Cheniere Energy, Inc. (NYSE American: LNG):
Summary of Third Quarter 2019 Results (in millions, except
LNG data)
Three Months Ended September
30,
Nine Months Ended September
30,
2019
2018
% Change
2019
2018
% Change
Revenues
$
2,170
$
1,819
19
%
$
6,723
$
5,604
20
%
Net income (loss)1
$
(318
)
$
65
nm
$
(291
)
$
404
nm
Consolidated Adjusted EBITDA2
$
694
$
569
22
%
$
1,959
$
2,007
(2
)%
LNG exported:
Number of cargoes
108
65
66
%
299
193
55
%
Volumes (TBtu)
383
228
68
%
1,054
691
53
%
LNG volumes loaded (TBtu)
384
228
68
%
1,057
691
53
%
Summary Guidance (in billions, except LNG data)
2019 Full Year Guidance
2019
Consolidated Adjusted EBITDA2
$
2.9
-
$
3.2
Distributable Cash Flow2
$
0.6
-
$
0.8
2020 Full Year Guidance
2020
Consolidated Adjusted EBITDA2
$
3.8
-
$
4.1
Distributable Cash Flow2
$
1.0
-
$
1.3
Recent Highlights
Strategic
- In September 2019, our wholly owned subsidiaries Corpus Christi
Liquefaction, LLC and Cheniere Corpus Christi Liquefaction Stage
III, LLC entered into an integrated production marketing (“IPM”)
transaction with EOG Resources, Inc. (“EOG”) to purchase 140,000
MMBtu per day of natural gas, for a term of approximately 15 years
beginning in early 2020, at a price based on the Platts Japan Korea
Marker (“JKM”).
Operational
- As of October 25, 2019, over 850 cumulative LNG cargoes
totaling approximately 60 million tonnes of LNG have been produced,
loaded and exported from our liquefaction projects.
- In August 2019, substantial completion of Train 2 of the CCL
Project (defined below) was achieved.
Financial
- For the nine months ended September 30, 2019, we reported a net
loss1 of $291 million, Consolidated Adjusted EBITDA2 of $1.96
billion, and Distributable Cash Flow2 of approximately $520
million.
- During the three months ended September 30, 2019, in line with
our previously announced capital allocation priorities, we
repurchased approximately 2.5 million shares of our common stock
for a total of $156 million under our share repurchase program and
prepaid approximately $70 million of outstanding borrowings under
the Cheniere Corpus Christi Holdings, LLC (“CCH”) credit
facility.
- In September 2019, the date of first commercial delivery was
reached under the 20-year LNG Sale and Purchase Agreements (“SPAs”)
with Centrica plc (“Centrica”) and Total Gas & Power North
America, Inc. (“Total”) relating to Train 5 of the SPL Project
(defined below).
- In September 2019, Cheniere Energy Partners, L.P. (“Cheniere
Partners”) (NYSE American: CQP) issued an aggregate principal
amount of $1.5 billion of 4.50% Senior Notes due 2029, to prepay
the outstanding balance under the $750 million term loan under
Cheniere Partners’ credit facilities (the “CQP Credit Facilities”)
and for general corporate purposes, including funding future
capital expenditures in connection with the construction of Train 6
at the SPL Project. After applying the proceeds of this offering,
only a $750 million revolving credit facility, which is currently
undrawn, remains as part of the CQP Credit Facilities.
- In September 2019, Fitch Ratings (“Fitch”) and S&P Global
Ratings each assigned an investment grade rating of BBB- to CCH’s
senior secured debt, and Fitch assigned an investment grade issuer
default rating of BBB- to CCH. In October 2019, Moody’s Investors
Service upgraded its rating of CCH’s senior secured debt from Ba2
to Ba1 (Positive Outlook).
- In September 2019, CCH issued an aggregate principal amount of
$727 million of 4.80% Senior Notes due 2039 pursuant to a note
purchase agreement with Allianz Global Investors GmbH, to prepay a
portion of the outstanding indebtedness under the CCH credit
facility.
