HOUSTON, Nov. 14, 2017 /PRNewswire/ --
Summary of Third Quarter 2017 Results (in millions, except
LNG data)
|
Three Months
Ended
|
Nine Months
Ended
|
|
September
30,
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
$
|
903
|
|
$
|
331
|
|
$
|
2,786
|
|
$
|
549
|
Net income
(loss)
|
$
|
23
|
|
$
|
(82)
|
|
$
|
116
|
|
$
|
(257)
|
Adjusted
EBITDA1
|
$
|
298
|
|
$
|
100
|
|
$
|
900
|
|
$
|
164
|
LNG
exported:
|
|
|
|
|
|
|
|
Number of
cargoes
|
44
|
|
18
|
|
135
|
|
33
|
Volumes
(TBtu)
|
160
|
|
62
|
|
482
|
|
114
|
LNG volumes loaded
(TBtu)
|
162
|
|
61
|
|
483
|
|
114
|
Revised 2017 Full Year Distribution Guidance
|
2017
|
Distribution per
Unit
|
$
|
1.73
|
-
|
$
|
1.80
|
2018 Full Year Distribution Guidance
|
2018
|
Distribution per
Unit
|
$
|
2.00
|
-
|
$
|
2.20
|
Recent Achievements
Strategic
- As of October 31, 2017, more than
200 cumulative LNG cargoes had been produced, loaded, and exported
from the SPL Project (defined below), with deliveries completed to
25 countries worldwide. Sabine Pass Liquefaction, LLC has
successfully fulfilled its obligations to the foundation customers
of Trains 1-3 and provided LNG to the marketing function of
Cheniere Energy, Inc.
Operational
- Substantial completion of Train 4 of the SPL Project was
achieved in October 2017, more than
five months ahead of the guaranteed completion date.
- LNG production operations at the SPL Project continued
uninterrupted during Hurricane Harvey.
Financial
- In August 2017, the Date of First
Commercial Delivery ("DFCD") relating to Train 2 of the SPL Project
was reached under the respective 20-year Sale and Purchase
Agreements ("SPAs") with Gas Natural Fenosa LNG GOM, Limited and BG
Gulf Coast LNG, LLC.
- In September 2017, we issued an
aggregate principal amount of $1.5
billion of 5.250% Senior Notes due 2025 ("the 2025 CQP
Senior Notes"). Net proceeds of the offering, after deducting
commissions, fees and expenses, were used to prepay a portion of
the outstanding indebtedness under our credit facilities.
- In September 2017, Moody's
Investors Service, S&P Global Ratings and Fitch Ratings
assigned ratings of Ba2 / BB / BB, respectively to the 2025 CQP
Senior Notes.
Liquefaction Project Update
|
SPL
Project
|
Liquefaction
Train
|
Trains
1-3
|
Train
4
|
Train
5
|
Train
6
|
Project
Status
|
Operational
|
Operational
|
Under
Construction
|
Permitted
|
Expected Substantial
Completion
|
Complete
|
Complete
|
2H 2019
|
—
|
Expected DFCD
Window
Start
|
Complete
|
1H 2018
|
2H 2019
|
—
|
|
|
|
|
|
|
|
|
Construction operations at the SPL Project have returned to
productivity levels achieved prior to Hurricane Harvey.
__________________________
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE
American: CQP) reported net income of $23
million and $116 million for
the three and nine months ended September
30, 2017, respectively, compared to net losses of
$82 million and $257 million for the comparable periods in
2016. Adjusted EBITDA1 for the three and nine
months ended September 30, 2017 was
$298 million and $900 million, respectively, compared to
$100 million and $164 million for the comparable 2016 periods.
During the three and nine months ended September 30, 2017, 44 and 135 LNG cargoes,
respectively, were exported from the SPL Project, of which 5 and
12, respectively, were commissioning cargoes.
Variances in results of operations for the three and nine months
ended September 30, 2017, as compared
to the three and nine months ended September
30, 2016, were primarily driven by increased income from
operations, due primarily to the timing of completion of Trains and
the length of each Train's operations within the periods being
compared, partially offset by increased interest expense, net of
amounts capitalized. Total revenues increased $572 million and $2.2
billion during the three and nine months ended September 30, 2017, respectively, as compared to
the three and nine months ended September
30, 2016, respectively, primarily due to the increased
volume of LNG sold that was recognized as revenues following the
achievement of substantial completion of these Trains.
Total operating costs and expenses increased $423 million and $1.7
billion during the three and nine months ended September 30, 2017, respectively, compared to the
three and nine months ended September 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, partially offset by a
decrease in general and administrative expense.
SPL 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 "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 through 4 are operational, Train 5 is
under construction, and Train 6 is being commercialized and has all
necessary regulatory approvals in place.
