HOUSTON, Oct. 30, 2015
/PRNewswire/ -- Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE MKT: CQP) reported a net loss of $24.1 million and $262.9
million for the three and nine months ended September 30, 2015, respectively, compared to a
net loss of $43.2 million and
$339.2 million for the same periods
in 2014, respectively.
Significant items for the three months ended September 30, 2015 resulted in a gain of
$21.1 million and are related to
derivative loss associated with the changes in long-term LIBOR
during the period, and development expense, offset by changes in
operating and maintenance expense associated with the increase in
fair value of certain natural gas purchase agreements related to
gas procurement for the liquefaction project currently under
construction at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities (the "Sabine Pass Liquefaction
Project"). Significant items for the nine months ended September 30, 2015 resulted in a loss of
$113.8 million and are related to
loss on early extinguishment of debt, derivative losses primarily
due to the termination of interest rate swaps, and development
expense, partially offset by changes in operating and maintenance
expense described above.
General and administrative expense (including affiliate)
increased by $2.5 million and
$7.4 million for the three and nine
months ended September 30, 2015,
respectively, compared to the corresponding 2014 periods, primarily
due to an increase in management fees incurred under certain
management service agreements with wholly owned subsidiaries of
Cheniere Energy, Inc. ("Cheniere") (NYSE MKT: LNG). Our
wholly-owned subsidiary, Sabine Pass Liquefaction, LLC
("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 five natural gas
liquefaction trains ("Trains") of the Sabine Pass Liquefaction
Project. Operating and maintenance expense (including affiliate)
decreased by $40.8 million and
$30.9 million for the three and nine
months ended September 30, 2015,
respectively, compared to the corresponding 2014 periods, primarily
due to the increase in fair value of certain natural gas purchase
agreements related to gas procurement for the Sabine Pass
Liquefaction Project.
Recent Significant Events
- SPL entered into a $1.2 billion
working capital facility that will be used primarily for certain
working capital requirements related to developing and placing into
operation the Sabine Pass Liquefaction Project.
Sabine Pass Liquefaction Project Update
We continue to make progress on the Sabine Pass Liquefaction
Project, which is being developed for up to six Trains, each with
an expected nominal production capacity of approximately 4.5
million tonnes per annum ("mtpa") of LNG.
The Trains are in various stages of development:
- Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2015, the overall project
completion percentage for Trains 1 and 2 was approximately 95.2%,
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 September 30, 2015, the overall project
completion percentage for Trains 3 and 4 was approximately 73.6%,
which is ahead of the contractual schedule. We expect Trains 3 and
4 to become operational in late 2016 and 2017, respectively.
- The permitting process for Trains 5 and 6 has been completed.
In April 2015, we received U.S.
Federal Energy Regulatory Commission ("FERC") authorization to
site, construct, and operate Trains 5 and 6. In June 2015, we received authorization from the
U.S. Department of Energy ("DOE") to export LNG to non-free trade
agreement countries.
- Construction on Train 5 began on June
30, 2015, and we expect Train 5 to commence operations as
early as 2018. We expect to commence construction on Train 6 upon
entering into acceptable commercial arrangements and obtaining
adequate financing.
Sabine Pass
Liquefaction Project Timeline
|
|
|
|
|
|
Target
Date
|
Milestone
|
|
Trains 1 - 4
|
|
Trains 5 & 6
|
DOE export
authorization
|
|
Received
|
|
Received
|
Definitive commercial
agreements
|
|
Completed
16.0 mtpa
|
|
T5:
Completed T6:
2015/2016
|
- 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
|
|
T5: Completed
T6: 2015/2016
|
Financing
|
|
Completed
|
|
T5: Completed
T6: 2015/2016
|
FERC
authorization
|
|
Completed
|
|
Completed
|
Issue Notice to
Proceed
|
|
Completed
|
|
T5:
Completed
T6: 2015/2016
|
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
November 2, 2015, and the related
general partner distribution on November 13,
2015.
Cheniere Partners owns 100 percent of the Sabine Pass LNG
terminal located on the Sabine
Pass deepwater 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 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 of LNG. The overall project
completion percentage of Trains 1 and 2 is approximately 95.2% as
of September 30, 2015. The overall project completion
percentage of Trains 3 and 4 is approximately 73.6% as of
September 30, 2015. Construction commenced on Train 5 in
June 2015. Cheniere Partners has
received all regulatory approvals to construct and operate Train 6.
Cheniere Partners 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 September 30, 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 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 Tables Follow)
|
Cheniere Energy
Partners, L.P.
