- Sabine Pass LNG receiving terminal fully operational - Estimated
annualized distribution is $1.70 HOUSTON, Nov. 6
/PRNewswire-FirstCall/ -- For the quarter and nine months ended
September 30, 2009, Cheniere Energy Partners, L.P. ("Cheniere
Partners") (NYSE Amex: CQP) reported net income of $69.5 million
and $125.0 million, or $0.43 and $0.77 per limited partner unit,
respectively, compared with a net loss $10.9 million and $49.9
million, or ($ 0.07) and ($ 0.31) per limited partner unit,
respectively, for the same periods in 2008. As of September 30,
2009, construction of the Sabine Pass LNG receiving terminal was
substantially complete and fully operational with sendout capacity
of 4.0 Bcf/d and storage capacity of 16.9 Bcfe. Results from
operations From operations, Cheniere Partners reported income of
$106.4 million and $224.0 million, respectively, for the quarter
and nine months ended September 30, 2009 compared to a loss of
$10.0 million and $16.9 million, respectively, for the same 2008
periods. Revenues for the quarter and nine months ended September
30, 2009 were $128.5 million and $286.8 million, respectively.
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 expenses for the
quarter and nine months ended September 30, 2009 were $22.2 million
and $62.7 million, respectively, compared to $10.0 million and
$16.9 million for the comparable 2008 periods. LNG receiving
terminal operating expenses were $7.6 million and $22.8 million,
respectively, for the quarter and nine months ended September 30,
2009 compared to $3.7 million and $3.9 million for the comparable
2008 periods. Depreciation and amortization expenses were $8.9
million and $22.7 million, respectively, for the quarter and nine
months ended September 30, 2009 compared to $1.9 million and $1.9
million for the comparable 2008 periods. These costs increased in
both periods primarily due to the commencement of operations at the
terminal in the second half of 2008. General and administrative
expenses for the quarter and nine months ended September 30, 2009
were $5.7 million and $17.2 million, respectively, compared to $4.1
million and $8.6 million in the comparable 2008 periods. General
and administrative expenses increased for the nine months ended
September 30, 2009 due to the commencement of a services agreement
with a subsidiary of Cheniere Energy, Inc. on January 1, 2009.
Interest expense for the quarter and nine months ended September
30, 2009 was $38.1 million and $104.4 million, respectively,
compared to $17.7 million and $47.6 million, respectively, for the
same 2008 periods. The increase in both periods was primarily due
to less interest expense subject to capitalization during 2009.
Interest income decreased $2.1 million for the third quarter 2009
and decreased $11.3 million for the nine months ended September 30,
2009 compared to the 2008 periods due to lower interest rates in
2009 and a lower average cash balance. In addition, the third
quarter of 2009 included a $1.2 million gain on derivative
instruments compared to a gain of $14.7 million for the third
quarter of 2008 due to changes in natural gas commodity prices
associated with hedges on LNG inventory. Cash and Cash Equivalents
As of September 30, 2009, the Sabine Pass LNG receiving terminal
was receiving capacity reservation fee payments from all three of
its TUA customers. At September 30, 2009, Cheniere Partners had
cash and cash equivalents of $121.6 million. These unrestricted
funds are available for remaining construction expenditures,
working capital and general purposes, including distributions to
unit holders. Construction at the Sabine Pass LNG receiving
terminal was substantially complete as of the end of the third
quarter 2009 and the terminal is now fully operational with sendout
capacity of 4.0 Bcf/d and storage capacity of 16.9 Bcfe. Our
estimated aggregate construction, commissioning and operating cost
budget through achievement of full operability is approximately
$1.559 billion, excluding financing costs. These costs are
anticipated to be funded with available cash held by Sabine Pass
LNG, L.P. ("Sabine Pass"). At September 30, 2009, Cheniere Partners
had restricted cash and cash equivalents of $137.3 million,
including approximately $82.4 million in a permanent debt service
reserve fund and $54.9 million for four months of interest as
required in the Sabine Pass senior notes indenture. Unit
Distributions Cheniere Partners estimates that its annualized
distributions to unit holders will be $1.70 per unit. Distributions
for the third quarter of 2009 of $0.425 per unit will be paid to
all unit holders on November 13, 2009. 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 substantially 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:
http://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.
