Cheniere Energy, Inc. (NYSE American: LNG):
Summary of Second Quarter 2020 Results (in millions, except
LNG data)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
% Change
2020
2019
% Change
Revenues
$
2,402
$
2,292
5
%
$
5,111
$
4,553
12
%
Net income (loss)1
$
197
$
(114
)
nm
$
572
$
27
nm
Consolidated Adjusted EBITDA2
$
1,393
$
615
127
%
$
2,432
$
1,265
92
%
LNG exported:
Number of cargoes
78
104
(25
)%
206
191
8
%
Volumes (TBtu)
274
361
(24
)%
727
671
8
%
LNG volumes loaded (TBtu)
278
360
(23
)%
733
669
10
%
Summary Full Year 2020 Guidance (in billions)
2020
Consolidated Adjusted EBITDA2
$
3.8
-
$
4.1
Distributable Cash Flow2
$
1.0
-
$
1.3
Recent Highlights
Strategic
- In April 2020, Midship Pipeline Company, LLC, in which we have
an equity investment, placed into service the Midship natural gas
pipeline and related compression and interconnect facilities.
Operational
- As of July 31, 2020, more than 1,175 cumulative LNG cargoes
totaling over 80 million tonnes of LNG have been produced, loaded
and exported from our liquefaction projects.
Financial
- For the six months ended June 30, 2020, we reported net income1
of $572 million, Consolidated Adjusted EBITDA2 of $2.43 billion,
and Distributable Cash Flow2 of approximately $830 million.
- During the six months ended June 30, 2020, we repurchased an
aggregate of 2.9 million shares of our common stock for $155
million under our share repurchase program.
- In May 2020, the date of first commercial delivery was reached
under the 20-year LNG Sale and Purchase Agreements with PT
Pertamina (Persero), Naturgy LNG GOM, Limited, Woodside Energy
Trading Singapore Pte Ltd, Iberdrola, S.A. and Électricité de
France, S.A. relating to Train 2 of the CCL Project (defined
below).
- In May 2020, Sabine Pass Liquefaction, LLC (“SPL”) issued an
aggregate principal amount of $2.0 billion of 4.500% Senior Secured
Notes due 2030. Net proceeds of the offering, along with cash on
hand, were used to redeem all of SPL’s outstanding 5.625% Senior
Secured Notes due 2021.
- In June 2020, we entered into a $2.62 billion three-year
delayed draw term loan credit agreement (the “Cheniere Term Loan
Facility”), which in July 2020 was increased to $2.695 billion. In
July 2020, borrowings under the Cheniere Term Loan Facility were
used to (1) redeem all of the remaining outstanding principal
amount of the 11.0% Convertible Senior Secured Notes due 2025
issued by Cheniere CCH Holdco II, LLC, subsequent to the $300
million redemption in March 2020, with cash at a price of $1,080
per $1,000 principal amount of notes, (2) repurchase $844 million
in aggregate principal amount of outstanding 4.875% Convertible
Senior Notes due 2021 issued by Cheniere (the “2021 Convertible
Notes”) at individually negotiated prices from a small number of
investors, and (3) pay related fees and expenses of the Cheniere
Term Loan Facility. The remaining borrowing capacity under the
Cheniere Term Loan Facility, approximately $372 million, is
expected to be used to repay and/or repurchase a portion of the
remaining outstanding principal amount of the 2021 Convertible
Notes and for the payment of related fees and expenses.
