HOUSTON, May 4, 2017
/PRNewswire/ --
Summary of First Quarter 2017 Results (in millions, except
LNG data)
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Revenues
|
$
|
891
|
|
|
$
|
67
|
|
Net income
(loss)
|
$
|
47
|
|
|
$
|
(75)
|
|
Adjusted
EBITDA1
|
$
|
319
|
|
|
$
|
12
|
|
LNG
Loaded:
|
|
|
|
Number of
cargoes
|
43
|
|
|
1
|
|
TBtu
|
154
|
|
|
4
|
|
Recent Achievements
Strategic
- Year to date, LNG from the SPL Project (defined below) has been
delivered to 6 new countries. As of April
2017, LNG from the SPL Project had reached 20 of the 39 LNG
importing countries around the world.
Operational
- 43 LNG cargoes (154 TBtu) were loaded from the SPL Project in
the first quarter of 2017, and in early April 2017 we reached the milestone of 100
cumulative LNG cargoes exported from the SPL Project.
- Sabine Pass Liquefaction, LLC ("SPL") commenced production and
shipment of LNG commissioning cargoes from Train 3 of the SPL
Project in January 2017. In
March 2017, substantial completion
was achieved and operating activities commenced.
- Commissioning activities for Train 4 of the SPL Project began
in March 2017.
Financial
- In February 2017, SPL issued an
aggregate principal amount of $800
million of 5.00% Senior Secured Notes due 2037. Net proceeds
of the offering, after deducting estimated fees and expenses, were
used to repay all of the outstanding borrowings under the 2015 SPL
Credit Facilities, and are being used to pay a portion of the
capital costs in connection with the construction of Trains 1
through 5 of the SPL Project.
- In March 2017, SPL issued an
aggregate principal amount of $1.35
billion of 4.20% Senior Secured Notes due 2028. Net proceeds
of the offering, after deducting the initial purchasers'
commissions and estimated fees and expenses, are being used to pay
a portion of the capital costs in connection with the construction
of Trains 1 through 5 of the SPL Project. In connection with the
offering, SPL terminated the 2015 SPL Credit Facilities.
- In January 2017, Fitch Ratings
assigned SPL's senior secured debt an investment grade rating of
BBB-.
Liquefaction Project Update
|
SPL
Project
|
Liquefaction
Train
|
Trains
1-3
|
Train
4
|
Train
5
|
Train
6
|
Project
Status
|
Operational
|
Commissioning
|
Under
Construction
|
Permitted
|
Expected Substantial
Completion
|
—
|
2H 2017
|
2H 2019
|
—
|
Expected DFCD
Window
Start(1)
|
T2 - 2H
2017
T3 - 1H
2017
|
1H 2018
|
2H 2019
|
—
|
(1)
|
Date of First
Commercial Delivery ("DFCD") was achieved for the first train of
the SPL Project in November 2016.
|
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT:
CQP) reported net income of $47
million for the three months ended March 31, 2017, compared to a net loss of
$75 million for the same period in
2016. Adjusted EBITDA1 for the three months ended
March 31, 2017 was $319 million, compared to $12 million for the comparable 2016 period.
During the three months ended March 31,
2017, a total of 43 LNG cargoes were loaded from the SPL
Project, seven of which were commissioning cargoes.
Total operating costs and expenses increased $595 million during the three months ended
March 31, 2017, compared to the three
months ended March 31, 2016 generally
as a result of the commencement of operations at the SPL Project in
May 2016 upon the substantial
completion of Train 1, followed by the substantial completion of
Train 2 and Train 3 in September
2016 and March 2017,
respectively. Depreciation and amortization expense increased
during the three months ended March 31,
2017, compared to the three months ended March 31, 2016 as we began depreciation of our
assets related to Trains 1 through 3 of the SPL Project upon
reaching substantial completion.
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, 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.
Distributions to Unitholders
We will pay a cash distribution per common unit of $0.425 to unitholders of record as of May 2,
2017, and the related general partner distribution on May 15,
2017.
2017 Full Year Distribution Guidance
|
2017
|
Distribution per
Unit
|
$
|
1.70
|
|
-
|
$
|
1.90
|
|
Investor Conference Call and Webcast
Cheniere Energy, Inc. will host a conference call to discuss its
financial and operating results for the first quarter on Thursday,
May 4, 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.
