HOUSTON, Oct. 30, 2014
/PRNewswire/ -- Cheniere Energy, Inc. ("Cheniere") (NYSE MKT:
LNG) reported a net loss attributable to common stockholders of
$89.6 million, or $0.40 per share (basic and diluted), for the
three months ended September 30,
2014, compared to a net loss attributable to common
stockholders of $100.8 million, or
$0.46 per share (basic and diluted),
for the comparable 2013 period. For the nine months ended
September 30, 2014, Cheniere reported
a net loss attributable to common stockholders of $389.3 million, or $1.74 per share (basic and diluted), compared to
a net loss attributable to common stockholders of $372.7 million, or $1.71 per share (basic and diluted), during the
corresponding period of 2013.
Results include significant items for the three and nine months
ended September 30, 2014 of
$6.0 million and $242.5 million, compared to $33.4 million and $75.0
million for the comparable 2013 periods, respectively. The
significant items for the three and nine months ended September 30, 2014 related to development
expenses primarily for the liquefaction facilities being developed
by us near Corpus Christi, Texas
(the "Corpus Christi Liquefaction Project"), losses on early
extinguishment of debt related to the write-off of debt issuance
costs by Sabine Pass Liquefaction, LLC ("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.
Included in general and administrative expense were non-cash
compensation expenses of $21.2
million and $80.4 million for
the three and nine months ended September
30, 2014, respectively, compared to $24.7 million and $187.1
million for the comparable 2013 periods, respectively.
Results are reported on a consolidated basis and include our
ownership interest in Cheniere Energy Partners, L.P. ("Cheniere
Partners"), which is based on our 100% ownership of the general
partner and 84.5% ownership interest in Cheniere Energy Partners LP
Holdings, LLC which owns a 55.9% limited partner interest in
Cheniere Partners.
Recent Significant Events
- In August 2014, our wholly owned
subsidiary, Cheniere Marketing, LLC ("Cheniere Marketing"), entered
into an amended and restated LNG Sale and Purchase Agreement
("SPA") with Sabine Pass Liquefaction to purchase, at Cheniere
Marketing's option, any liquefied natural gas ("LNG") produced by
Sabine Pass Liquefaction in excess of that required for other
customers; and
- In August 2014, Cheniere
Marketing entered into SPAs with Corpus Christi Liquefaction, LLC
under which Cheniere Marketing has the option to purchase any LNG
produced by Corpus Christi Liquefaction in excess of that required
for other customers.
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners we are developing up to six natural
gas liquefaction trains ("Trains"), each with an expected nominal
production capacity of approximately 4.5 mtpa, at the Sabine Pass
LNG terminal adjacent to the existing regasification facilities
(the "Sabine Pass Liquefaction Project").
The Trains are in various stages of development.
- Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2014, the overall project for
Trains 1 and 2 was approximately 76% complete, 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, 2014, the overall project for
Trains 3 and 4 was approximately 43% 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 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. Federal Energy Regulatory Commission ("FERC")
authorization is also pending.
We will contemplate making a final investment decision to
commence construction on Trains 5 and 6 based upon, among other
things, entering into acceptable commercial arrangements, receiving
all regulatory approvals and obtaining financing.
Corpus Christi Liquefaction Project
We continue to make progress on the commercialization and
development of the Corpus Christi Liquefaction Project, which is
being designed for up to three Trains with expected aggregate
nominal production capacity of approximately 13.5 mtpa of LNG.
- To date, we have entered into SPAs aggregating approximately
6.9 mtpa of LNG volumes commencing with Trains 1 and 2 and 0.77
mtpa of LNG volumes commencing with Train 3.
- We have received authorization from the DOE to export up to 767
Bcf per year of domestically produced LNG to FTA countries.
Authorization to export LNG to non-FTA countries is pending. In
October 2014, the FERC issued the
Final Environmental Impact Statement, which is pending final
approval. We expect to receive remaining regulatory approvals by
early 2015.
We will contemplate making a final investment decision to
commence construction of the Corpus Christi Liquefaction Project
based upon, among other things, entering into acceptable commercial
arrangements, receiving all regulatory approvals and obtaining
financing.