Liquefaction Projects Update
SPL Project
CCL Project
Train 6
Train 3
Project Status
Under Construction
Commissioning
Project Completion Percentage (1)
63.9% (2)
90.5% (3)
Expected Substantial Completion
2H 2022
1H 2021
Note: Projects update excludes Trains in
operation
(1) Project completion percentages as of
June 30, 2020
(2) Engineering 96.5% complete,
procurement 91.1% complete, and construction 25.3% complete
(3) Engineering 100.0% complete,
procurement 100.0% complete, and construction 77.5% complete
Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) reported
net income1 of $197 million, or $0.78 per share—basic and diluted
for the three months ended June 30, 2020, compared to a net loss of
$114 million, or $0.44 per share—basic and diluted, for the
comparable 2019 period. Net income increased during the three
months ended June 30, 2020 as compared to the comparable 2019
period primarily due to increased total margins3 and decreased net
loss related to interest rate derivatives, partially offset by (i)
increased income attributable to non-controlling interest, (ii)
increased income tax expense, (iii) costs incurred in response to
the COVID-19 pandemic, (iv) increased loss on modification or
extinguishment of debt, and (v) increased interest expense. Total
margins increased during the three months ended June 30, 2020
primarily due to accelerated revenues recognized from LNG cargoes
for which customers have notified us that they will not take
delivery and an increase in margins per MMBtu of LNG delivered to
customers and recognized in income, partially offset by net losses
from changes in fair value of commodity derivatives and a decrease
in volumes of LNG recognized in income primarily due to cargoes for
which long-term customers have not elected delivery.
Cheniere reported net income of $572 million, or $2.27 per
share—basic and $2.26 per share—diluted for the six months ended
June 30, 2020, compared to $27 million, or $0.11 per share—basic
and diluted, for the comparable 2019 period. Net income increased
during the six months ended June 30, 2020 as compared to the
comparable 2019 period primarily due to increased total margins,
partially offset by (i) increased interest expense, (ii) increased
income tax expense, (iii) increased operating and maintenance
expenses primarily due to additional Trains in operation and costs
incurred in response to the COVID-19 pandemic, (iv) increased
income attributable to non-controlling interest, and (v) increased
loss on modification or extinguishment of debt. Total margins
increased during the six months ended June 30, 2020 primarily due
to accelerated revenues recognized from LNG cargoes for which
customers have notified us that they will not take delivery, an
increase in LNG volumes recognized in revenue primarily due to
additional Trains in operation, increased net gains from changes in
fair value of commodity derivatives, and slightly increased margins
per MMBtu of LNG delivered to customers and recognized in
income.
Margins per MMBtu of LNG delivered to customers and recognized
in income increased during the three and six months ended June 30,
2020 primarily due to an increase in the proportion of volumes sold
pursuant to higher-margin long-term contracts, partially offset by
a decrease in market pricing for short-term cargoes sold.
Consolidated Adjusted EBITDA was $1.39 billion for the three
months ended June 30, 2020, compared to $615 million for the
comparable 2019 period. The increase in Consolidated Adjusted
EBITDA during the three months ended June 30, 2020 was primarily
due to accelerated revenues recognized from LNG cargoes for which
customers have notified us that they will not take delivery and
increased margins per MMBtu of LNG delivered to customers and
recognized in income, partially offset by a decrease in volumes of
LNG recognized in income primarily due to cargoes for which
long-term customers have not elected delivery.
Consolidated Adjusted EBITDA was $2.43 billion for the six
months ended June 30, 2020, compared to $1.27 billion for the
comparable 2019 period. The increase in Consolidated Adjusted
EBITDA during the six months ended June 30, 2020 was primarily due
to accelerated revenues recognized from LNG cargoes for which
customers have notified us that they will not take delivery, an
increase in LNG volumes recognized in income primarily due to
additional Trains in operation, and slightly increased margins per
MMBtu of LNG delivered to customers and recognized in income,
partially offset by increased operating and maintenance expenses
primarily due to additional Trains in operation.
During the three and six months ended June 30, 2020, we
recognized $708 million and $761 million, respectively, in revenues
associated with LNG cargoes for which customers have notified us
that they will not take delivery, of which $458 million would have
otherwise been recognized subsequent to June 30, 2020, if the
cargoes were lifted pursuant to the delivery schedules with the
customers. LNG revenues during the three months ended June 30, 2020
excluded $53 million that would have otherwise been recognized
during the quarter if the cargoes were lifted pursuant to the
delivery schedules with the customers, as these revenues were
recognized during the three months ended March 31, 2020. Excluding
the impact of cargo cancellations related to periods subsequent to
June 30, 2020 and those received in prior periods for the current
periods, our total revenues would have been $2.00 billion and $4.65
billion for the three and six months ended June 30, 2020,
respectively.
