News Releases

Cheniere Energy Partners, L.P. Reports First Quarter 2016 Results

In the news release, Cheniere Energy Partners, L.P. Reports First Quarter 2016 Results, issued 05-May-2016 by Cheniere Energy Partners, L.P. over PR Newswire, we are advised by the company that there are inaccurate prior year totals in the statement of operations financial table. The complete, corrected release follows:

Cheniere Energy Partners, L.P. Reports First Quarter 2016 Results

- First LNG commissioning cargo exported in February marking transition towards operations

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


77,352

Loss from operations

(9,463)


(9,822)





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)


 

$

(178,676)

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.

Investors: Randy Bhatia: 713-375-5479, Katy Cox: 713-375-5079 OR Media: Faith Parker: 713-375-5663