HOUSTON, May 5, 2016 /PRNewswire/ -- Cheniere Energy
Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) reported a net
loss of $74.9 million for the three
months ended March 31, 2016, compared
to a net loss of $178.7 million for
the same period in 2015.
Significant items for the three months ended March 31, 2016 totaled a loss of $22.3 million, compared to a loss of $126.1 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 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 loss 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 and derivative loss due primarily to contingent interest
rate derivatives entered into and changes in long-term LIBOR during
the period.
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.
Sabine Pass LNG Terminal
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 we expect 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. We expect substantial completion
of Train 1 to be achieved in May
2016. The commissioning process on Train 2 has commenced,
and we expect 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. We expect 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. We expect Train 5 to reach substantial
completion in 2019.
- Train 6 is currently under development, with all necessary
regulatory approvals in place. We expect 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
|
|
|
|
|
|
|
|
|
Distributions to Unitholders
We will pay a cash distribution per common unit of $0.425 to unitholders of record as of
May 2, 2016, and the related general
partner distribution on May 13,
2016.
We estimate that the annualized distribution to common
unitholders for fiscal year 2016 will be $1.70 per unit.
Through our wholly-owned subsidiary, Sabine Pass LNG, L.P.,
Cheniere Partners owns 100% of the Sabine Pass LNG terminal located
on the Sabine-Neches Waterway 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. Through its wholly-owned subsidiary
Cheniere Creole Trail Pipeline, L.P., Cheniere Partners also owns a
94-mile pipeline that interconnects the Sabine Pass LNG terminal
with a number of large interstate pipelines.
Cheniere Partners, through its subsidiary, SPL, is developing
and constructing natural gas liquefaction facilities at the Sabine
Pass LNG terminal adjacent to the existing regasification
facilities. Cheniere Partners, through SPL, plans to construct over
time up to six liquefaction trains, which are in various stages of
development and construction. Trains 1 and 2 are undergoing
commissioning, Trains 3 through 5 are under construction and Train
6 is fully permitted. Each liquefaction train is expected to
have a nominal production capacity of approximately 4.5 mtpa of
LNG. SPL has entered into six third-party LNG sale and purchase
agreements ("SPAs") that in the aggregate equate to approximately
19.75 mtpa of LNG and commence with the date of first commercial
delivery of Trains 1 through 5 as specified in the respective
SPAs.
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, 2016, 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 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 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 Table Follows)
Cheniere Energy
Partners, L.P.
|
Consolidated
Statements of Operations
|
(in thousands,
except per unit data) (1)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2016
|
|
2015
|
Revenues
|
|
|
|
|
|
Regasification
revenues
|
$
|
65,384
|
|
$
|
66,718
|
Regasification
revenues—affiliate
|
1,635
|
|
812
|
LNG
revenues
|
—
|
|
—
|
Other
revenues
|
28
|
|
|
—
|
Total
revenues
|
67,047
|
|
67,530
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
Cost of sales
(excluding depreciation and amortization expense shown separately
below)
|
3,904
|
|
693
|
Operating and
maintenance expense
|
17,385
|
|
30,540
|
Operating and
maintenance expense—affiliate
|
10,830
|
|
4,773
|
Development
expense
|
66
|
|
1,151
|
Development
expense—affiliate
|
129
|
|
204
|
General and
administrative expense
|
2,610
|
|
3,515
|
General and
administrative expense—affiliate
|
22,198
|
|
21,597
|
Depreciation and
amortization expense
|
19,388
|
|
14,879
|
Total operating costs
and expenses
|
76,510
|
|
61,780
|
Loss from
operations
|
(9,463)
|
|
5,750
|
|
|
|
|
Other income
(expense)
|
|
|
|
Interest expense, net
of amounts capitalized
|
(43,452)
|
|
(42,845)
|
Loss on early
extinguishment of debt
|
(1,457)
|
|
(88,992)
|
Derivative loss,
net
|
(20,808)
|
|
(37,138)
|
Other
income
|
274
|
|
121
|
Total other
expense
|
(65,443)
|
|
(168,854)
|
Net loss
|
$
|
(74,906)
|
|
$
|
(163,104)
|
Basic and diluted net
loss per common unit
|
$
|
(0.08)
|
|
$
|
(0.61)
|
Weighted average
number of common units outstanding used for basic and diluted net
loss per common unit calculation
|
57,084
|
|
57,080
|
|
|
|
|
(1)
Please refer to the Cheniere Energy Partners, L.P. Quarterly Report
on Form 10-Q for the quarter ended March 31, 2016, filed with
the Securities and Exchange Commission.
|
Cheniere Energy
Partners, L.P.
|
Consolidated
Balance Sheets
|
(in thousands,
except per unit data) (1)
|
|
|
March
31,
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
9,815
|
|
$
|
146,221
|
Restricted
cash
|
401,972
|
|
274,557
|
Accounts
receivable—affiliate
|
14,544
|
|
1,271
|
Advances to
affiliate
|
29,356
|
|
39,836
|
Inventory
|
28,543
|
|
16,667
|
Other current
assets
|
17,986
|
|
14,923
|
Total current
assets
|
502,216
|
|
493,475
|
|
|
|
|
Non-current
restricted cash
|
13,650
|
|
13,650
|
Property, plant and
equipment, net
|
12,713,379
|
|
11,931,602
|
Debt issuance costs,
net
|
172,959
|
|
132,091
|
Non-current
derivative assets
|
28,210
|
|
30,304
|
Other non-current
assets
|
220,631
|
|
232,031
|
Total
assets
|
$
|
13,651,045
|
|
$
|
12,833,153
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
17,131
|
|
$
|
16,407
|
Accrued
liabilities
|
332,288
|
|
224,292
|
Current debt,
net
|
1,785,318
|
|
1,673,379
|
Due to
affiliates
|
78,159
|
|
115,123
|
Deferred
revenue
|
26,669
|
|
26,669
|
Deferred
revenue—affiliate
|
717
|
|
717
|
Derivative
liabilities
|
11,818
|
|
6,430
|
Other current
liabilities
|
93
|
|
—
|
Total current
liabilities
|
2,252,193
|
|
2,063,017
|
|
|
|
|
Long-term debt,
net
|
10,734,069
|
|
10,018,325
|
Non-current deferred
revenue
|
8,500
|
|
9,500
|
Non-current
derivative liabilities
|
16,210
|
|
2,884
|
Other non-current
liabilities
|
172
|
|
175
|
Other non-current
liabilities—affiliate
|
26,632
|
|
26,321
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at March 31,
2016 and December 31, 2015)
|
259,168
|
|
305,747
|
Class B unitholders'
interest (145.3 million units issued and outstanding at March 31,
2016 and December 31, 2015)
|
(35,588)
|
|
(37,429)
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at March 31, 2016 and December 31, 2015)
|
375,104
|
|
428,035
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at March 31, 2016 and December 31, 2015)
|
14,585
|
|
16,578
|
Total partners'
equity
|
613,269
|
|
712,931
|
Total liabilities and
partners' equity
|
$
|
13,651,045
|
|
$
|
12,833,153
|
|
|
|
|
|
|
(1)
Please refer to the Cheniere Energy Partners, L.P. Quarterly Report
on Form 10-Q for the quarter ended March 31, 2016, 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-2016-results-300264029.html
SOURCE Cheniere Energy Partners, L.P.