HOUSTON, Aug. 6 /PRNewswire-FirstCall/ -- For the quarter
and six months ended June 30, 2010,
Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE Amex:
CQP) reported net income of $58.4
million and $117.2 million, or
$0.35 and $0.71 per common unit, respectively, compared
with net income of $42.0 million and
$55.5 million, or $0.26 and $0.34 per
common unit, respectively, for the same periods in 2009.
Overview of Significant 2010 Events
- In June 2010, we initiated a
project to add liquefaction services at the Sabine Pass LNG
receiving terminal that would transform the terminal into a
bi-directional facility capable of liquefying natural gas and
exporting LNG in addition to importing and regasifying
foreign-sourced LNG. We initiated the regulatory process in
July 2010 through our subsidiary,
Sabine Pass Liquefaction, LLC, by filing a request with the Federal
Energy Regulatory Commission to begin the NEPA pre-filing process.
- In June 2010, Cheniere Marketing,
LLC ("Cheniere Marketing") assigned its terminal use agreement
("TUA") with Sabine Pass LNG to Cheniere Energy Investments, LLC
("Investments"), our wholly owned subsidiary, and concurrently
entered into a Variable Capacity Rights Agreement ("VCRA") with
Investments.
As currently contemplated, the liquefaction project would be
designed and permitted for up to four modular LNG trains, each with
a peak processing capacity of up to approximately 0.7 Bcf/d of
natural gas and an average liquefaction capacity of approximately
3.5 million tons per annum ("mtpa"). The initial project
phase will include two modular trains and the capacity to process
on average approximately 1.2 Bcf/d of pipeline quality natural gas.
Commencement of construction is subject to regulatory approvals and
a final investment decision contingent upon Cheniere Partners
obtaining satisfactory construction contracts and entering into
long-term customer contracts sufficient to underpin financing of
the project. We believe that the time and cost required to
develop the project would be materially lessened by Sabine Pass
LNG's existing large acreage and infrastructure. We anticipate LNG
export could commence as early as 2015.
The VCRA became effective July 1,
2010. Under the terms of the VCRA, Cheniere Marketing
will continue to be responsible for monetizing the capacity at the
Sabine Pass LNG receiving terminal and will have the right to
utilize all of the services and other rights at the Sabine Pass LNG
receiving terminal available under the TUA assigned to Investments.
As a result of the assignment of the TUA, the ending of the
subordination period and the conversion of subordinated units into
common units will depend upon future business development and is no
longer expected to occur as early as the second quarter of 2012 as
previously estimated.
Results
Cheniere Partners reported income from operations of
$102.0 million and $203.7 million for the quarter and six month
period ended June 30, 2010,
respectively, compared to income from operations of $74.3 million and $117.7
million, respectively, for the comparable 2009 periods.
Revenues for the quarter and six month period ended June 30, 2010 were $129.8
million and $260.5 million,
respectively, compared to $95.7
million and $158.2 million for
the comparable 2009 periods. Revenues primarily include capacity
payments received from customers in accordance with their TUAs.
Payments under the TUAs commenced in October 2008, April
2009 and July 2009 for
Cheniere Marketing, Total Gas and Power North America, Inc. and
Chevron U.S.A., Inc., respectively.
Total operating costs and expenses for the quarter and six month
period ended June 30, 2010 were
$27.8 million and $56.8 million, respectively, compared to
$21.4 million and $40.6 million, respectively, for the comparable
2009 periods. Operating and maintenance expenses increased
$0.5 million and $5.1 million for the quarter and six month period
ended June 30, 2010, respectively,
compared to the comparable 2009 periods. Depreciation expenses
increased $3.4 million and
$7.3 million for the quarter and six
month period ended June 30, 2010,
respectively, compared to the comparable 2009 periods.
General and administrative expenses increased $1.7 million and $2.7
million in the second quarter and six month period ended
June 30, 2010, compared to the
comparable 2009 periods. The increase in expenses during the
quarter and six month period ended June 30,
2010 resulted from the achievement of full operability of
the Sabine Pass LNG receiving terminal in the third quarter of
2009.
Interest expense, net for the quarter and six month period ended
June 30, 2010 was $43.6 million and $87.1
million, respectively, compared to $33.4 million and $66.3
million, respectively, for the comparable 2009 periods.
The increase in the 2010 periods was primarily due to less
interest expense subject to capitalization. Derivative gains
decreased $0.8 million and
$2.9 million in the quarter and six
month period ended June 30, 2010,
respectively, compared to the same periods in 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
common unitholders for fiscal year 2010 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 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 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.
(Financial Table Follows)
Cheniere Energy Partners,
L.P.
