HOUSTON, Feb. 19, 2016
/PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE MKT: CQP) reported a net loss of $56.0 million and $318.9
million for the three and twelve months ended December 31, 2015, respectively, compared to a
net loss of $70.8 million and
$410.0 million for the same periods
in 2014, respectively.
Significant items for the three months ended December 31, 2015 totaled a gain of $4.8 million, compared to a loss $30.2 million for the comparable 2014 period, and
related to derivative gains due primarily to changes in long-term
LIBOR during the period. The significant item for the three months
ended December 31, 2014 related to
derivative losses. For the twelve months ended December 31, 2015, significant items totaled a
loss of $138.0 million, compared to a
loss of $233.7 million for the
comparable 2014 period. Significant items for the twelve months
ended December 31, 2015 related to
loss on early extinguishment of debt associated with the write-off
of debt issuance costs by Sabine Pass Liquefaction, LLC ("SPL")
primarily in connection with the refinancing of a portion of its
credit facilities in March 2015, and
derivative losses primarily attributable to the termination of
interest rate swaps. Significant items for the twelve months ended
December 31, 2014 related to
derivative losses, and losses on early extinguishment of debt.
General and administrative expense (including affiliate)
increased by $14.8 million and
$22.2 million for the three and
twelve months ended December 31,
2015, respectively, compared to the corresponding 2014
periods, primarily due to costs of services provided by Cheniere
Energy, Inc. (NYSE MKT: LNG) pursuant to an information technology
services agreement.
Sabine Pass LNG Terminal
We are developing up to six natural gas liquefaction trains
("Trains"), each with an expected nominal production capacity of
approximately 4.5 million tonnes per annum ("mtpa") of LNG, at the
Sabine Pass LNG terminal adjacent to the existing regasification
facilities (the "Sabine Pass Liquefaction Project").
The Trains are in various stages of development, with
construction of the first Train complete and the commissioning
process underway. Train 1 has begun producing LNG, and the first
LNG commissioning cargo is expected to be exported late February /
March. Commissioning for Train 2 is expected to commence in the
upcoming months. The remaining Trains are expected to commence
commissioning on a staggered basis thereafter.
- Construction on Trains 1 and 2 began in August 2012, and as of December 31, 2015,
the overall project completion percentage for Trains 1 and 2 was
approximately 97.4%, which is ahead of the contractual schedule.
Based on the recently updated construction and commissioning
schedule, we expect to export the first LNG commissioning cargo in
late February or March 2016.
- Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2015, the
overall project completion percentage for Trains 3 and 4 was
approximately 79.5%, which is ahead of the contractual schedule. We
expect Trains 3 and 4 to become operational in 2017.
- Construction on Train 5 began in June
2015, and as of December 31, 2015, the overall project
completion percentage for Train 5 was approximately 14.9%, which is
ahead of the contractual schedule. Engineering, procurement and
construction were approximately 41.9%, 20.5% and 0.1% complete,
respectively. We expect Train 5 to become operational in 2019.
- Train 6 is currently under development, with all necessary
regulatory approvals in place. We expect to make a final investment
decision and commence construction on Train 6 upon, among other
things, entering into acceptable commercial arrangements and
obtaining adequate financing.
Sabine Pass
Liquefaction Project Timeline
|
|
|
|
Target
Date
|
Milestone
|
|
Trains 1 - 5
|
|
Train 6
|
DOE export
authorization
|
|
Received
|
|
Received
|
Definitive commercial
agreements
|
|
Completed
19.75 mtpa
|
|
2016/2017
|
- BG Gulf Coast LNG,
LLC
|
|
5.5 mtpa
|
|
|
- Gas Natural
Fenosa
|
|
3.5 mtpa
|
|
|
- KOGAS
|
|
3.5 mtpa
|
|
|
- GAIL (India)
Ltd.
|
|
3.5
mtpa
|
|
|
- Total Gas &
Power N.A.
|
|
2.0 mtpa
|
|
|
- Centrica
plc
|
|
1.75 mtpa
|
|
|
EPC
contracts
|
|
Completed
|
|
2016/2017
|
Financing
|
|
Completed
|
|
2016/2017
|
FERC
authorization
|
|
Completed
|
|
Completed
|
Issue Notice to
Proceed
|
|
Completed
|
|
2016/2017
|
Commence
operations
|
|
2016 -
2019
|
|
2019/2020
|
Distributions to Unitholders
We paid a cash distribution per common unit of $0.425 to unitholders of record as of
February 1, 2016, and the related
general partner distribution on February 12,
2016.
We estimate that the annualized distribution to common
unitholders for fiscal year 2016 will be $1.70 per unit.
Through our wholly-owned subsidiary, Sabine Pass LNG, L.P.,
Cheniere Partners owns 100% of the Sabine Pass LNG terminal located
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 docks
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
and constructing 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. Each liquefaction train is expected to have a nominal
production capacity 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 Annual Report on Form 10-K
for the fiscal year ended December 31, 2015, filed with the
Securities and Exchange Commission.
