Cheniere Energy Reports Third Quarter 2013 Results

              Cheniere Energy Reports Third Quarter 2013 Results

PR Newswire

HOUSTON, Nov. 8, 2013

HOUSTON, Nov. 8,2013 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere") (NYSE
MKT: LNG) reported a net loss attributable to common stockholders of $100.8
million, or $0.46 per share (basic and diluted), for the three months ended
September30, 2013, compared to a net loss attributable to common stockholders
of $109.0 million, or $0.52 per share (basic and diluted), for the comparable
2012 period. For the nine months ended September30, 2013, Cheniere reported
a net loss attributable to common stockholders of $372.7 million, or $1.71 per
share (basic and diluted), compared to a net loss attributable to common
stockholders of $238.5 million, or $1.40 per share (basic and diluted), during
the corresponding period of 2012.

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Significant items for the three months and nine months ended September 30,
2013 were $33.4 million, or $0.15 per share (basic and diluted), and $75.0
million, or $0.34 per share (basic and diluted), respectively, compared to
$11.4 million, or $0.05 per share (basic and diluted), and $70.0 million, or
$0.41 per share (basic and diluted), respectively, for the comparable 2012
periods. Significant items for the quarter related to liquefied natural gas
("LNG") terminal development expenses and derivative gains/losses, and for the
nine months ended September 30, 2013, significant items also included loss on
early extinguishment of debt. LNG terminal development expenses were
primarily for the liquefaction facilities Cheniere Energy Partners, L.P.
("Cheniere Partners") is developing through Sabine Pass Liquefaction, LLC
("Sabine Pass Liquefaction") 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"). Derivative
gains/losses 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. Loss on early extinguishment of debt was related to Sabine
Pass Liquefaction amending and replacing its $3.6 billion credit facility with
four credit facilities aggregating $5.9 billion in May 2013.

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

Liquefaction Projects Update

Sabine Pass Liquefaction Project

Cheniere Partners is developing up to six natural gas liquefaction trains
("Trains), each with a design production capacity of approximately 4.5 mtpa,
at the Sabine Pass LNG terminal adjacent to the existing regasification
facilities. We have received Federal Energy Regulatory Commission ("FERC")
and Department of Energy ("DOE") approvals for Trains 1 through 4, and we have
filed all required regulatory applications with the FERC and DOE to develop
Trains 5 and 6.

The Trains are in various stages of development.

  oConstruction on Trains 1 and 2 began in August 2012, and as of September
    30, 2013, the overall project for Trains 1 and 2 was approximately 45%
    complete, which is ahead of the contracted schedule. Based on our current
    construction, we anticipate that Train 1 will produce LNG by late 2015.
  oConstruction on Trains 3 and 4 began in May 2013, and as of September 30,
    2013, the overall project for Trains 3 and 4 was approximately 10%
    complete. To date, soil stabilization has been completed and pile
    driving, our next critical path item, is underway. We expect Trains 3 and
    4 to become operational in late 2016 and 2017, respectively.
  oWe continue to make progress with the commercialization and development of
    Trains 5 and 6. To date, we have completed two LNG sale and purchase
    agreements ("SPAs") for approximately 3.75 mtpa, in aggregate, of LNG
    volumes that commence with the start of Train 5 operations. Annual fixed
    fee revenues associated with these SPAs are approximately $0.6 billion.
    Bechtel has begun the front-end engineering design ("FEED") on Trains 5
    and 6, and we have commenced the regulatory approval process. In
    September 2013, we filed the complete application with the FERC. In
    February 2013 and in April 2013, we filed Free Trade Agreement ("FTA") and
    non-FTA export applications for LNG volumes under the SPAs with Total Gas
    & Power North America, Inc. ("Total") and Centrica plc ("Centrica"),
    respectively. In September 2013, we filed FTA and non-FTA export
    applications for LNG volumes for the un-contracted volumes from Train 5
    and for all volumes from Train 6. To date, we have received authorization
    from the DOE to export LNG volumes to FTA countries under the Total SPA
    and Centrica SPA. FTA authorization for the remaining volumes from Train
    5 and all volumes from Train 6 as well as non-FTA authorizations for both
    Trains 5 and 6 are pending.

Corpus Christi Liquefaction Project

We are also continuing to make progress on the commercialization and
development of the Corpus Christi Liquefaction Project, which is being
designed for up to three Trains with aggregate design production capacity of
13.5 mtpa of LNG.

To date, the Corpus Christi Liquefaction Project is one of the top three
projects under review at the FERC and is fifth on the DOE's Order of
Precedence list, which lists the order in which the DOE will be processing
non-FTA LNG export applications. 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 of domestically produced LNG from the Corpus
Christi Liquefaction Project to FTA and non-FTA countries. We have received
authorization from the DOE to export up to 767 Bcf per year of domestically
produced LNG to FTA countries from the Corpus Christi Liquefaction Project.

