HOUSTON, Aug. 8, 2017
/PRNewswire/ --
Summary of Second
Quarter 2017 Results (in millions, except LNG data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
$
|
1,241
|
|
|
$
|
177
|
|
|
$
|
2,452
|
|
|
$
|
246
|
|
Net
loss1
|
$
|
(285)
|
|
|
$
|
(298)
|
|
|
$
|
(231)
|
|
|
$
|
(619)
|
|
Consolidated Adjusted
EBITDA2
|
$
|
371
|
|
|
$
|
(4)
|
|
|
$
|
854
|
|
|
$
|
(48)
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
232.5
|
|
|
228.3
|
|
|
232.4
|
|
|
228.2
|
|
LNG
exported:
|
|
|
|
|
|
|
|
Number of
cargoes
|
48
|
|
|
11
|
|
|
91
|
|
|
15
|
|
Volumes
(TBtu)
|
170
|
|
|
38
|
|
|
322
|
|
|
52
|
|
LNG volumes loaded
(TBtu)
|
167
|
|
|
38
|
|
|
321
|
|
|
53
|
|
Summary 2017
Revised Full Year Guidance (in billions, except per share
amounts)
|
|
|
2017
|
Consolidated Adjusted
EBITDA2
|
$
|
1.6
|
|
-
|
$
|
1.8
|
|
Distributable Cash
Flow2
|
$
|
0.5
|
|
-
|
$
|
0.7
|
|
Distributable Cash
Flow per Share2
|
$
|
2.10
|
|
-
|
$
|
2.80
|
|
Recent Highlights
Strategic
- Year to date, LNG from the SPL Project (defined below) has been
delivered to 10 new countries. As of July
2017, LNG from the SPL Project had reached 24 of the 40 LNG
importing countries around the world.
- We made an equity investment of $55
million in Midship Pipeline Company, LLC through Midship
Holdings, LLC ("Midship Holdings"), which is constructing an
approximately 230-mile interstate natural gas pipeline with
expected capacity of up to 1.44 Dekatherms per day, to connect new
production in the Anadarko Basin to Gulf Coast markets (the
"Midship Project"). Additionally, Midship Holdings entered into
agreements with investment funds managed by EIG Global Energy
Partners ("EIG") under which EIG-managed funds have committed to
make an investment of up to $500
million in the Midship Project, subject to the terms and
conditions in the applicable agreements.
Operational
- In April 2017, we reached the
milestone of 100 cumulative LNG cargoes exported from the SPL
Project. As of July 31, 2017, more
than 160 cumulative LNG cargoes had been exported from the SPL
Project.
- In June 2017, the date of first
commercial delivery ("DFCD") was reached under the 20-year LNG Sale
and Purchase Agreement ("SPA") with Korea Gas Corporation ("KOGAS")
relating to Train 3 of the SPL Project.
- In August 2017, DFCD was reached
under the respective 20-year LNG SPAs with Gas Natural Fenosa LNG
GOM, Limited and BG Gulf Coast LNG, LLC relating to Train 2 of the
SPL Project.
- Commissioning activities for Train 4 of the SPL Project began
in March 2017, and first LNG was
achieved in July 2017.
Financial
- In May 2017, Cheniere Corpus
Christi Holdings, LLC ("CCH") issued an aggregate principal amount
of $1.5 billion of 5.125% Senior
Secured Notes due 2027. Net proceeds of the offering, after
deducting commissions, fees and expenses, and after provisioning
for incremental interest during construction, were used to prepay a
portion of the outstanding borrowings under CCH's credit
facility.
- In May 2017, Moody's Investors
Service upgraded the senior secured debt rating of Sabine Pass
Liquefaction, LLC ("SPL") from Ba1 to Baa3, an investment-grade
rating.
- In June 2017, Fitch Ratings
assigned SPL an investment-grade issuer default rating of
BBB-.
