Cheniere Energy Reports Second Quarter 2013 Results

             Cheniere Energy Reports Second Quarter 2013 Results

PR Newswire

HOUSTON, Aug. 2, 2013

HOUSTON, Aug. 2,2013 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere") (NYSE
MKT: LNG) reported a net loss attributable to common stockholders of $154.8
million, or $0.71 per share (basic and diluted), for the three months ended
June30, 2013, compared to a net loss attributable to common stockholders of
$73.0 million, or $0.43 per share (basic and diluted), for the comparable 2012
period. For the six months ended June30, 2013, Cheniere reported a net loss
attributable to common stockholders of $271.9 million, or $1.26 per share
(basic and diluted), compared to a net loss attributable to common
stockholders of $129.5 million, or $0.86 per share (basic and diluted), during
the corresponding period of 2012.

(Logo: http://photos.prnewswire.com/prnh/20090611/AQ31545LOGO)

Results include significant items of $7.1 million and $41.6 million for the
three and six months ended June 30, 2013, respectively, compared to $35.4
million and $58.6 million for the three and six months ended June 30, 2012,
respectively. Significant items for the three and six months ended June 30,
2013 related to liquefied natural gas ("LNG") terminal and pipeline
development expenses and loss on early extinguishment of debt, which were
partially offset by derivative gains. LNG terminal and pipeline development
expenses were 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"). Loss on early extinguishment of debt was related to Sabine Pass
Liquefaction, LLC ("Sabine Pass Liquefaction") amending and replacing its $3.6
billion credit facility with four credit facilities aggregating $5.9 billion.
Derivative gains were primarily the result of the change in fair value of
Sabine Pass Liquefaction's interest rate derivatives to hedge the exposure to
volatility in a portion of the floating-rate interest payments under the four
credit facilities.

Results for the three and six months ended June 30, 2013 were also impacted by
increases in general and administrative expenses and LNG terminal operating
expenses. Increases in general and administrative expenses of $114.3 million
and $180.1 million for the three and six months ended June 30, 2013,
respectively, compared to the comparable 2012 periods were 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
$103.2 million and $162.4 million for the three and six months ended June 30,
2013, respectively, compared to $1.8 million and $3.9 million for the
comparable 2012 periods, respectively. Increases in LNG terminal operating
expenses of $20.1 million and $23.8 million for the three and six months ended
June 30, 2013, respectively, compared to the comparable 2012 periods resulted
primarily from costs incurred to purchase LNG to maintain the cryogenic
readiness of the regasification facilities at the Sabine Pass LNG terminal and
increases in non-cash compensation expenses of an additional $5.3 million and
$7.9 million for the three and six months ended June 30, 2013, respectively,
compared to the comparable 2012 periods.

Decreases in interest expense of $13.8 million and $31.9 million for the three
and six months ended June 30, 2013, respectively, compared to the comparable
2012 periods were primarily as a result of the reduction of our indebtedness
outstanding in 2012 and the capitalization of interest on Sabine Pass
Liquefaction's debt.

Results are reported on a consolidated basis and include our ownership
interest in Cheniere Partners, which was 57.9% as of June 30, 2013.

Overview of Recent Significant Events

  oIn April 2013, Sabine Pass Liquefaction issued $0.5 billion of 5.625%
    Senior Secured Notes due 2021 (the "2021 Sabine Pass Liquefaction Senior
    Notes"), which resulted in an aggregate outstanding principal amount of
    $2.0 billion of the 2021 Sabine Pass Liquefaction Senior Notes. Sabine
    Pass Liquefaction also issued an aggregate principal amount of $1.0
    billion of 5.625% Senior Secured Notes due 2023. The net proceeds from
    these offerings are intended to be used to pay a portion of the capital
    costs incurred in connection with the construction of the Sabine Pass
    Liquefaction Project;
  oIn May 2013, Sabine Pass Liquefaction entered into four credit facilities
    totaling $5.9 billion to be used for costs associated with Trains 1
    through 4 of the Sabine Pass Liquefaction Project;
  oIn May 2013, Sabine Pass Liquefaction issued a notice to proceed to
    Bechtel Oil, Gas and Chemicals, Inc. ("Bechtel") for the engineering,
    procurement and construction of Trains 3 and 4;
  oIn May 2013, we sold the Creole Trail Pipeline business for $480.0 million
    and were reimbursed $13.9 million for certain expenditures incurred prior
    to the closing date. Concurrent with the Creole Trail Pipeline Business
    sale closing, we acquired 12.0 million Class B units from Cheniere
    Partners at a price of $15.00 per Class B unit for aggregate consideration
    of $180.0 million pursuant to a unit purchase agreement between Cheniere
    Partners and Cheniere Class B Units Holdings, LLC, our wholly owned
    subsidiary. As a result of the two transactions, we received net cash of
    $313.9 million; and
  oIn May 2013, CTPL entered into a $400 million term loan credit facility.