- In October 2019, CCH issued an aggregate principal amount of
$475 million of 3.925% Senior Notes due 2039 pursuant to a note
purchase agreement with certain accounts managed by BlackRock Real
Assets and certain accounts managed by MetLife Investment
Management, to prepay a portion of the outstanding indebtedness
under the CCH credit facility.
Liquefaction Projects Update
SPL Project
CCL Project
Liquefaction Train
Train 6
Train 3
Project Status
Under Construction
Under Construction
Project Completion
Percentage(1)
38.1%(2)
68.6%(3)
Expected Substantial
Completion
1H 2023
1H 2021
Note: Projects update excludes Trains in
operation
(1)
Project completion percentages as
of September 30, 2019
(2)
Engineering 83.8% complete,
procurement 54.1% complete, and construction 5.5% complete
(3)
Engineering 96.5% complete,
procurement 98.2% complete, and construction 37.1% complete
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) reported
a net loss1 of $318 million, or $1.25 per share (basic and
diluted), for the three months ended September 30, 2019, compared
to net income of $65 million, or $0.26 per share (basic and
diluted), for the comparable 2018 period. Net loss increased during
the three months ended September 30, 2019 as compared to the
comparable 2018 period primarily due to (i) increased total
operating costs and expenses primarily as a result of additional
Trains in operation and certain maintenance and related activities
at the SPL Project, (ii) net losses from changes in fair value of
commodity and foreign exchange (“FX”) derivatives, (iii) increased
interest expense, (iv) increased net derivative loss related to
interest rate derivatives, (v) increased other expense primarily
related to an impairment of our equity method investment in Midship
Holdings, LLC, and (vi) decreased margins per MMBtu of LNG
recognized in income primarily due to decreased pricing on LNG sold
by our marketing affiliate, partially offset by (vii) increased
volumes of LNG recognized in income and (viii) decreased net income
attributable to non-controlling interest.
Cheniere reported a net loss of $291 million, or $1.13 per share
(basic and diluted) for the nine months ended September 30, 2019,
compared to net income1 of $404 million, or $1.67 per share - basic
and $1.65 per share - diluted, for the comparable 2018 period. Net
loss increased during the nine months ended September 30, 2019 as
compared to the comparable 2018 period primarily due to (i)
increased total operating costs and expenses primarily as a result
of additional Trains in operation and certain maintenance and
related activities at the SPL Project, (ii) increased interest
expense, (iii) increased net derivative loss related to interest
rate derivatives, (iv) increased other expense primarily related to
an impairment of our equity method investment in Midship Holdings,
LLC, and (v) decreased margins per MMBtu of LNG recognized in
income primarily due to decreased pricing on LNG sold by our
marketing affiliate, partially offset by (vi) increased volumes of
LNG recognized in income, (vii) increased net gains from changes in
fair value of commodity and FX derivatives, and (viii) decreased
net income attributable to non-controlling interest.
Consolidated Adjusted EBITDA2 for the three months ended
September 30, 2019 was $694 million, compared to $569 million for
the comparable 2018 period. The increase in Consolidated Adjusted
EBITDA was primarily due to additional volumes of LNG recognized in
income primarily due to additional Trains in operation, partially
offset by decreased margin per MMBtu of LNG recognized in income
primarily as a result of decreased pricing on LNG sold by our
marketing affiliate, and increased operating costs and expenses
primarily as a result of additional Trains in operation and certain
maintenance and related activities at the SPL Project.
Consolidated Adjusted EBITDA for the nine months ended September
30, 2019 was $1.96 billion, compared to $2.01 billion for the
comparable 2018 period. The decrease in Consolidated Adjusted
EBITDA was primarily due to increased operating costs and expenses
primarily as a result of additional Trains in operation and certain
maintenance and related activities at the SPL Project and decreased
margin per MMBtu of LNG recognized in income primarily as a result
of decreased pricing on LNG sold by our marketing affiliate,
partially offset by additional volumes of LNG recognized in income
primarily due to additional Trains in operation.