During the three and six months ended June 30, 2020, 78 and 206
LNG cargoes, respectively, were exported from our liquefaction
projects, none of which were commissioning cargoes. One cargo
exported from our liquefaction projects and sold on a delivered
basis was in transit as of June 30, 2020.
“We delivered strong results for the second quarter of 2020,
despite the challenging LNG market environment and continued global
impact of the COVID-19 pandemic, which further proves the
resiliency and strength of Cheniere’s business model,” said Jack
Fusco, Cheniere’s President and Chief Executive Officer.
“Our customers value the flexibilities our long-term contracts
provide, which enable LNG buyers to effectively manage their
portfolios through various market conditions, while continuing to
underpin Cheniere’s financial stability. Despite continued market
challenges, our visibility on achieving our financial goals for the
year is unchanged, and today we are reconfirming our full year 2020
guidance of $3.8 to $4.1 billion in Consolidated Adjusted EBITDA
and $1.0 to $1.3 billion in Distributable Cash Flow.”
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 six months
ended June 30, 2020:
Three Months Ended
Six Months Ended
June 30, 2020
June 30, 2020
(in TBtu)
Operational
Commissioning
Operational
Commissioning
Volumes loaded during the current
period
278
—
733
—
Volumes loaded during the prior period but
recognized during the current period
29
—
33
—
Less: volumes loaded during the current
period and in transit at the end of the period
(2
)
—
(2
)
—
Total volumes recognized in the current
period
305
—
764
—
In addition, during the three and six months ended June 30,
2020, we recognized the financial impact of 34 TBtu and 48 TBtu of
LNG, respectively, on our Consolidated Financial Statements related
to LNG cargoes sourced from third parties.
Cargo Cancellation Revenue
Summary
The following table summarizes the timing impacts of revenue
recognition related to cargoes for which customers elected to not
take delivery on our revenues for the three and six months ended
June 30, 2020 (in millions):
Three Months
Six Months
Ended
Ended
June 30, 2020
June 30, 2020
Total revenues
$
2,402
$
5,111
Impact of cargo cancellations recognized
in the prior period for deliveries scheduled in the current
period
53
—
Impact of cargo cancellations recognized
in the current period for deliveries scheduled in subsequent
periods
(458
)
(458
)
Total revenues excluding the timing impact
of cargo cancellations
$
1,997
$
4,653
Additional Discussion and Analysis of
Financial Condition and Results
Details Regarding Second Quarter and Year-to-Date June 30,
2020 Results
Our financial results are reported on a consolidated basis. Our
ownership interest in Cheniere Energy Partners, L.P. (“Cheniere
Partners”) (NYSE American: CQP) as of June 30, 2020 consisted of
100% ownership of the general partner and a 48.6% limited partner
interest.
Income from operations increased $505 million and $1.2 billion
during the three and six months ended June 30, 2020, respectively,
as compared to the comparable 2019 periods, primarily due to
increased total margins as detailed above, partially offset by
costs incurred in response to the COVID-19 pandemic. During the six
months ended June 30, 2020, the increase was also partially offset
by increased operating and maintenance expenses primarily due to
additional Trains in operation.
Selling, general and administrative expense included share-based
compensation expenses of $19 million and $38 million for the three
and six months ended June 30, 2020, respectively, compared to $23
million and $43 million for the comparable 2019 period.
Capital Resources
As of June 30, 2020, we had cash and cash equivalents of $2.0
billion on a consolidated basis, of which $1.3 billion was held by
Cheniere Partners. In addition, we had current restricted cash of
$505 million designated for the following purposes: $167 million
for the SPL Project, $101 million for the CCL Project and $237
million for other restricted purposes.
