Cheniere Energy, Inc. Reports First Quarter 2014 Results

           Cheniere Energy, Inc. Reports First Quarter 2014 Results

PR Newswire

HOUSTON, May 1, 2014

HOUSTON, May 1,2014 /PRNewswire/ --Cheniere Energy, Inc. ("Cheniere") (NYSE
MKT: LNG) reported a net loss attributable to common stockholders of $97.8
million, or $0.44 per share (basic and diluted), for the three months ended
March31, 2014, compared to a net loss attributable to common stockholders of
$117.1 million, or $0.54 per share (basic and diluted), for the comparable
2013 period.

Results include significant items for the three months ended March 31, 2014 of
$46.8 million, or $0.21 per share (basic and diluted), compared to $34.6
million, or $0.16 per share (basic and diluted), for the comparable 2013
period. The significant items related to liquefied natural gas ("LNG")
terminal development expenses and derivative losses. LNG terminal development
expenses were primarily for the liquefaction facilities being developed by us
near Corpus Christi, Texas (the "Corpus Christi Liquefaction Project"), and
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"). Derivative
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 Sabine Pass
Liquefaction's four credit facilities.

Results are reported on a consolidated basis and include our ownership
interest in Cheniere Partners, which is based on our 100% ownership of the
general partner and 84.5% ownership interest in Cheniere Holdings, which owns
55.9% of Cheniere Partners.

Overview of Recent Significant Events

  oIn April 2014, our wholly owned subsidiary, Corpus Christi Liquefaction,
    LLC ("Corpus Christi Liquefaction") entered into two Sale and Purchase
    Agreements ("SPAs") with Endesa S.A. ("Endesa") under which Endesa has
    agreed to purchase a total of 117.3 million MMBtu of LNG per year
    (approximately 2.25 million tonnes per annum ("mtpa")) upon the
    commencement of operations of Train 1 of the Corpus Christi Liquefaction
    Project.
  oIn April 2014, Sabine Pass Liquefaction entered into a $325.0 million
    senior letter of credit and reimbursement agreement (the "Sabine Pass
    Liquefaction Senior LC Agreement") that it intends to use for the issuance
    of letters of credit on behalf of Sabine Pass Liquefaction for certain
    working capital requirements related to the Sabine Pass Liquefaction
    Project.

Liquefaction Projects Update

Sabine Pass Liquefaction Project

Through Cheniere Partners we are developing up to six natural gas liquefaction
trains ("Trains"), each with an expected nominal production capacity of
approximately 4.5 mtpa at the Sabine Pass LNG terminal adjacent to the
existing regasification facilities. Cheniere Partners has 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 March 31,
    2014, the overall project for Trains 1 and 2 was approximately 63%
    complete, which is ahead of the contractual schedule. Based on our current
    construction schedule, we anticipate that Train 1 will produce LNG as
    early as late 2015.
  oConstruction on Trains 3 and 4 began in May 2013, and as of March 31,
    2014, the overall project for Trains 3 and 4 was approximately 27%
    complete, which is ahead of the contractual schedule. 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 free trade agreement ("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 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.
  oIn April 2014, Corpus Christi Liquefaction entered into two SPAs with
    Endesa under which Endesa has agreed to purchase a total of approximately
    2.25 mtpa of LNG upon the commencement of operations of Train 1 of the
    Corpus Christi Liquefaction Project. To date we have entered into SPAs
    aggregating 3.05 mtpa.
  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.

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
                          1 & 2      3 & 4      5 & 6
                                                Received FTA   Received FTA;
DOE export authorization  Received   Received   Pending        Pending Non-FTA
                                                Non-FTA
Definitive commercial     Completed  Completed  T5: Completed  2014
agreements                7.7 mtpa   8.3 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
- Endesa                                                       2.25 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           2015
Commence operations       2015/2016  2016/2017  2018/2019      2018/2019

First Quarter 2014 Results

For the quarter ended March 31, 2014, Cheniere reported loss from operations
of $47.6 million, as compared to $67.5 million during the three months ended
March 31, 2013. The $19.9 million decrease in net operating loss was primarily
a result of decreased general and administrative expenses and decreased LNG
terminal development expenses. General and administrative expense decreased
$12.0 million in the three months ended March 31, 2014 as compared to the
three months ended March 31, 2013 primarily as a result of the timing of
awards under bonus plans relating to the Sabine Pass Liquefaction Project. LNG
terminal development expense decreased $5.0 million in the three months ended
March 31, 2014 as compared to the three months ended March 31, 2013, and were
primarily related to the Corpus Christi Liquefaction Project being developed
by us. Non-cash general and administrative expenses were $34.6 million and
$59.2 million for the periods ending March 31, 2014 and March 31, 2013,
respectively.