Timelines for Liquefaction Projects
|
|
Target
Date
|
|
|
Sabine Pass
Liquefaction
|
|
Corpus Christi
Liquefaction
|
Milestone
|
|
Trains
1 &
2
|
|
Trains
3 &
4
|
|
Trains
5 &
6
|
|
|
DOE export
authorization
|
|
Received
|
|
Received
|
|
Received
FTA
Pending
Non-FTA
|
|
Received FTA;
Pending Non-FTA
|
Definitive commercial
agreements
|
|
Completed
7.7 mtpa
|
|
Completed
8.3 mtpa
|
|
T5:
Completed
T6:
2014/2015
|
|
T1-T2:
Completed
|
- BG Gulf Coast LNG,
LLC
|
|
4.2 mtpa
|
|
1.3 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
|
|
|
- PT
Pertamina
|
|
|
|
|
|
|
|
1.52 mtpa
|
- Endesa,
S.A.
|
|
|
|
|
|
|
|
2.25 mtpa
|
- Iberdrola, S.A.
|
|
|
|
|
|
|
|
0.76 mtpa
|
-
Gas Natural Fenosa LNG SL
|
|
|
|
|
|
|
|
1.50 mtpa
|
-
Woodside Energy Trading Singapore
|
|
|
|
|
|
|
|
0.85 mtpa
|
-
Électricité de France, S.A.
|
|
|
|
|
|
|
|
0.77 mtpa
|
EPC
contract
|
|
Completed
|
|
Completed
|
|
2014/2015
|
|
Completed
|
Financing
|
|
|
|
|
|
2015
|
|
2014
|
- Equity
|
|
Completed
|
|
Completed
|
|
|
|
|
- Debt
commitments
|
|
Received
|
|
Received
|
|
|
|
|
FERC
authorization
|
|
|
|
|
|
|
|
|
- FERC
Order
|
|
Received
|
|
Received
|
|
2014/2015
|
|
2014/2015
|
- Certificate to
commence construction
|
|
Received
|
|
Received
|
|
|
|
|
Issue Notice to
Proceed
|
|
Completed
|
|
Completed
|
|
2015
|
|
2015
|
Commence
operations
|
|
2015/2016
|
|
2016/2017
|
|
2018/2019
|
|
2018/2019
|
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged
in LNG-related businesses, and owns and operates the Sabine Pass
LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related
business opportunities both upstream and downstream of the Sabine
Pass LNG terminal. Through its subsidiary, Cheniere Energy
Partners, L.P., Cheniere is developing a liquefaction project at
the Sabine Pass LNG terminal adjacent to the existing
regasification facilities for up to six Trains, each of which is
expected to have a nominal production capacity of approximately 4.5
mtpa. Construction has begun on Trains 1 through 4 at the Sabine
Pass Liquefaction Project. Cheniere has also initiated a project to
develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi
Liquefaction Project is being designed for up to three Trains, with
expected aggregate nominal production capacity of approximately
13.5 mtpa of LNG, three LNG storage tanks with capacity of
approximately 10.1 Bcfe and two LNG carrier docks. Commencement of
construction for the Corpus Christi Liquefaction Project is
subject, but not limited, to obtaining regulatory approvals,
entering into long-term customer contracts sufficient to underpin
financing of the project, obtaining financing, and Cheniere making
a final investment decision. Cheniere believes that LNG exports
from the Corpus Christi Liquefaction Project could commence as
early as 2018.
For additional information, please refer to the Cheniere Energy,
Inc. website at www.cheniere.com and Quarterly Report on Form 10-Q
for the quarter ended September 30, 2014, filed with the
Securities and Exchange Commission.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. 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's 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's LNG terminal and pipeline businesses, including
liquefaction facilities, (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
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's 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's
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 does not assume a duty to update these
forward-looking statements.
(Financial Table Follows)
Cheniere Energy,
Inc.
Selected Financial
Information
(in thousands,
except per share data)(1)
(unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
|
|
|
|
|
|
|
LNG terminal
revenues
|
$
|
66,983
|
|
$
|
66,735
|
|
$
|
200,243
|
|
$
|
199,222
|
Marketing and trading
revenues (losses)
|
(499)
|
|
590
|
|
482
|
|
441
|
Other
|
323
|
|
385
|
|
1,277
|
|
1,130
|
Total
revenues
|
66,807
|
|
67,710
|
|
202,002
|
|
200,793
|
|
|
|
|
|
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
General and
administrative expense
|
74,255
|
|
57,096
|
|
215,783
|
|
277,971
|
Depreciation
|
16,189
|
|
15,246
|
|
48,962
|
|
45,533
|
Operating and
maintenance expense
|
26,102
|
|
30,098
|
|
69,198
|
|
76,425
|
Development
