HOUSTON, Feb. 19, 2016
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT:
LNG) reported a net loss attributable to common stockholders of
$291.1 million, or $1.28 per share (basic and diluted), for the
three months ended December 31, 2015,
compared to a net loss attributable to common stockholders of
$158.6 million, or $0.70 per share (basic and diluted), for the
comparable 2014 period. For the twelve months ended
December 31, 2015, Cheniere reported
a net loss attributable to common stockholders of $975.1 million, or $4.30 per share (basic and diluted), compared to
a net loss attributable to common stockholders of $547.9 million, or $2.44 per share (basic and diluted), during the
corresponding period of 2014.
Significant items for the three months ended December 31, 2015 totaled a loss of $80.2 million, compared to a loss of $30.2 million for the comparable 2014
period. Significant items for the three months ended
December 31, 2015 related to
impairment expense due to the write-down of certain development
projects and notes receivable, losses on early extinguishment of
debt, and derivative gains associated with changes in long-term
LIBOR during the period. The significant item for the three
months ended December 31, 2014
related to derivative losses. For the twelve months ended
December 31, 2015, significant items
totaled a loss of $419.1 million,
compared to a loss of $233.7 million
for the comparable 2014 period. Significant items for the twelve
months ended December 31, 2015
related to derivative losses, loss on early extinguishment of debt
primarily 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 impairment expense. Significant
items for the twelve months ended December
31, 2014 related to derivative losses, and losses on early
extinguishment of debt.
Included in general and administrative expense were non-cash
compensation expenses of $78.8
million and $163.9 million for
the three and twelve months ended December
31, 2015, respectively, compared to $16.3 million and $96.7
million for the comparable 2014 periods. The increase was
primarily due to accelerated share-based compensation expense
resulting from certain employee terminations.
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 October 2015, Cheniere
Marketing International LLP entered into liquefied natural gas
("LNG") sales arrangement with ENGIE S.A. ("ENGIE") for the
delivery of LNG cargoes on a delivered at terminal ("DAT") basis.
The sales arrangement with ENGIE covers the delivery of up to 12
cargoes per year, or 222 million MMBtus total, from 2018 to
2023.
- In December 2015, the Cheniere
Board of Directors appointed Neal
Shear as Interim President and Chief Executive Officer and
Andrea Botta as Chairman of the
Board of Directors.
- In January 2016, Cheniere
Partners reported it expects substantial completion to occur on
Trains 1 and 2 in May and August, respectively.
Liquefaction Projects Update
Sabine Pass LNG Terminal
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 million tonnes per annum
("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, with
construction of the first Train complete and the commissioning
process underway. Train 1 has begun producing LNG, and the first
LNG commissioning cargo is expected to be exported late February /
March. Commissioning for Train 2 is expected to commence in
the upcoming months. The remaining Trains are expected to commence
commissioning on a staggered basis thereafter.
- Construction on Trains 1 and 2 began in August 2012, and as of December 31, 2015, the overall project completion
percentage for Trains 1 and 2 was approximately 97.4%, which is
ahead of the contractual schedule. Based on the recently updated
construction and commissioning schedule, Cheniere Partners expects
to export the first LNG commissioning cargo in late February or
March 2016.
- Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2015, the overall project completion
percentage for Trains 3 and 4 was approximately 79.5%, which is
ahead of the contractual schedule. Cheniere Partners expects Trains
3 and 4 to become operational in 2017.
- Construction on Train 5 began in June
2015, and as of December 31,
2015, the overall project completion percentage for Train 5
was approximately 14.9%, which is ahead of the contractual
schedule. Engineering, procurement and construction were
approximately 41.9%, 20.5% and 0.1% complete, respectively.
Cheniere Partners expects Train 5 to become operational in
2019.
- Train 6 is currently under development, with all necessary
regulatory approvals in place. Cheniere Partners expects to make a
final investment decision and commence construction on Train 6
upon, among other things, entering into acceptable commercial
arrangements and obtaining adequate financing.
Corpus Christi LNG Terminal
We are developing up to three Trains, each with an expected
nominal production capacity of approximately 4.5 mtpa of LNG, near
Corpus Christi, Texas (the "CCL
Project").
The Trains are in various stages of development:
- Construction on Trains 1 and 2 began in May 2015, and as of December 31, 2015, the overall project completion
percentage for Trains 1 and 2 was approximately 29.2%, which is
ahead of the contractual schedule. Engineering, procurement and
construction were approximately 93.6%, 41.9% and 2.2% complete,
respectively. We expect Trains 1 and 2 to become operational in
late 2018 and mid-2019, respectively.
