Cheniere Energy Partners LP Holdings, LLC (“Cheniere Partners
Holdings”) (NYSE American: CQH) reported net income of $125.0
million, or $0.54 per common share, for the three months ended June
30, 2018, compared to net income of $4.5 million, or $0.02 per
common share, for the comparable 2017 period.
Cheniere Partners Holdings reported net income of $247.8
million, or $1.07 per common share, for the six months ended June
30, 2018, compared to net income of $9.0 million, or $0.04 per
common share, for the comparable 2017 period.
Results include the distributions received from our limited
partner interest in Cheniere Energy Partners, L.P. (“Cheniere
Partners”), a publicly traded limited partnership (NYSE American:
CQP).
The increase in net income for the three and six months ended
June 30, 2018, compared to the three and six months ended June 30,
2017, was driven by increased equity income from our investment in
Cheniere Partners primarily as a result of distributions being paid
to our subordinated units, an increase in common units held by us
subsequent to the conversion of Class B units into common units on
August 2, 2017, and an increase in quarterly distributions per unit
received from Cheniere Partners.
Our only business consists of owning Cheniere Partners common
units and subordinated units representing an aggregate
approximately 48.6% limited partner interest in Cheniere Partners
as of June 30, 2018.
In June 2018, we reached a definitive agreement with Cheniere
Energy, Inc. (“Cheniere”) (NYSE American: LNG) under which Cheniere
will acquire all of the publicly-held shares of Cheniere
Partners Holdings not already owned by Cheniere in a stock for
share transaction pursuant to which our shareholders will receive a
fixed exchange ratio of 0.4750 shares of Cheniere common stock for
each outstanding publicly-held share of Cheniere Partners
Holdings. The transaction is expected to close by the end of third
quarter 2018, subject to customary closing conditions. Upon
consummation of the transaction, Cheniere Partners
Holdings will merge with and into a wholly owned subsidiary of
Cheniere.
Summary 2018 Full
Year Dividend Guidance
2018 Dividend per Share $ 2.25 - $ 2.35
SPL Project
Update
SPL Project Liquefaction Train
Train 5 Train 6 Project
Status Commissioning Permitted Project Completion
Percentage(1) 95.1% — Expected Substantial Completion 1H 2019 —
Note: Project update excludes Trains in operation (1)
Project completion percentage as of June 30, 2018
Through Cheniere Partners, we are developing up to six natural
gas liquefaction Trains (“Trains”) at the Sabine Pass LNG terminal
adjacent to the existing regasification facilities (the “SPL
Project”). Each Train is expected to have a nominal production
capacity, which is prior to adjusting for planned maintenance,
production reliability, and potential overdesign, of approximately
4.5 million tonnes per annum (“mtpa”) of LNG and an adjusted
nominal production capacity of approximately 4.3 to 4.6 mtpa of
LNG. Trains 1 through 4 are operational, Train 5 is undergoing
commissioning, and Train 6 is being commercialized and has all
necessary regulatory approvals in place.
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.
Investor Conference Call and
Webcast
Cheniere Energy, Inc. will host a conference call to discuss its
financial and operating results for the second quarter on Thursday,
August 9, 2018, at 10 a.m. Eastern time / 9 a.m. Central time.
A listen-only webcast of the call and an accompanying slide
presentation may be accessed through our website at
www.cheniere.com. Following the call, an archived recording will be
made available on our website. The call and accompanying slide
presentation may include financial and operating results or other
information regarding Cheniere Partners Holdings.
About Cheniere Partners Holdings
Cheniere Partners Holdings owns an approximately 48.6% limited
partner interest in Cheniere Partners as of June 30, 2018.