expense
|
11,544
|
|
11,046
|
|
38,919
|
|
50,214
|
Other
|
75
|
|
100
|
|
245
|
|
258
|
Total operating costs
and expenses
|
128,165
|
|
113,586
|
|
373,107
|
|
450,401
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(61,358)
|
|
(45,876)
|
|
(171,105)
|
|
(249,608)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest expense,
net
|
(46,884)
|
|
(52,528)
|
|
(130,943)
|
|
(134,806)
|
Loss on early
extinguishment of debt
|
—
|
|
—
|
|
(114,335)
|
|
(80,510)
|
Derivative gain
(loss), net
|
5,573
|
|
(22,335)
|
|
(89,286)
|
|
55,706
|
Other income
(expense)
|
(160)
|
|
65
|
|
(39)
|
|
954
|
Total other
expense
|
(41,471)
|
|
(74,798)
|
|
(334,603)
|
|
(158,656)
|
|
|
|
|
|
|
|
|
Loss before income
taxes and non-controlling interest
|
(102,829)
|
|
(120,674)
|
|
(505,708)
|
|
(408,264)
|
Income tax
provision
|
(1,971)
|
|
(1,809)
|
|
(2,147)
|
|
(2,751)
|
Net loss
|
(104,800)
|
|
(122,483)
|
|
(507,855)
|
|
(411,015)
|
Less: net loss
attributable to non-controlling interest
|
(15,219)
|
|
(21,659)
|
|
(118,536)
|
|
(38,323)
|
Net loss attributable
to common stockholders
|
$
|
(89,581)
|
|
$
|
(100,824)
|
|
$
|
(389,319)
|
|
$
|
(372,692)
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders—basic and diluted
|
$
|
(0.40)
|
|
$
|
(0.46)
|
|
$
|
(1.74)
|
|
$
|
(1.71)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding—basic and diluted
|
224,309
|
|
220,734
|
|
223,710
|
|
217,940
|
|
September
30,
|
|
December
31,
|
|
2014
|
|
2013
|
ASSETS
|
(unaudited)
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
|
791,656
|
|
$
|
960,842
|
Restricted cash and
cash equivalents
|
661,804
|
|
598,064
|
Accounts and interest
receivable
|
23,385
|
|
4,486
|
LNG
inventory
|
13,966
|
|
10,563
|
Prepaid expenses and
other
|
19,051
|
|
17,225
|
Total current
assets
|
1,509,862
|
|
1,591,180
|
|
|
|
|
Non-current
restricted cash and cash equivalents
|
1,139,104
|
|
1,031,399
|
Property, plant and
equipment, net
|
8,634,504
|
|
6,454,399
|
Debt issuance costs,
net
|
251,101
|
|
313,944
|
Non-current
derivative assets
|
32,161
|
|
98,123
|
Goodwill
|
76,819
|
|
76,819
|
Other
|
141,765
|
|
107,373
|
Total
assets
|
$
|
11,785,316
|
|
$
|
9,673,237
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
|
16,064
|
|
$
|
10,367
|
Accrued
liabilities
|
378,982
|
|
186,552
|
Deferred
revenue
|
26,639
|
|
26,593
|
Other
|
17,103
|
|
13,499
|
Total current
liabilities
|
438,788
|
|
237,011
|
|
|
|
|
Long-term debt,
net
|
8,989,760
|
|
6,576,273
|
Long-term deferred
revenue
|
14,500
|
|
17,500
|
Other non-current
liabilities
|
11,715
|
|
2,396
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
Preferred stock,
$0.0001 par value, 5.0 million shares authorized, none
issued
|
—
|
|
—
|
Common stock, $0.003
par value
|
|
|
|
Authorized: 480.0
million shares at September 30, 2014 and December 31,
2013
|
|
|
|
Issued and
outstanding: 237.7 million and 238.1 million shares at September
30, 2014 and December 31, 2013, respectively
|
715
|
|
716
|
Treasury stock: 9.7
million shares and 9.0 million shares at September 30, 2014 and
December 31, 2013, respectively, at cost
|
(224,944)
|
|
(179,826)
|
Additional
paid-in-capital
|
2,562,647
|
|
2,459,699
|
Accumulated
deficit
|
(2,490,226)
|
|
(2,100,907)
|
Total stockholders'
equity
|
(151,808)
|
|
179,682
|
Non-controlling
interest
|
2,482,361
|
|
2,660,375
|
Total
equity
|
2,330,553
|
|
2,840,057
|
Total liabilities and
equity
|
$
|
11,785,316
|
|
$
|
9,673,237
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to the
Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the quarter
ended September 30, 2014, filed with the Securities and
Exchange Commission.
|
As of September 30, 2014, we had cash and cash equivalents
of $791.7 million available to
Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $1,800.9
million (which included current and non-current restricted
cash and cash equivalents available to Cheniere Partners, Sabine
Pass Liquefaction and Sabine Pass LNG, L.P.) designated for the
following purposes: $1.4 billion for
the Sabine Pass Liquefaction Project, $33.5
million for Cheniere Creole Trail Pipeline, L.P.,
$129.1 million for interest payments
related to the Sabine Pass LNG senior secured notes, and
$274.9 million for other restricted
purposes.
SOURCE Cheniere Energy, Inc.