Liquefaction Projects Update
|
SPL
Project
|
|
CCL
Project
|
Liquefaction
Train
|
Trains
1-3
|
Train
4
|
Train
5
|
Train
6
|
|
Trains
1-2
|
Train
3
|
Project
Status
|
Operational
|
Commissioning
|
Under
Construction
|
Permitted
|
|
Under
Construction
|
Permitted
|
Expected Substantial
Completion
|
—
|
2H 2017
|
2H 2019
|
—
|
|
T1 - 1H
2019
T2 - 2H
2019
|
—
|
Expected DFCD Window
Start
|
Complete(1)
|
1H 2018
|
2H 2019
|
—
|
|
T1 - 1H
2019
T2 - 1H
2020
|
—
|
|
(1) DFCD was achieved
for Train 1 of the SPL Project in November 2016, for Train 2 of the
SPL Project in August 2017, and for Train 3 of the SPL Project in
June 2017.
|
Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) reported
a net loss1 of $285
million, or $1.23 per share
(basic and diluted), for the three months ended June 30, 2017, compared to a net loss of
$298 million, or $1.31 per share (basic and diluted), for the
comparable 2016 period.
Cheniere reported a net loss of $231
million, or $0.99 per share
(basic and diluted), for the six months ended June 30, 2017, compared to a net loss of
$619 million, or $2.71 per share (basic and diluted), for the
comparable 2016 period.
During the three months ended June 30,
2017, the decrease in net loss was primarily due to
increased income from operations, decreased derivative loss, net
and decreased loss on early extinguishment of debt, which were
partially offset by an increased allocation of net income to
non-controlling interest due primarily to the amortization of the
beneficial conversion feature on Cheniere Partners' Class B units
and increased interest expense, net of amounts capitalized. During
the six months ended June 30, 2017,
the decrease in net loss was primarily due to increased income from
operations and decreased derivative loss, net, which were partially
offset by increased allocation of net income to non-controlling
interest, increased interest expense, net of amounts capitalized,
and loss on early extinguishment of debt. During the three and six
months ended June 30, 2017, 48 and 91
LNG cargoes, respectively, were exported from the SPL Project, of
which zero and 7, respectively, were commissioning cargoes.
Consolidated Adjusted EBITDA2 for the three and six
months ended June 30, 2017 was
$371 million and $854 million, respectively, compared to a loss of
$4 million and $48 million for the comparable 2016 periods. The
increases in Consolidated Adjusted EBITDA during the respective
periods were primarily due to increased income from operations.
"Today I'm pleased to announce our solid second quarter results,
which are once again driven by execution and operational excellence
across the company, and an increase in our full year 2017 guidance"
said Jack Fusco, Cheniere's
President and CEO. "The quarter was highlighted by the commencement
of our long-term contract with KOGAS and securing equity financing
for the Midship Project. Subsequent to the end of the quarter, our
long-term contract with Gas Natural Fenosa commenced and first LNG
production occurred from Train 4 at Sabine Pass.
"We are revising our 2017 guidance upward as our operating
results year-to-date have exceeded our expectations, primarily due
to LNG trains entering service ahead of schedule and the ramp-up in
LNG production levels occurring faster than we'd forecast earlier
this year. During the second half of 2017, our focus remains on
bringing Train 4 at Sabine Pass
online safely and efficiently, executing on our commercialization
strategies, and delivering on our increased 2017 guidance."
LNG Volume Summary
The following table summarizes the volumes of operational and
commissioning LNG cargoes that were loaded from the SPL Project and
recognized on our Consolidated Financial Statements during the
three and six months ended June 30,
2017:
|
Three Months Ended
June 30, 2017
|
|
Six Months Ended
June 30, 2017
|
(in
TBtu)
|
Operational
|
|
Commissioning
|
|
Operational
|
|
Commissioning
|
Volumes loaded during
the current period
|
167
|
|
—
|
|
295
|
|
26
|
Volumes loaded during
the prior period but recognized during the current
period
|
7
|
|
8
|
|
19
|
|
—
|
Less: volumes loaded
during the current period and in transit at the end of the
period
|
(14)
|
|
—
|
|
(14)
|
|
—
|
Total volumes
recognized in the current period
|
160
|
|
8
|
|
300
|
|
26
|
Summary of Financial Performance
Second Quarter 2017 Results
Our financial results are reported on a consolidated basis. Our
ownership interest in Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE American: CQP) as of June 30, 2017 consisted
of 100% ownership of the general partner of Cheniere Partners
and 82.7% ownership interest in Cheniere Energy Partners
LP Holdings, LLC (NYSE American: CQH) which owned
a 55.9% limited partner interest in Cheniere Partners as
of June 30, 2017 and an approximately
48.6% limited partner interest in Cheniere Partners upon the
conversion of Class B units on August 2,
2017.
