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 Trains Trains 1 & 2 3 & 4 5 & 6 --- ----- ----- ----- DOE export authorization Received Received Received FTA Received FTA; Pending Non-FTA Pending Non-FTA Definitive commercial agreements Completed Completed T5: Completed T1-T2: Completed 7.7 mtpa 8.3 mtpa T6: 2014/2015 - 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.