Cheniere Energy Reports First Quarter 2013 Results

              Cheniere Energy Reports First Quarter 2013 Results

PR Newswire

HOUSTON, May 3, 2013

HOUSTON, May3,2013 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere") (NYSE
MKT: LNG) reported a net loss attributable to common stockholders of $117.1
million, or $0.54 per share (basic and diluted), for the three months ended
March31, 2013, compared to a net loss attributable to common stockholders of
$56.4 million, or $0.43 per share (basic and diluted), for the comparable 2012
period. Results include significant items of $34.6 million for the three
months ended March31, 2013, and $22.7 million for the comparable 2012 period,
related to liquefied natural gas ("LNG") terminal and pipeline development
expenses primarily for the liquefaction facilities Cheniere Energy Partners,
L.P. ("Cheniere Partners") is developing at the Sabine Pass LNG terminal
adjacent to the existing regasification facilities (the "Sabine Pass
Liquefaction Project") and the proposed liquefaction facilities being
developed by us near Corpus Christi, Texas (the "Corpus Christi Liquefaction
Project") and derivative losses primarily due to the change in fair value of
interest rate derivatives that were entered into by Sabine Pass Liquefaction,
LLC ("Sabine Pass Liquefaction") in August 2012 in connection with its $3.6
billion senior secured credit facility (the "Liquefaction Credit Facility").

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Results for the three months ended March 31, 2013 were also impacted by
increases in general and administrative expenses of $65.8 million compared to
the comparable 2012 period primarily due to the February 2013 granting of
awards under the long-term incentive plan related to Trains 3 and 4 of the
Sabine Pass Liquefaction Project. Included in general and administrative
expenses were non-cash compensation expenses of $59.2 million for the quarter
ended March 31, 2013 and $2.1 million for the comparable 2012 period.

Results are reported on a consolidated basis and include our ownership
interest in Cheniere Partners, which was 56.4% as of March31, 2013.

Overview of Recent Significant Events

  oIn February 2013, Sabine Pass Liquefaction issued an aggregate principal
    amount of $1,500 million of 5.625% Senior Secured Notes due 2021 (the
    "2021 Sabine Pass Liquefaction Notes"). In April 2013, Sabine Pass
    Liquefaction issued an additional $1,500 million of notes, including an
    aggregate principal amount of $500 million of the 2021 Sabine Pass
    Liquefaction Notes and $1,000 million of 5.625% Senior Secured Notes due
    2023 (the "2023 Sabine Pass Liquefaction Notes"). The $500 million
    aggregate principal amount constitutes a further issuance of and forms a
    single series with the 2021 Sabine Pass Liquefaction Notes. Net proceeds
    from these offerings are intended to be used to pay capital costs incurred
    in connection with the construction of Train 1 and Train 2 of the Sabine
    Pass Liquefaction Project in lieu of a portion of the commitments under
    the Liquefaction Credit Facility;
  oIn February 2013, Cheniere Partners sold 17.6 million common units for net
    proceeds, after deducting expenses, of $372.4 million, which includes the
    general partner's proportionate capital contribution of approximately $7.4
    million. Cheniere Partners intends to use the proceeds from this offering
    for costs associated with the Sabine Pass Liquefaction Project; and
  oIn March 2013, Sabine Pass Liquefaction entered into an LNG sale and
    purchase agreement ("SPA") with Centrica plc ("Centrica") that commences
    upon the date of first commercial delivery for Train 5 and includes an
    annual contract quantity of 91.25 million MMBtu of LNG and a fixed fee of
    $3.00 per MMBtu, equating to expected annual contracted cash flow from
    fixed fees of $274 million.

Liquefaction Projects Update

Sabine Pass Liquefaction Project

Cheniere Partners continues to make progress on the Sabine Pass Liquefaction
Project, which is being developed for up to six natural gas liquefaction
trains ("Trains"), each with a nominal production capacity of approximately
4.5 mmtpa. The Trains are in various stages of development.