Selected Financial
Information
(in thousands, except per unit
data) (1)
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2010 (2)
|
|
2009 (2)
|
|
2010 (2)
|
|
2009 (2)
|
|
|
Revenues (4)
|
$
|
129,764
|
|
$
|
95,695
|
|
$
|
260,542
|
|
$
|
158,244
|
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
expense (4)
|
|
772
|
|
|
—
|
|
|
1,098
|
|
|
—
|
|
|
Operating
and maintenance expense (4)
|
|
9,253
|
|
|
8,719
|
|
|
20,392
|
|
|
15,276
|
|
|
Depreciation, depletion and
amortization
|
|
10,561
|
|
|
7,157
|
|
|
21,124
|
|
|
13,806
|
|
|
General and
administrative expense (4)
|
|
7,201
|
|
|
5,537
|
|
|
14,214
|
|
|
11,484
|
|
|
Total
operating costs and expenses
|
|
27,787
|
|
|
21,413
|
|
|
56,828
|
|
|
40,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
101,977
|
|
|
74,282
|
|
|
203,714
|
|
|
117,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net (4)
|
|
(43,648)
|
|
|
(33,352)
|
|
|
(87,125)
|
|
|
(66,294)
|
|
|
Interest
income
|
|
85
|
|
|
259
|
|
|
144
|
|
|
819
|
|
|
Derivative
gain (loss), net
|
|
(44)
|
|
|
762
|
|
|
461
|
|
|
3,324
|
|
|
Other
|
|
1
|
|
|
—
|
|
|
1
|
|
|
12
|
|
|
Net Income
|
$
|
58,371
|
|
$
|
41,951
|
|
$
|
117,195
|
|
$
|
55,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of net
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited Partners'
Interest
|
$
|
57,204
|
|
$
|
41,112
|
|
$
|
114,851
|
|
$
|
54,428
|
|
|
General Partner's
Interest
|
|
1,167
|
|
|
839
|
|
|
2,344
|
|
|
1,111
|
|
|
Net Income to
Partners
|
$
|
58,371
|
|
$
|
41,951
|
|
$
|
117,195
|
|
$
|
55,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted net income per limited partner unit
|
$
|
0.35
|
|
$
|
0.26
|
|
$
|
0.71
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of limited
partners units outstanding used
for
basic and diluted net income per
unit
calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common units
|
|
26,416
|
|
|
26,416
|
|
|
26,416
|
|
|
26,416
|
|
|
Subordinated units
|
|
135,384
|
|
|
135,384
|
|
|
135,384
|
|
|
135,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010
(3)
|
|
December 31, 2009
(3)
|
|
|
|
(Unaudited)
|
|
|
|
|
Cash and cash
equivalents
|
$
|
60,078
|
|
$
|
117,542
|
|
|
Restricted cash and cash
equivalents
|
|
13,732
|
|
|
13,732
|
|
|
Advances to Affiliate – LNG
Inventory
|
|
—
|
|
|
1,319
|
|
|
LNG Inventory
|
|
501
|
|
|
1,521
|
|
|
Other current assets
(4)
|
|
8,946
|
|
|
18,817
|
|
|
Non-current restricted cash and
cash equivalents
|
|
82,394
|
|
|
82,394
|
|
|
Property, plant and equipment,
net
|
|
1,569,642
|
|
|
1,588,557
|
|
|
Debt issuance costs,
net
|
|
24,213
|
|
|
26,953
|
|
|
Advances under
long-term contracts
|
|
—
|
|
|
1,021
|
|
|
Other assets
|
|
9,997
|
|
|
7,617
|
|
|
Total assets
|
$
|
1,769,503
|
|
$
|
1,859,473
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
(4)
|
$
|
45,937
|
|
$
|
115,584
|
|
|
Long-term debt, net of
discount
|
|
2,111,314
|
|
|
2,110,101
|
|
|
Long-term debt – Related party,
net of discount
|
|
74,062
|
|
|
72,928
|
|
|
Deferred revenue, including
affiliate
|
|
41,313
|
|
|
40,860
|
|
|
Other liabilities (4)
|
|
346
|
|
|
327
|
|
|
Total partner's
deficit
|
|
(503,469)
|
|
|
(480,327)
|
|
|
Total liabilities and
partners' deficit
|
$
|
1,769,503
|
|
$
|
1,859,473
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Please refer to Cheniere Energy
Partners, L.P. Quarterly Report on Form 10-Q for the period ended
June 30, 2010, 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 six month periods ended June 30, 2010 and
2009.
|
|
(3)
|
Consolidated balance sheets of
Cheniere Energy Partners, L.P. and its consolidated
subsidiaries.
|
|
(4)
|
Amounts include transactions
between Cheniere Partners and Cheniere Energy, Inc. or subsidiaries
of Cheniere Energy, Inc.
|
|
|
|
SOURCE Cheniere Energy Partners, L.P.
Copyright g. 6 PR Newswire