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 is constructing and operating
natural gas liquefaction facilities at the Sabine Pass LNG
terminal. Cheniere Partners plans to construct up to six natural
gas liquefaction Trains, which are in various stages of
development, construction, and operations. Trains 1 through 4 are
operational, Train 5 is undergoing commissioning, and Train 6 is
being commercialized and has all necessary regulatory approvals in
place. Each liquefaction Train is expected to have a nominal
production capacity, which is prior to adjusting for planned
maintenance, production reliability, and potential overdesign, of
approximately 4.5 mtpa of LNG and an adjusted nominal production
capacity of approximately 4.3 to 4.6 mtpa of LNG. Cheniere Partners
also owns and operates regasification facilities at the Sabine Pass
LNG terminal and the Creole Trail Pipeline, which interconnects the
Sabine Pass LNG terminal with a number of large interstate
pipelines.
For additional information, please refer to the Cheniere
Partners Holdings website at www.cheniere.com and Quarterly Report
on Form 10-Q for the quarter ended June 30, 2018, filed with
the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
“forward-looking statements.” All statements, other than statements
of historical or present facts or conditions, 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, (vi)
statements regarding future discussions and entry into contracts,
and (viii) statements regarding the anticipated completion of the
proposed transaction with Cheniere and the timing thereof. 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 Tables Follow)
CHENIERE ENERGY PARTNERS LP HOLDINGS,
LLC
CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
data) (1)
(unaudited)
Three Months Ended Six Months Ended June
30, June 30, 2018 2017
2018 2017 Equity income from investment
in Cheniere Partners $ 131,930 $ 5,085 $ 251,866 $ 10,169
Expenses General and administrative expense 2,760 345 3,109 691
General and administrative expense—affiliate 269 263
538 527 Total expenses 3,029 608 3,647
1,218 Income before income taxes 128,901 4,477 248,219 8,951
Income tax provision (3,907 ) — (419 ) —
Net income $ 124,994 $ 4,477 $ 247,800
$ 8,951 Net income per common share—basic and diluted $ 0.54
$ 0.02 $ 1.07 $ 0.04
Weighted average number of common shares
outstanding—basic and diluted
231,700 231,700 231,700 231,700 Cash dividends declared per
common share $ 0.560 $ 0.020 $ 1.070 $ 0.040
____________________________
(1)
Please refer to the Cheniere Energy
Partners LP Holdings, LLC Quarterly Report on Form 10-Q for the
quarter ended June 30, 2018, filed with the Securities and
Exchange Commission.
CHENIERE ENERGY PARTNERS LP HOLDINGS,
LLC
CONSOLIDATED BALANCE SHEETS
(in thousands, except share
amounts) (1)
June 30, December 31, 2018 2017
ASSETS
(unaudited) Current assets Cash and cash equivalents
$ 329 $ 659 Prepaid and other current assets 326 55
Total current assets 655 714 Deferred tax asset, net 224
— Total assets $ 879 $ 714
LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts
payable and accrued liabilities $ 360 $ 76 Shareholders’
equity Common shares: unlimited shares authorized, 231.7 million
shares issued and outstanding at June 30, 2018 and December 31,
2017 664,931 664,931 Director voting share: 1 share authorized,
issued and outstanding at June 30, 2018 and December 31, 2017 — —
Additional paid-in-capital (271,757 ) (271,757 ) Accumulated
deficit (392,655 ) (392,536 ) Total shareholders’ equity 519
638 Total liabilities and shareholders’ equity $ 879
$ 714
__________________________________
(1) Please refer to the Cheniere Energy Partners LP
Holdings, LLC Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018, filed with the Securities and Exchange Commission.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180809005066/en/
Cheniere Energy Partners LP Holdings, LLCInvestorsRandy Bhatia,
713-375-5479Megan Light, 713-375-5492orMedia RelationsEben
Burnham-Snyder, 713-375-5764
CHENIERE ENERGY PARTNERS LP HOLD (AMEX:CQH)
Historical Stock Chart
From Jun 2024 to Jul 2024
CHENIERE ENERGY PARTNERS LP HOLD (AMEX:CQH)
Historical Stock Chart
From Jul 2023 to Jul 2024