Variances in results of operations for the three and six months
ended June 30, 2017, compared to the
three and six months ended June 30,
2016, were primarily driven by the timing of completion of
Trains and the length of each Train's operations within the periods
being compared. Total revenues increased $1.1 billion and $2.2
billion during the three and six months ended June 30, 2017 as compared to the three and six
months ended June 30, 2016,
respectively, primarily due to the increased volume of LNG sold
that was recognized as revenues. LNG revenues in the second quarter
of 2017 exceeded $1 billion.
Total operating costs and expenses increased $714 million and $1.4
billion during the three and six months ended June 30, 2017, respectively, compared to the
three and six months ended June 30,
2016. The increase in total operating costs and expenses was
primarily due to an increase in cost of sales and, to a lesser
extent, from increases in operating and maintenance expense and
depreciation and amortization expense.
Selling, general and administrative expense decreased
$11 million and $23 million during the three and six months ended
June 30, 2017, compared to the three
and six months ended June 30, 2016,
respectively, primarily due to the implementation of certain
changes in the organizational structure. Included in selling,
general and administrative expense were share-based compensation
expenses of $13 million and
$25 million for the three and six
months ended June 30, 2017,
respectively, compared to $16 million
and $24 million for the comparable
2016 periods.
Although we realized net income before non-controlling interest
during the three and six months ended June
30, 2017, we realized a net loss attributable to common
stockholders during the periods as a result of the amortization of
the beneficial conversion feature on Cheniere Partners' Class B
units impacting net income attributed to non-controlling
interest.
Capital Resources
As of June 30, 2017, we had cash and cash equivalents of
$796 million available to Cheniere.
In addition, we had current and non-current restricted cash of
$1.75 billion (which included current
and non-current restricted cash available to us and our
subsidiaries) designated for the following purposes: $1.28 billion for the SPL Project, $103 million for the CCL Project (defined below),
$286 million for restricted purposes
under the terms of Cheniere Partners' credit facilities and
$82 million for other restricted
purposes.
Liquefaction Projects
SPL Project
Through Cheniere Partners, we are developing up to six Trains at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities (the "SPL 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. Trains 1, 2, and 3 are operational, Train 4 is
undergoing commissioning, Train 5 is under construction, and Train
6 is being commercialized and has all necessary regulatory
approvals in place.
CCL Project
We are developing up to three Trains near Corpus Christi, Texas (the "CCL 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 mtpa of
LNG. Trains 1 and 2 are under construction, and Train 3 is being
commercialized and has all necessary regulatory approvals in place.
Additionally, we are developing two additional Trains adjacent to
the CCL Project and have initiated the regulatory approval process
with respect to those Trains.
Investor Conference Call and Webcast
We will host a conference call to discuss our financial and
operating results for the second quarter on Tuesday, August 8,
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.
___________________________
|
1
|
Net loss as used
herein refers to Net loss attributable to common stockholders on
our Consolidated Statements of Operations.
|
2
|
Non-GAAP financial
measure. See "Reconciliation of Non-GAAP Measures" for further
details.
|
About Cheniere
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 developing, constructing, and operating 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 Quarterly Report on Form 10-Q for the
quarter ended June 30, 2017, filed with the Securities and
Exchange Commission.
