HOUSTON, Feb. 20, 2015
/PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE MKT: CQP) reported a net loss of $70.8 million and $410.0
million for the three months and year ended December 31, 2014, respectively, compared to a
net loss of $61.3 million and
$258.1 million for the same periods
in 2013, respectively.
Results include significant items consisting of losses of
$29.8 million and $242.8 million for the three months and year
ended December 31, 2014,
respectively, and losses of $26.7
million and $60.9 million,
respectively, for the comparable 2013 periods. Significant items
for the three months and year ended December
31, 2014 related to development expenses primarily for the
fifth and sixth natural gas liquefaction trains ("Trains") we are
developing through Sabine Pass Liquefaction, LLC ("Sabine Pass
Liquefaction") at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities (the "Liquefaction Project"),
losses on early extinguishment of debt related to the write-off of
debt issuance costs by Sabine Pass Liquefaction in connection with
the refinancing of a portion of its credit facilities in
May 2014 and April 2013, and derivative gains (losses) due
primarily to changes in long-term LIBOR during the respective
periods.
General and administrative expense (including affiliate)
decreased by $0.3 million and
$26.2 million for the three months
and year ended December 31, 2014,
compared to the corresponding 2013 periods, respectively, primarily
due to costs incurred under certain management service agreements
with wholly owned subsidiaries of Cheniere Energy, Inc.
("Cheniere"). Sabine Pass Liquefaction is required to pay
monthly fees to an affiliate of Cheniere based upon the capital
expenditures incurred in the previous month for construction of the
first four Trains at the Liquefaction Project.
Liquefaction Project Update
We continue to make progress on the Liquefaction Project, which
is being developed for up to six Trains, each with a nominal
production capacity of approximately 4.5 million tonnes per annum
("mtpa").
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of December 31, 2014,
the overall project for Trains 1 and 2 was approximately 81%
complete, which is ahead of the contractual schedule. Based on our
current construction schedule, we anticipate that Train 1 will
produce liquefied natural gas ("LNG") as early as late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2014, the
overall project for Trains 3 and 4 was approximately 54% complete,
which is ahead of the contractual schedule. We expect Trains 3 and
4 to become operational in late 2016 and 2017, respectively.
- Trains 5 and 6 are under development. We have entered into LNG
sale and purchase agreements ("SPAs") for approximately 3.75 mtpa
in aggregate that commence with the date of first commercial
delivery for Train 5. We have received authorizations from the U.S.
Department of Energy ("DOE") to export 503 Bcf per year of LNG
volumes from Trains 5 and 6 to free trade agreement ("FTA")
countries. Authorization to export LNG to non-FTA countries is
pending. In December 2014, the
Federal Energy Regulatory Commission ("FERC") published the final
Environmental Assessment, and final FERC authorization is subject
to commissioner approvals.
We will contemplate making a final investment decision to
commence construction of Train 5 and Train 6 based on, among other
things, entering into engineering, procurement and construction
("EPC") contracts, entering into acceptable commercial
arrangements, receiving all regulatory approvals and obtaining
financing.
Liquefaction
Project Timeline
|
|
|
|
|
|
|
|
|
|
Target
Date
|
Milestone
|
|
Trains
1 - 4
|
|
Trains
5 & 6
|
DOE export
authorization
|
|
Received
|
|
Received FTA
Pending Non-FTA
|
Definitive commercial
agreements
|
|
Completed
16.0 mtpa
|
|
T5:
Completed
T6: 2015
|
- 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
|
|
2015
|
Financing
|
|
Completed
|
|
2015
|
- Equity
commitments
|
|
|
|
|
- Debt
commitments
|
|
|
|
|
FERC
authorization
|
|
Completed
|
|
|
- FERC
Order
|
|
|
|
2015
|
- Certificate to
commence construction
|
|
|
|
2015
|
Issue Notice to
Proceed
|
|
Completed
|
|
2015
|
Commence
operations
|
|
2015 -
2017
|
|
2018/2019
|
Distributions to Unitholders
We paid a cash
distribution per common unit of $0.425 to unitholders of record as of
February 2, 2015, and the related
general partner distribution on February 15,
2015.
We estimate that the annualized distribution to common
unitholders for fiscal year 2015 will be $1.70 per unit.
Cheniere Partners owns 100 percent of the Sabine Pass LNG
terminal located on the Sabine
Pass deep water shipping channel 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.
Cheniere Partners is developing natural gas liquefaction
facilities at the Sabine Pass LNG terminal adjacent to the existing
regasification facilities. Cheniere Partners plans to construct
over time up to six natural gas Trains, which are in various stages
of development. Each Train is expected to have a nominal production
capacity of approximately 4.5 mtpa. The overall project completion
percentage of Trains 1 and 2 is approximately 81% as of
December 31, 2014. The overall project completion percentage
of Trains 3 and 4 is approximately 54% as of December 31,
2014. Sabine Pass Liquefaction is developing Trains 5 and 6 and
commenced the regulatory process in February
2013. Sabine Pass Liquefaction has entered into six
third-party LNG SPAs that in the aggregate equate to 19.75 mtpa and
commence with the date of first commercial delivery of Trains 1
through 5 as specified in the respective SPAs. Cheniere Partners
has placed documentation pertaining to the Liquefaction Project,
including the applications and supporting studies, on its website
located at http://www.cheniere.com.