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 for up to three Trains, with expected aggregate nominal
production capacity of approximately 13.5 mtpa of LNG, 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. Cheniere believes
that 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 quarter ended
March 31, 2014, 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)
(unaudited)
                                                     Three Months Ended
                                                     March 31,
                                                     2014         2013
Revenues
LNG terminal revenues                                $ 66,419     $ 66,061
Marketing and trading revenues (losses)              657          (565)
Other                                                474          410
Total revenues                                       67,550       65,906
Operating costs and expenses
General and administrative expense                   73,808       85,798
Depreciation, depletion and amortization             15,475       15,113
LNG terminal operating expense                       13,687       15,259
LNG terminal development expense                     12,112       17,088
Other                                                80           102
Total operating costs and expenses                   115,162      133,360
Loss from operations                                 (47,612)     (67,454)
Other income (expense)
Interest expense, net                                (40,270)     (40,262)
Derivative loss, net                                 (34,681)     (17,468)
Other income                                         310          475
Total other expense                                  (74,641)     (57,255)
Loss before income taxes and non-controlling         (122,253)    (124,709)
interest
Income tax benefit (provision)                       (92)         80
Net loss                                             (122,345)    (124,629)
Less: net loss attributable to non-controlling       (24,535)     (7,524)
interest
Net loss attributable to common stockholders         $ (97,810)   $ (117,105)
Net loss per share attributable to common            $ (0.44)     $ (0.54)
stockholders—basic and diluted
Weighted average number of common shares             223,207      215,634
outstanding—basic and diluted



                                                    March 31,     December 31,
                                                    2014          2013
ASSETS                                              (unaudited)
Current assets
Cash and cash equivalents                           $ 914,603     $ 960,842
Restricted cash and cash equivalents                520,119       598,064
Accounts and interest receivable                    3,886         4,486
LNG inventory                                       4,106         10,563
Prepaid expenses and other                          25,915        17,225
Total current assets                                1,468,629     1,591,180
Non-current restricted cash and cash equivalents    330,072       1,031,399
Property, plant and equipment, net                  7,132,041     6,454,399
Debt issuance costs, net                            302,439       313,944
Non-current derivative assets                       71,170        98,123
Goodwill                                            76,819        76,819
Intangible LNG assets                               3,366         3,366
Other                                               140,080       104,007
Total assets                                        $ 9,524,616   $ 9,673,237
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable                                    $ 6,269       $ 10,367
Accrued liabilities                                 142,275       186,552
Deferred revenue                                    26,764        26,593
Other                                               19,561        13,499
Total current liabilities                           194,869       237,011
Long-term debt, net                                 6,578,350     6,576,273
Long-term deferred revenue                          16,500        17,500
Other non-current liabilities                       3,281         2,396
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value, 5.0 million     —             —
shares authorized, none issued
Common stock, $0.003 par value
Authorized: 480.0 million shares at both March 31,
2014 and December 31, 2013
Issued and outstanding: 237.7 million shares and
238.1 million shares at March                       714           716

31, 2014 and December 31, 2013, respectively
Treasury stock: 9.2 million shares and 9.0 million
shares at March 31, 2014 and                        (187,568)     (179,826)

December 31, 2013, respectively, at cost
Additional paid-in-capital                          2,501,133     2,459,699
Accumulated deficit                                 (2,198,717)   (2,100,907)
Total stockholders' equity                          115,562       179,682
Non-controlling interest                            2,616,054     2,660,375
Total equity                                        2,731,616     2,840,057
Total liabilities and equity                        $ 9,524,616   $ 9,673,237



As of March31, 2014, we had cash and cash equivalents of $914.6 million
available to Cheniere. In addition, we had current and non-current restricted
cash and cash equivalents of $850.2 million (which included current and
non-current restricted cash and cash equivalents available to Cheniere
Partners, Sabine Pass Liquefaction and Sabine Pass LNG, L.P.) designated for
the following purposes: $294.4 million for the Sabine Pass Liquefaction
Project, $76.7 million for Cheniere Creole Trail Pipeline, L.P., $129.1
million for interest payments related to the Sabine Pass LNG senior secured
Notes, and $350.0 million for other restricted purposes.

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SOURCE Cheniere Energy, Inc.

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