(Financial Table Follows) Cheniere Energy Partners, L.P. Selected
Financial Information (in thousands, except per unit data) (1)
Three Months Ended Nine Months Ended September 30, September 30,
---------------------- ---------------------- 2009 (2) 2008 (2)
2009 (2) 2008 (2) -------- -------- -------- -------- Revenues (4)
$128,533 $- $286,777 - Operating costs and expenses LNG receiving
terminal development expense (4) - 364 - 2,520 LNG receiving
terminal operating expense (4) 7,562 3,703 22,838 3,881
Depreciation, depletion and amortization 8,905 1,874 22,711 1,911
General and administrative expense (4) 5,699 4,085 17,182 8,562
----- ----- ------ ----- Total operating costs and expenses 22,166
10,026 62,731 16,874 ------ ------ ------ ------ Income (loss) from
operations 106,367 (10,026) 224,046 (16,874) Interest expense, net
(4) (38,089) (17,737) (104,383) (47,629) Interest income 65 2,169
883 12,218 Derivative gain 1,158 14,692 4,482 2,325 Other - 5 12 35
--- --- -- -- Net Income (loss) $69,501 $(10,897) $125,040
$(49,925) ======= ======== ======== ======== Allocation of net
income (loss) to Partners: Limited Partners' Interest 68,111
(10,679) 122,539 (48,927) General Partner's Interest 1,390 (218)
2,501 (998) ----- ---- ----- ---- Net Income (loss) to Partners
$69,501 $(10,897) $125,040 $(49,925) ======= ======== ========
======== Basic and diluted net income (loss) per limited partner
unit $0.43 $(0.07) $0.77 $(0.31) ===== ====== ===== ====== Weighted
average limited partners units outstanding used for basic and
diluted net income (loss) per unit calculation: Common units 26,416
26,416 26,416 26,416 Subordinated units 135,384 135,384 135,384
135,384 September 30, December 31, 2009 (3) 2008 (3) -------------
------------ (Unaudited) Cash and cash equivalents $121,613 $7
Restricted cash and cash equivalents 54,929 235,985 Advances to
Affiliate - LNG Inventory 3,490 - Other current assets (4) 15,145
10,111 Non-current restricted cash, cash equivalents and treasury
securities 82,394 158,813 Property, plant and equipment, net
1,605,079 1,517,507 Debt issuance costs, net 27,907 30,748 Advances
under long-term contracts 728 10,705 Advances to Affiliate - LNG
Held for Commissioning (4) - 9,923 Other assets 7,665 5,036 -----
----- Total assets $1,918,950 $1,978,835 ========== ==========
Current liabilities (4) $166,934 $107,003 Long-term debt, net of
discount 2,181,855 2,107,673 Long-term debt - Related party 70,661
Deferred revenue, including affiliate 41,860 42,471 Other
liabilities (4) 331 2,712 Total partner's deficit (472,030)
(351,685) -------- -------- Total liabilities and partners' deficit
$1,918,950 $1,978,835 ========== ========== (1) Please refer to
Cheniere Energy Partners, L.P. Quarterly Report on Form 10-Q for
the period ended September 30, 2009, 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 nine months ended September 30, 2009 and 2008. (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. DATASOURCE: Cheniere Energy Partners, L.P.
CONTACT: Investors, Christina Cavarretta, +1-713-375-5100, or
Media, Diane Haggard, +1-713-375-5259, both of Cheniere Energy
Partners, L.P. Web Site: http://www.cheniereenergypartners.com/
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