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Cheniere Energy Partners LP Holdings, LLC Reports Third Quarter 2016 Results

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

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