Consolidated
Statements of Operations
(in thousands,
except per unit data) (1)
(unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues
|
|
|
|
|
|
|
|
Revenues
|
$
|
66,596
|
|
|
$
|
66,890
|
|
|
$
|
199,804
|
|
|
$
|
199,933
|
|
Revenues—affiliate
|
941
|
|
|
700
|
|
|
2,952
|
|
|
2,206
|
|
Total
revenues
|
67,537
|
|
|
67,590
|
|
|
202,756
|
|
|
202,139
|
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Operating and
maintenance expense (income)
|
(22,782)
|
|
|
21,041
|
|
|
17,840
|
|
|
54,750
|
|
Operating and
maintenance expense—affiliate
|
8,081
|
|
|
5,016
|
|
|
20,355
|
|
|
14,307
|
|
Depreciation
expense
|
16,687
|
|
|
14,781
|
|
|
47,557
|
|
|
43,821
|
|
Development
expense
|
113
|
|
|
1,383
|
|
|
2,631
|
|
|
8,671
|
|
Development
expense—affiliate
|
152
|
|
|
329
|
|
|
562
|
|
|
723
|
|
General and
administrative expense
|
3,673
|
|
|
2,448
|
|
|
11,269
|
|
|
10,048
|
|
General and
administrative expense—affiliate
|
25,692
|
|
|
24,454
|
|
|
80,761
|
|
|
74,579
|
|
Total operating costs
and expenses
|
31,616
|
|
|
69,452
|
|
|
180,975
|
|
|
206,899
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
35,921
|
|
|
(1,862)
|
|
|
21,781
|
|
|
(4,760)
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense, net
of amounts capitalized
|
(49,360)
|
|
|
(46,884)
|
|
|
(142,353)
|
|
|
(130,943)
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
(96,273)
|
|
|
(114,335)
|
|
Derivative gain
(loss), net
|
(10,872)
|
|
|
5,379
|
|
|
(46,541)
|
|
|
(89,222)
|
|
Other
income
|
179
|
|
|
127
|
|
|
535
|
|
|
63
|
|
Total other
expense
|
(60,053)
|
|
|
(41,378)
|
|
|
(284,632)
|
|
|
(334,437)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(24,132)
|
|
|
$
|
(43,240)
|
|
|
$
|
(262,851)
|
|
|
$
|
(339,197)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per common unit
|
$
|
0.18
|
|
|
$
|
0.08
|
|
|
$
|
(0.44)
|
|
|
$
|
(0.83)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common units outstanding used for basic and diluted net
income (loss) per common unit calculation
|
57,081
|
|
|
57,079
|
|
|
57,081
|
|
|
57,079
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the quarter ended September 30, 2015, filed with the
Securities and Exchange Commission.
|
|
Cheniere Energy
Partners, L.P.
Consolidated
Balance Sheets
(in thousands,
except per unit data) (1)
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
170,433
|
|
|
$
|
248,830
|
|
Restricted
cash
|
391,495
|
|
|
195,702
|
|
Accounts and interest
receivable
|
95
|
|
|
333
|
|
Accounts
receivable—affiliate
|
2,566
|
|
|
3,651
|
|
Advances to
affiliate
|
54,995
|
|
|
27,323
|
|
LNG
inventory
|
7,145
|
|
|
4,293
|
|
Other current
assets
|
16,055
|
|
|
6,388
|
|
Total current
assets
|
642,784
|
|
|
486,520
|
|
|
|
|
|
Non-current
restricted cash
|
76,107
|
|
|
544,465
|
|
Property, plant and
equipment, net
|
11,299,725
|
|
|
8,978,356
|
|
Debt issuance costs,
net
|
307,099
|
|
|
241,909
|
|
Non-current
derivative assets
|
30,657
|
|
|
11,744
|
|
Other non-current
assets
|
190,960
|
|
|
124,521
|
|
Total
assets
|
$
|
12,547,332
|
|
|
$
|
10,387,515
|
|
|
|
|
|
LIABILITIES AND
PARTNERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
7,096
|
|
|
$
|
8,598
|
|
Accrued
liabilities
|
352,457
|
|
|
136,578
|
|
Due to
affiliates
|
32,851
|
|
|
18,952
|
|
Deferred
revenue
|
26,653
|
|
|
26,655
|
|
Deferred
revenue—affiliate
|
708
|
|
|
708
|
|
Derivative
liabilities
|
7,388
|
|
|
23,247
|
|
Other current
liabilities
|
267
|
|
|
18
|
|
Total current
liabilities
|
427,420
|
|
|
214,756
|
|
|
|
|
|
Long-term debt,
net
|
11,244,002
|
|
|
8,991,333
|
|
Non-current deferred
revenue
|
10,500
|
|
|
13,500
|
|
Non-current
derivative liabilities
|
8,832
|
|
|
267
|
|
Other non-current
liabilities
|
1,177
|
|
|
2,185
|
|
Other non-current
liabilities—affiliate
|
61,691
|
|
|
34,745
|
|
|
|
|
|
Partners'
equity
|
|
|
|
Common unitholders'
interest (57.1 million units issued and outstanding at September
30, 2015 and December 31, 2014)
|
346,443
|
|
|
495,597
|
|
Class B unitholders'
interest (145.3 million units issued and outstanding at September
30, 2015 and December 31, 2014)
|
(37,981)
|
|
|
(38,216)
|
|
Subordinated
unitholders' interest (135.4 million units issued and outstanding
at September 30, 2015 and December 31, 2014)
|
467,054
|
|
|
648,414
|
|
General partner's
interest (2% interest with 6.9 million units issued and outstanding
at September 30, 2015 and December 31, 2014)
|
18,194
|
|
|
24,934
|
|
Total partners'
equity
|
793,710
|
|
|
1,130,729
|
|
Total liabilities and
partners' equity
|
$
|
12,547,332
|
|
|
$
|
10,387,515
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the quarter ended September 30, 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-third-quarter-2015-results-300169342.html
SOURCE Cheniere Energy Partners, L.P.