  oTrain 1 and Train 2 have received all Federal Energy Regulatory Commission
    ("FERC") and Department of Energy ("DOE") approvals. We have secured
    approximately $5.9 billion of required financing to construct Train 1 and
    Train 2 and have commenced construction. As of March 31, 2013, the
    overall project for Train 1 and Train 2 was approximately 26% complete.
    The estimated substantial completion dates for Train 1 and Train 2 are
    ahead of the contractual schedule for guaranteed substantial completion,
    and we anticipate that Train 1 will achieve initial LNG production in late
    2015.
  oTrain 3 and Train 4 have received all FERC and DOE approvals, and we have
    entered into a lump sum turnkey EPC contract with Bechtel Oil, Gas and
    Chemicals, Inc. ("Bechtel") for Train 3 and Train 4. Construction of
    Train 3 and Train 4 and the related facilities is expected to commence
    upon, among other things, obtaining financing commitments sufficient to
    fund construction and making a positive final investment decision. We are
    in the process of securing the required financing for the construction of
    Train 3 and Train 4 and expect construction to begin in the first half of
    2013.
  oWe recently began the development of Train 5 and Train 6. We have
    completed two SPAs for approximately 3.75 mmtpa, in aggregate, of LNG
    volumes that commence with the start of Train 5 operations. Bechtel has
    begun preliminary engineering on Train 5 and Train 6, and we have
    commenced the regulatory approval process. In February 2013, we commenced
    the National Environmental Policy Act ("NEPA") pre-filing process with
    FERC, and we expect to file a formal application with FERC in the second
    half of 2013. In February 2013 and in April 2013, we filed export
    applications with the DOE for exports to all current and future countries
    with which the U.S. has a Free Trade Agreement ("FTA") as well as to any
    country with which the U.S. does not have an FTA in effect for the SPA
    with Total Gas & Power North America, Inc. and the Centrica SPA,
    respectively.

Corpus Christi Liquefaction Project

As currently contemplated, the Corpus Christi Liquefaction Project is being
designed for up to three Trains with aggregate nominal production capacity of
up to 15 mmtpa. We have engaged Bechtel to complete front-end engineering and
design work and expect to have project cost estimates in the second half of
2013.

In August 2012, we filed applications with the FERC for authorization to site,
construct and operate the Corpus Christi Liquefaction Project and with the DOE
requesting multi-contract authorization to export up to 767 Bcf per year
(approximately 15 mmtpa) of domestically produced LNG from the Corpus Christi
Liquefaction Project to FTA and non-FTA countries. In October 2012, the DOE
granted us authority to export 15 mmtpa of domestically produced LNG to FTA
countries from the Corpus Christi Liquefaction Project.

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
                        Trains         Trains     Trains
Milestone                                                     Trains 1-3
                        1 & 2          3 & 4      5 & 6
DOE export                                        Initiated   Received -
authorization           Received       Received   Filings     FTA; Pending -
                                                              Non-FTA
Definitive commercial   Completed 7.7  Completed              2H13
agreements              mmtpa          8.3 mmtpa
- BG Gulf Coast LNG,    4.2 mmtpa      1.3 mmtpa
LLC
- Gas Natural Fenosa    3.5 mmtpa
- KOGAS                                3.5 mmtpa
- GAIL (India) Ltd.                    3.5 mmtpa
- Total Gas & Power                               2.0 mmtpa
N.A.
- Centrica plc                                    1.75 mmtpa
EPC contract            Completed      Completed  2H14        4Q13
Financing commitments                  1H13       1H15        1Q14
- Equity                Received
- Debt                  Received
FERC authorization      Received       Received   2H14        1Q14
- Certificate to        Received       Received
commence construction
Commence construction   Completed      1H13       1H15        1Q14
Commence operations     2015/2016      2016/2017  2018        2017

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 with a nominal
production capacity of approximately 4.5 mmtpa. Construction has begun on
Train 1 and Train 2 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 and permitted
for up to three Trains, with aggregate nominal production capacity of up to 15
mmtpa of LNG and which would include three LNG storage tanks with capacity of
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, entering into an engineering, procurement
and construction contract, obtaining financing, and Cheniere making a final
investment decision. We believe LNG exports from the Corpus Christi
Liquefaction Project could commence as early as 2017.

