HOUSTON, April 30, 2015
/PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE MKT: CQP) reported a net loss of $178.7 million for the three months ended
March 31, 2015, compared to a net
loss of $69.7 million for the same
period in 2014.
Significant items for the three months ended March 31, 2015 were a loss of $126.7 million, compared to a loss of
$38.3 million for the comparable 2014
period. Significant items for the three months ended March 31, 2015 related to losses on early
extinguishment of debt related to the write-off of debt issuance
costs by Sabine Pass Liquefaction, LLC ("SPL") in connection with
the refinancing of a portion of its credit facilities in
March 2015, derivative losses due
primarily to changes in long-term LIBOR during the respective
periods, and development expenses primarily for the fifth and sixth
natural gas liquefaction trains ("Trains") we are developing
through SPL at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities (the "Liquefaction
Project").
General and administrative expense (including affiliate)
decreased by $5.4 million for the
three months ended March 31, 2015,
compared to the corresponding 2014 period, primarily due to a
decrease in management fees incurred under certain management
service agreements with wholly owned subsidiaries of Cheniere
Energy, Inc. ("Cheniere"). SPL 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. Operating and maintenance
expense (including affiliate) increased by $23.1 million for the three months ended
March 31, 2015, compared to the
corresponding 2014 period, primarily due to costs incurred in order
to maintain the cryogenic readiness of the regasification
facilities at the Sabine Pass LNG terminal.
Recent Significant Events
- In March 2015, SPL issued an
aggregate principal amount of $2.0
billion of 5.625% Senior Secured Notes due 2025. Net
proceeds from the offering are being used to pay a portion of the
capital costs associated with the construction of the first four
Trains of the Liquefaction Project.
- In April 2015, we received
authorization from the Federal Energy Regulatory Commission
("FERC") to site, construct and operate Trains 5 and 6 of 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 an expected
aggregate 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 March 31, 2015, the
overall project completion percentage for Trains 1 and 2 was
approximately 87.2%, which is ahead of the contractual schedule.
Based on our current construction schedule, we anticipate that
Train 1 will produce LNG as early as late 2015.
- Construction on Trains 3 and 4 began in May 2013, and as of March 31, 2015, the
overall project completion percentage for Trains 3 and 4 was
approximately 62.6%, 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 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 April
2015, we received FERC authorization to site, construct, and
operate Trains 5 and 6.
We will contemplate making a final investment decision to
commence construction of Trains 5 and 6 based upon, among other
things, entering into EPC contracts, entering into acceptable
commercial arrangements, receiving all regulatory approvals and
obtaining adequate financing. We expect to commence construction on
Train 5 upon receiving all regulatory approvals and obtaining
financing followed by Train 6 upon entering into acceptable
commercial arrangements 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
|
|
|
|
Received
|
- Certificate to
commence construction
|
|
|
|
2015
|
Issue Notice to
Proceed
|
|
Completed
|
|
2015
|
Commence
operations
|
|
2015 -
2017
|
|
2018/2019
|
Distributions to Unitholders
We estimate that the annualized distribution to common
unitholders for fiscal year 2015 will be $1.70 per unit.
We will pay a cash distribution per common unit of $0.425 to unitholders of record as of
May 1, 2015, and the related general
partner distribution on May 15,
2015.
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 87.2% as of
March 31, 2015. The overall project completion percentage of
Trains 3 and 4 is approximately 62.6% as of March 31, 2015.