Distributions to Unitholders
We will pay a cash distribution per common unit and subordinated
unit of $0.44 to unitholders of
record as of November 3, 2017 and the related general partner
distribution on November 14, 2017.
Investor Conference Call and Webcast
Cheniere Energy, Inc. will host a conference call to discuss its
financial and operating results for the third quarter on Tuesday,
November 14, 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.
1Non-GAAP financial measure. See "Reconciliation of
Non-GAAP Measures" for further details.
About Cheniere Partners
Through its wholly owned
subsidiary, Sabine Pass LNG, L.P., Cheniere Partners owns 100% of
the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, on the
Sabine-Neches Waterway less than four miles from the Gulf Coast.
The Sabine Pass LNG terminal includes existing infrastructure of
five LNG storage tanks with capacity of approximately 16.9 billion
cubic feet equivalent (Bcfe), two marine berths that can
accommodate vessels with nominal capacity of up to 266,000 cubic
meters and vaporizers with regasification capacity of approximately
4.0 Bcf/d. Through its wholly owned subsidiary, Cheniere
Creole Trail Pipeline, L.P., Cheniere Partners also owns a 94-mile
pipeline that interconnects the Sabine Pass LNG terminal with a
number of large interstate pipelines.
Cheniere Partners, through its subsidiary, SPL, is developing,
constructing, and operating natural gas liquefaction facilities at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities. Cheniere Partners, through SPL, plans to
construct over time up to six liquefaction trains, which are in
various stages of development, construction, and operations.
Trains 1 through 4 are operational, Train 5 is under construction
and Train 6 is being commercialized and has all necessary
regulatory approvals in place. Each liquefaction 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. SPL has entered into
six third-party LNG SPAs that in the aggregate equate to
approximately 19.75 mtpa of LNG and commence with the date of first
commercial delivery of Trains 1 through 5 as specified in the
respective SPAs.
For additional information, please refer to the Cheniere
Partners website at www.cheniere.com and Quarterly Report on Form
10-Q for the quarter ended September 30, 2017, 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 or present
facts or conditions, included herein are "forward-looking
statements." Included among "forward-looking statements" are, among
other things, (i) statements regarding Cheniere Partners' 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 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' 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' 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
does not assume a duty to update these forward-looking
statements.
(Financial Table Follows)
Cheniere Energy
Partners, L.P.
|
Consolidated
Statements of Operations
|
(in millions,
except per unit data) (1)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
|
|
|
|
LNG
revenues
|
$
|
723
|
|
$
|
249
|
|
$
|
1,718
|
|
$
|
334
|
LNG
revenues—affiliate
|
111
|
|
16
|
|
864
|
|
16
|
Regasification
revenues
|
65
|
|
64
|
|
195
|
|
194
|
Other
revenues
|
3
|
|
1
|
|
7
|
|
2
|
Other
revenues—affiliate
|
1
|
|
1
|
|
2
|
|
3
|
Total
revenues
|
903
|
|
331
|
|
2,786
|
|
549
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
490
|
|
159
|
|
1,580
|
|
212
|
Cost of
sales—affiliate
|
—
|
|
1
|
|
—
|
|
1
|
Operating and
maintenance expense
|
73
|
|
38
|
|
205
|
|
80
|
Operating and
maintenance expense—affiliate
|
31
|
|
14
|
|
70
|
|
36
|
Development
expense
|
1
|
|
—
|
|
2
|
|
—
|
General and
administrative expense
|
5
|
|
2
|
|
10
|
|
9
|
General and
administrative expense—affiliate
|
18
|
|
25
|
|
63
|
|
68
|
Depreciation and
amortization expense
|
87
|
|
44
|
|
239
|
|
92
|
Other
|
1
|
|
—
|
|
1
|
|
—
|
Total operating costs
and expenses
|
706
|
|
283
|
|
2,170
|
|
498
|
|
|
|
|
|
|
|
|
Income from
operations
|
197
|
|
48
|
|
616
|
|
51
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(153)
|
|
(114)
|
|
(437)
|
|
(229)
|
Loss on early
extinguishment of debt
|
(25)
|
|
(26)
|
|
(67)
|
|
(54)
|
Derivative gain
(loss), net
|
1
|
|
10
|
|
(2)
|
|
(26)
|
Other
income
|
3
|
|
—
|
|
6
|
|
1
|
Total other
expense
|
(174)
|
|
(130)
|
|
(500)
|
|
(308)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
23
|
|
$
|
(82)
|
|
$
|
116
|
|
$
|
(257)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common unit
|
$
|
(1.10)
|
|
$
|
(0.27)
|
|
$
|
(4.12)
|
|
$
|
(0.56)
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
loss per common unit calculation
|
247.2
|
|
57.1
|
|
121.2
|
|
57.1
|
___________________
|
(1)
Please refer to the Cheniere Energy Partners, L.P. Quarterly Report
on Form 10-Q for the quarter ended September 30, 2017, filed
with the Securities and Exchange Commission.