Forward-Looking Statements
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 or present facts or
conditions, 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 millions,
except per share data)(1)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
|
|
|
|
LNG
revenues
|
$
|
1,171
|
|
|
$
|
110
|
|
|
$
|
2,314
|
|
|
$
|
113
|
|
Regasification
revenues
|
65
|
|
|
65
|
|
|
130
|
|
|
130
|
|
Other
revenues
|
4
|
|
|
2
|
|
|
7
|
|
|
3
|
|
Other—related
party
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
Total
revenues
|
1,241
|
|
|
177
|
|
|
2,452
|
|
|
246
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
692
|
|
|
85
|
|
|
1,316
|
|
|
100
|
|
Operating and
maintenance expense
|
117
|
|
|
46
|
|
|
195
|
|
|
82
|
|
Development
expense
|
1
|
|
|
1
|
|
|
4
|
|
|
3
|
|
Selling, general and
administrative expense
|
61
|
|
|
72
|
|
|
115
|
|
|
138
|
|
Depreciation and
amortization expense
|
90
|
|
|
33
|
|
|
160
|
|
|
57
|
|
Restructuring
expense
|
—
|
|
|
16
|
|
|
6
|
|
|
23
|
|
Impairment
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
Other
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
Total operating costs
and expenses
|
967
|
|
|
253
|
|
|
1,802
|
|
|
413
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
274
|
|
|
(76)
|
|
|
650
|
|
|
(167)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(188)
|
|
|
(106)
|
|
|
(353)
|
|
|
(182)
|
|
Loss on early
extinguishment of debt
|
(33)
|
|
|
(56)
|
|
|
(75)
|
|
|
(57)
|
|
Derivative loss,
net
|
(36)
|
|
|
(91)
|
|
|
(35)
|
|
|
(272)
|
|
Other income
(expense)
|
5
|
|
|
(7)
|
|
|
7
|
|
|
(6)
|
|
Total other
expense
|
(252)
|
|
|
(260)
|
|
|
(456)
|
|
|
(517)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and non-controlling interest
|
22
|
|
|
(336)
|
|
|
194
|
|
|
(684)
|
|
Income tax benefit
(provision)
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
—
|
|
Net income
(loss)
|
21
|
|
|
(335)
|
|
|
193
|
|
|
(684)
|
|
Less: net income
(loss) attributable to non-controlling interest
|
306
|
|
|
(37)
|
|
|
424
|
|
|
(65)
|
|
Net loss attributable
to common stockholders
|
$
|
(285)
|
|
|
$
|
(298)
|
|
|
$
|
(231)
|
|
|
$
|
(619)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(1.23)
|
|
|
$
|
(1.31)
|
|
|
$
|
(0.99)
|
|
|
$
|
(2.71)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
232.5
|
|
|
228.3
|
|
|
232.4
|
|
|
228.2
|
|
_____________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended June 30, 2017, filed with the Securities and Exchange
Commission.
|
Cheniere Energy,
Inc.
|
Consolidated
Balance Sheets
|
(in millions,
except share data)(1)
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
796
|
|
|
$
|
876
|
|
Restricted
cash
|
1,032
|
|
|
860
|
|
Accounts and other
receivables
|
283
|
|
|
218
|
|
Accounts
receivable—related party
|
1
|
|
|
—
|
|
Inventory
|
150
|
|
|
160
|
|
Derivative
assets
|
20
|
|
|
24
|
|
Other current
assets
|
86
|
|
|
100
|
|
Total current
assets
|
2,368
|
|
|
2,238
|
|
|
|
|
|
Non-current
restricted cash
|
716
|
|
|
91
|
|
Property, plant and
equipment, net
|
22,904
|
|
|
20,635
|
|
Debt issuance costs,
net
|
197
|
|
|
277
|
|
Non-current
derivative assets
|
43
|
|
|
83
|
|
Goodwill
|
77
|
|
|
77
|
|
Other non-current
assets, net
|
295
|
|
|
302
|
|
Total
assets
|
$
|
26,600
|
|
|
$
|
23,703
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
62
|
|
|
$
|
49
|
|
Accrued
liabilities
|
674
|
|
|
637
|
|
Current
debt
|
—
|
|
|
247
|
|
Deferred
revenue
|
65
|
|
|
73
|
|
Derivative
liabilities
|
39
|
|
|
71
|
|
Total current
liabilities
|
840
|
|
|
1,077
|
|
|
|
|
|
Long-term debt,
net
|
24,654
|
|
|
21,688
|
|
Non-current deferred
revenue
|
3
|
|
|
5
|
|
Non-current
derivative liabilities
|
54
|
|
|
45
|
|
Other non-current
liabilities
|
45
|
|
|
49
|
|
|
|
|
|
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, 2017 and December 31, 2016
|
|
|
|
Issued: 250.1 million
shares at June 30, 2017 and December 31, 2016
|
|
|
|
Outstanding: 237.8
million shares and 238.0 million shares at June 30, 2017 and
December 31, 2016, respectively
|
1
|
|
|
1
|
|
Treasury stock: 12.3
million shares and 12.2 million shares at June 30, 2017 and
December 31, 2016, respectively, at cost
|
(377)
|
|
|
(374)
|
|
Additional
paid-in-capital
|
3,228
|
|
|
3,211
|
|
Accumulated
deficit
|
(4,465)
|
|
|
(4,234)
|
|
Total stockholders'
deficit
|
(1,613)
|
|
|
(1,396)
|
|
Non-controlling
interest
|
2,617
|
|
|
2,235
|
|
Total
equity
|
1,004
|
|
|
839
|
|
Total liabilities and
equity
|
$
|
26,600
|
|
|
$
|
23,703
|
|
_________________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended June 30, 2017, filed with the Securities and Exchange
Commission.
