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
|
$
|
1,403
|
|
|
$
|
465
|
|
|
$
|
3,855
|
|
|
$
|
711
|
|
Net
loss1
|
$
|
(289)
|
|
|
$
|
(101)
|
|
|
$
|
(520)
|
|
|
$
|
(720)
|
|
Consolidated Adjusted
EBITDA2
|
$
|
442
|
|
|
$
|
67
|
|
|
$
|
1,297
|
|
|
$
|
19
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
232.6
|
|
|
228.9
|
|
|
232.5
|
|
|
228.5
|
|
LNG
exported:
|
|
|
|
|
|
|
|
Number of
cargoes
|
44
|
|
|
18
|
|
|
135
|
|
|
33
|
|
Volumes
(TBtu)
|
160
|
|
|
62
|
|
|
482
|
|
|
114
|
|
LNG volumes loaded
(TBtu)
|
162
|
|
|
61
|
|
|
483
|
|
|
114
|
|
Summary 2017
Revised Full Year Guidance (in billions)
|
|
|
2017
|
Consolidated Adjusted
EBITDA2
|
$
|
1.8
|
|
-
|
$
|
1.9
|
|
Distributable Cash
Flow2
|
$
|
0.6
|
|
-
|
$
|
0.7
|
|
Summary 2018 Full
Year Guidance (in billions)
|
|
|
2018
|
Consolidated Adjusted
EBITDA2
|
$
|
1.9
|
|
-
|
$
|
2.1
|
|
Distributable Cash
Flow2
|
$
|
0.2
|
|
-
|
$
|
0.4
|
|
Recent Highlights
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 that our marketing function has sold
to multiple customers with long-term contracting potential.
- We recently opened offices in Tokyo,
Japan and Beijing, China
and established an in-country presence in Thailand to build expertise and local
relationships.
- We recently entered into term agreements for a portion of the
LNG volumes expected to be available to our marketing function for
the period 2018-2020.
- We are focused on advancing long-term LNG Sale and Purchase
Agreement ("SPA") discussions to facilitate Final Investment
Decision of Train 3 at the CCL Project (defined below), and have
commenced advanced engineering and preliminary procurement work on
Train 3 with our EPC partner Bechtel.
- We completed our FEED study on a midscale liquefaction solution
for the Corpus Christi Expansion Project (defined below) and began
the process of amending our filing with the Federal Energy
Regulatory Commission to incorporate midscale liquefaction
technology.
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.
- Operations and maintenance personnel staffing and training
plans for the CCL Project are on schedule.
- 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 SPAs with Gas Natural
Fenosa LNG GOM, Limited and BG Gulf Coast LNG, LLC.
- In September 2017, Cheniere
Energy Partners, L.P. ("Cheniere Partners") 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 Cheniere Partners' 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 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
|
Operational
|
Under
Construction
|
Permitted
|
|
Under
Construction
|
Permitted
|
Expected Substantial
Completion
|
Complete
|
Complete
|
2H 2019
|
—
|
|
T1 - 1H
2019
T2 - 2H
2019
|
—
|
Expected DFCD Window
Start
|
Complete
|
1H 2018
|
2H 2019
|
—
|
|
T1 - 1H
2019
T2 - 1H
2020
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction operations at both the SPL Project and the CCL
Project have returned to productivity levels achieved prior to
Hurricane Harvey.
Cheniere Energy, Inc. ("Cheniere") (NYSE American: LNG) reported a
net loss1 of $289
million, or $1.24 per share
(basic and diluted), for the three months ended September 30, 2017, compared to a net loss of
$101 million, or $0.44 per share (basic and diluted), for the
comparable 2016 period.
Cheniere reported a net loss of $520
million, or $2.24 per share
(basic and diluted), for the nine months ended September 30, 2017, compared to a net loss of
$720 million, or $3.15 per share (basic and diluted), for the
comparable 2016 period.
