Cheniere Energy Partners LP Holdings, LLC Reports Fourth Quarter and Full Year 2015 Results

Feb 19, 2016, 08:30 ET from Cheniere Energy Partners LP Holdings, LLC

HOUSTON, Feb. 19, 2016 /PRNewswire/ -- Cheniere Energy Partners LP Holdings, LLC ("Cheniere Partners Holdings") (NYSE MKT: CQH) reported net income of $4.6 million, or $0.02 per common share, for the three months ended December 31, 2015, compared to $4.6 million, or $0.02 per common share, for the same period in 2014.  For the twelve months ended December 31, 2015, Cheniere Partners Holdings reported net income of $18.2 million, or $0.08 per common share, compared to net income of $18.1 million, or $0.08 per common share, during the corresponding period in 2014. Results include the distribution 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 approximately 55.9% limited partner interest in Cheniere Partners as of December 31, 2015.

Sabine Pass Liquefaction Project Update

Cheniere Partners is developing and constructing natural gas liquefaction facilities (the "Sabine Pass Liquefaction Project") at the Sabine Pass LNG terminal adjacent to the existing regasification facilities through its wholly owned subsidiary, Sabine Pass Liquefaction, LLC.

Cheniere Partners continues to make progress on its Sabine Pass Liquefaction Project, which is being developed for up to six natural gas liquefaction trains ("Trains"), each with an expected nominal production capacity of approximately 4.5 million tonnes per annum ("mtpa") of LNG.

The Trains are in various stages of development, with construction of the first Train complete and the commissioning process underway. Train 1 has begun producing LNG, and the first LNG commissioning cargo is expected to be exported late February / March.  Commissioning for Train 2 is expected to commence in the upcoming months. The remaining Trains are expected to commence commissioning on a staggered basis thereafter.

  • Construction on Trains 1 and 2 began in August 2012, and as of December 31, 2015, the overall project completion percentage for Trains 1 and 2 was approximately 97.4%, which is ahead of the contractual schedule. Based on the recently updated construction and commissioning schedule, Cheniere Partners expects to export the first LNG commissioning cargo in late February or March 2016.
  • Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2015, the overall project completion percentage for Trains 3 and 4 was approximately 79.5%, which is ahead of the contractual schedule. Cheniere Partners expects Trains 3 and 4 to become operational in 2017.
  • Construction on Train 5 began in June 2015, and as of December 31, 2015, the overall project completion percentage for Train 5 was approximately 14.9%, which is ahead of the contractual schedule. Engineering, procurement and construction were approximately 41.9%, 20.5% and 0.1% complete, respectively. Cheniere Partners expects Train 5 to become operational in 2019.
  • Train 6 is currently under development, with all necessary regulatory approvals in place. Cheniere Partners expects to make a final investment decision and commence construction on Train 6 upon, among other things, entering into acceptable commercial arrangements and obtaining adequate financing.

 


Sabine Pass Liquefaction Project Timeline









Target Date

Milestone


Trains
1 - 5


Train
6

DOE export authorization


Received


Received

Definitive commercial agreements


Completed

19.75 mtpa


2016/2017

- BG Gulf Coast LNG, LLC


5.5 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 contracts


Completed


2016/2017

Financing


Completed


2016/2017

FERC authorization


Completed


Completed

Issue Notice to Proceed


Completed


2016/2017

Commence operations


2016 - 2019


2019/2020

 

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.

On February 9, 2016 we announced that our Board of Directors declared a quarterly cash dividend of $0.020 per common share representing limited liability company interests in Cheniere Partners Holdings. The dividend will be payable on February 29, 2016 to shareholders of record as of the close of business on February 19, 2016.

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, is developing up to six Trains with an expected aggregate nominal production capacity of approximately 27 mtpa. Cheniere Partners currently has under construction five Trains with an expected aggregate nominal production capacity of approximately 22.5 mtpa.

For additional information, please refer to the Cheniere Partners Holdings website at www.cheniere.com and Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission.

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 development, 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

CONSOLIDATED STATEMENTS OF INCOME

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







Three Months Ended


Year Ended


December 31,


December 31,


2015


2014


2015


2014

Equity income from investment in Cheniere Partners

$

5,085


$

5,085


$

20,338


$

20,338













Expenses


General and administrative expense

275


266


1,150


1,182

General and administrative expense—affiliate

254


254


1,015


1,015

Total expenses

529


520


2,165


2,197













Net income

$

4,556


$

4,565


$

18,173


$

18,141





Net income per common share—basic and diluted

$

0.02


$

0.02


$

0.08


$

0.08





Weighted average number of common shares outstanding—basic and diluted

231,700


231,700


231,700


231,700





Cash dividends declared per common share

$

0.020


$

0.019


$

0.079


$

0.074



(1)

Please refer to the Cheniere Energy Partners LP Holdings, LLC Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission.

 

CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts) (1)




December 31,



2015


2014

ASSETS





Current assets





Cash and cash equivalents


$

917



$

1,261


Accounts receivable


157



114


Other current assets


26



21


Total current assets


1,100



1,396







Other non-current assets


95



157


Total assets


$

1,195



$

1,553







LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities





Accounts payable and accrued liabilities


$

106



$

248


Accrued liabilities—affiliate


6



91


Total current liabilities


112



339







Shareholders' equity





Common shares: unlimited shares authorized, 231.7 million shares issued and outstanding at December 31, 2015 and  2014


664,931



664,931


Director voting share: 1 share authorized, issued and outstanding at December 31, 2015 and  2014





Additional paid-in-capital


(271,757)



(271,757)


Accumulated deficit


(392,091)



(391,960)


Total shareholders' equity


1,083



1,214


Total liabilities and shareholders' equity


$

1,195



$

1,553




(1)

Please refer to the Cheniere Energy Partners LP Holdings, LLC Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission.

 

CONTACTS:

Investors: Randy Bhatia: 713-375-5479, Katy Cox: 713-375-5079

Media: Faith Parker: 713-375-5663

 

SOURCE Cheniere Energy Partners LP Holdings, LLC



RELATED LINKS

http://www.cheniere.com