In September 2013, we received the lump-sum turnkey contract price for the
Corpus Christi Liquefaction Project from Bechtel, which has allowed us to
commence commercialization of 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 authorization  Received   Received       FTA        Received FTA;
                                                               Pending Non-FTA
                                                    Pending
                                                    Non-FTA
                                                    T5:
Definitive commercial     Completed  Completed 8.3  Completed  2014
agreements                7.7 mtpa   mtpa
                                                    T6: 2014
- 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
EPC contract              Completed  Completed      2015       2013/2014
Financing                                           2015       2014
- Equity                  Completed  Completed
- Debt commitments        Received   Received
FERC authorization
- FERC Order              Received   Received       2015       2014
- Certificate to          Received   Received
commence construction
Issue Notice to Proceed   Completed  Completed      2015       2014
Commence operations       2015/2016  2016/2017      2018/2019  2,018



Q3 2013 Results

For the quarter and nine months ended September 30, 2013, Cheniere reported
loss from operations of $45.9 million and $249.6 million, respectively,
compared to $54.5 million and $59.9 million for the respective comparable
periods in 2012. Net operating losses were primarily affected by general and
administrative expenses due to non-cash compensation expenses from the
granting of awards under the long-term incentive plan related to Trains 1
through 4 of the Sabine Pass Liquefaction Project and by LNG terminal
operating expenses, which resulted primarily from costs incurred to purchase
LNG to maintain the cryogenic readiness of the regasification facilities at
the Sabine Pass LNG terminal. Non-cash compensation expenses were $24.7
million and $187.1 million for the three and nine months ended September 30,
2013, respectively, compared to $50.2 million and $54.1 million for the
respective comparable 2012 periods.

Changes in interest expense for the three and nine months ended September 30,
2013, respectively, compared to the comparable 2012 periods were primarily as
a result of reduction of our indebtedness outstanding in 2012 and
capitalization of interest on Sabine Pass Liquefaction's debt.

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 13.5 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
September 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          Nine Months Ended
                        September 30,               September 30,
                        2013          2012          2013          2012
Revenues
LNG terminal revenues   $ 66,735      $ 65,939      $ 199,222     $ 199,269
Marketing and trading   590           (292)         441           (1,641)
revenues
Other                   385           351           1,130         1,171
Total revenues          67,710        65,998        200,793       198,799
Operating costs and
expenses
LNG terminal operating  30,098        14,056        76,425        36,606
expense
LNG terminal            11,046        11,721        50,214        54,629
development expense
Depreciation, depletion 15,246        15,233        45,533        47,001
and amortization
General and             57,096        79,427        277,971       120,236
administrative expense
Other                   100           78            258           244
Total operating costs   113,586       120,515       450,401       258,716
and expenses
Loss from operations    (45,876)      (54,517)      (249,608)     (59,917)
Other income (expense)
Interest expense, net   (52,528)      (45,504)      (134,806)     (159,719)
Loss on early           —             —             (80,510)      (15,098)
extinguishment of debt
Derivative gain (loss), (22,335)      287           55,706        (288)
net
Other income (expense)  65            (12,081)      954           (11,500)
Total other expense     (74,798)      (57,298)      (158,656)     (186,605)
Loss before income
taxes and               (120,674)     (111,815)     (408,264)     (246,522)
non-controlling
interest
Income tax provision    (1,809)       (61)          (2,751)       (211)
Net loss                (122,483)     (111,876)     (411,015)     (246,733)
Non-controlling         21,659        2,875         38,323        8,277
interest
Net loss attributable   $ (100,824)   $ (109,001)   $ (372,692)   $ (238,456)
to common stockholders
Net loss per share
attributable to common  $ (0.46)      $ (0.52)      $ (1.71)      $ (1.40)
stockholders - basic
and diluted
Weighted average number
of common shares        220,734       208,712       217,940       170,414
outstanding - basic and
diluted



                                                 September 30,  December 31,
                                                 2013           2012
Cash and cash equivalents                        $  374,164     $ 201,711
Restricted cash and cash equivalents             577,945        520,263
Accounts and interest receivable                 26,079         3,486
LNG inventory                                    14,401         7,045
Prepaid expenses and other                       16,471         16,058
Non-current restricted cash and cash equivalents 828,858        272,924
Property, plant and equipment, net               5,705,567      3,282,305
Debt issuance costs, net                         340,856        220,949
Non-current derivative assets                    64,309         —
Goodwill                                         76,819         76,819
Other                                            100,384        37,525
Total assets                                     $  8,125,853   $ 4,639,085
Current liabilities                              $  213,237     $ 159,763
Long-term debt, net of discount                  5,574,195      2,167,113
Deferred revenue                                 18,500         21,500
Non-current derivative liabilities               —              26,424
Other liabilities                                3,572          2,680
Non-controlling interest                         2,027,136      1,751,604
Stockholders' equity                             289,213        510,001
Total liabilities and equity                     $  8,125,853   $ 4,639,085





                    Sabine          Cheniere          Other      Consolidated
                                    Partners          Cheniere    Cheniere
                    Pass LNG
Cash and cash       $ —             $ —               $ 374,164   $ 374,164
equivalents
Restricted cash
and cash            139,591    ^(2) 1,238,740    ^(3) 28,472      1,406,803
equivalents
Total               $ 139,591       $ 1,238,740       $ 402,636   $ 1,780,967



As of September30, 2013, we had unrestricted cash and cash equivalents of
$374.2 million available to Cheniere. In addition, we had consolidated
restricted cash and cash equivalents of $1,406.8 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: $798.6
million for the Sabine Pass Liquefaction Project, $75.0 million for the
Creole Trail Pipeline and $329.4 million for Cheniere Partners' working
capital; $164.8 million for interest payments related to the Sabine Pass LNG
senior secured notes and CTPL credit facility; $10.5 million for Sabine Pass
LNG's working capital; and $28.5 million for other restricted purposes.

    Please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q
(1) for the period ended September 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 $10.5 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 $339.9 million is considered unrestricted
    for Cheniere Partners, including the $10.5 million considered unrestricted
    for Sabine Pass LNG.



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
 
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