During the three months ended September 30, 2019, 108 LNG
cargoes were exported from our liquefaction projects, five of which
were commissioning cargoes. During the nine months ended September
30, 2019, 299 LNG cargoes were exported from our liquefaction
projects, thirteen of which were commissioning cargoes. Ten cargoes
exported from our liquefaction projects and sold on a delivered
basis were in transit as of September 30, 2019, none of which were
commissioning cargoes.
“Our third quarter results are a product of our continued focus
on delivering best-in-class project execution and operational
excellence,” said Jack Fusco, Cheniere’s President and Chief
Executive Officer. “The third quarter was highlighted by the
execution of our second IPM transaction, which we signed with EOG,
the achievement of substantial completion of Train 2 at Corpus
Christi ahead of schedule and within budget, safe and successful
maintenance turnarounds of Trains 3 through 5 at Sabine Pass, and
the start-up of our 20-year SPAs with Centrica and Total. In
addition, we made tangible progress on our long-term balance sheet
strategy by commencing debt repayments and achieving investment
grade credit ratings at Corpus Christi.
“Looking ahead to 2020, our financial guidance reflects our
continued transition to stable, highly contracted operations at
Sabine Pass and Corpus Christi. We expect Consolidated Adjusted
EBITDA to increase by approximately 30% to $3.8 - $4.1 billion, and
Distributable Cash Flow to increase by over 60% to $1.0 - $1.3
billion.”
LNG Volume Summary
The following table summarizes the volumes of operational and
commissioning LNG that were loaded from our liquefaction projects
and for which the financial impact was recognized on our
Consolidated Financial Statements during the three and nine months
ended September 30, 2019:
Three Months Ended
Nine Months Ended
September 30, 2019
September 30, 2019
(in TBtu)
Operational
Commissioning
Operational
Commissioning
Volumes loaded during the current
period
364
20
1,009
48
Volumes loaded during the prior period but
recognized during the current period
36
3
25
3
Less: volumes loaded during the current
period and in transit at the end of the period
(36
)
—
(36
)
—
Total volumes recognized in the current
period
364
23
998
51
In addition, during the three and nine months ended September
30, 2019, we recognized the financial impact of 8 TBtu of LNG and
31 TBtu of LNG, respectively, on our Consolidated Financial
Statements related to LNG cargoes sourced from third parties.
Summary of Financial
Performance
Third Quarter and Full Year 2019 Results
Our financial results are reported on a consolidated basis. Our
ownership interest in Cheniere Partners as of September 30, 2019
consisted of 100% ownership of the general partner and a 48.6%
limited partner interest.
Income from operations decreased $118 million and $163 million
during the three and nine months ended September 30, 2019,
respectively, as compared to the comparable 2018 periods, primarily
due to an increase in total operating costs and expenses, partially
offset by an increase in total margins3. Total operating costs and
expenses for the three and nine months ended September 30, 2019
increased primarily as a result of additional Trains in operation
and certain maintenance and related activities at the SPL Project.
Total margins for the three months ended September 30, 2019
increased primarily due to additional volumes of LNG recognized in
income primarily due to additional Trains in operation, partially
offset by decreased margin per MMBtu of LNG recognized in income
primarily as a result of decreased pricing on LNG sold by our
marketing affiliate and increased net loss from changes in fair
value of commodity and FX derivatives. Total margins for the nine
months ended September 30, 2019 increased primarily due to
additional volumes of LNG recognized in income primarily due to
additional Trains in operation and increased net gain from changes
in fair value of commodity and FX derivatives, partially offset by
decreased margin per MMBtu of LNG recognized in income primarily as
a result of decreased pricing on LNG sold by our marketing
affiliate.
