HOUSTON, Feb. 28, 2017
/PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC
("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income
of $4.5 million, or $0.02 per common share, for the three months
ended December 31, 2016, compared to
net income of $4.6 million, or
$0.02 per common share, for the
comparable 2015 period. For the twelve months ended December 31, 2016, Cheniere Partners Holdings
reported net income of $17.8 million,
or $0.08 per common share, compared
to net income of $18.2 million, or
$0.08 per common share, during the
corresponding period in 2015. Results include the distribution
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 approximately 55.9% limited partner interest in Cheniere
Partners as of December 31, 2016.
Fourth Quarter 2016 Highlights
- In December 2016, Cheniere
Energy, Inc. ("Cheniere") (NYSE MKT: LNG) terminated negotiations
with the conflicts committee of our board of directors regarding
Cheniere's previously announced non-binding proposal to acquire all
of the publicly held shares of Cheniere Partners Holdings not
already owned by Cheniere in a stock-for-stock merger transaction.
Subsequent to the termination of negotiations, Cheniere has
acquired a total of 5,785,161 shares of Cheniere Partners Holdings
through individually negotiated transactions with shareholders of
Cheniere Partners Holdings.
Sabine Pass Liquefaction Project Update
Through
Cheniere Partners, we are developing up to six Trains at the Sabine
Pass LNG terminal adjacent to the existing regasification
facilities (the "Sabine Pass Liquefaction Project"). Each train is
expected to have a nominal production capacity, which is prior to
adjusting for planned maintenance, production reliability, and
potential overdesign, of approximately 4.5 million tonnes per annum
("mtpa") of LNG.
The Trains are in various stages of operation, construction, and
development.
- Construction on Trains 1 and 2 began in August 2012, and substantial completion was
achieved in May 2016 and September 2016, respectively. Substantial
completion is achieved upon the completion of construction,
commissioning and the satisfaction of certain performance
tests.
- Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2016, the
overall project completion percentage for Trains 3 and 4 was
approximately 95.5%, which is ahead of the contractual schedule. In
September 2016, commissioning
activities commenced on Train 3. Based on the current construction
schedule, Cheniere Partners expects to reach substantial completion
for Train 3 in the first quarter of 2017 and Train 4 in the second
half of 2017.
- Construction on Train 5 began in June
2015, and as of December 31, 2016, the overall project
completion percentage for Train 5 was approximately 52.4%, which is
ahead of the contractual schedule. Engineering, procurement,
subcontract work and Bechtel direct hire construction were
approximately 96.6%, 76.6%, 43.7% and 11.3% complete, respectively.
Based on the current construction schedule, Cheniere Partners
expects Train 5 to reach substantial completion in the second half
of 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 an engineering,
procurement, and construction contract, entering into acceptable
commercial arrangements and obtaining adequate financing.
|
Sabine Pass
Liquefaction Project
|
Liquefaction
Train
|
Train
1
|
Train
2
|
Trains
3-4
|
Train
5
|
Project
Status
|
Operational
|
Operational
|
96% Overall
Completion
|
52% Overall
Completion
|
Expected Substantial
Completion
|
-
|
-
|
T3 - 1Q
2017
T4 - 2H
2017
|
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.
On February 8, 2017 we announced that our Board of
Directors declared a quarterly cash dividend of $0.020 per common share representing limited
liability company interests in Cheniere Partners Holdings. The
dividend will be payable on February 28, 2017 to shareholders
of record as of the close of business on February 17, 2017.
Investor Conference Call and Webcast
Cheniere Energy,
Inc. will host a conference call to discuss its financial and
operating results for the fourth quarter and full year on Tuesday,
February 28, 2017, at 11 a.m. Eastern
time / 10 a.m. Central time. A
listen-only webcast of the call and an accompanying slide
presentation may be accessed through our website at
www.cheniere.com. Following the call, an archived recording will be
made available on our website. The call and accompanying slide
presentation may include financial and operating results or other
information regarding Cheniere Partners Holdings.
