HOUSTON, Nov. 3, 2016
/PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC
("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income
of $4.3 million, or $0.02 per common share, for the three months
ended September 30, 2016, compared to
net income of $4.6 million, or
$0.02 per common share, for the
comparable 2015 period. For the nine months ended September 30, 2016, Cheniere Partners Holdings
reported net income of $13.3 million,
or $0.06 per common share, compared
to net income of $13.6 million, or
$0.06 per common share, during the
corresponding period in 2015. Results include the distribution
received from our limited partner interests in Cheniere Energy
Partners, L.P. ("Cheniere Partners"), a publicly traded limited
partnership (NYSE MKT: CQP).
Our only business consists of owning Cheniere Partners common
units, Class B units and subordinated units representing an
aggregate approximately 55.9% limited partner interest in Cheniere
Partners as of September 30, 2016.
Third Quarter 2016 Highlights
- In September 2016, Cheniere
Energy, Inc. ("Cheniere") (NYSE MKT: LNG) submitted a proposal to
our board of directors to acquire the publicly held shares of
Cheniere Partners Holdings not already owned by Cheniere in a stock
for stock exchange. There can be no assurance that any discussions
that may occur between Cheniere Partners Holdings and Cheniere in
connection with the proposal will result in the entry into of a
definitive agreement concerning a transaction or, if such a
definitive agreement is reached, will result in the consummation of
a transaction provided for in such definitive agreement.
Sabine Pass Liquefaction Project Update
Through Cheniere Partners, we are developing up to six
liquefaction trains ("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 operation, construction, and
development.
- Construction on Trains 1 and 2 began in August 2012, and substantial completion was
achieved in May 2016 and September 2016, respectively. Substantial
completion is achieved upon the completion of construction,
commissioning and the satisfaction of certain tests.
- Construction on Trains 3 and 4 began in May 2013, and as of September 30, 2016, the
overall project completion percentage for Trains 3 and 4 was
approximately 91.8%, which is ahead of the contractual schedule. In
September 2016, commissioning
activities commenced on Train 3. Based on the current construction
schedule, Cheniere Partners expects Trains 3 and 4 to reach
substantial completion in 2017.
- Construction on Train 5 began in June
2015, and as of September 30, 2016, the overall project
completion percentage for Train 5 was approximately 42.8%, which is
ahead of the contractual schedule. Engineering, procurement,
subcontract work and construction were approximately 90.8%, 62.0%,
41.9% and 4.6% complete, respectively. Based on the current
construction schedule, Cheniere Partners expects Train 5 to reach
substantial completion in 2019.
- Train 6 is currently under development, with all necessary
regulatory approvals in place. Cheniere Partners expects to make a
final investment decision and commence construction on Train 6
upon, among other things, entering into an engineering,
procurement, and construction 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
|
Operational
|
Operational
|
92% Overall
Completion
|
43% Overall
Completion
|
Expected Substantial
Completion
|
-
|
-
|
2017
|
2019
|
Dividends
When Cheniere Partners makes cash distributions to us with
respect to our Cheniere Partners units, we will pay dividends to
our shareholders consisting of the cash that we receive from
Cheniere Partners, less income taxes and reserves established by
our Board of Directors.
Investor Conference Call and Webcast
Cheniere Energy, Inc. will host a conference call to discuss its
financial and operating results for the third quarter on
Thursday, November 3, 2016, 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. The call
and accompanying slide presentation may include financial and
operating results or other information regarding Cheniere Partners
Holdings.
About Cheniere Partners Holdings
Cheniere Partners Holdings owns a 55.9% limited partner interest
in Cheniere Partners. Cheniere Partners Holdings' only business
consists of owning Cheniere Partners units and, accordingly, its
results of operations and financial condition are dependent on the
performance of Cheniere Partners. Cheniere Partners owns and
operates LNG regasification facilities and, adjacent to these
facilities, plans to construct over time up to six Trains with an
expected aggregate nominal production capacity of approximately 27
mtpa. Trains 1 and 2 have commenced commercial operations, Train 3
is undergoing commissioning, Trains 4 and 5 are under construction,
and Train 6 is fully permitted.