- Train 3 is under development, with all necessary regulatory
approvals in place. We have entered into an LNG Sale and Purchase
Agreement ("SPA") for approximately 0.8 mtpa of LNG volumes that
commence with Train 3 and expect to commence construction upon
entering into additional SPAs and obtaining adequate
financing.
Additionally, we are developing Trains 4 and 5 adjacent to the
CCL Project. We have initiated the regulatory process by filing the
National Environmental Policy Act pre-filing request with the
Federal Energy Regulatory Commission ("FERC"), and requesting
authorization from the U.S. Department of Energy ("DOE") to export
LNG to non-Free-Trade Agreement ("FTA") countries. We have received
authorization from the DOE to export LNG to FTA countries.
Timelines for Liquefaction Projects
|
|
Target
Date
|
|
|
Sabine Pass LNG
Terminal
|
|
Corpus Christi LNG
Terminal
|
Milestone
|
|
Trains 1 - 5
|
|
Train 6
|
|
Trains
1 - 2
|
|
Train 3
|
|
Trains 4 & 5
|
DOE export
authorization
|
|
Received
|
|
Received
|
|
Received
|
|
Received
|
|
2017
|
Definitive commercial
agreements
|
|
Completed
19.75
mtpa
|
|
2016/2017
|
|
Completed
7.7 mtpa
|
|
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
|
|
2016/2017
|
|
Completed
|
|
Completed
|
|
|
Financing
|
|
Completed
|
|
2016/2017
|
|
Completed
|
|
2016
|
|
|
FERC
authorization
|
|
Completed
|
|
Completed
|
|
Completed
|
|
Completed
|
|
2017
|
Issue Notice to
Proceed
|
|
Completed
|
|
2016/2017
|
|
Completed
|
|
2016
|
|
|
Commence
operations
|
|
2016 -
2019
|
|
2019/2020
|
|
2018/2019
|
|
2019/2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cheniere Marketing
Cheniere Marketing, LLC and its subsidiaries ("Cheniere
Marketing") are engaged in the LNG and natural gas marketing
business and are developing a portfolio of long-term, short-term,
and spot SPAs. Cheniere Marketing has entered into SPAs to
purchase, at Cheniere Marketing's option, LNG produced at the
Sabine Pass Liquefaction Project and the CCL Project in excess of
that required for other customers. To date, Cheniere
Marketing has sold approximately 560 million MMBtu of LNG
(approximately 150 cargoes) to be delivered to multiple investment
grade counterparties between 2016 and 2023. These cargoes
have been sold both on a Free on Board ("FOB") and DAT basis.
Cheniere Energy, Inc., a Houston-based energy company primarily engaged
in LNG-related businesses, owns and operates the Sabine Pass LNG
terminal in Louisiana. Directly
and through its subsidiary, Cheniere Energy Partners, L.P.,
Cheniere is constructing and developing liquefaction projects near
Corpus Christi, Texas and at the
Sabine Pass LNG terminal, respectively. Cheniere is also exploring
a limited number of opportunities directly related to its existing
LNG business.
For additional information, please refer to the Cheniere website
at www.cheniere.com and Annual Report on Form 10-K for the fiscal
year ended December 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 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)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
LNG terminal
revenues
|
$
|
66,583
|
|
$
|
67,363
|
|
$
|
269,281
|
|
$
|
267,606
|
Marketing and trading
revenues (losses)
|
1,667
|
|
(1,768)
|
|
66
|
|
(1,286)
|
Other
|
182
|
|
357
|
|
1,538
|
|
1,634
|
Total
revenues
|
68,432
|
|
65,952
|
|
270,885
|
|
267,954
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Operating and
maintenance expense
|
30,448
|
|
15,141
|
|
79,767
|
|
84,403
|
Depreciation and
amortization expense
|
23,119
|
|
15,296
|
|
82,680
|
|
64,258
|
Development
expense
|
4,501
|
|
15,457
|
|
42,141
|
|
54,376
|
General and
administrative expense
|
160,657
|
|
107,926
|
|
423,862
|
|
323,709
|
Impairment
expense
|
90,744
|
|
—
|
|
91,317
|
|
—
|
Other
|
84
|
|
13,142
|
|
431
|
|
13,387
|
Total operating costs
and expenses
|
309,553
|
|
166,962
|
|
720,198
|
|
540,133
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(241,121)
|
|
(101,010)
|
|
(449,313)
|
|