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 design production capacity of approximately 4.5
mtpa. We have received all Federal Energy Regulatory Commission ("FERC") and
Department of Energy ("DOE") approvals for Trains 1 through 4, and we are
seeking regulatory authorization to develop Trains 5 and 6. The Trains are in
various stages of development.

  oTrains 1 and 2 construction began in August 2012 and as of June 30, 2013,
    the overall project for Trains 1 and 2 was approximately 38% complete,
    which is ahead of the contracted schedule. Based on our current
    construction, we anticipate that Train 1 will produce LNG as early as late
    2015.
  oTrains 3 and 4 financing was completed in May 2013, and a notice to
    proceed was issued to Bechtel to commence construction of Train 3 and
    Train 4 and the related facilities. We expect Trains 3 and 4 to become
    operational in late 2016 and 2017, respectively.
  oWe continue to progress with the development of Train 5 and Train 6. We
    have completed two SPAs for approximately 3.75 mtpa, in aggregate, of LNG
    volumes that commence with the start of Train 5 operations. Bechtel has
    begun preliminary engineering on Trains 5 and 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 the complete 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 SPAs with Total Gas
    & Power North America, Inc. ("Total") and Centrica plc ("Centrica"),
    respectively. In July 2013, we received authorization from the DOE to
    export LNG volumes to FTA countries under the Total SPA and Centrica SPA.
    The non-FTA authorizations for the SPAs for Total and Centrica are
    pending.

Corpus Christi Liquefaction Project

As currently contemplated, the Corpus Christi Liquefaction Project is being
designed for up to three Trains with aggregate design production capacity of
up to 15 mtpa. 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 mtpa) 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 mtpa 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
                                              T5: Received
DOE export             Received   Received    FTA            Received - FTA;
authorization                                 Pending        Pending - Non-FTA
                                              Non-FTA
Definitive commercial  Completed  Completed   T5: Completed  2014
agreements             7.7 mtpa   8.3 mtpa    T6: 2H13
- BG Gulf Coast LNG,   4.2 mtpa   1.3 mtpa
LLC
- Gas Natural Fenosa   3.5 mtpa
- KOGAS                           3.5 mtpa
- GAIL (India) Ltd.               3.5 mtpa
- Total Gas & Power                           2.0 mtpa
N.A.
- Centrica plc                                1.75 mtpa
EPC contract           Completed  Completed   2H14           2014
Financing                                     1H15           2015
- Equity               Completed  Completed
- Debt commitments     Received   Received
FERC authorization
- FERC Order           Received   Received    2H14           2014
- Certificate to       Received   Received
commence construction
Issue Notice to        Completed  Completed   1H15           2015
Proceed
Commence operations    2015/2016  2016/2017   2018           2018

