HOUSTON, May 7 /PRNewswire-FirstCall/ -- For the quarter
ended March 31, 2010, Cheniere Energy
Partners, L.P. ("Cheniere Partners") (NYSE Amex: CQP) reported net
income of $58.8 million, or
$0.36 per limited partner unit,
compared with net income of $13.6
million, or $0.08 per limited
partner unit, for the same period in 2009.
Cheniere Partners reported income from operations of
$101.7 million for the first quarter
of 2010 compared to income from operations of $43.4 million for the comparable 2009 period.
Revenues for the first quarter of 2010 were $130.8 million compared to $62.5 million for the comparable 2009 period.
Revenues primarily include capacity payments received from
customers in accordance with their terminal use agreements
("TUAs"). The Cheniere Marketing, LLC TUA became effective in
October 2008, the Total Gas and Power
North America, Inc. TUA became effective April 1, 2009 and the Chevron U.S.A., Inc. TUA
became effective July 1, 2009.
Total operating costs and expenses for the first quarter of 2010
were $29.0 million compared to
$19.2 million for the comparable 2009
period. The increase in expenses during the first quarter of
2010 resulted from the achievement of full operability of the
Sabine Pass LNG receiving terminal in the third quarter of 2009.
LNG receiving terminal operating and maintenance expenses
increased to $11.1 million for the
first quarter of 2010 compared to $6.6
million for the comparable 2009 period. Depreciation
expenses were $10.6 million for the
first quarter of 2010 compared to $6.6
million for the comparable 2009 due to the achievement of
full operability of the Sabine Pass LNG receiving terminal in the
third quarter of 2009. General and administrative expenses
increased to $7.0 million in the
first quarter of 2010 compared to $5.9
million for the comparable 2009 period.
Interest expense, net for the first quarter of 2010 was
$43.5 million compared to
$32.9 million for the comparable 2009
period. The increase was primarily due to less interest
expense subject to capitalization during the first quarter of 2010.
The first quarter of 2010 included a $0.5 million gain on derivative instruments
compared to a gain of $2.6 million
for the first quarter of 2009 due to changes in natural gas
commodity prices associated with hedges on LNG inventory.
2010 Outlook
Cheniere Partners estimates that its annualized distribution to
unitholders will be $1.70 per
unit.
Cheniere Partners owns 100 percent of the Sabine Pass LNG
receiving terminal located in western Cameron Parish, Louisiana on the Sabine Pass
Channel. Construction is complete and the terminal is now operating
with sendout capacity of 4.0 Bcf/d and storage capacity of 16.9
Bcfe. Additional information about Cheniere Energy Partners,
L.P. may be found on its website:
www.cheniereenergypartners.com.
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 Energy Partners' business
strategy, plans and objectives and (ii) statements expressing
beliefs and expectations regarding the development of Cheniere
Energy Partners' LNG receiving terminal business. Although Cheniere
Energy 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 Energy 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 Energy 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 Energy Partners does not assume a duty to update these
forward-looking statements.
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(Financial Table
Follows)
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Cheniere Energy Partners, L.P.
(1)
Selected Financial
Information
(in
thousands)
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|
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Three Months Ended
March 31,
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2010 (2)
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2009 (2)
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(Unaudited)
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(Unaudited)
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|
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Revenues
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$
130,778
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$
62,549
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|
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Operating costs and
expenses
|
|
|
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LNG
receiving terminal development expense
|
326
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—
|
|
|
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LNG
receiving terminal operating expense
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11,139
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6,557
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|
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Depreciation expense
|
10,563
|
6,649
|
|
|
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General and administrative
expense
|
7,013
|
5,947
|
|
|
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Total
operating costs and expenses
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29,041
|
19,153
|
|
|
|
|
|
|
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Income
from operations
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101,737
|
43,396
|
|
|
|
|
|
|
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Interest expense, net
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(43,477)
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(32,942)
|
|
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Interest income
|
59
|
560
|
|
|
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Derivative gain, net
|
505
|
2,562
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|
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Other
|
—
|
12
|
|
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Net
Income
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$
58,824
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$
13,588
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|
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Allocation of net income
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Limited partners' interest
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57,648
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13,316
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General partner's interest
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1,176
|
272
|
|
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Net
income for partners
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$
58,824
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$
13,588
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Basic
and diluted net income per limited partner unit
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$
0.36
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$
0.08
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Weighted average limited partners
units outstanding used for basic and diluted net income per unit
calculation:
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Common
units
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26,416
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26,416
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Subordinated units
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135,384
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135,384
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March 31, 2010
(3)
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December 31, 2009
(3)
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(Unaudited)
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Cash
and cash equivalents
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$
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118,405
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$
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117,542
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Restricted cash and cash equivalents
(5)
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54,929
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13,732
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Advances to affiliate – LNG
inventory
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783
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1,319
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LNG
inventory
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216
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1,521
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Other
current assets (4)
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11,336
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18,817
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Non-current restricted cash and cash
equivalents (5)
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82,394
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82,394
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Property, plant and equipment,
net
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1,579,286
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1,588,557
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Debt
issuance costs, net
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25,846
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26,953
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Advances under long-term
contracts
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—
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1,021
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Other
assets
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10,023
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|
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7,617
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Total
assets
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$
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1,883,218
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$
|
1,859,473
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Current liabilities (4)
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$
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148,026
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$
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115,584
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Long-term debt, net of
discount
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2,110,708
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2,110,101
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Long-term debt – related party, net of
discount
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73,495
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72,928
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Deferred revenue, including
affiliate
|
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42,313
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40,860
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Other
liabilities (4)
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347
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|
|
327
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Total
partners' deficit
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(491,671)
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(480,327)
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Total
liabilities and partners' deficit
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$
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1,883,218
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$
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1,859,473
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(1) Please refer
to Cheniere Energy Partners, L.P. Annual Report on Form 10-Q for
the period ended March 31, 2010, filed with the Securities and
Exchange Commission.
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(2) Consolidated
operating results of Cheniere Energy Partners, L.P. and its
consolidated subsidiaries for the three-month periods ended March
31, 2010 and 2009.
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(3) Consolidated balance
sheets of Cheniere Energy Partners, L.P. and its consolidated
subsidiaries.
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(4) Amounts
include transactions between Cheniere Partners and Cheniere Energy,
Inc. or subsidiaries of Cheniere Energy, Inc.
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(5) Restricted
cash and cash equivalents includes approximately $82.4 million for
a permanent debt service reserve fund and $54.9 million for four
months of interest as required in the Sabine Pass senior notes
indenture.
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SOURCE Cheniere Energy Partners, L.P.