HOUSTON, May 5, 2016 /PRNewswire/ -- Cheniere Energy,
Inc. ("Cheniere") (NYSE MKT: LNG) reported a net loss attributable
to common stockholders of $320.8
million, or $1.41 per share
(basic and diluted), for the three months ended March 31, 2016, compared to a net loss
attributable to common stockholders of $267.7 million, or $1.18 per share (basic and diluted), for the
comparable 2015 period.
Significant items for the three months ended March 31, 2016 totaled a loss of $192.6 million, compared to a loss of
$215.9 million for the comparable
2015 period. Significant items for the three months ended
March 31, 2016 related to derivative
loss primarily as a result of a decrease in the forward LIBOR curve
over the period, impairment expense, and loss on early
extinguishment of debt associated with the write-off of debt
issuance costs by Cheniere Creole Trail Pipeline, L.P. ("CTPL") as
a result of the prepayment of its outstanding term loan.
Significant items for the three months ended March 31, 2015 related to derivative loss due
primarily to contingent interest rate derivatives entered into and
changes in long-term LIBOR during the period, loss on early
extinguishment of debt related to the write-off of debt issuance
costs by Sabine Pass Liquefaction, LLC in connection with the
refinancing of a portion of its credit facilities, and impairment
expense.
Included in general and administrative expense and marketing
expense were non-cash compensation expenses of $10.5 million for the three months ended
March 31, 2016, compared to
$14.8 million for the comparable 2015
period.
Results are reported on a consolidated basis and include our
ownership interest in Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE MKT: CQP), which is based on
our 100% ownership of the general partner of Cheniere
Partners and 80.1% ownership interest in Cheniere Energy
Partners LP Holdings, LLC (NYSE MKT: CQH) which owns
a 55.9% limited partner interest in Cheniere
Partners.
2016 Highlights
- In February, the first commissioning cargo with LNG produced at
the Sabine Pass Liquefaction Project (defined below) was
successfully loaded and exported. A total of four LNG commissioning
cargoes were loaded and exported during the three months ended
March 31, 2016, and a total of seven
LNG commissioning cargoes have been loaded and exported to
date.
- In February, Cheniere Partners closed on up to approximately
$2.8 billion of senior secured credit
facilities (the "CQP Credit Facilities"). The four-year credit
facilities consist of a $450 million
CTPL tranche term loan, an approximately $2.1 billion Sabine Pass LNG, L.P. ("SPLNG")
tranche term loan, a $125 million
debt service reserve credit facility, and a $115 million revolving credit facility. The CTPL
tranche term loan was used to prepay the $400 million senior secured term loan at CTPL
subsequent to closing of the facilities. Remaining proceeds from
the facilities will be used by Cheniere Partners (i) to
redeem or repay the approximately $1.7 billion senior
secured notes due 2016 and the $420 million senior
secured notes due 2020 that were issued by SPLNG, (ii) to pay
associated transaction costs and make-whole amounts, if any, and
(iii) for general business purposes of Cheniere
Partners and its subsidiaries.
"The first quarter of 2016 was a very significant period for
Cheniere, marking our transition from a development company into an
operating one. We commenced LNG production and exports from
Train 1 at Sabine Pass as part of
commissioning activities, and to date we have exported seven
cargoes of LNG to multiple destinations. Commissioning activities
at Train 2 are underway and our remaining Trains under construction
continue ahead of their respective contractual schedules and on
budget," said Neal Shear, Cheniere's
Interim President and CEO. "On the financial front, we took a
significant step in improving our consolidated debt maturity
profile, as the CQP Credit Facilities ensure there will be no debt
maturities at Cheniere until 2020."
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners, we are developing up to six 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 construction and
development. Train 1 is expected to reach substantial completion
imminently, after which Cheniere Partners expects to take over
care, custody and control. Train 2 is undergoing the commissioning
process. A Train is expected to achieve substantial completion upon
the completion of construction, commissioning and successfully
satisfying certain tests. Once a Train achieves substantial
completion, results from LNG sales will be reflected in the
statement of operations.
- Construction on Trains 1 and 2 began in August 2012, and as of March 31, 2016, the
overall project completion percentage for Trains 1 and 2 was
approximately 98.3%, which is ahead of the contractual schedule.