This press release contains certain statements that may include
"forward-looking statements." All statements, other than statements
of historical facts, 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 thousands,
except per unit data) (1)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Revenues
|
$
|
65,833
|
|
|
$
|
65,807
|
|
|
$
|
265,637
|
|
|
$
|
265,740
|
|
Revenues—affiliate
|
1,439
|
|
|
752
|
|
|
4,391
|
|
|
2,958
|
|
Total
revenues
|
67,272
|
|
|
66,559
|
|
|
270,028
|
|
|
268,698
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Operating and
maintenance expense
|
13,100
|
|
|
8,069
|
|
|
30,940
|
|
|
62,819
|
|
Operating and
maintenance expense—affiliate
|
9,024
|
|
|
6,808
|
|
|
29,379
|
|
|
21,115
|
|
Depreciation and
amortization expense
|
18,147
|
|
|
14,780
|
|
|
65,704
|
|
|
58,601
|
|
Development
expense
|
219
|
|
|
648
|
|
|
2,850
|
|
|
9,319
|
|
Development
expense—affiliate
|
160
|
|
|
430
|
|
|
722
|
|
|
1,153
|
|
General and
administrative expense
|
3,810
|
|
|
3,759
|
|
|
15,079
|
|
|
13,807
|
|
General and
administrative expense—affiliate
|
41,551
|
|
|
26,790
|
|
|
122,312
|
|
|
101,369
|
|
Total operating costs
and expenses
|
86,011
|
|
|
61,284
|
|
|
266,986
|
|
|
268,183
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(18,739)
|
|
|
5,275
|
|
|
3,042
|
|
|
515
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
(42,247)
|
|
|
(46,089)
|
|
|
(184,600)
|
|
|
(177,032)
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
(96,273)
|
|
|
(114,335)
|
|
Derivative gain
(loss), net
|
4,819
|
|
|
(30,179)
|
|
|
(41,722)
|
|
|
(119,401)
|
|
Other
income
|
127
|
|
|
154
|
|
|
662
|
|
|
217
|
|
Total other
expense
|
(37,301)
|
|
|
(76,114)
|
|
|
(321,933)
|
|
|
(410,551)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(56,040)
|
|
|
$
|
(70,839)
|
|
|
$
|
(318,891)
|
|
|
$
|
(410,036)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per common unit
|
$
|
0.01
|
|
|
$
|
0.06
|
|
|
$
|
(0.43)
|
|
|
$
|
(0.89)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
income (loss) per common unit calculation
|
57,083
|
|
|
57,080
|
|
|
57,081
|
|
|
57,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the
fiscal year ended December 31, 2015, filed with the Securities
and Exchange Commission.
|
Cheniere Energy
Partners, L.P.
Consolidated
Balance Sheets
(in thousands,
except per unit data) (1)
|
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
146,221
|
|
|
$
|
248,830
|
|
Restricted
cash
|
274,557
|
|
|
195,702
|
|
Accounts and interest
receivable
|
742
|
|
|
333
|
|
Accounts
receivable—affiliate
|
1,271
|
|
|
3,651
|
|
Advances to
affiliate
|
39,836
|
|
|
27,323
|
|
Inventory
|
16,667
|
|
|
7,786
|
|
Other current
assets
|
11,828
|
|
|
2,895
|
|
Other current
assets—affiliate
|
2,353
|
|
|
—
|
|
Total current
assets
|
493,475
|
|
|
486,520
|
|
|
|
|
|
Non-current
restricted cash
|
13,650
|
|
|
544,465
|
|
Property, plant and
equipment, net
|
11,931,602
|
|
|
8,978,356
|
|
Debt issuance costs,
net
|
295,265
|
|
|
241,909
|
|
Non-current
derivative assets
|
30,304
|
|
|
11,744
|
|
Other non-current
assets
|
200,013
|
|
|
124,521
|
|
Other non-current
assets—affiliate
|
32,018
|
|
|
—
|
|
Total
assets
|
$
|
12,996,327
|
|
|
$
|
10,387,515
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
16,407
|
|
|
$
|
8,598
|
|
Accrued
liabilities
|
224,292
|
|
|
136,578
|
|
Current debt,
net
|
1,676,197
|
|
|
—
|
|
Due to
affiliates
|
115,123
|
|
|
18,952
|
|
Deferred
revenue
|
26,669
|
|
|
26,655
|
|
Deferred
revenue—affiliate
|
717
|
|
|
708
|
|
Derivative
liabilities
|
6,430
|
|
|
23,247
|
|
Other current
liabilities
|
—
|
|
|
18
|
|
Total current
liabilities
|
2,065,835
|
|
|
214,756
|
|
|
|
|
|
Long-term debt,
net
|
10,178,681
|
|
|
8,991,333
|
|
Non-current deferred
revenue
|
9,500
|
|
|
13,500
|
|
Other non-current
liabilities
|
3,059
|
|
|
2,452
|
|
Other non-current
liabilities—affiliate
|
26,321
|
|
|
34,745
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at December 31,
2015 and 2014)
|
305,747
|
|
|
495,597
|
|
Class B unitholders'
interest (145.3 million units issued and outstanding at December
31, 2015 and 2014)
|
(37,429)
|
|
|
(38,216)
|
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at December 31, 2015 and 2014)
|
428,035
|
|
|
648,414
|
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at December 31, 2015 and 2014)
|
16,578
|
|
|
24,934
|
|
Total partners'
equity
|
712,931
|
|
|
1,130,729
|
|
Total liabilities and
partners' equity
|
$
|
12,996,327
|
|
|
$
|
10,387,515
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the
fiscal year ended December 31, 2015, filed with the Securities
and Exchange Commission.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheniere-energy-partners-lp-reports-fourth-quarter-and-full-year-2015-results-300222826.html
SOURCE Cheniere Energy Partners, L.P.