(272,179)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(83,419)
|
|
(50,293)
|
|
(322,083)
|
|
(181,236)
|
Loss on early
extinguishment of debt
|
(27,907)
|
|
—
|
|
(124,180)
|
|
(114,335)
|
Derivative gain
(loss), net
|
38,484
|
|
(30,179)
|
|
(203,639)
|
|
(119,401)
|
Other income
(expense)
|
1,188
|
|
(544)
|
|
1,804
|
|
(583)
|
Total other
expense
|
(71,654)
|
|
(81,016)
|
|
(648,098)
|
|
(415,555)
|
|
|
|
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(312,775)
|
|
(182,026)
|
|
(1,097,411)
|
|
(687,734)
|
Income tax benefit
(provision)
|
198
|
|
(1,996)
|
|
96
|
|
(4,143)
|
Net loss
|
(312,577)
|
|
(184,022)
|
|
(1,097,315)
|
|
(691,877)
|
Less: net loss
attributable to non-controlling interest
|
(21,480)
|
|
(25,409)
|
|
(122,206)
|
|
(143,945)
|
Net loss attributable
to common stockholders
|
$
|
(291,097)
|
|
$
|
(158,613)
|
|
$
|
(975,109)
|
|
$
|
(547,932)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(1.28)
|
|
$
|
(0.70)
|
|
$
|
(4.30)
|
|
$
|
(2.44)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
227,658
|
|
226,201
|
|
226,903
|
|
224,338
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Annual Report on Form 10-K for the fiscal
year ended December 31, 2015, filed with the Securities and
Exchange Commission.
|
Cheniere Energy,
Inc.
|
Consolidated
Balance Sheets
|
(in thousands,
except share data)(1)
|
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Current
assets
|
|
Cash and cash
equivalents
|
$
|
1,201,112
|
|
$
|
1,747,583
|
Restricted
cash
|
503,397
|
|
481,737
|
Accounts and interest
receivable
|
5,749
|
|
4,419
|
Inventory
|
18,125
|
|
7,786
|
Other current
assets
|
54,203
|
|
17,352
|
Total current
assets
|
1,782,586
|
|
2,258,877
|
|
|
|
|
Non-current
restricted cash
|
31,722
|
|
550,811
|
Property, plant and
equipment, net
|
16,193,907
|
|
9,246,753
|
Debt issuance costs,
net
|
589,213
|
|
242,323
|
Non-current
derivative assets
|
30,887
|
|
11,744
|
Goodwill
|
76,819
|
|
76,819
|
Other non-current
assets
|
314,455
|
|
186,356
|
Total
assets
|
$
|
19,019,589
|
|
$
|
12,573,683
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
22,820
|
|
$
|
13,426
|
Accrued
liabilities
|
427,199
|
|
169,129
|
Current debt,
net
|
1,676,197
|
|
—
|
Deferred
revenue
|
26,669
|
|
26,655
|
Derivative
liabilities
|
35,201
|
|
23,247
|
Other current
liabilities
|
—
|
|
18
|
Total current
liabilities
|
2,188,086
|
|
232,475
|
|
|
|
|
Long-term debt,
net
|
15,128,145
|
|
9,806,084
|
Non-current deferred
revenue
|
9,500
|
|
13,500
|
Non-current
derivative liabilities
|
79,387
|
|
267
|
Other non-current
liabilities
|
53,068
|
|
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 December 31, 2015 and 2014
|
|
|
|
Issued and
outstanding: 235.6 million shares and 236.7 million shares at
December 31, 2015 and 2014, respectively
|
708
|
|
712
|
Treasury stock: 11.6
million shares and 10.6 million shares at December 31, 2015 and
2014, respectively, at cost
|
(353,927)
|
|
(292,752)
|
Additional
paid-in-capital
|
3,075,317
|
|
2,776,702
|
Accumulated
deficit
|
(3,623,948)
|
|
(2,648,839)
|
Total stockholders'
deficit
|
(901,850)
|
|
(164,177)
|
Non-controlling
interest
|
2,463,253
|
|
2,665,694
|
Total
equity
|
1,561,403
|
|
2,501,517
|
Total liabilities and
equity
|
$
|
19,019,589
|
|
$
|
12,573,683
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Annual Report on Form 10-K for the fiscal
year ended December 31, 2015, filed with the Securities and
Exchange Commission.
|
As of December 31, 2015, we had cash and cash equivalents
of $1,201.1 million available to
Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $535.1
million (which included current and non-current restricted
cash and cash equivalents available to us and our subsidiaries)
designated for the following purposes: $189.3 million for the Sabine Pass Liquefaction
Project, $7.9 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, $46.8
million for the CCL Project, and $200.0 million for other restricted purposes.
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SOURCE Cheniere Energy, Inc.