For additional information, please refer to the Cheniere Energy, Inc. website
at www.cheniere.com and Quarterly Report on Form 10-Q for the period ended
March 31, 2013, 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 our 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)


                                                     Three Months Ended
                                                     March 31,
                                                     2013         2012
Revenues
LNG terminal revenues                                $ 66,061     $ 67,260
Marketing and trading revenues                       (565)        2,658
Oil and gas sales                                    410          550
Other                                                —            6
Total revenues                                       65,906       70,474
Operating costs and expenses
General and administrative expense                   85,798       19,993
Depreciation, depletion and amortization             15,113       16,290
LNG terminal and pipeline operating expense          15,259       11,557
LNG terminal and pipeline development expense        17,088       21,819
Other                                                102          94
Total operating costs and expenses                   133,360      69,753
Income (loss) from operations                        (67,454)     721
Other income (expense)
Interest expense, net                                (40,262)     (58,350)
Loss on early extinguishment of debt                 —            (507)
Derivative loss, net                                 (17,468)     (836)
Other income (expense)                               475          125
Total other expense                                  (57,255)     (59,568)
Loss before income taxes and non-controlling         (124,709)    (58,847)
interest
Income tax provision                                 80           (6)
Net loss                                             (124,629)    (58,853)
Non-controlling interest                             7,524        2,438
Net loss attributable to common stockholders         $ (117,105)  $ (56,415)
Net loss per share attributable to common            $ (0.54)     $ (0.43)
stockholders - basic and diluted
Weighted average number of common shares outstanding 215,634      131,107
- basic and diluted



                                                 March 31,     December 31,
                                                 2013          2012
Cash and cash equivalents                        $ 178,041     $ 201,711
Restricted cash and cash equivalents             722,083       520,263
LNG inventory                                    4,605         7,045
Accounts and interest receivable                 2,707         3,486
Prepaid expenses and other                       18,146        16,058
Non-current restricted cash and cash equivalents 1,467,100     272,924
Property, plant and equipment, net               3,824,299     3,282,305
Debt issuance costs, net                         245,804       220,949
Goodwill                                         76,819        76,819
Other assets                                     42,215        37,525
Total assets                                     $ 6,581,819   $ 4,639,085
Current liabilities                              $ 291,366     $ 159,763
Long-term debt, net of discount                  3,668,286     2,167,113
Deferred revenue                                 20,500        21,500
Non-current derivative liabilities               21,978        26,424
Other liabilities                                2,792         2,680
Non-controlling interest                         2,095,868     1,751,604
Stockholders' equity                             481,029       510,001
Total liabilities and equity                     $ 6,581,819   $ 4,639,085



                  Sabine           Cheniere         Other    Consolidated
                                   Partners         Cheniere      Cheniere
                  Pass LNG
Cash and cash     $ —            $ —              $ 178,041     $ 178,041
equivalents
Restricted cash
and cash          134,009   ^(2) 2,042,299   ^(3) 12,875        2,189,183
equivalents
Total             $ 134,009      $ 2,042,299      $ 190,916     $ 2,367,224



As of March31, 2013, we had unrestricted cash and cash equivalents of $178.0
million available to Cheniere. In addition, we had consolidated restricted
cash and cash equivalents of $2,189.2 million (which included cash and cash
equivalents and other working capital available to Cheniere Partners, in which
we own a 56.4% interest, and Sabine Pass LNG, L.P. ("Sabine Pass LNG"))
designated for the following purposes: $2,042.3 million for the Sabine Pass
Liquefaction Project and for Cheniere Partners' working capital; $131.5
million for interest payments related to Sabine Pass LNG's senior secured
notes; $2.5 million for Sabine Pass LNG's working capital; and $12.9 million
for other restricted purposes.

    Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q
(1) for the period ended March 31, 2013, filed with the Securities and
    Exchange Commission.
    All cash and cash equivalents presented above for Sabine Pass LNG are
(2) considered restricted to us, but $2.5 million is considered unrestricted
    for Sabine Pass LNG.
    All cash and cash equivalents presented above for Cheniere Partners are
    considered restricted to us, but $456.9 million is considered unrestricted
    for Cheniere Partners, including the $2.5 million considered unrestricted
(3) for Sabine Pass LNG. Subsequent to March 31, 2013, Sabine Pass
    Liquefaction issued an additional $500.0 million of the 2021 Sabine Pass
    Liquefaction Notes and $1,000.0 million of the 2023 Sabine Pass
    Liquefaction Notes. The $1,466.0 million net proceeds are considered
    restricted to us and Cheniere Partners. 

SOURCE Cheniere Energy, Inc.

Website: http://www.cheniere.com
Contact: Investors: Christina Burke: 713-375-5104, Nancy Bui: 713-375-5280, or
Media: Diane Haggard: 713-375-5259