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, 2014, 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 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 thousands,
except per unit data) (1)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
65,807
|
|
|
$
|
66,199
|
|
|
$
|
265,740
|
|
|
$
|
265,251
|
|
Revenues—affiliate
|
752
|
|
|
800
|
|
|
2,958
|
|
|
2,940
|
|
Total
revenues
|
66,559
|
|
|
66,999
|
|
|
268,698
|
|
|
268,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Operating and
maintenance expense
|
9,522
|
|
|
7,206
|
|
|
64,208
|
|
|
59,957
|
|
Operating and
maintenance expense—affiliate
|
6,808
|
|
|
5,770
|
|
|
21,115
|
|
|
29,304
|
|
Depreciation
expense
|
14,780
|
|
|
14,336
|
|
|
58,601
|
|
|
57,486
|
|
Development
expense
|
648
|
|
|
3,165
|
|
|
9,319
|
|
|
11,322
|
|
Development
expense—affiliate
|
430
|
|
|
207
|
|
|
1,153
|
|
|
1,402
|
|
General and
administrative expense
|
3,759
|
|
|
3,049
|
|
|
13,807
|
|
|
11,570
|
|
General and
administrative expense—affiliate
|
26,790
|
|
|
27,838
|
|
|
101,369
|
|
|
129,836
|
|
Total operating costs
and expenses
|
62,737
|
|
|
61,571
|
|
|
269,572
|
|
|
300,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
3,822
|
|
|
5,428
|
|
|
(874)
|
|
|
(32,686)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(46,089)
|
|
|
(43,594)
|
|
|
(177,032)
|
|
|
(178,400)
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
(51,066)
|
|
|
(114,335)
|
|
|
(131,576)
|
|
Derivative gain
(loss), net
|
(28,726)
|
|
|
27,742
|
|
|
(118,012)
|
|
|
83,448
|
|
Other
income
|
154
|
|
|
224
|
|
|
217
|
|
|
1,097
|
|
Total other
expense
|
(74,661)
|
|
|
(66,694)
|
|
|
(409,162)
|
|
|
(225,431)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(70,839)
|
|
|
$
|
(61,266)
|
|
|
$
|
(410,036)
|
|
|
$
|
(258,117)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to the Creole Trail Pipeline Business
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,150)
|
|
Net loss attributable
to partners
|
$
|
(70,839)
|
|
|
$
|
(61,266)
|
|
|
$
|
(410,036)
|
|
|
$
|
(239,967)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common unit
|
$
|
(0.06)
|
|
|
$
|
(0.01)
|
|
|
$
|
(0.89)
|
|
|
$
|
(0.03)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
loss per common unit calculation
|
57,080
|
|
|
57,079
|
|
|
57,079
|
|
|
54,235
|
|
Cheniere Energy
Partners, L.P.
Consolidated
Balance Sheets
(in thousands,
except per unit data) (1)
|
|
|
December
31,
|
|
2014
|
|
|
2013
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
248,830
|
|
|
$
|
351,032
|
Restricted cash and
cash equivalents
|
195,702
|
|
|
227,652
|
Accounts
receivable
|
310
|
|
|
40
|
Advances to
affiliate
|
27,323
|
|
|
14,737
|
LNG
inventory
|
4,293
|
|
|
10,430
|
Prepaid expenses and
other
|
6,411
|
|
|
5,957
|
Other—affiliate
|
3,651
|
|
|
3,280
|
Total current
assets
|
486,520
|
|
|
613,128
|
|
|
|
|
|
Non-current
restricted cash and cash equivalents
|
544,465
|
|
|
1,025,056
|
Property, plant and
equipment, net
|
8,978,356
|
|
|
6,383,939
|
Debt issuance costs,
net
|
241,909
|
|
|
313,944
|
Non-current
derivative assets
|
11,744
|
|
|
98,123
|
Other non-current
assets
|
124,521
|
|
|
82,593
|
Total
assets
|
$
|
10,387,515
|
|
|
$
|
8,516,783
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
$
|
8,598
|
|
|
$
|
10,146
|
Accrued
liabilities
|
136,578
|
|
|
170,052
|
Due to
affiliates
|
19,660
|
|
|
45,547
|
Deferred
revenue
|
26,655
|
|
|
26,593
|
Derivative
liabilities
|
23,247
|
|
|
13,484
|
Other
|
18
|
|
|
65
|
Total current
liabilities
|
214,756
|
|
|
265,887
|
|
|
|
|
|
Long-term debt,
net
|
8,991,333
|
|
|
6,576,273
|
Non-current deferred
revenue
|
13,500
|
|
|
17,500
|
Other non-current
liabilities
|
2,452
|
|
|
193
|
Other non-current
liabilities—affiliate
|
34,745
|
|
|
17,186
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Partners'
equity
|
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at December 31,
2014 and 2013)
|
495,597
|
|
|
711,771
|
Class B unitholders'
interest (145.3 million units issued and outstanding at December
31, 2014 and 2013)
|
(38,216)
|
|
|
(38,216)
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at December 31, 2014 and 2013)
|
648,414
|
|
|
931,074
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at December 31, 2014 and 2013)
|
24,934
|
|
|
35,115
|
Total partners'
equity
|
1,130,729
|
|
|
1,639,744
|
Total liabilities and
partners' equity
|
$
|
10,387,515
|
|
|
$
|
8,516,783
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Annual Report on Form 10-K for the
fiscal year ended December 31, 2014, 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-2014-results-300038902.html
SOURCE Cheniere Energy Partners, L.P.