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Cheniere Energy Reports Fourth Quarter and Full Year 2013 Results

      Cheniere Energy Reports Fourth Quarter and Full Year 2013 Results

PR Newswire

HOUSTON, Feb. 21, 2014

HOUSTON, Feb. 21,2014 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere")
(NYSE MKT: LNG) reported a net loss attributable to common stockholders of
$135.2 million, or $0.61 per share (basic and diluted), for the three months
ended December31, 2013, compared to a net loss attributable to common
stockholders of $94.3 million, or $0.44 per share (basic and diluted), for the
comparable 2012 period. For the year ended December31, 2013, Cheniere
reported a net loss attributable to common stockholders of $507.9 million, or
$2.32 per share (basic and diluted), compared to a net loss attributable to
common stockholders of $332.8 million, or $1.83 per share (basic and diluted),
during the corresponding period of 2012.

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

Significant items for the three months and year ended December 31, 2013 were
$34.0 million, or $0.15 per share (basic and diluted), and $109.1 million, or
$0.50 per share (basic and diluted), respectively, compared to $53.7 million,
or $0.25 per share (basic and diluted), and $123.7 million, or $0.68 per share
(basic and diluted), respectively, for the comparable 2012 periods.
Significant items related to liquefied natural gas ("LNG") terminal
development expenses, losses on early extinguishment of debt and derivative
gains/losses. 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 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 and refinancing a
portion of the credit facilities in November 2013, resulting in an aggregate
available capacity of approximately $5.0 billion.

Results are reported on a consolidated basis and include our indirect
ownership interest in Cheniere Partners, which was 49.2% as of December 31,
2013. The ownership is based on our 100% ownership of the general partner
interest in Cheniere Partners and 84.5% ownership interest in Cheniere Energy
Partners LP Holdings, LLC ("Cheniere Holdings"), which owns 55.9% of Cheniere
Partners.

Overview of Recent Significant Events

  oIn December 2013, Corpus Christi Liquefaction, LLC entered into an LNG
    sale and purchase agreement ("SPA") with PT Pertamina (Persero)
    ("Pertamina") under which Pertamina has agreed to purchase 39.7 million
    MMBtu of LNG per year (approximately 0.8 mtpa) upon the date of first
    commercial delivery of the first liquefaction Train ("Train") at the
    Corpus Christi Liquefaction Project;
  oIn December 2013, Corpus Christi Liquefaction, LLC entered into two lump
    sum turnkey contracts for the engineering, procurement and construction of
    Trains and related facilities for the Corpus Christi Liquefaction Project;
    and
  oIn December 2013, Cheniere Holdings completed its initial public offering
    (the "Cheniere Holdings Offering") of 36.0 million common shares at $20.00
    per common share. Cheniere Holdings was formed by us to hold our Cheniere
    Partners limited partner interests. We ultimately received all of the
    $665.0 million of net proceeds from the Cheniere Holdings Offering and
    intend to use them for the development of our existing assets, future
    projects and general corporate purposes.

Liquefaction Projects Update

Sabine Pass Liquefaction Project

Through Cheniere Partners we are developing up to six Trains, each with a
nominal 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 January 31,
    2014, the overall project for Trains 1 and 2 was approximately 57.1%
    complete, which is ahead of the contractual schedule. Based on our
    current construction schedule, we anticipate that Train 1 will produce LNG
    by late 2015.
  oConstruction on Trains 3 and 4 began in May 2013, and as of January 31,
    2014, the overall project for Trains 3 and 4 was approximately 21.6%
    complete. To date, soil stabilization has been completed and pile
    driving, the 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 development of Trains 5 and 6. To
    date we have completed two LNG SPAs for approximately 3.75 mtpa in
    aggregate of LNG volumes that commence with the date of first commercial
    delivery for Train 5. In September 2013, we filed a complete application
    with the FERC. We have received authorizations from the DOE to export 503
    Bcf of LNG volumes from Trains 5 and 6 to FTA countries. Non-FTA
    authorization is pending.

Corpus Christi Liquefaction Project

We continue to make progress on the commercialization and development of the
Corpus Christi Liquefaction Project, which is being designed for up to three
Trains with expected aggregate nominal production capacity of approximately
13.5 mtpa of LNG.

  oIn December 2013, we entered into an SPA with Pertamina under which
    Pertamina has agreed to purchase approximately 0.8 mtpa of LNG commencing
    with the date of first commercial delivery of Train 1 of the Corpus
    Christi Liquefaction Project. Additionally, we entered into two lump sum
    turnkey contracts for the engineering, procurement and construction of the
    Trains and related facilities.
  oWe 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. Authorization to export LNG to non-FTA countries is
    pending.
  oIn February 2014, we received a scheduling notice from the FERC under
    which the FERC has scheduled the issuance of the FERC staff's final
    Environmental Impact Statement ("FEIS") for no later than October 8, 2014.
    In addition, this notice from the FERC alerted all other agencies issuing
    federal authorizations of the requirement to complete all necessary
    reviews and to reach a final decision on the request for a federal
    authorization within 90 days following issuance of the FEIS or no later
    than January 6, 2015.