For additional information, please refer to the Cheniere
Partners Holdings website at www.cheniere.com and Quarterly Report
on Form 10-Q for the quarter ended September 30, 2016, filed
with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements." All statements, other than statements
of historical fact, included herein are "forward-looking
statements." Included among "forward-looking statements" are, among
other things, (i) statements regarding Cheniere Partners' and
Cheniere Partners Holdings' 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. Furthermore, in connection with Cheniere's proposal,
there can be no assurance that any discussions that may occur
between us and Cheniere will result in the entry into of a
definitive agreement concerning a transaction or, if such a
definitive agreement is reached, will result in the consummation of
a transaction provided for in such definitive agreement. Although
Cheniere Partners Holdings 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 Holdings' 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 Holdings' 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 Holdings does not assume a duty to update these
forward-looking statements.
(Financial Table Follows)
CHENIERE ENERGY
PARTNERS LP HOLDINGS, LLC
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(in thousands,
except per share data) (1)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Equity income from
investment in Cheniere Partners
|
$
|
5,084
|
|
|
$
|
5,084
|
|
|
$
|
15,253
|
|
|
$
|
15,253
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
General and
administrative expense
|
484
|
|
|
275
|
|
|
1,205
|
|
|
875
|
|
General and
administrative expense—affiliate
|
258
|
|
|
253
|
|
|
772
|
|
|
761
|
|
Total
expenses
|
742
|
|
|
528
|
|
|
1,977
|
|
|
1,636
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
4,342
|
|
|
$
|
4,556
|
|
|
$
|
13,276
|
|
|
$
|
13,617
|
|
|
|
|
|
|
|
|
|
Net income per common
share—basic and diluted
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
231,700
|
|
|
231,700
|
|
|
231,700
|
|
|
231,700
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per common share
|
$
|
0.020
|
|
|
$
|
0.020
|
|
|
$
|
0.060
|
|
|
$
|
0.059
|
|
(1)
|
Please refer to the
Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form
10-Q for the quarter ended September 30, 2016, filed with the
Securities and Exchange Commission.
|
CHENIERE ENERGY
PARTNERS LP HOLDINGS, LLC
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share amounts) (1)
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
460
|
|
|
$
|
917
|
|
Receivables
|
|
157
|
|
|
157
|
|
Other current
assets
|
|
106
|
|
|
26
|
|
Total current
assets
|
|
723
|
|
|
1,100
|
|
|
|
|
|
|
Other non-current
assets
|
|
—
|
|
|
95
|
|
Total
assets
|
|
$
|
723
|
|
|
$
|
1,195
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
266
|
|
|
$
|
106
|
|
Accrued
liabilities—affiliate
|
|
—
|
|
|
6
|
|
Total current
liabilities
|
|
266
|
|
|
112
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Common shares:
unlimited shares authorized, 231.7 million shares issued and
outstanding at September 30, 2016 and December 31, 2015
|
|
664,931
|
|
|
664,931
|
|
Director voting
share: 1 share authorized, issued and outstanding at September 30,
2016 and December 31, 2015
|
|
—
|
|
|
—
|
|
Additional
paid-in-capital
|
|
(271,757)
|
|
|
(271,757)
|
|
Accumulated
deficit
|
|
(392,717)
|
|
|
(392,091)
|
|
Total shareholders'
equity
|
|
457
|
|
|
1,083
|
|
Total liabilities and
shareholders' equity
|
|
$
|
723
|
|
|
$
|
1,195
|
|
(1)
|
Please refer to the
Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form
10-Q for the quarter ended September 30, 2016, filed with the
Securities and Exchange Commission.
|
CONTACTS:
Investors: Randy Bhatia:
713-375-5479
Media: Faith Parker:
713-375-5663
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cheniere-energy-partners-lp-holdings-llc-reports-third-quarter-2016-results-300356737.html
SOURCE Cheniere Energy Partners LP Holdings, LLC