During the three months ended September
30, 2017, the increase in net loss was primarily due to the
increased allocation of net income to non-controlling interest due
primarily to the non-cash impact of amortization of the beneficial
conversion feature on Cheniere Partners' Class B units, increased
interest expense, net of amounts capitalized, and increased
derivative loss, net associated with interest rate derivative
activity, which were partially offset by increased income from
operations. During the nine months ended September 30, 2017, the decrease in net loss was
primarily due to increased income from operations and decreased
derivative loss, net associated with interest rate derivative
activity, which were partially offset by increased allocation of
net income to non-controlling interest and increased interest
expense, net of amounts capitalized. The amortization of the
beneficial conversion feature on Cheniere Partners' Class B units
ceased upon the conversion of these units into common units on
August 2, 2017, and there will be no
further impact to net income (loss) attributable to non-controlling
interest due to the amortization of the beneficial conversion
feature.
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.
Consolidated Adjusted EBITDA2 for the three and nine
months ended September 30, 2017 was
$442 million and $1.3 billion, respectively, compared to
$67 million and $19 million for the comparable 2016 periods. The
increases in Consolidated Adjusted EBITDA during the respective
periods were primarily due to increased income from operations.
"I'm pleased to report our strong third quarter results today,
which are a product of continued execution and operational
excellence across the company. In addition, we are again increasing
our full year 2017 guidance and are introducing our guidance for
full year 2018" said Jack Fusco,
Cheniere's President and CEO. "The third quarter was highlighted by
the commencement of our long-term contract with Gas Natural Fenosa
and the successful commissioning of Train 4 at Sabine Pass. Train 4 recently achieved
Substantial Completion, and we've now brought the first four Trains
online in less than 17 months, all of them ahead of schedule and
within budget.
"We are revising our 2017 guidance upward as operating results
continue to exceed earlier expectations, and we have greater
certainty on results as we approach the end of the year. Our 2018
guidance range is driven primarily by LNG production scenarios at
Sabine Pass and expected market
pricing for LNG during 2018."
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 nine months ended September 30,
2017:
|
Three Months Ended
September 30, 2017
|
|
Nine Months Ended
September 30, 2017
|
(in
TBtu)
|
Operational
|
|
Commissioning
|
|
Operational
|
|
Commissioning
|
Volumes loaded during
the current period
|
144
|
|
18
|
|
439
|
|
44
|
Volumes loaded during
the prior period but recognized during the current
period
|
14
|
|
—
|
|
19
|
|
—
|
Less: volumes loaded
during the current period and in transit at the end of the
period
|
(7)
|
|
(4)
|
|
(7)
|
|
(4)
|
Total volumes
recognized in the current period
|
151
|
|
14
|
|
451
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition, during the three and nine months ended September 30, 2017, we recognized volumes of 46
and 64 TBtu, respectively, on our Consolidated Financial Statements
related to LNG cargoes sourced from third parties.
Summary of Financial Performance
Third Quarter 2017 Results
Our financial results are reported on a consolidated basis. Our
ownership interest in Cheniere Partners (NYSE American: CQP) as of
September 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 48.6% limited partner interest in
Cheniere Partners on September 30, 2017.
Variances in results of operations for the three and nine months
ended September 30, 2017, compared to
the three and nine months ended September
30, 2016, were primarily driven by the timing of completion
of Trains at the SPL Project and the length of each Train's
operations within the periods being compared. Total revenues
increased $938 million and
$3.1 billion during the three and
nine months ended September 30, 2017
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 each Train,
and to a lesser extent the increased volume of LNG sold that was
sourced from third parties.
Total operating costs and expenses increased $656 million and $2.0
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.
Selling, general and administrative ("SG&A") expense
increased $5 million during the three
months ended September 30, 2017
compared to the three months ended September
30, 2016, but decreased $18
million during the nine months ended September 30, 2017, compared to the nine months
ended September 30, 2016. During the
three months ended September 30,
2016, SG&A expense benefited from a cost reversal that
was not repeated in the comparable 2017 period. The $18 million decrease in SG&A expense for the
nine months ended September 30, 2017,
compared to the nine months ended September
30, 2016 is primarily due to certain organizational changes
implemented during 2016.