Selling, general and administrative expense included share-based
compensation expenses of $22 million and $65 million, respectively,
for the three and nine months ended September 30, 2019, compared to
$20 million and $58 million for the comparable 2018 periods.
Net income attributable to non-controlling interest decreased
$104 million and $203 million during the three and nine months
ended September 30, 2019 as compared to the comparable 2018
periods, primarily due to the decrease of non-controlling interest
as a result of our merger with Cheniere Energy Partners LP
Holdings, LLC in September 2018 and decreased net income recognized
by Cheniere Partners, in which the non-controlling interests are
held.
Capital Resources
As of September 30, 2019, we had cash and cash equivalents of
$2.5 billion on a consolidated basis, of which $1.7 billion was
held by Cheniere Partners. In addition, we had current restricted
cash of $578 million designated for the following purposes: $185
million for the SPL Project, $132 million for the CCL Project and
$261 million for other restricted purposes.
Liquefaction Projects
SPL Project and CCL Project
Through Cheniere Partners, we are operating and constructing six
natural gas liquefaction Trains at the Sabine Pass LNG terminal
adjacent to the existing regasification facilities (the “SPL
Project”). Trains 1 through 5 are operational and Train 6 is under
construction.
We are operating and constructing three Trains near Corpus
Christi, Texas (the “CCL Project”). Trains 1 and 2 are operational
and Train 3 is under construction.
Our Trains are expected to have a nominal production capacity,
which is prior to adjusting for planned maintenance, production
reliability, potential overdesign, and debottlenecking
opportunities, of approximately 4.5 mtpa of LNG per Train, and
average run rate adjusted nominal production capacity of
approximately 4.7 to 5.0 mtpa of LNG per Train.
Corpus Christi Stage 3
We are developing up to seven midscale liquefaction Trains
adjacent to the CCL Project (“Corpus Christi Stage 3”), each with
an expected nominal production capacity, which is prior to
adjusting for planned maintenance, production reliability,
potential overdesign, and debottlenecking opportunities, of
approximately 1.4 mtpa of LNG. The total expected nominal
production capacity of the seven midscale Trains is approximately
9.5 mtpa of LNG. In June 2018, we filed an application with FERC to
site, construct, and operate Corpus Christi Stage 3, and we are in
the process of obtaining all necessary regulatory approvals for
Corpus Christi Stage 3.
Investor Conference Call and
Webcast
We will host a conference call to discuss our financial and
operating results for the third quarter on Friday, November 1,
2019, 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 income (loss) as used herein
refers to Net income (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.
3
Total margins as used herein
refers to total revenues less cost of sales.
About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of
liquefied natural gas (LNG) in the United States, reliably
providing a clean, secure, and affordable solution to the growing
global need for natural gas. Cheniere is a full-service LNG
provider, with capabilities that include gas procurement and
transportation, liquefaction, vessel chartering, and LNG delivery.
Cheniere has one of the largest liquefaction platforms in the
world, consisting of the Sabine Pass and Corpus Christi
liquefaction facilities on the U.S. Gulf Coast, with expected
adjusted aggregate nominal production capacity of up to 45 million
tonnes per annum of LNG operating or under construction. Cheniere
is also pursuing liquefaction expansion opportunities and other
projects along the LNG value chain. Cheniere is headquartered in
Houston, Texas, and has additional offices in London, Singapore,
Beijing, Tokyo, and Washington, D.C.
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, 2019, 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 financial and operational guidance, 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, (vi) statements
regarding future discussions and entry into contracts, and (vii)
statements relating to the amount and timing of share repurchases.