|
Reconciliation of Non-GAAP Measures
Regulation G Reconciliations
In addition to disclosing financial results in accordance with
U.S. GAAP, the accompanying news release contains non-GAAP
financial measures. Consolidated Adjusted EBITDA, Distributable
Cash Flow and Distributable Cash Flow per Share are non-GAAP
financial measures that we use to facilitate comparisons of
operating performance across periods. These non-GAAP measures
should be viewed as a supplement to and not a substitute for our
U.S. GAAP measures of performance and the financial results
calculated in accordance with U.S. GAAP and reconciliations from
these results should be carefully evaluated.
Consolidated Adjusted EBITDA represents net loss attributable to
Cheniere before net income (loss) attributable to the
non-controlling interest, interest, taxes, depreciation and
amortization, adjusted for certain non-cash items, other
non-operating income or expense items, and other items not
otherwise predictive or indicative of ongoing operating
performance, as detailed in the following reconciliation.
Consolidated Adjusted EBITDA is not intended to represent cash
flows from operations or net income (loss) as defined by U.S. GAAP
and is not necessarily comparable to similarly titled measures
reported by other companies.
We believe Consolidated Adjusted EBITDA provides relevant and
useful information to management, investors and other users of our
financial information in evaluating the effectiveness of our
operating performance in a manner that is consistent with
management's evaluation of business performance. We believe
Consolidated Adjusted EBITDA is widely used by investors to measure
a company's operating performance without regard to items such as
interest expense, taxes, depreciation and amortization which vary
substantially from company to company depending on capital
structure, the method by which assets were acquired and
depreciation policies. Further, the exclusion of certain non-cash
items, other non-operating income or expense items, and items not
otherwise predictive or indicative of ongoing operating performance
enables comparability to prior period performance and trend
analysis.
Consolidated Adjusted EBITDA is calculated by taking net loss
attributable to common stockholders before net income (loss)
attributable to non-controlling interest, interest expense, net of
capitalized interest, changes in the fair value and settlement of
our interest rate derivatives, taxes, depreciation and
amortization, and adjusting for the effects of certain non-cash
items, other non-operating income or expense items, and other items
not otherwise predictive or indicative of ongoing operating
performance, including the effects of modification or
extinguishment of debt, impairment expense and loss on sale of
assets, changes in the fair value of our commodity and foreign
currency exchange ("FX") derivatives and non-cash compensation
expense. We believe the exclusion of these items enables investors
and other users of our financial information to assess our
sequential and year-over-year performance and operating trends on a
more comparable basis and is consistent with management's own
evaluation of performance.
Distributable Cash Flow is defined as cash received, or expected
to be received, from Cheniere's ownership and interests in CQP, CQH
and Cheniere Corpus Christi Holdings, LLC, cash received (used) by
Cheniere's integrated marketing function (other than cash for
capital expenditures) less interest, taxes and maintenance capital
expenditures associated with Cheniere and not the underlying
entities. Management uses this measure and believes it provides
users of our financial statements a useful measure reflective of
our business's ability to generate cash earnings to supplement the
comparable GAAP measure.
Distributable Cash Flow per Share is calculated by dividing
Distributable Cash Flow by the weighted average number of common
shares outstanding.
We believe Distributable Cash Flow is a useful performance
measure for management, investors and other users of our financial
information to evaluate our performance and to measure and estimate
the ability of our assets to generate cash earnings after servicing
our debt, paying cash taxes and expending sustaining capital, that
could be used for discretionary purposes such as common stock
dividends, stock repurchases, retirement of debt, or expansion
capital expenditures. Management uses this measure and believes it
provides users of our financial statements a useful measure
reflective of our business's ability to generate cash earnings to
supplement the comparable GAAP measure. Distributable Cash Flow is
not intended to represent cash flows from operations or net income
(loss) as defined by U.S. GAAP and is not necessarily comparable to
similarly titled measures reported by other companies.
Non-GAAP measures have limitations as an analytical tool and
should not be considered in isolation or in lieu of an analysis of
our results as reported under GAAP, and should be evaluated only on
a supplementary basis.