Included in SG&A expense were share-based compensation
expenses of $13 million and
$38 million for the three and nine
months ended September 30, 2017,
respectively, compared to $7 million
and $31 million for the comparable
2016 periods.
Although we realized net income before non-controlling interest
during the three and nine months ended September 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. The impact to net income (loss)
attributable to non-controlling interest due to the non-cash
amortization of the beneficial conversion feature was $370 million and $748
million during the three and nine months ended September 30, 2017, respectively, compared to
$7 million and $10 million during the three and nine months
ended September 30, 2016,
respectively. The amortization of the beneficial conversion feature
on Cheniere Partners' Class B units ceased upon the conversion of
these units into common units on August 2,
2017, and there will be no further impact to net income
(loss) attributable to non-controlling interest due to the
amortization of the beneficial conversion feature. The share of
Cheniere Partners' net income (loss) that is attributed to
non-controlling interest holders has increased from August 2, 2017 as a result of the increased
ownership percentage by non-controlling interest holders.
Capital Resources
As of September 30, 2017, we had cash and cash equivalents
of $919 million available to
Cheniere. In addition, we had current and non-current restricted
cash of $1.7 billion (which included
current and non-current restricted cash available to us and our
subsidiaries) designated for the following purposes: $627 million for the SPL Project, $117 million for the CCL Project (defined below),
$816 million for restricted purposes
under the terms of Cheniere Partners' credit facilities and
$96 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 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.
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.
Corpus Christi Expansion Project
We are developing up to seven midscale liquefaction trains
adjacent to the CCL Project, each with an expected nominal
production capacity, which is prior to adjusting for planned
maintenance, production reliability, and potential overdesign, of
approximately 1.4 mtpa of LNG. The total expected nominal
production capacity of the seven midscale Trains is approximately
9.5 mtpa. We have initiated the regulatory approval process with
respect to the Corpus Christi Expansion Project.
Investor Conference Call and Webcast
We will host a conference call to discuss our 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.
___________
|
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 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" 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
|
|
|
|
LNG
revenues
|
$
|
1,332
|
|
|
$
|
399
|
|
|
$
|
3,646
|
|
|
$
|
512
|
|
Regasification
revenues
|
65
|
|
|
64
|
|
|
195
|
|
|
194
|
|
Other
revenues
|
5
|
|
|
2
|
|
|
12
|
|
|
5
|
|
Other—related
party
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Total
revenues
|
1,403
|
|
|
465
|
|
|
3,855
|
|
|
711
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
824
|
|
|
253
|
|
|
2,140
|
|
|
353
|
|
Operating and
maintenance expense
|
114
|
|
|
61
|
|
|
309
|
|
|
143
|
|
Development
expense
|
3
|
|
|
2
|
|
|
7
|
|
|
5
|
|
Selling, general and
administrative expense
|
64
|
|
|
59
|
|
|
179
|
|
|
197
|
|
Depreciation and
amortization expense
|
92
|
|
|
49
|
|
|
252
|
|
|
106
|
|
Restructuring
expense
|
—
|
|
|
26
|
|
|
6
|
|
|
49
|
|
Impairment expense
and loss on disposal of assets
|
9
|
|
|
—
|
|
|
15
|
|
|
10
|
|
Total operating costs
and expenses
|
1,106
|
|
|
450
|
|
|
2,908
|
|
|
863
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
297
|
|
|
15
|
|
|
947
|
|
|
(152)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
(186)
|
|
|
(148)
|
|
|
(539)
|
|
|
(330)
|
|
Loss on early
extinguishment of debt
|
(25)
|
|
|
(26)
|
|
|
(100)
|
|
|
(83)
|
|
Derivative gain
(loss), net
|
(2)
|
|
|
30
|
|
|
(37)
|
|
|
(242)
|
|
Other income
(expense)
|
4
|
|
|
—
|
|
|
11
|
|
|
(6)
|
|
Total other
expense
|
(209)
|
|
|
(144)
|
|
|
(665)
|
|
|
(661)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and non-controlling interest
|
88
|
|
|
(129)
|
|
|
282
|
|
|
(813)
|
|
Income tax benefit
(provision)
|
2
|
|
|
(2)
|
|
|
1
|
|
|
(2)
|
|
Net income
(loss)
|
90
|
|
|
(131)
|
|
|
283
|
|
|
(815)
|
|
Less: net income
(loss) attributable to non-controlling interest
|
379
|
|
|
(30)
|
|
|
803
|
|
|
(95)
|
|
Net loss attributable
to common stockholders
|
$
|
(289)
|
|
|
$
|
(101)
|
|
|
$
|
(520)
|
|
|
$
|
(720)
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(1.24)
|
|
|
$
|
(0.44)
|
|
|
$
|
(2.24)
|
|
|
$
|
(3.15)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
232.6
|
|
|
228.9
|
|
|
232.5
|
|
|
228.5
|
|
______________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended September 30, 2017, filed with the Securities and
Exchange Commission.