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,
2019
2018
2019
2018
Revenues
LNG revenues
$
2,059
$
1,719
$
6,375
$
5,327
Regasification revenues
66
66
199
196
Other revenues
45
34
149
81
Total revenues
2,170
1,819
6,723
5,604
Operating costs and expenses
Cost of sales (excluding depreciation and
amortization expense shown separately below)
1,267
1,027
3,758
3,078
Operating and maintenance expense
308
170
824
457
Development expense
2
2
6
6
Selling, general and administrative
expense
72
74
222
214
Depreciation and amortization expense
213
113
561
333
Impairment expense and loss on disposal of
assets
1
8
7
8
Total operating costs and expenses
1,863
1,394
5,378
4,096
Income from operations
307
425
1,345
1,508
Other income (expense)
Interest expense, net of capitalized
interest
(395
)
(221
)
(1,014
)
(653
)
Loss on modification or extinguishment of
debt
(27
)
(12
)
(27
)
(27
)
Derivative gain (loss), net
(78
)
23
(187
)
132
Other income (expense)
(70
)
15
(38
)
32
Total other expense
(570
)
(195
)
(1,266
)
(516
)
Income (loss) before income taxes and
non-controlling interest
(263
)
230
79
992
Income tax benefit (provision)
3
(3
)
—
(15
)
Net income (loss)
(260
)
227
79
977
Less: net income attributable to
non-controlling interest
58
162
370
573
Net income (loss) attributable to common
stockholders
$
(318
)
$
65
$
(291
)
$
404
Net income (loss) per share attributable
to common stockholders—basic (2)
$
(1.25
)
$
0.26
$
(1.13
)
$
1.67
Net income (loss) per share attributable
to common stockholders—diluted (2)
$
(1.25
)
$
0.26
$
(1.13
)
$
1.65
Weighted average number of common shares
outstanding—basic
256.0
247.2
256.8
241.9
Weighted average number of common shares
outstanding—diluted
256.0
250.2
256.8
244.6
______________________
(1)
Please refer to the Cheniere Energy, Inc.
Quarterly Report on Form 10-Q for the quarter ended September 30,
2019, filed with the Securities and Exchange Commission.
(2)
Earnings per share in the table may not
recalculate exactly due to rounding because it is calculated based
on whole numbers, not the rounded numbers presented.
Cheniere Energy, Inc.
Consolidated Balance
Sheets
(in millions, except share
data)(1)(2)
September 30,
December 31,
2019
2018
ASSETS
(unaudited)
Current assets
Cash and cash equivalents
$
2,539
$
981
Restricted cash
578
2,175
Accounts and other receivables
507
585
Inventory
288
316
Derivative assets
140
63
Other current assets
133
114
Total current assets
4,185
4,234
Property, plant and equipment, net
29,490
27,245
Operating lease assets, net
493
—
Debt issuance costs, net
50
72
Non-current derivative assets
123
54
Goodwill
77
77
Other non-current assets, net
287
305
Total assets
$
34,705
$
31,987
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
50
$
58
Accrued liabilities
1,199
1,169
Current debt
11
239
Deferred revenue
171
139
Current operating lease liabilities
275
—
Derivative liabilities
181
128
Other current liabilities
5
9
Total current liabilities
1,892
1,742
Long-term debt, net
30,795
28,179
Non-current operating lease
liabilities
203
—
Non-current finance lease liabilities
58
57
Non-current derivative liabilities
245
22
Other non-current liabilities
26
58
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value, 5.0
million shares authorized, none issued
—
—
Common stock, $0.003 par value, 480.0
million shares authorized
Issued: 270.6 million shares at September
30, 2019 and 269.8 million shares at December 31, 2018
Outstanding: 255.0 million shares at
September 30, 2019 and 257.0 million shares at December 31,
2018
1
1
Treasury stock: 15.6 million shares and
12.8 million shares at September 30, 2019 and December 31, 2018,
respectively, at cost
(584
)
(406
)
Additional paid-in-capital
4,130
4,035
Accumulated deficit
(4,447
)
(4,156
)
Total stockholders’ deficit
(900
)
(526
)
Non-controlling interest
2,386
2,455
Total equity
1,486
1,929
Total liabilities and equity
$
34,705
$
31,987
______________________
(1)
Please refer to the Cheniere Energy, Inc.