About Cheniere Partners Holdings
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, plans
to construct over time up to six Trains with an expected aggregate
nominal production capacity of approximately 27 mtpa before
taking into account planned maintenance and production reliability.
Trains 1 and 2 have commenced commercial operations, Train 3 is
undergoing commissioning, Trains 4 and 5 are under construction,
and Train 6 is fully permitted.
For additional information, please refer to the Cheniere
Partners Holdings website at www.cheniere.com and Annual Report on
Form 10-K for the fiscal year ended December 31, 2016, filed
with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains
certain statements that may include "forward-looking statements."
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 Partners' and Cheniere Partners
Holdings' 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 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
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands,
except per share data)
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended December
31,
|
|
Year
Ended December 31,
(1)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Equity income from
investment in Cheniere Partners
|
$
|
5,085
|
|
|
$
|
5,085
|
|
|
$
|
20,338
|
|
|
$
|
20,338
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
General and
administrative expense
|
306
|
|
|
275
|
|
|
1,511
|
|
|
1,150
|
|
General and
administrative expense—affiliate
|
257
|
|
|
254
|
|
|
1,029
|
|
|
1,015
|
|
Total
expenses
|
563
|
|
|
529
|
|
|
2,540
|
|
|
2,165
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
4,522
|
|
|
$
|
4,556
|
|
|
$
|
17,798
|
|
|
$
|
18,173
|
|
|
|
|
|
|
|
|
|
Net income per common
share—basic and diluted
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
231,700
|
|
|
231,700
|
|
|
231,700
|
|
|
231,700
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.020
|
|
|
$
|
0.020
|
|
|
$
|
0.080
|
|
|
$
|
0.079
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners LP Holdings, LLC Annual Report on Form
10-K for the fiscal year ended December 31, 2016, filed with
the Securities and Exchange Commission.
|
CHENIERE ENERGY
PARTNERS LP HOLDINGS, LLC
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share amounts) (1)
|
|
|
|
December
31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
219
|
|
|
$
|
917
|
|
Receivables
|
|
153
|
|
|
157
|
|
Other current
assets
|
|
51
|
|
|
26
|
|
Total current
assets
|
|
423
|
|
|
1,100
|
|
|
|
|
|
|
Other non-current
assets
|
|
—
|
|
|
95
|
|
Total
assets
|
|
$
|
423
|
|
|
$
|
1,195
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
78
|
|
|
$
|
106
|
|
Accrued
liabilities—affiliate
|
|
—
|
|
|
6
|
|
Total current
liabilities
|
|
78
|
|
|
112
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Common shares:
unlimited shares authorized, 231.7 million shares issued and
outstanding at December 31, 2016 and 2015
|
|
664,931
|
|
|
664,931
|
|
Director voting
share: 1 share authorized, issued and outstanding at December 31,
2016 and 2015
|
|
—
|
|
|
—
|
|
Additional
paid-in-capital
|
|
(271,757)
|
|
|
(271,757)
|
|
Accumulated
deficit
|
|
(392,829)
|
|
|
(392,091)
|
|
Total shareholders'
equity
|
|
345
|
|
|
1,083
|
|
Total liabilities and
shareholders' equity
|
|
$
|
423
|
|
|
$
|
1,195
|
|
|
|
|
|
|
|
|
(1)
|
Please
refer to the Cheniere Energy Partners LP Holdings, LLC Annual
Report on Form 10-K for the fiscal year ended December 31,
2016, filed with the Securities and Exchange Commission.
|
CONTACT:
Investors: Randy Bhatia:
713-375-5479
Media: Faith Parker:
713-375-5663
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheniere-energy-partners-lp-holdings-llc-reports-fourth-quarter-and-full-year-2016-results-300414287.html
SOURCE Cheniere Energy Partners LP Holdings, LLC