Consolidated Adjusted EBITDA
The following table reconciles our Consolidated Adjusted EBITDA
to U.S. GAAP results for the three and six months ended
June 30, 2017 and 2016 (in
millions):
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss attributable
to common stockholders
|
$
|
(285)
|
|
|
$
|
(298)
|
|
|
$
|
(231)
|
|
|
$
|
(619)
|
|
Net income (loss)
attributable to non-controlling interest
|
306
|
|
|
(37)
|
|
|
424
|
|
|
(65)
|
|
Income tax provision
(benefit)
|
1
|
|
|
(1)
|
|
|
1
|
|
|
—
|
|
Interest expense, net
of capitalized interest
|
188
|
|
|
106
|
|
|
353
|
|
|
182
|
|
Loss on early
extinguishment of debt
|
33
|
|
|
56
|
|
|
75
|
|
|
57
|
|
Derivative loss,
net
|
36
|
|
|
91
|
|
|
35
|
|
|
272
|
|
Other expense
(income)
|
(5)
|
|
|
7
|
|
|
(7)
|
|
|
6
|
|
Income (loss) from
operations
|
$
|
274
|
|
|
$
|
(76)
|
|
|
$
|
650
|
|
|
$
|
(167)
|
|
Adjustments to
reconcile income (loss) from operations to Consolidated Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
90
|
|
|
33
|
|
|
160
|
|
|
57
|
|
Loss (gain) from
changes in fair value of commodity and FX derivatives,
net
|
(5)
|
|
|
25
|
|
|
28
|
|
|
26
|
|
Total non-cash
compensation expense
|
7
|
|
|
14
|
|
|
11
|
|
|
26
|
|
Impairment expense
and loss on sale of assets
|
5
|
|
|
—
|
|
|
5
|
|
|
10
|
|
Consolidated Adjusted
EBITDA
|
$
|
371
|
|
|
$
|
(4)
|
|
|
$
|
854
|
|
|
$
|
(48)
|
|
Distributable Cash Flow
The following table reconciles our forecast Consolidated
Adjusted EBITDA and Distributable Cash Flow to forecast Net loss
attributable to common stockholders for 2017 (in billions, except
per share data):
|
2017
|
Net loss attributable
to common stockholders
|
$
|
(0.6)
|
|
-
|
$
|
(0.4)
|
|
Net income (loss)
attributable to non-controlling interest
|
0.9
|
|
-
|
0.9
|
|
Income tax provision
(benefit)
|
|
|
(0.0)
|
|
Interest expense, net
of capitalized interest
|
|
|
0.8
|
|
Loss on early
extinguishment of debt
|
|
|
0.1
|
|
Derivative loss,
net
|
|
|
0.0
|
|
Other expense
(income)
|
|
|
0.0
|
|
Income (loss) from
operations
|
$
|
1.2
|
|
-
|
$
|
1.4
|
|
Adjustments to
reconcile income (loss) from operations to Consolidated Adjusted
EBITDA:
|
|
|
|
Depreciation and
amortization expense
|
|
|
0.4
|
|
Loss (gain) from
changes in fair value of commodity and FX derivatives,
net
|
|
|
0.0
|
|
Total non-cash
compensation expense
|
|
|
0.0
|
|
Impairment expense
and loss on sale of assets
|
|
|
0.0
|
|
Consolidated
Adjusted EBITDA
|
$
|
1.6
|
|
-
|
$
|
1.8
|
|
CQP/CQH minority
interest
|
(0.3)
|
|
-
|
(0.4)
|
|
SPL and CQP cash
retained / interest expense / other
|
(0.7)
|
|
-
|
(0.7)
|
|
CQP interest
expense
|
|
|
(0.1)
|
|
CEI interest
expense
|
|
|
(0.0)
|
|
CEI Distributable
Cash Flow
|
$
|
0.5
|
|
-
|
$
|
0.7
|
|
Weighted average
number of shares outstanding (in millions)
|
|
|
238
|
|
CEI Distributable
Cash Flow per Share
|
$
|
2.10
|
|
|
$
|
2.80
|
|
___________________
|
Note: Totals may not
sum due to rounding
|
CONTACTS:
Investors
|
|
Randy
Bhatia:
|
713-375-5479
|
Megan
Light:
|
713-375-5492
|
|
|
Media
|
|
Eben
Burnham-Snyder:
|
713-375-5764
|
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SOURCE Cheniere Energy, Inc.