Cheniere Partners is developing Trains 5 and 6 and received FERC
authorization to site, construct, and operate Trains 5 and 6 in
April 2015. Cheniere Partners 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 Quarterly Report on Form
10-Q for the quarter ended March 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 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) (unaudited)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
Revenues
|
$
|
66,718
|
|
|
$
|
66,449
|
|
Revenues—affiliate
|
812
|
|
|
772
|
|
Total
revenues
|
67,530
|
|
|
67,221
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
Operating and
maintenance expense
|
31,987
|
|
|
9,219
|
|
Operating and
maintenance expense—affiliate
|
4,773
|
|
|
4,431
|
|
Depreciation
expense
|
14,879
|
|
|
14,318
|
|
Development
expense
|
1,151
|
|
|
3,496
|
|
Development
expense—affiliate
|
204
|
|
|
152
|
|
General and
administrative expense
|
3,515
|
|
|
3,366
|
|
General and
administrative expense—affiliate
|
21,597
|
|
|
27,153
|
|
Total operating costs
and expenses
|
78,106
|
|
|
62,135
|
|
|
|
|
|
Income (loss) from
operations
|
(10,576)
|
|
|
5,086
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
Interest expense,
net
|
(42,845)
|
|
|
(40,270)
|
|
Loss on early
extinguishment of debt
|
(88,992)
|
|
|
—
|
|
Derivative loss,
net
|
(36,384)
|
|
|
(34,681)
|
|
Other
income
|
121
|
|
|
132
|
|
Total other
expense
|
(168,100)
|
|
|
(74,819)
|
|
|
|
|
|
Net loss
|
$
|
(178,676)
|
|
|
$
|
(69,733)
|
|
|
|
|
|
Basic and diluted net
loss per common unit
|
$
|
(0.61)
|
|
|
$
|
(0.06)
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
loss per common unit calculation
|
57,080
|
|
|
57,079
|
|
Cheniere Energy
Partners, L.P. Consolidated Balance Sheets (in
thousands, except per unit data) (1)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
171,464
|
|
|
$
|
248,830
|
|
Restricted cash and
cash equivalents
|
261,371
|
|
|
195,702
|
|
Accounts
receivable
|
26,197
|
|
|
310
|
|
Advances to
affiliate
|
21,804
|
|
|
27,323
|
|
LNG
inventory
|
16,281
|
|
|
4,293
|
|
Prepaid expenses and
other
|
10,120
|
|
|
6,411
|
|
Other—affiliate
|
5,195
|
|
|
3,651
|
|
Total current
assets
|
512,432
|
|
|
486,520
|
|
|
|
|
|
Non-current
restricted cash and cash equivalents
|
1,849,456
|
|
|
544,465
|
|
Property, plant and
equipment, net
|
9,534,951
|
|
|
8,978,356
|
|
Debt issuance costs,
net
|
214,450
|
|
|
241,909
|
|
Non-current
derivative assets
|
472
|
|
|
11,744
|
|
Other non-current
assets
|
137,192
|
|
|
124,521
|
|
Total
assets
|
$
|
12,248,953
|
|
|
$
|
10,387,515
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
8,379
|
|
|
$
|
8,598
|
|
Accrued
liabilities
|
204,461
|
|
|
136,596
|
|
Due to
affiliates
|
17,527
|
|
|
19,660
|
|
Deferred
revenue
|
26,653
|
|
|
26,655
|
|
Derivative
liabilities
|
7,252
|
|
|
23,247
|
|
Total current
liabilities
|
264,272
|
|
|
214,756
|
|
|
|
|
|
Long-term debt,
net
|
10,992,229
|
|
|
8,991,333
|
|
Non-current deferred
revenue
|
12,500
|
|
|
13,500
|
|
Other non-current
liabilities
|
6,943
|
|
|
2,452
|
|
Other non-current
liabilities—affiliate
|
45,710
|
|
|
34,745
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at March 31,
2015 and December 31, 2014)
|
419,407
|
|
|
495,597
|
|
Class B unitholders'
interest (145.3 million units issued and outstanding at March 31,
2015 and December 31, 2014)
|
(38,216)
|
|
|
(38,216)
|
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at March 31, 2015 and December 31, 2014)
|
525,243
|
|
|
648,414
|
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at March 31, 2015 and December 31, 2014)
|
20,865
|
|
|
24,934
|
|
Total partners'
equity
|
927,299
|
|
|
1,130,729
|
|
Total liabilities and
partners' equity
|
$
|
12,248,953
|
|
|
$
|
10,387,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the quarter ended March 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-first-quarter-2015-results-300075544.html
SOURCE Cheniere Energy Partners, L.P.