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
                                                    Received
                                                    FTA        Received FTA;
DOE export authorization  Received   Received                  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
- PT Pertamina (Persero)
                                                               0.8 mtpa

EPC contract              Completed  Completed      2015       Completed
Financing                                           2015       2014
- Equity                  Completed  Completed
- Debt commitments        Received   Received
FERC authorization
- FERC Order              Received   Received       2015       2014/2015
- Certificate to          Received   Received
commence construction
Issue Notice to Proceed   Completed  Completed      2015       2014/2015
Commence operations       2015/2016  2016/2017      2018/2019  2018

Quarter and Year End 2013 Results

For the quarter and year ended December 31, 2013, Cheniere reported loss from
operations of $79.4 million and $329.0 million, respectively, compared to
$15.9 million and $75.8 million for the respective comparable periods in
2012. Net operating losses were primarily affected by general and
administrative expenses due to timing of awards under bonus plans relating to
Trains 1 through 4 of the Sabine Pass Liquefaction Project and 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, increased LNG terminal maintenance and repair
costs and increased fuel costs. General and administrative expenses included
non-cash compensation expenses of $64.9 million and $252.1 million for the
quarter and year ended December 31, 2013, respectively, compared to $4.3
million and $58.4 million for the respective comparable 2012 periods.

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 is
expected to have a nominal 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,
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 Annual Report on Form 10-K for the fiscal year ended
December 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 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         Year Ended
                         December 31                December 31
                         2013          2012         2013          2012
Revenues
LNG terminal revenues    $ 66,185      $ 66,625     $ 265,406     $ 265,894
Marketing and trading    (199)         469          242           (1,172)
revenues
Other                    435           327          1,565         1,498
Total revenues           66,421        67,421       267,213       266,220
Operating costs and
expenses
LNG terminal operating   12,744        20,470       89,169        57,076
expense
LNG terminal development 10,720        11,483       60,934        66,112
expense
Depreciation, depletion  15,676        19,406       61,209        66,407
and amortization
General and              106,541       31,845       384,512       152,081
administrative expense
Other                    117           132          375           376
Total operating costs    145,798       83,336       596,199       342,052
and expenses
Loss from operations     (79,377)      (15,915)     (328,986)     (75,832)
Other income (expense)
Interest expense, net    (43,594)      (41,092)     (178,400)     (200,811)
Loss on early            (51,066)      (42,587)     (131,576)     (57,685)
extinguishment of debt
Derivative gain (loss),  27,742        346          83,448        58
net
Other income (expense)   137           133          1,091         (11,367)
Total other expense      (66,781)      (83,200)     (225,437)     (269,805)
Loss before income taxes
and non-controlling      (146,158)     (99,115)     (554,423)     (345,637)
interest
Income tax provision     (1,589)       207          (4,340)       (4)
Net loss                 (147,747)     (98,908)     (558,763)     (345,641)
Non-controlling interest 12,518        4,584        50,841        12,861
Net loss attributable to $ (135,229)   $ (94,324)   $ (507,922)   $ (332,780)
common stockholders
Net loss per share
attributable to common   $ (0.61)      $ (0.44)     $ (2.32)      $ (1.83)
stockholders - basic and
diluted
Weighted average number
of common shares         221,624       215,586      218,869       181,768
outstanding - basic and
diluted





                                                 December 31,  December 31,
                                                 2013          2012
Cash and cash equivalents                        $ 960,842     $ 201,711
Restricted cash and cash equivalents             598,064       520,263
Accounts and interest receivable                 4,486         3,486
LNG inventory                                    10,563        7,045
Prepaid expenses and other                       17,225        16,058
Non-current restricted cash and cash equivalents 1,031,399     272,924
Property, plant and equipment, net               6,454,399     3,282,305
Debt issuance costs, net                         313,944       220,949
Non-current derivative assets                    98,123        —
Goodwill                                         76,819        76,819
Other                                            107,373       37,525
Total assets                                     $ 9,673,237   $ 4,639,085
Current liabilities                              237,011       159,763
Long-term debt, net of discount                  6,576,273     2,167,113
Deferred revenue                                 17,500        21,500
Non-current derivative liabilities               —             26,424
Other liabilities                                2,396         2,680
Non-controlling interest                         2,660,375     1,751,604
Stockholders' equity                             179,682       510,001
Total liabilities and equity                     $ 9,673,237   $ 4,639,085



As of December31, 2013, we had unrestricted cash and cash equivalents of
$960.8 million available to Cheniere. In addition, we had consolidated
restricted cash and cash equivalents of $1,629.5 million (which included
restricted cash and cash equivalents available to Cheniere Partners, Sabine
Pass Liquefaction and Sabine Pass LNG) designated for the following purposes:
$1,059.7 million for the Sabine Pass Liquefaction Project, $101.9 million for
the Creole Trail Pipeline, $91.1 million for interest payments related to the
7.50% Senior Secured Notes due 2016 and 6.50% Senior Secured Notes due 2020
issued by Sabine Pass LNG, and $376.8 million for other restricted purposes.

SOURCE Cheniere Energy, Inc.

Website: http://www.cheniere.com
Contact: Investors: Randy Bhatia: 713-375-5479 or Christina Burke:
713-375-5104; Media: Diane Haggard: 713-375-5259
 
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