Cheniere Partners expects substantial completion of Train 1 to be
achieved in May 2016. The
commissioning process on Train 2 has commenced, and Cheniere
Partners expects substantial completion of Train 2 to be achieved
in September 2016.
- Construction on Trains 3 and 4 began in May 2013, and as of March 31, 2016, the
overall project completion percentage for Trains 3 and 4 was
approximately 83.8%, which is ahead of the contractual schedule.
Cheniere Partners expects Trains 3 and 4 to reach substantial
completion in 2017.
- Construction on Train 5 began in June
2015, and as of March 31, 2016, the overall project
completion percentage for Train 5 was approximately 28.8%, which is
ahead of the contractual schedule. Engineering, procurement,
subcontract work and Bechtel direct hire construction were
approximately 59.1%, 45.1%, 24.2% and 0.4% complete, respectively.
Cheniere Partners expects Train 5 to reach substantial completion
in 2019.
- Train 6 is currently under development, with all necessary
regulatory approvals in place. Cheniere Partners expects to make a
final investment decision and commence construction on Train 6
upon, among other things, entering into an EPC contract, entering
into acceptable commercial arrangements, and obtaining adequate
financing.
|
Sabine Pass
Liquefaction Project
|
Liquefaction
Train
|
Train
1
|
Train
2
|
Trains
3-4
|
Train
5
|
Project
Status
|
Commissioning /
Producing LNG
|
Commissioning
|
84% Overall
Completion
|
29% Overall
Completion
|
Expected Substantial
Completion
|
1H 2016
|
2H 2016
|
2017
|
2019
|
Corpus Christi LNG Terminal
We are developing up to three Trains, each with an expected
nominal production capacity of approximately 4.5 mtpa of LNG, near
Corpus Christi, Texas (the "CCL
Project").
The Trains are in various stages of construction and
development:
- Construction on Trains 1 and 2 began in May 2015, and as of March 31, 2016, the
overall project completion percentage for Trains 1 and 2 was
approximately 32.5%, which is ahead of the contractual
schedule. Engineering, procurement and construction
were approximately 97.1%, 46.0% and 4.6% complete, respectively. We
expect Trains 1 and 2 to reach substantial completion in 2019.
- Train 3 is under development, with all necessary regulatory
approvals in place. We have entered into an LNG Sale and Purchase
Agreement ("SPA") for approximately 0.8 mtpa of LNG volumes that
commence with Train 3 and expect to commence construction upon
entering into additional SPAs and obtaining adequate
financing.
Additionally, we are developing Trains 4 and 5 adjacent to the
CCL Project and have initiated the regulatory approval process with
respect to those Trains.
|
Corpus Christi LNG
Terminal
|
Liquefaction
Train
|
Trains
1-2
|
Project
Status
|
33% Overall
Completion
|
Expected Substantial
Completion
|
2019
|
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 constructing and developing 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 March 31, 2016, filed with the Securities and
Exchange Commission.
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 fact, 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 Table Follows)
Cheniere Energy,
Inc.
Consolidated
Statements of Operations
(in thousands,
except per share data)(1)
(unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
Revenues
|
2016
|
|
2015
|
Regasification
revenues
|
$
|
65,551
|
|
$
|
66,802
|
LNG
revenues
|
2,704
|
|
662
|
Other
revenues
|
826
|
|
905
|
Total
revenues
|
69,081
|
|
68,369
|
|
|
|
Operating costs and
expenses
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
14,507
|
|
693
|
Operating and
maintenance expense
|
36,317
|
|
35,706
|
Development
expense
|
1,547
|
|
16,096
|
Marketing
expense
|
24,978
|
|
13,046
|
General and
administrative expense
|
47,924
|
|
44,971
|
Depreciation and
amortization expense
|
24,089
|
|
17,769
|
Impairment
expense
|
10,166
|
|
176
|
Other
|
112
|
|
156
|
Total operating costs
and expenses
|
159,640
|
|
128,613
|
|
|
|
|
Loss from
operations
|
(90,559)
|
|
(60,244)
|
|
|
|
|
Other income
(expense)
|
|
|
|
Interest expense, net
of capitalized interest
|
(76,337)
|
|
(59,612)
|
Loss on early
extinguishment of debt
|
(1,457)
|
|
(88,992)
|
Derivative loss,
net
|
(180,934)
|
|
(126,690)
|
Other
income
|
929
|
|
372
|
Total other
expense
|
(257,799)
|
|
(274,922)
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(348,358)
|
|
(335,166)
|
Income tax
provision
|
(616)
|
|
(678)
|
Net loss
|
(348,974)
|
|
(335,844)
|
Less: net loss
attributable to non-controlling interest
|
(28,136
|
|
(68,135
|
Net loss attributable
to common stockholders
|
$
|
(320,838)
|
|
$
|
(267,709)
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(1.41)
|
|
$
|
(1.18)
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
228,138
|
|
226,328
|
|
|
|
|
|
___________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended March 31, 2016, filed with the Securities and Exchange
Commission.