|
Cheniere Energy
Partners, L.P.
|
Consolidated
Balance Sheets
|
(in millions,
except unit data) (1)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
—
|
|
$
|
—
|
Restricted
cash
|
1,395
|
|
605
|
Accounts and other
receivables
|
172
|
|
90
|
Accounts
receivable—affiliate
|
18
|
|
99
|
Advances to
affiliate
|
57
|
|
38
|
Inventory
|
77
|
|
97
|
Other current
assets
|
35
|
|
29
|
Total current
assets
|
1,754
|
|
958
|
|
|
|
|
Non-current
restricted cash
|
48
|
|
—
|
Property, plant and
equipment, net
|
15,097
|
|
14,158
|
Debt issuance costs,
net
|
42
|
|
121
|
Non-current
derivative assets
|
37
|
|
83
|
Other non-current
assets, net
|
213
|
|
222
|
Total
assets
|
$
|
17,191
|
|
$
|
15,542
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
24
|
|
$
|
27
|
Accrued
liabilities
|
419
|
|
418
|
Current
debt
|
—
|
|
224
|
Due to
affiliates
|
55
|
|
99
|
Deferred
revenue
|
134
|
|
73
|
Deferred
revenue—affiliate
|
1
|
|
1
|
Derivative
liabilities
|
4
|
|
14
|
Total current
liabilities
|
637
|
|
856
|
|
|
|
|
Long-term debt,
net
|
16,040
|
|
14,209
|
Non-current deferred
revenue
|
2
|
|
5
|
Non-current
derivative liabilities
|
2
|
|
2
|
Other non-current
liabilities—affiliate
|
25
|
|
27
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (348.6 million units and 57.1 million units issued and
outstanding at September 30, 2017 and December 31, 2016,
respectively)
|
1,559
|
|
130
|
Class B unitholders'
interest (zero and 145.3 million units issued and outstanding at
September 30, 2017 and December 31, 2016, respectively)
|
—
|
|
62
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at September 30, 2017 and December 31, 2016)
|
(1,086)
|
|
240
|
General partner's
interest (2% interest with 9.9 million units and 6.9 million units
issued and outstanding at September 30, 2017 and December 31, 2016,
respectively)
|
12
|
|
11
|
Total partners'
equity
|
485
|
|
443
|
Total liabilities and
partners' equity
|
$
|
17,191
|
|
$
|
15,542
|
___________________
|
(1)
Please refer to the Cheniere Energy Partners, L.P. Quarterly Report
on Form 10-Q for the quarter ended September 30, 2017, filed
with the Securities and Exchange Commission.
|
Reconciliation of Non-GAAP Measures
Regulation G Reconciliation
In addition to disclosing financial results in accordance with
U.S. GAAP, the accompanying news release contains a non-GAAP
financial measure. Adjusted EBITDA is a non-GAAP financial measure
that is used to facilitate comparisons of operating performance
across periods. This non-GAAP measure 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 the reconciliation from these results should be
carefully evaluated.
Adjusted EBITDA is calculated by taking net income (loss) before
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 and changes in the fair value of our
commodity derivatives. 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 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. Management
believes 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 other items
not otherwise predictive or indicative of ongoing operating
performance enables comparability to prior period performance and
trend analysis.
Adjusted EBITDA
The following table reconciles our Adjusted EBITDA to U.S. GAAP
results for the three and nine months ended September 30, 2017 and 2016 (in millions):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
23
|
|
$
|
(82)
|
|
$
|
116
|
|
$
|
(257)
|
Interest expense, net
of capitalized interest
|
153
|
|
114
|
|
437
|
|
229
|
Loss on early
extinguishment of debt
|
25
|
|
26
|
|
67
|
|
54
|
Derivative loss
(gain), net
|
(1)
|
|
(10)
|
|
2
|
|
26
|
Other
income
|
(3)
|
|
—
|
|
(6)
|
|
(1)
|
Income from
operations
|
$
|
197
|
|
$
|
48
|
|
$
|
616
|
|
$
|
51
|
Adjustments to
reconcile income from operations to Adjusted EBITDA:
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
87
|
|
44
|
|
239
|
|
92
|
Loss from changes in
fair value of commodity derivatives, net
|
14
|
|
8
|
|
45
|
|
21
|
Adjusted
EBITDA
|
$
|
298
|
|
$
|
100
|
|
$
|
900
|
|
$
|
164
|
CONTACTS:
|
|
|
|
Investors
|
|
Randy
Bhatia:
|
713-375-5479
|
Megan
Light:
|
713-375-5492
|
Media
|
|
Eben
Burnham-Snyder:
|
713-375-5764
|
View original
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SOURCE Cheniere Energy Partners, L.P.