|
Cheniere Energy,
Inc.
|
Consolidated
Balance Sheets
|
(in millions,
except share data)(1)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
919
|
|
|
$
|
876
|
|
Restricted
cash
|
1,590
|
|
|
860
|
|
Accounts and other
receivables
|
264
|
|
|
218
|
|
Accounts
receivable—related party
|
1
|
|
|
—
|
|
Inventory
|
133
|
|
|
160
|
|
Derivative
assets
|
12
|
|
|
24
|
|
Other current
assets
|
112
|
|
|
100
|
|
Total current
assets
|
3,031
|
|
|
2,238
|
|
|
|
|
|
Non-current
restricted cash
|
66
|
|
|
91
|
|
Property, plant and
equipment, net
|
23,466
|
|
|
20,635
|
|
Debt issuance costs,
net
|
159
|
|
|
277
|
|
Non-current
derivative assets
|
37
|
|
|
83
|
|
Goodwill
|
77
|
|
|
77
|
|
Other non-current
assets, net
|
298
|
|
|
302
|
|
Total
assets
|
$
|
27,134
|
|
|
$
|
23,703
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
59
|
|
|
$
|
49
|
|
Accrued
liabilities
|
722
|
|
|
637
|
|
Current
debt
|
41
|
|
|
247
|
|
Deferred
revenue
|
134
|
|
|
73
|
|
Derivative
liabilities
|
55
|
|
|
71
|
|
Total current
liabilities
|
1,011
|
|
|
1,077
|
|
|
|
|
|
Long-term debt,
net
|
24,923
|
|
|
21,688
|
|
Non-current deferred
revenue
|
2
|
|
|
5
|
|
Non-current
derivative liabilities
|
52
|
|
|
45
|
|
Other non-current
liabilities
|
63
|
|
|
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 September 30, 2017 and December 31,
2016
|
|
|
|
Issued: 250.1 million
shares at September 30, 2017 and December 31, 2016
|
|
|
|
Outstanding: 237.8
million shares and 238.0 million shares at September 30, 2017 and
December 31, 2016, respectively
|
1
|
|
|
1
|
|
Treasury stock: 12.3
million shares and 12.2 million shares at September 30, 2017 and
December 31, 2016, respectively, at cost
|
(378)
|
|
|
(374)
|
|
Additional
paid-in-capital
|
3,238
|
|
|
3,211
|
|
Accumulated
deficit
|
(4,754)
|
|
|
(4,234)
|
|
Total stockholders'
deficit
|
(1,893)
|
|
|
(1,396)
|
|
Non-controlling
interest
|
2,976
|
|
|
2,235
|
|
Total
equity
|
1,083
|
|
|
839
|
|
Total liabilities and
equity
|
$
|
27,134
|
|
|
$
|
23,703
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. 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 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 disposal 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 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 loss attributable
to common stockholders
|
$
|
(289)
|
|
|
$
|
(101)
|
|
|
$
|
(520)
|
|
|
$
|
(720)
|
|
Net income (loss)
attributable to non-controlling interest
|
379
|
|
|
(30)
|
|
|
803
|
|
|
(95)
|
|
Income tax provision
(benefit)
|
(2)
|
|
|
2
|
|
|
(1)
|
|
|
2
|
|
Interest expense, net
of capitalized interest
|
186
|
|
|
148
|
|
|
539
|
|
|
330
|
|