Liquefaction Projects
SPL Project
Through Cheniere Partners, we operate five natural gas
liquefaction Trains and are constructing one additional Train for a
total production capacity of approximately 30 million tonnes per
annum (“mtpa”) of LNG at the Sabine Pass LNG terminal (the “SPL
Project”).
CCL Project
We operate two Trains and are commissioning one additional Train
for a total production capacity of approximately 15 mtpa of LNG
near Corpus Christi, Texas (the “CCL Project”).
Corpus Christi Stage 3
We are developing an expansion adjacent to the CCL Project for
up to seven midscale Trains with an expected total production
capacity of approximately 10 mtpa of LNG (“Corpus Christi Stage
3”). We expect to commence construction of the Corpus Christi Stage
3 project upon, among other things, entering into an engineering,
procurement, and construction contract and additional commercial
agreements, and obtaining adequate financing.
Investor Conference Call and
Webcast
We will host a conference call to discuss our financial and
operating results for the second quarter 2020 on Thursday, August
6, 2020, 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 total
production capacity of approximately 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 June 30, 2020, 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, (vii)
statements relating to the amount and timing of share repurchases,
and (viii) statements regarding the COVID-19 pandemic and its
impact on our business and operating results. 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
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Revenues
LNG revenues
$
2,295
$
2,173
$
4,863
$
4,316
Regasification revenues
68
67
135
133
Other revenues
39
52
113
104
Total revenues
2,402
2,292
5,111
4,553
Operating costs and expenses
Cost of sales (excluding items shown
separately below)
803
1,277
1,527
2,491
Operating and maintenance expense
355
295
671
516
Development expense
1
3
5
4
Selling, general and administrative
expense
73
77
154
150
Depreciation and amortization expense
233
204
466
348
Impairment expense and loss on disposal of
assets
—
4
5
6
Total operating costs and expenses
1,465
1,860
2,828
3,515
Income from operations
937
432
2,283
1,038
Other income (expense)
Interest expense, net of capitalized
interest
(407
)
(372
)
(819
)
(619
)
Loss on modification or extinguishment of
debt
(43
)
—
(44
)
—
Interest rate derivative loss, net
(25
)
(74
)
(233
)
(109
)
Other income, net
5
16
14
32
Total other expense
(470
)
(430
)
(1,082
)
(696
)
Income before income taxes and
non-controlling interest
467
2
1,201
342
Income tax provision
(63
)
—
(194
)
(3
)
Net income
404
2
1,007
339
Less: net income attributable to
non-controlling interest
207
116
435
312
Net income attributable to common
stockholders
$
197
$
(114
)
$
572
$
27
Net income (loss) per share attributable
to common stockholders—basic (2)
$
0.78
$
(0.44
)
$
2.27
$
0.11
Net income (loss) per share attributable
to common stockholders—diluted (2)
$
0.78
$
(0.44
)
$
2.26
$
0.11
Weighted average number of common shares
outstanding—basic
252.1
257.4
252.6
257.3
Weighted average number of common shares
outstanding—diluted
252.4
257.4
253.3
258.6
___________________
(1)
Please refer to the Cheniere
Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended
June 30, 2020, 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)
June 30,
December 31,
2020
2019
ASSETS
(unaudited)
Current assets
Cash and cash equivalents
$
2,039
$
2,474
Restricted cash
505
520
Accounts and other receivables, net
646
491
Inventory
207
312
Derivative assets
284
323
Other current assets
146
92
Total current assets
3,827
4,212
Property, plant and equipment, net
29,950
29,673
Operating lease assets, net
520
439
Non-current derivative assets
589
174
Goodwill
77
77
Deferred tax assets
337
529
Other non-current assets, net
546
388
Total assets
$
35,846
$
35,492
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
26
$
66
Accrued liabilities
735
1,281
Current debt
237
—
Deferred revenue
23
161
Current operating lease liabilities
179
236
Derivative liabilities
239
117
Other current liabilities
25
13
Total current liabilities
1,464
1,874
Long-term debt, net
30,807
30,774
Non-current operating lease
liabilities
347
189
Non-current finance lease liabilities
58
58
Non-current derivative liabilities
161
151
Other non-current liabilities
13
11
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: 272.9 million shares at June 30,
2020 and 270.7 million shares at December 31, 2019
Outstanding: 252.2 million shares at June
30, 2020 and 253.6 million shares at December 31, 2019
1
1
Treasury stock: 20.7 million shares and
17.1 million shares at June 30, 2020 and December 31, 2019,
respectively, at cost
(870
)
(674
)
Additional paid-in-capital
4,227
4,167
Accumulated deficit
(2,936
)
(3,508
)
Total stockholders’ equity (deficit)
422
(14
)
Non-controlling interest
2,574
2,449
Total equity
2,996
2,435
Total liabilities and stockholders’
equity
$
35,846
$
35,492
___________________
(1)
Please refer to the Cheniere
Energy, Inc. Quarterly Report on Form 10-Q for the quarter ended
June 30, 2020, filed with the Securities and Exchange
Commission.