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, 2 and 3 have commenced commercial operations, Train 4 is
undergoing commissioning, 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 sale and purchase agreements ("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 March 31, 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 Tables Follow)
Cheniere Energy
Partners, L.P.
|
Consolidated
Statements of Operations
|
(in millions,
except per unit data) (1)
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
LNG
revenues
|
$
|
492
|
|
|
$
|
—
|
|
LNG
revenues—affiliate
|
331
|
|
|
—
|
|
Regasification
revenues
|
67
|
|
|
65
|
|
Regasification
revenues—affiliate
|
1
|
|
|
2
|
|
Total
revenues
|
891
|
|
|
67
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
513
|
|
|
4
|
|
Operating and
maintenance expense
|
50
|
|
|
18
|
|
Operating and
maintenance expense—affiliate
|
18
|
|
|
11
|
|
General and
administrative expense
|
3
|
|
|
3
|
|
General and
administrative expense—affiliate
|
22
|
|
|
22
|
|
Depreciation and
amortization expense
|
66
|
|
|
19
|
|
Total operating costs
and expenses
|
672
|
|
|
77
|
|
|
|
|
|
Income (loss) from
operations
|
219
|
|
|
(10)
|
|
|
|
|
|
Other
expense
|
|
|
|
Interest expense, net
of capitalized interest
|
(130)
|
|
|
(43)
|
|
Loss on early
extinguishment of debt
|
(42)
|
|
|
(1)
|
|
Derivative loss,
net
|
—
|
|
|
(21)
|
|
Total other
expense
|
(172)
|
|
|
(65)
|
|
|
|
|
|
Net income
(loss)
|
$
|
47
|
|
|
$
|
(75)
|
|
|
|
|
|
Basic and diluted net
loss per common unit
|
$
|
(0.80)
|
|
|
$
|
(0.08)
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
loss per common unit calculation
|
57.1
|
|
|
57.1
|
|
___________________________
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the quarter ended March 31, 2017, filed with the Securities
and Exchange Commission.
|
Cheniere Energy
Partners, L.P.
|
Consolidated
Balance Sheets
|
(in millions,
except unit data) (1)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
—
|
|
|
$
|
—
|
|
Restricted
cash
|
756
|
|
|
605
|
|
Accounts and other
receivables
|
101
|
|
|
90
|
|
Accounts
receivable—affiliate
|
89
|
|
|
99
|
|
Advances to
affiliate
|
64
|
|
|
38
|
|
Inventory
|
87
|
|
|
97
|
|
Other current
assets
|
30
|
|
|
29
|
|
Total current
assets
|
1,127
|
|
|
958
|
|
|
|
|
|
Non-current
restricted cash
|
1,000
|
|
|
—
|
|
Property, plant and
equipment, net
|
14,636
|
|
|
14,158
|
|
Debt issuance costs,
net
|
80
|
|
|
121
|
|
Non-current
derivative assets
|
44
|
|
|
83
|
|
Other non-current
assets, net
|
205
|
|
|
222
|
|
Total
assets
|
$
|
17,092
|
|
|
$
|
15,542
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
35
|
|
|
$
|
27
|
|
Accrued
liabilities
|
426
|
|
|
418
|
|
Current debt,
net
|
—
|
|
|
224
|
|
Due to
affiliates
|
29
|
|
|
99
|
|
Deferred
revenue
|
63
|
|
|
73
|
|
Deferred
revenue—affiliate
|
20
|
|
|
1
|
|
Derivative
liabilities
|
4
|
|
|
14
|
|
Total current
liabilities
|
577
|
|
|
856
|
|
|
|
|
|
Long-term debt,
net
|
16,020
|
|
|
14,209
|
|
Non-current deferred
revenue
|
4
|
|
|
5
|
|
Non-current
derivative liabilities
|
1
|
|
|
2
|
|
Other non-current
liabilities—affiliate
|
25
|
|
|
27
|
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at March 31,
2017 and December 31, 2016)
|
50
|
|
|
130
|
|
Class B unitholders'
interest (145.3 million units issued and outstanding at March 31,
2017 and December 31, 2016)
|
297
|
|
|
62
|
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at March 31, 2017 and December 31, 2016)
|
107
|
|
|
240
|
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at March 31, 2017 and December 31, 2016)
|
11
|
|
|
11
|
|
Total partners'
equity
|
465
|
|
|
443
|
|
Total liabilities and
partners' equity
|
$
|
17,092
|
|
|
$
|
15,542
|
|
___________________________
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the quarter ended March 31, 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 months ended March 31,
2017 and 2016 (in millions):
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
47
|
|
|
$
|
(75)
|
|
Interest expense, net
of capitalized interest
|
130
|
|
|
43
|
|
Loss on early
extinguishment of debt
|
42
|
|
|
1
|
|
Derivative loss,
net
|
—
|
|
|
21
|
|
Income (loss) from
operations
|
$
|
219
|
|
|
$
|
(10)
|
|
Adjustments to
reconcile income (loss) from operations to Adjusted
EBITDA:
|
|
|
|
Depreciation and
amortization expense
|
66
|
|
|
19
|
|
Loss from changes in
fair value of commodity derivatives, net
|
34
|
|
|
3
|
|
Adjusted
EBITDA
|
$
|
319
|
|
|
$
|
12
|
|
___________________________
1 Non-GAAP
financial measure. See "Reconciliation of Non-GAAP Measures" for
further details.
CONTACT:
Investors
|
|
Randy
Bhatia:
|
713-375-5479
|
Megan
Light:
|
713-375-5492
|
|
|
Media
|
|
Eben
Burnham-Snyder:
|
713-375-5764
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheniere-energy-partners-lp-reports-first-quarter-2017-results-300451173.html
SOURCE Cheniere Energy Partners, L.P.