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| 8-K - 8-K - Cheniere Energy Partners LP Holdings, LLC | cqh2014form8k3rdqtrer.htm |
EXHIBIT 99.1
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC NEWS RELEASE
Cheniere Partners Holdings Reports Third Quarter 2014 Results
Houston, Texas - October 30, 2014 - Cheniere Energy Partners LP Holdings, LLC (“Cheniere Partners Holdings”) (NYSE MKT: CQH) reported net income of $4.6 million and $13.6 million, or $0.02 and $0.06 per common share, for the three and nine months ended September 30, 2014, respectively. Results include distributions received from our limited partner interests in Cheniere Energy Partners, L.P. (“Cheniere Partners”), a publicly traded limited partnership (NYSE MKT: CQP).
Our only business consists of owning Cheniere Partners common units, Class B units and subordinated units representing an aggregate of approximately 55.9% of the outstanding Cheniere Partners limited partner interests as of September 30, 2014. We completed our initial public offering in December 2013.
Cheniere Partners’ Sabine Pass Liquefaction Project Update
Cheniere Partners is developing and constructing natural gas liquefaction facilities (the “Liquefaction Project”) at the Sabine Pass LNG terminal adjacent to the existing regasification facilities through its wholly owned subsidiary, Sabine Pass Liquefaction, LLC (“Sabine Pass Liquefaction”).
Cheniere Partners continues to make progress on its Liquefaction Project, which is being developed for up to six natural gas liquefaction trains (“Trains”), each with a nominal production capacity of approximately 4.5 mtpa.
The Trains are in various stages of development.
• | Construction on Trains 1 and 2 began in August 2012, and as of September 30, 2014, the overall project for Trains 1 and 2 was approximately 76% complete, which is ahead of the contractual schedule. Based on Cheniere Partners’ current construction schedule, Cheniere Partners anticipates that Train 1 will produce liquefied natural gas (“LNG”) as early as late 2015. |
• | Construction on Trains 3 and 4 began in May 2013, and as of September 30, 2014, the overall project for Trains 3 and 4 was approximately 43% complete, which is ahead of the contractual schedule. Cheniere Partners expects Trains 3 and 4 to become operational in late 2016 and 2017, respectively. |
• | Trains 5 and 6 are under development. Cheniere Partners has entered into SPAs for approximately 3.75 mtpa in aggregate that commence with the date of first commercial delivery for Train 5. Cheniere Partners has received authorizations from the U.S. Department of Energy (“DOE”) to export 503 Bcf per year of LNG volumes from Trains 5 and 6 to free trade agreement (“FTA”) countries. Authorization to export LNG to non-FTA countries is pending. Federal Energy Regulatory Commission (“FERC”) authorization is also pending. Cheniere Partners will contemplate making a final investment decision to commence construction on Trains 5 and 6 based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing. |
Liquefaction Project Timeline
Target Date | |||||||
Milestone | Trains 1 & 2 | Trains 3 & 4 | Trains 5 & 6 | ||||
DOE export authorization | Received | Received | Received FTA Pending Non-FTA | ||||
Definitive commercial agreements | Completed 7.7 mtpa | Completed 8.3 mtpa | T5: Completed T6: 2014/2015 | ||||
- 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 | 2014/2015 | ||||
Financing | 2015 | ||||||
- Equity | Completed | Completed | |||||
- Debt commitments | Received | Received | |||||
FERC authorization | |||||||
- FERC Order | Received | Received | 2014/2015 | ||||
- Certificate to commence construction | Received | Received | |||||
Issue Notice to Proceed | Completed | Completed | 2015 | ||||
Commence operations | 2015/2016 | 2016/2017 | 2018/2019 | ||||
Dividends
When Cheniere Partners makes cash distributions to us with respect to our Cheniere Partners units, we will pay dividends to our shareholders consisting of the cash that we receive from Cheniere Partners, less income taxes and reserves established by our Board of Directors.
Cheniere Partners Holdings owns a 55.9% limited partner interest in Cheniere Partners. Cheniere Partners Holdings’ only business consists of owning Cheniere Partners units and, accordingly, its results of operations and financial condition are dependent on the performance of Cheniere Partners. Cheniere Partners owns and operates LNG regasification facilities and, adjacent to these facilities, currently has natural gas liquefaction facilities under construction. Additional information is available on the Cheniere Partners Holdings website located at www.chenierepartnersholdings.com.
This press release contains certain statements that may include “forward-looking statements.” 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’ and Cheniere Partners Holdings’ 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 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 Holdings 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 Holdings’ 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 Holdings’ 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 Holdings does not assume a duty to update these forward-looking statements.
(Financial Table Follows)
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended | Period from July 29, 2013 (Date of Inception) Through | Nine Months Ended | Period from July 29, 2013 (Date of Inception) Through | ||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||||
Equity income from investment in Cheniere Partners | $ | 5,084 | $ | — | $ | 15,253 | $ | — | |||||||
Expenses | |||||||||||||||
General and administrative expense | 199 | — | 916 | — | |||||||||||
General and administrative expense—affiliate | 254 | — | 761 | — | |||||||||||
Total expenses | 453 | — | 1,677 | ||||||||||||
Net income | $ | 4,631 | $ | — | $ | 13,576 | $ | — | |||||||
Net income per common share—basic and diluted | $ | 0.02 | $ | — | $ | 0.06 | $ | — | |||||||
Weighted average number of common shares outstanding—basic and diluted | 231,700 | — | 231,700 | — | |||||||||||
Cash dividends declared per common share | $ | 0.019 | $ | — | $ | 0.055 | $ | — | |||||||
CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC
BALANCE SHEETS
(in thousands, except share amounts)
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | (unaudited) | |||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 246 | $ | — | ||||
Accounts receivable | 114 | 161 | ||||||
Accounts receivable—affiliate | — | 70 | ||||||
Prepaid expenses and other | 64 | — | ||||||
Total current assets | 424 | 231 | ||||||
Other non-current assets | 818 | 122 | ||||||
Total assets | $ | 1,242 | $ | 353 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued liabilities | $ | 189 | $ | 95 | ||||
Accrued liabilities—affiliates | 2 | 39 | ||||||
Total current liabilities | 191 | 134 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity | ||||||||
Common shares: unlimited shares authorized, 231.7 million shares issued and outstanding at September 30, 2014 and December 31, 2013 | 664,931 | 664,931 | ||||||
Director voting share: 1 share authorized, issued and outstanding at September 30, 2014 and December 31, 2013 | — | — | ||||||
Additional paid-in-capital | (271,757 | ) | (271,757 | ) | ||||
Accumulated deficit | (392,123 | ) | (392,955 | ) | ||||
Total shareholders’ equity | 1,051 | 219 | ||||||
Total liabilities and shareholders’ equity | $ | 1,242 | $ | 353 | ||||
CONTACTS:
Investors: Randy Bhatia: 713-375-5479 Christina Burke: 713-375-5104
Media: Faith Parker: 713-375-5663