(2)
Amounts presented include
balances held by our consolidated variable interest entity,
Cheniere Partners. As of June 30, 2020, total assets and
liabilities of Cheniere Partners, which are included in our
Consolidated Balance Sheets, were $18.9 billion and $18.1 billion,
respectively, including $1.3 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, non-cash compensation expense, and non-recurring costs
related to our response to the COVID-19 outbreak which are
incremental to and separable from normal operations. 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 Cheniere
Partners, cash received (used) by Corpus Christi Holdings, LLC and
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 six months ended June 30,
2020 and 2019 (in millions):
Three Months Ended
Six Months Ended
June 30,
June 30,
2020
2019
2020
2019
Net income (loss) attributable to common
stockholders
$
197
$
(114
)
$
572
$
27
Net income attributable to non-controlling
interest
207
116
435
312
Income tax provision
63
—
194
3
Interest expense, net of capitalized
interest
407
372
819
619
Loss on modification or extinguishment of
debt
43
—
44
—
Interest rate derivative loss, net
25
74
233
109
Other income, net
(5
)
(16
)
(14
)
(32
)
Income from operations
$
937
$
432
$
2,283
$
1,038
Adjustments to reconcile income from
operations to Consolidated Adjusted EBITDA:
Depreciation and amortization expense
233
204
466
348
Loss (gain) from changes in fair value of
commodity and FX derivatives, net
137
(56
)
(440
)
(183
)
Total non-cash compensation expense
27
31
56
56
Impairment expense and loss on disposal of
assets
—
4
5
6
Incremental costs associated with COVID-19
response
59
—
62
—
Consolidated Adjusted EBITDA
$
1,393
$
615
$
2,432
$
1,265
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 six months ended June 30,
2020 and forecast amounts for full year 2020 (in billions):
Three Months Ended
Six Months Ended
June 30,
June 30,
Full Year
2020
2020
2020
Net income attributable to common
stockholders
$
0.20
$
0.57
$
0.2
-
$
0.5
Net income attributable to non-controlling
interest
0.21
0.43
0.7
-
0.8
Income tax provision
0.06
0.19
0.1
-
0.2
Interest expense, net of capitalized
interest
0.41
0.82
1.5
-
1.6
Depreciation and amortization expense
0.23
0.47
0.9
Other expense, financing costs, and
certain non-cash operating expenses
0.29
(0.05
)
0.3
-
0.1
Consolidated Adjusted EBITDA
$
1.39
$
2.43
$
3.8
-
$
4.1
Distributions to Cheniere Partners
non-controlling interest
(0.16
)
(0.31
)
(0.6
)
SPL and Cheniere Partners cash retained
and interest expense
(0.52
)
(1.01
)
(1.6
)
Cheniere interest expense, income tax and
other
(0.14
)
(0.29
)
(0.6
)
Cheniere Distributable Cash
Flow
$
0.57
$
0.83
$
1.0
-
$
1.3
___________________
Note: Totals may not sum due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806005133/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
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