Quarterly Report on Form 10-Q for the quarter ended September 30,
2019, filed with the Securities and Exchange Commission.
(2)
Amounts presented include balances held by
our consolidated variable interest entity (“VIE”), Cheniere
Partners. As of September 30, 2019, total assets and liabilities of
Cheniere Partners, which are included in our Consolidated Balance
Sheets, were $19.0 billion and $18.6 billion, respectively,
including $1.7 billion of cash and cash equivalents and $0.2
billion of restricted cash.
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 and Distributable
Cash Flow 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 income (loss)
attributable to Cheniere before net income attributable to
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 income
(loss) attributable to common stockholders before net income
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 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,
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.
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, 2019 and 2018 (in millions):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2019
2018
2019
2018
Net income (loss) attributable to common
stockholders
$
(318
)
$
65
$
(291
)
$
404
Net income attributable to non-controlling
interest
58
162
370
573
Income tax provision (benefit)
(3
)
3
—
15
Interest expense, net of capitalized
interest
395
221
1,014
653
Loss on modification or extinguishment of
debt
27
12
27
27
Derivative loss (gain), net
78
(23
)
187
(132
)
Other expense (income)
70
(15
)
38
(32
)
Income from operations
$
307
$
425
$
1,345
$
1,508
Adjustments to reconcile income from
operations to Consolidated Adjusted EBITDA:
Depreciation and amortization expense
213
113
561
333
Loss (gain) from changes in fair value of
commodity and FX derivatives, net
142
(6
)
(41
)
96
Total non-cash compensation expense
31
22
87
55
Impairment expense and loss on disposal of
assets
1
8
7
8
Legal settlement expense
—
7
—
7
Consolidated Adjusted EBITDA
$
694
$
569
$
1,959
$
2,007
Consolidated Adjusted EBITDA and Distributable Cash
Flow
The following table reconciles our actual Consolidated Adjusted
EBITDA and Distributable Cash Flow to Net income attributable to
common stockholders for the three and nine months ended September
30, 2019 and forecast amounts for full year 2019 and full year 2020
(in billions):
Three Months
Nine Months
Ended
Ended
September 30,
September 30,
Full Year
Full Year
2019
2019
2019
2020
Net income (loss) attributable to common
stockholders
$
(0.32
)
$
(0.29
)
$
(0.2
)
-
$
0.0
$
0.3
-
$
0.5
Net income attributable to non-controlling
interest
0.06
0.37
0.5
-
0.6
0.7
-
0.8
Income tax provision (benefit)
(0.00
)
0.00
0.0
0.2
Interest expense, net of capitalized
interest
0.40
1.01
1.5
1.6
Depreciation and amortization expense
0.21
0.56
0.8
0.9
Other expense, financing costs, and
certain non-cash operating expenses
0.35
0.31
0.3
-
0.4
0.1
Consolidated Adjusted EBITDA
$
0.69
$
1.96
$
2.9
-
$
3.2
$
3.8
-
$
4.1
Distributions to CQP non-controlling
interest
(0.15
)
(0.45
)
(0.6
)
(0.6
)
SPL and CQP cash retained and interest
expense
(0.23
)
(0.83
)
(1.5
)
(1.6
)
Cheniere interest expense, income tax and
other
(0.11
)
(0.17
)
(0.3
)
(0.6
)
Cheniere Distributable Cash
Flow
$
0.20
$
0.52
$
0.6
-
$
0.8
$
1.0
-
$
1.3
________________________
Note: Totals may not sum due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191101005129/en/
Cheniere Energy, Inc.
Investors Randy Bhatia, 713-375-5479 Megan Light, 713-375-5492
or Media Relations Eben Burnham-Snyder, 713-375-5764 Jenna Palfrey,
713-375-5491
Cheniere Energy (AMEX:LNG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cheniere Energy (AMEX:LNG)
Historical Stock Chart
From Apr 2023 to Apr 2024