Loss on early
extinguishment of debt
|
25
|
|
|
26
|
|
|
100
|
|
|
83
|
|
Derivative loss
(gain), net
|
2
|
|
|
(30)
|
|
|
37
|
|
|
242
|
|
Other expense
(income)
|
(4)
|
|
|
—
|
|
|
(11)
|
|
|
6
|
|
Income (loss) from
operations
|
$
|
297
|
|
|
$
|
15
|
|
|
$
|
947
|
|
|
$
|
(152)
|
|
Adjustments to
reconcile income (loss) from operations to Consolidated Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
92
|
|
|
49
|
|
|
252
|
|
|
106
|
|
Loss (gain) from
changes in fair value of commodity and FX derivatives,
net
|
35
|
|
|
(3)
|
|
|
63
|
|
|
23
|
|
Total non-cash
compensation expense
|
9
|
|
|
6
|
|
|
20
|
|
|
32
|
|
Impairment expense
and loss on disposal of assets
|
9
|
|
|
—
|
|
|
15
|
|
|
10
|
|
Consolidated Adjusted
EBITDA
|
$
|
442
|
|
|
$
|
67
|
|
|
$
|
1,297
|
|
|
$
|
19
|
|
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 and 2018 (in
billions):
|
2017
|
|
2018
|
Net
income (loss) attributable to common stockholders
|
$
|
(0.4)
|
|
-
|
$
|
(0.3)
|
|
|
$
|
(0.1)
|
|
-
|
$
|
0.1
|
|
Net income
attributable to non-controlling interest
|
0.9
|
|
-
|
0.9
|
|
|
0.6
|
|
-
|
0.6
|
|
Income tax provision
(benefit)
|
|
|
(0.0)
|
|
|
|
|
(0.0)
|
|
Interest expense, net
of capitalized interest
|
|
|
0.8
|
|
|
|
|
0.9
|
|
Loss on early
extinguishment of debt
|
|
|
0.1
|
|
|
|
|
0.0
|
|
Derivative loss
(gain), net
|
|
|
0.0
|
|
|
|
|
0.0
|
|
Other expense
(income)
|
|
|
0.0
|
|
|
|
|
0.0
|
|
Income from
operations
|
$
|
1.4
|
|
-
|
$
|
1.5
|
|
|
$
|
1.4
|
|
-
|
$
|
1.6
|
|
Adjustments to
reconcile income from operations to Consolidated Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Depreciation and
amortization expense
|
|
|
0.4
|
|
|
|
|
0.5
|
|
Loss (gain) from
changes in fair value of commodity and FX derivatives,
net
|
|
|
0.0
|
|
|
|
|
0.0
|
|
Total non-cash
compensation expense
|
|
|
0.0
|
|
|
|
|
0.0
|
|
Impairment expense
and loss on disposal of assets
|
|
|
0.0
|
|
|
|
|
0.0
|
|
Consolidated
Adjusted EBITDA
|
$
|
1.8
|
|
-
|
$
|
1.9
|
|
|
$
|
1.9
|
|
-
|
$
|
2.1
|
|
CQP/CQH minority
interest
|
(0.3)
|
|
-
|
(0.3)
|
|
|
(0.6)
|
|
-
|
(0.6)
|
|
SPL and CQP cash
retained / interest expense / other
|
(0.8)
|
|
-
|
(0.8)
|
|
|
(0.9)
|
|
-
|
(0.9)
|
|
CQP interest
expense
|
|
|
(0.1)
|
|
|
|
|
(0.1)
|
|
CEI interest
expense
|
|
|
(0.0)
|
|
|
|
|
(0.0)
|
|
CEI Distributable
Cash Flow
|
$
|
0.6
|
|
-
|
$
|
0.7
|
|
|
$
|
0.2
|
|
-
|
$
|
0.4
|
|
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
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/cheniere-reports-third-quarter-2017-results-raises-full-year-2017-guidance-and-provides-full-year-2018-guidance-300555114.html
SOURCE Cheniere Energy, Inc.