|
Cheniere Energy,
Inc.
Consolidated
Balance Sheets
(in thousands,
except share data)(1)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
ASSETS
|
2016
|
|
2015
|
|
(unaudited)
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,094,833
|
|
$
|
1,201,112
|
Restricted
cash
|
732,551
|
|
503,397
|
Accounts and interest
receivable
|
23,979
|
|
5,749
|
Inventory
|
31,243
|
|
18,125
|
Other current
assets
|
63,509
|
|
54,203
|
Total current
assets
|
1,946,115
|
|
1,782,586
|
|
|
|
|
Non-current
restricted cash
|
31,724
|
|
31,722
|
Property, plant and
equipment, net
|
17,674,548
|
|
16,193,907
|
Debt issuance costs,
net
|
409,894
|
|
378,677
|
Non-current
derivative assets
|
29,361
|
|
30,887
|
Goodwill
|
76,819
|
|
76,819
|
Other non-current
assets
|
262,486
|
|
314,455
|
Total
assets
|
$
|
20,430,947
|
|
$
|
18,809,053
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
35,398
|
|
$
|
22,820
|
Accrued
liabilities
|
670,584
|
|
427,199
|
Current debt,
net
|
1,785,318
|
|
1,673,379
|
Deferred
revenue
|
26,669
|
|
26,669
|
Derivative
liabilities
|
50,561
|
|
35,201
|
Other current
liabilities
|
93
|
|
—
|
Total current
liabilities
|
2,568,623
|
|
2,185,268
|
|
|
|
|
Long-term debt,
net
|
16,348,099
|
|
14,920,427
|
Non-current deferred
revenue
|
8,500
|
|
9,500
|
Non-current
derivative liabilities
|
239,372
|
|
79,387
|
Other non-current
liabilities
|
61,668
|
|
53,068
|
|
|
|
|
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 March 31, 2016 and December 31, 2015
|
|
|
|
Issued and
outstanding: 235.5 million shares and 235.6 million shares at March
31, 2016 and December 31, 2015, respectively
|
707
|
|
708
|
Treasury stock: 11.7
million shares and 11.6 million shares at March 31, 2016 and
December 31, 2015, respectively, at cost
|
(354,903)
|
|
(353,927)
|
Additional
paid-in-capital
|
3,088,648
|
|
3,075,317
|
Accumulated
deficit
|
(3,944,786)
|
|
(3,623,948)
|
Total stockholders'
deficit
|
(1,210,334)
|
|
(901,850)
|
Non-controlling
interest
|
2,415,019
|
|
2,463,253
|
Total
equity
|
1,204,685
|
|
1,561,403
|
Total liabilities and
equity
|
$
|
20,430,947
|
|
$
|
18,809,053
|
|
|
|
|
|
|
___________________
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended March 31, 2016, filed with the Securities and Exchange
Commission.
|
|
|
As of March 31, 2016, we had cash
and cash equivalents of $1,094.8
million available to Cheniere. In addition, we had current
and non-current restricted cash of $764.3
million (which included current and non-current restricted
cash available to us and our subsidiaries) designated for the
following purposes: $295.3 million
for the CCL Project, $177.6 million
for the Sabine Pass Liquefaction Project, $108.9 million for the 2016 CQP Credit
Facilities, $129.1 million for
interest payments related to the SPLNG senior secured notes and
$53.4 million for other restricted
purposes.
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SOURCE Cheniere Energy, Inc.