Welcome!

.NET Authors: Elizabeth White, Jayaram Krishnaswamy, Sematext Blog, ITinvolve Blog, Aditya Banerjee

News Feed Item

Cheniere Energy Partners Reports Third Quarter 2012 Results

HOUSTON, Nov. 2, 2012 /PRNewswire/ -- For the three and nine months ended September 30, 2012, Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) reported a net loss of $42.4 million and $86.6 million, respectively, compared to a net loss of $14.5 million and $23.6 million for the comparable 2011 periods.  Results for the three and nine months ended September 2012 were primarily impacted by increases in certain expenses related to the liquefaction facilities we are developing and constructing adjacent to the Sabine Pass LNG terminal  (the "Liquefaction Project").   

Overview of Recent Significant Events

  • In July 2012, we closed on a $3.6 billion senior secured credit facility that will be used to fund a portion of the costs of developing, constructing and placing into service LNG trains 1 and 2 of the Liquefaction Project.  We also received from Cheniere Energy, Inc. the remaining $333 million of its $500 million equity commitment in our Class B Units. 
  • In August 2012, Blackstone CQP Holdco LP ("Blackstone") purchased its initial $500 million of Class B Units from us, and we issued a full notice to proceed to Bechtel to construct LNG trains 1 and 2 of the Liquefaction Project.  As of October 31, 2012, Blackstone purchased $800 million additional Class B Units for an aggregate investment of $1.3 billion.
  • In September 2012, we sold 8.0 million common units in an underwritten public offering at a price of $25.07 per common unit for net cash proceeds of approximately $194 million.
  • In October 2012, Sabine Pass LNG, L.P. ("Sabine Pass LNG") repurchased approximately 97% of the outstanding $550 million 7.25% Senior Secured Notes due 2013 through a tender offer.  The repurchase was funded from an equity contribution from Cheniere Partners and from newly issued $420 million 6.50% Senior Secured Notes due in 2020.

Results

Cheniere Partners reported income from operations of $0.8 million and $43.9 million for the three and nine months ended September 30, 2012, compared to income from operations of $29.5 million and $107.6 million for the comparable periods in 2011.  The decrease in income from operations of $28.7 million for the quarter ended September 30, 2012, compared to the comparable period in 2011, was primarily due to increased general and administrative costs incurred to manage the construction of the Liquefaction Project, partially offset by decreased development costs due to the costs of LNG trains 1 and 2 of the Liquefaction Project satisfying the criteria for capitalization in June 2012. The general and administrative expenses incurred to manage the construction of the Liquefaction Project primarily resulted from a management services agreement entered into by Sabine Pass Liquefaction, LLC ("Sabine Pass Liquefaction"), in which Sabine Pass Liquefaction is required to pay a monthly fee based upon the capital expenditures incurred in the previous month for the Liquefaction Project to Cheniere Energy, Inc.  These payments are being funded from proceeds received from the Liquefaction Project's equity and debt financings.  The decrease in income from operations of $63.7 million for the nine months ended September 30, 2012, compared to the comparable period in 2011, was primarily due to increased development expenses, increased costs incurred to manage the construction of the Liquefaction Project and decreased revenues (including affiliate). 

Revenues for the nine months ended September 30, 2012, compared to the comparable 2011 period, were negatively impacted by decreased LNG cargo export loading fee revenue, decreased revenues earned under the variable capacity rights agreement with Cheniere Marketing, and a loss on LNG inventory needed to restore the heating value of vaporized LNG to meet natural gas pipeline specifications.

Liquefaction Project Update

We continue to make progress on the Liquefaction Project, which is being developed for up to four LNG trains, each with a nominal production capability of approximately 4.5 mtpa.

In July 2012, we secured financing of approximately $5.6 billion, including $2.0 billion of equity and $3.6 billion of debt commitments, for the development, construction and placing into service LNG trains 1 and 2.  We have issued a full notice to proceed to Bechtel and construction has commenced for LNG trains 1 and 2.  LNG exports from the Sabine Pass LNG terminal are anticipated to commence in late 2015, with LNG train 2 commencing operations approximately six to nine months thereafter.

Commencement of construction for LNG trains 3 and 4 is subject, but not limited to, entering into an engineering, procurement and construction agreement ("EPC"), reaching a positive final investment decision and obtaining financing.  We have engaged Bechtel to complete front-end engineering and design work for LNG trains 3 and 4 and have begun negotiating a lump sum turnkey EPC contract, which is expected to be finalized by the end of the fourth quarter. Construction of LNG trains 3 and 4 is expected to begin in 2013.

 

Summary Liquefaction Project Timeline




Target Date


Milestone


Trains 1 & 2


Trains 3 & 4

DOE export authorization


Received


Received

Definitive commercial agreements


Completed 7.7 mtpa


Completed 8.3 mtpa


- 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

EPC contract


Complete


4Q12

Financing commitments




1Q13


- Equity


Received




- Debt


Received



FERC authorization


Received


Received


- Certificate to commence construction


Received


2013

Commence construction


Complete


2013

Commence operations


2015/2016


2016/2017

 

2012 Distributions

We estimate that the annualized distribution to common unitholders for fiscal year 2012 will be $1.70 per unit.  We will pay a cash distribution per common unit of $0.425 to unitholders of record as of November 1, 2012, and the related general partner distribution on November 14, 2012. 

Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located on the Sabine Pass Channel in western Cameron Parish, Louisiana. The Sabine Pass LNG terminal has regasification and send-out capacity of 4.0 billion cubic feet per day (Bcf/d) and storage capacity of 16.9 billion cubic feet equivalent (Bcfe). 

For additional information, please refer to the Cheniere Energy Partners, L.P. website at www.cheniereenergypartners.com and Quarterly Report on Form 10-Q for the period ended September 30, 2012, 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 facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere Partners' 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 Partners' LNG terminal and liquefaction business, (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 Partners 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 Partners' 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 Partners' 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 Partners does not assume a duty to update these forward-looking statements.

(Financial Table Follows)

 

Cheniere Energy Partners, L.P.

Selected Financial Information

(in thousands, except per unit data) (1)






Three Months Ended


Nine Months Ended


September 30,


September 30,


2012 (2)


2011 (2)


2012 (2)


2011 (2)

Revenues








Revenues

$

62,429



$

63,669



$

190,154



$

200,514


Revenues—affiliate

3,879



1,238



6,872



12,452


Total revenues

66,308



64,907



197,026



212,966










Expenses








Operating and maintenance expense

6,586



6,288



19,843



15,878


Operating and maintenance expense—affiliate

6,476



2,612



12,414



8,723


Depreciation expense

10,652



10,766



31,897



32,245


Development expense

4,229



8,971



35,369



26,751


Development expense—affiliate

102



923



2,365



2,746


General and administrative expense

4,248



867



7,668



4,068


General and administrative expense—affiliate

33,243



4,957



43,532



14,973


Total expenses

65,536



35,384



153,088



105,384


Income from operations

772



29,523



43,938



107,582










Other income (expense)








Interest expense, net

(43,626)



(43,319)



(130,554)



(130,115)


Derivative gain (loss), net

287



(716)



(288)



(1,164)


Other

145



33



289



140)


Total other expense

(43,194)



(44,002)



(130,553)



(131,139)


Net loss

$

(42,422)



$

(14,479)



$

(86,615)



$

(23,557)










Basic and diluted net income per common unit

$

0.04



$

0.29



$

0.36



$

0.93










Weighted average number of common units outstanding used for basic and diluted net income per common unit calculation

31,997



27,408



31,449



26,867


 


As of September 30,


As of December 31,


2012 (3)


2011 (3)

Cash and cash equivalents

$

369,100



$

81,415


Restricted cash and cash equivalents

123,297



13,732


LNG Inventory

5,701



473


Other current assets (4)

38,269



13,890


Non-current restricted cash and cash equivalents

267,201



82,394


Property, plant and equipment, net

2,414,003



1,514,416


Debt issuance costs, net

222,144



17,622


Other assets

31,140



13,358


Total assets

$

3,470,855



$

1,737,300






Current liabilities (4)

$

177,531



$

51,818


Long-term debt, net of discount

2,295,939



2,192,418


Deferred revenue, including affiliate

37,220



37,766


Long-term derivative liabilities

29,384




Other liabilities (4)

306



317


Total partners' capital (deficit)

930,475



(545,019)


Total liabilities and partners' capital (deficit)

$

3,470,855



$

1,737,300


 






(1)

 Please refer to Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for the period ended September 30, 2012, filed with the Securities and Exchange Commission.

(2)

Consolidated operating results of Cheniere Energy Partners, L.P. and its consolidated subsidiaries for the three and nine months ended September 30, 2012 and 2011.

(3)

 Consolidated balance sheets of Cheniere Energy Partners, L.P. and its consolidated subsidiaries.

(4)

Amounts include transactions between Cheniere Energy Partners, L.P. and Cheniere Energy, Inc. or subsidiaries of Cheniere Energy, Inc.

 

SOURCE Cheniere Energy Partners, L.P.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
In this Women in Technology Power Panel at 15th Cloud Expo, moderated by Anne Plese, Senior Consultant, Cloud Product Marketing at Verizon Enterprise, Esmeralda Swartz, CMO at MetraTech; Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems; Seema Jethani, Director of Product Management at Basho Technologies; Victoria Livschitz, CEO of Qubell Inc.; Anne Hungate, Senior Director of Software Quality at DIRECTV, discussed what path they took to find their spot within the technology industry and how do they see opportunities for other women in their area of expertise.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
We’re no longer looking to the future for the IoT wave. It’s no longer a distant dream but a reality that has arrived. It’s now time to make sure the industry is in alignment to meet the IoT growing pains – cooperate and collaborate as well as innovate. In his session at @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine the key ingredients to IoT success and identify solutions to challenges the industry is facing. The deep industry expertise behind this presentation will provide attendees with a leading edge view of rapidly emerging IoT oppor...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...