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 will
have a design 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 and
permitted for up to three Trains, with aggregate design production capacity of
up to 15 mtpa 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 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 period ended
June 30, 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       Six Months Ended
                             June 30,                 June 30,
                             2013         2012        2013         2012
Revenues
LNG terminal revenues        $ 66,425     $ 66,071    $ 132,486    $ 133,331
Marketing and trading        416          (4,007)     (149)        (1,349)
revenues
Other                        336          264         746          819
 Total revenues           67,177       62,328      133,083      132,801
Operating costs and expenses
General and administrative   135,076      20,816      220,875      40,809
expense
LNG terminal operating       31,068       10,993      46,327       22,550
expense
LNG terminal development     22,081       21,088      39,168       42,907
expense
Depreciation, depletion and  15,173       15,478      30,286       31,768
amortization
Other                        57           74          159          166
 Total operating costs    203,455      68,449      336,815      138,200
and expenses
Loss from operations         (136,278)    (6,121)     (203,732)    (5,399)
Other income (expense)
Interest expense, net        (42,016)     (55,864)    (82,278)     (114,215)
Loss on early extinguishment (80,510)     (14,593)    (80,510)     (15,100)
of debt
Derivative gain (loss), net  95,509       261         78,041       (575)
Other income                 413          458         889          583
 Total other expense      (26,604)     (69,738)    (83,858)     (129,307)
Loss before income taxes and (162,882)    (75,859)    (287,590)    (134,706)
non-controlling interest
Income tax provision         (1,022)      (144)       (942)        (150)
Net loss                     (163,904)    (76,003)    (288,532)    (134,856)
Non-controlling interest     9,140        2,963       16,664       5,401
Net loss attributable to     $ (154,764)  $ (73,040)  $ (271,868)  $ (129,455)
common stockholders
Net loss per share
attributable to common       $ (0.71)     $ (0.43)    $ (1.26)     $ (0.86)
stockholders - basic and
diluted
Weighted average number of
common shares outstanding -  217,397      171,001     216,520      151,054
basic and diluted

                                                 June 30,     December 31,
                                                 2013         2012
Cash and cash equivalents                        $ 396,921    $  201,711
Restricted cash and cash equivalents             899,468      520,263
Accounts and interest receivable                 26,935       3,486
LNG inventory                                    11,730       7,045
Prepaid expenses and other                       18,847       16,058
Non-current restricted cash and cash equivalents 1,778,248    272,924
Property, plant and equipment, net               4,893,605    3,282,305
Debt issuance costs, net                         351,830      220,949
Non-current derivative assets                    81,762       —
Goodwill                                         76,819       76,819
Other                                            46,065       37,525
Total assets                                     $ 8,582,230  $  4,639,085
Current liabilities                              $ 548,295    $  159,763
Long-term debt, net of discount                  5,572,008    2,167,113
Deferred revenue                                 19,500       21,500
Non-current derivative liabilities               —            26,424
Other liabilities                                3,677        2,680
Non-controlling interest                         2,067,988    1,751,604
Stockholders' equity                             370,762      510,001
Total liabilities and equity                     $ 8,582,230  $  4,639,085

                       Sabine         Cheniere         Other      Consolidated
                       Pass LNG       Partners         Cheniere   Cheniere
Cash and cash          $ —            $ —              $ 396,921  $  396,921
equivalents
Restricted cash and    105,848   ^(2) 2,560,262   ^(3) 11,606     2,677,716
cash equivalents
Total                  $ 105,848      $ 2,560,262      $ 408,527  $  3,074,637

As of June30, 2013, we had unrestricted cash and cash equivalents of $396.9
million available to Cheniere. In addition, we had consolidated restricted
cash and cash equivalents of $2,677.7 million (which included cash and cash
equivalents available to Cheniere Partners, in which we own a 57.9% interest,
and Sabine Pass LNG) designated for the following purposes: $2,089.8 million
for the Sabine Pass Liquefaction Project, $116.0 million for Creole Trail
Pipeline and $340.5 million for Cheniere Partners' working capital; $105.0
million for interest payments related to the Sabine Pass LNG senior secured
notes and CTPL credit facility; $14.8 million for Sabine Pass LNG's working
capital; and $11.6 million for other restricted purposes.

    Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q
(1) for the period ended June 30, 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 $14.8 million is considered unrestricted
    for Sabine Pass LNG.
    All cash and cash equivalents presented above for Cheniere Partners are
(3) considered restricted to us, but $355.3 million is considered unrestricted
    for Cheniere Partners, including the $14.8 million considered unrestricted
    for Sabine Pass LNG.



SOURCE Cheniere Energy, Inc.

Website: http://www.cheniere.com
Contact: Investors, Christina Burke, +1-713-375-5104, Nancy Bui,
+1-713-375-5280, Media, Diane Haggard, +1-713-375-5259