1% complete, respectively. The construction of the Corpus
Christi Pipeline is planned to commence in 2016.
- We have entered into an 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
Trains 1 through 3.
- 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. In August, the DOE granted
authorization to export LNG from Trains 4 and 5 to 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:
2015/2016
|
|
T1-T2:
Completed
T3:
2015/2016
|
|
|
- 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: 2015/2016
|
|
Completed
|
|
|
Financing
|
|
Completed
|
|
T5: Completed
T6: 2015/2016
|
|
Completed
|
|
|
FERC
authorization
|
|
Completed
|
|
Completed
|
|
Completed
|
|
2017
|
Issue Notice to
Proceed
|
|
Completed
|
|
T5: Completed
T6: 2015/2016
|
|
T1-T2:
Completed
T3: 2015/2016
|
|
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 Partners,
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 Corpus
Christi Liquefaction 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 Corpus
Christi Liquefaction 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 September 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 Tables Follow)
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,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
LNG terminal
revenues
|
$
|
67,212
|
|
|
$
|
66,983
|
|
|
$
|
202,698
|
|
|
$
|
200,243
|
|
Marketing and trading
revenues (losses)
|
(1,557)
|
|
|
(499)
|
|
|
(1,601)
|
|
|
482
|
|
Other
|
404
|
|
|
323
|
|
|
1,356
|
|
|
1,277
|
|
Total
revenues
|
66,059
|
|
|
66,807
|
|
|
202,453
|
|
|
202,002
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Operating and
maintenance expense (income)
|
(6,251)
|
|
|
25,908
|
|
|
49,319
|
|
|
69,262
|
|
Depreciation
expense
|
21,638
|
|
|
16,189
|
|
|
59,561
|
|
|
48,962
|
|
Development
expense
|
4,935
|
|
|
11,544
|
|
|
37,640
|
|
|
38,919
|
|
General and
administrative expense
|
97,332
|
|
|
74,255
|
|
|
263,205
|
|
|
215,783
|
|
Other
|
479
|
|
|
75
|
|
|
920
|
|
|
245
|
|
Total operating costs
and expenses
|
118,133
|
|
|
127,971
|
|
|
410,645
|
|
|
373,171
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(52,074)
|
|
|
(61,164)
|
|
|
(208,192)
|
|
|
(171,169)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(93,566)
|
|
|
(46,884)
|
|
|
(238,664)
|
|
|
(130,943)
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
(96,273)
|
|
|
(114,335)
|
|
Derivative gain
(loss), net
|
(161,482)
|
|
|
5,379
|
|
|
(242,123)
|
|
|
(89,222)
|
|
Other income
(expense)
|
(39)
|
|
|
(160)
|
|
|
616
|
|
|
(39)
|
|
Total other
expense
|
(255,087)
|
|
|
(41,665)
|
|
|
(576,444)
|
|
|
(334,539)
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(307,161)
|
|
|
(102,829)
|
|
|
(784,636)
|
|
|
(505,708)
|
|
Income tax benefit
(expense)
|
69
|
|
|
(1,971)
|
|
|
(102)
|
|
|
(2,147)
|
|
Net loss
|
(307,092)
|
|
|
(104,800)
|
|
|
(784,738)
|
|
|
(507,855)
|
|
Less: net loss
attributable to non-controlling interest
|
(9,284)
|
|
|
(15,219)
|
|
|
(100,726)
|
|
|
(118,536)
|
|
Net loss attributable
to common stockholders
|
$
|
(297,808)
|
|
|
$
|
(89,581)
|
|
|
$
|
(684,012)
|
|
|
$
|
(389,319)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(1.31)
|
|
|
$
|
(0.40)
|
|
|
$
|
(3.02)
|
|
|
$
|
(1.74)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
227,126
|
|
|
224,309
|
|
|
226,648
|
|
|
223,710
|
|
_______________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended September 30, 2015, filed with the Securities and
Exchange Commission.
|
Cheniere Energy,
Inc.
Consolidated
Balance Sheets
(in thousands,
except share data)(1)
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
1,340,262
|
|
|
$
|
1,747,583
|
|
Restricted
cash
|
652,225
|
|
|
481,737
|
|
Accounts and interest
receivable
|
6,645
|
|
|
4,419
|
|
LNG
inventory
|
9,032
|
|
|
4,294
|
|
Other current
assets
|
78,108
|
|
|
20,844
|
|
Total current
assets
|
2,086,272
|
|
|
2,258,877
|
|
|
|
|
|
Non-current
restricted cash
|
118,909
|
|
|
550,811
|
|
Property, plant and
equipment, net
|
15,225,250
|
|
|
9,246,753
|
|
Debt issuance costs,
net
|
640,399
|
|
|
242,323
|
|
Non-current
derivative assets
|
30,770
|
|
|
11,744
|
|
Goodwill
|
76,819
|
|
|
76,819
|
|
Other non-current
assets
|
273,840
|
|
|
186,356
|
|
Total
assets
|
$
|
18,452,259
|
|
|
$
|
12,573,683
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
11,558
|
|
|
$
|
13,426
|
|
Accrued
liabilities
|
457,901
|
|
|
169,129
|
|
Deferred
revenue
|
26,653
|
|
|
26,655
|
|
Derivative
liabilities
|
33,839
|
|
|
23,247
|
|
Other current
liabilities
|
268
|
|
|
18
|
|
Total current
liabilities
|
530,219
|
|
|
232,475
|
|
|
|
|
|
Long-term debt,
net
|
15,835,910
|
|
|
9,806,084
|
|
Non-current deferred
revenue
|
10,500
|
|
|
13,500
|
|
Non-current
derivative liabilities
|
125,473
|
|
|
267
|
|
Other non-current
liabilities
|
85,226
|
|
|
19,840
|
|
|
|
|
|
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, 2015 and December 31,
2014
|
|
|
|
Issued and
outstanding: 236.0 million shares and 236.7 million shares at
September 30, 2015 and December 31, 2014, respectively
|
708
|
|
|
712
|
|
Treasury stock: 11.2
million shares and 10.6 million shares at September 30, 2015 and
December 31, 2014, respectively, at cost
|
(337,057)
|
|
|
(292,752)
|
|
Additional
paid-in-capital
|
3,029,317
|
|
|
2,776,702
|
|
Accumulated
deficit
|
(3,332,851)
|
|
|
(2,648,839)
|
|
Total stockholders'
deficit
|
(639,883)
|
|
|
(164,177)
|
|
Non-controlling
interest
|
2,504,814
|
|
|
2,665,694
|
|
Total
equity
|
1,864,931
|
|
|
2,501,517
|
|
Total liabilities and
equity
|
$
|
18,452,259
|
|
|
$
|
12,573,683
|
|
__________________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended September 30, 2015, filed with the Securities and
Exchange Commission.
|
As of September 30, 2015, we had cash and cash equivalents
of $1,340.3 million available to
Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $771.1
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: $327.2 million for the Sabine Pass Liquefaction
Project, $11.3 million for Cheniere
Creole Trail Pipeline, L.P., $129.1
million for interest payments related to the Sabine Pass
LNG, L.P. senior secured notes, $71.3
million for the Corpus Christi Liquefaction Project, and
$232.2 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-third-quarter-2015-results-300169339.html
SOURCE Cheniere Energy, Inc.