Cheniere Energy Reports Second Quarter 2007 Results
HOUSTON--(BUSINESS WIRE)--
Cheniere Energy, Inc. (AMEX:LNG) reported a net loss of $41.1 million, or $0.76 per share (basic and diluted), for the second quarter of 2007 compared with a net loss of $3.6 million, or $0.07 per share (basic and diluted), during the corresponding period in 2006.
This quarter was characterized by several milestones including the construction and placement of roofs on three storage tanks at Sabine Pass LNG, groundbreaking on the Creole Trail pipeline and the successful execution of a supply contract with Gaz de France and the launch of an online system to capture value in the global LNG arbitrage market.
The primary reasons for the $37.5 million increase in the net loss between corresponding quarters in 2006 and 2007 include general and administrative expenses increasing by $16.5 million principally related to personnel costs necessary for the expansion of the Cheniere's business and the effect in 2006 of capitalizing as regulatory assets $12.3 million of previously expensed pipeline development costs.
As of June 30, 2007, Cheniere had unrestricted cash and cash equivalents of $710.8 million compared to $463.0 million at December 31, 2006. The primary sources of the increase were the receipt of $203.9 million in net proceeds from the sale of Cheniere Energy Partners, L.P. ("Cheniere Partners") (AMEX:CQP) common units to the public and receipt of $391.7 million in net proceeds from a $400 million term loan in May 2007. Part of the proceeds of the term loan were used by the company to purchase 6,000,000 shares of its common stock at a cost of $212.5 million in partial fulfillment of Cheniere's announced plans to purchase an aggregate of 9,175,595 shares of its common stock. As previously announced, Cheniere completed the purchase of the 9,175,595 shares of its common stock on July 26, 2007.
At June 30, 2007, Cheniere held restricted cash, cash equivalents and treasury securities totaling $1.0 billion and comprised of $619.6 million dedicated to the completion of the construction of the Sabine Pass LNG receiving terminal construction including expansion to 4 billion cubic feet per day of throughput capacity, $280.9 million reserved for interest payments on the Sabine Pass LNG, L.P. senior notes and $97.8 million as a reserve for distributions to Cheniere Partners' common unit holders.
Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States. Cheniere is pursuing related business opportunities both upstream and downstream of the terminals. Cheniere is also the founder and holds a 30% limited partner interest in a fourth LNG receiving terminal. Additional information about Cheniere Energy, Inc. may be found on its web site at www.cheniere.com.
For additional information, please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q for the period ended June 30, 2007, filed with the Securities and Exchange Commission.
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 the Cheniere's business strategy, plans and objectives and
(ii) statements expressing beliefs and expectations regarding the
development of Cheniere's LNG receiving terminal business. Although
Cheniere 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's 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's
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 does not assume a duty to update these forward-looking
statements.
(Financial Table Follows)
Cheniere Energy, Inc.
Selected Financial Information
(in thousands) (1)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Revenues $ 872 $ 413 $ (385) $ 835
Operating costs and expenses
LNG receiving terminal and
pipeline development
expenses 10,532 (4,506) 16,286 3,807
Exploration costs 14 590 372 1,428
Oil and gas production
costs 101 55 168 105
Depreciation, depletion
and amortization 1,513 579 2,589 1,185
General and administrative
expenses 28,936 12,444 50,197 25,625
--------- --------- --------- ---------
Total operating costs
and expenses 41,096 9,162 69,612 32,150
--------- --------- --------- ---------
Loss from operations (40,224) (8,749) (69,997) (31,315)
Derivative gain -- 162 -- 923
Interest expense, net (25,930) (11,096) (52,356) (22,234)
Interest income 24,120 10,335 45,703 19,879
Other income (expense) (184) 108 (183) 284
Income tax benefit -- 5,621 -- 13,033
Minority interest 1,099 -- 1,158 --
--------- --------- --------- ---------
Net loss $(41,119) $ (3,619) $(75,675) $(19,430)
========= ========= ========= =========
Net loss per common share--
basic and diluted $ (0.76) $ (0.07) $ (1.38) $ (0.36)
========= ========= ========= =========
Weighted average number of
common shares outstanding--
basic and diluted 54,391 54,369 54,640 54,293
========= ========= ========= =========
June 30, December 31,
2007 2006
------------ ------------
(Unaudited)
Cash and Cash Equivalents $ 710,802 $ 462,963
Restricted Cash and Cash Equivalents 195,337 176,827
Other Current Assets 29,281 10,183
Non-Current Restricted Cash, Cash
Equivalents and Treasury Securities 823,819 1,071,722
Property, Plant and Equipment, Net 1,150,953 748,818
Debt Issuance Costs, Net 46,875 41,545
Goodwill 76,844 76,844
Other Assets 50,513 15,586
------------ ------------
Total Assets $ 3,084,424 $2,604,488
============ ============
Current Liabilities $ 101,997 $ 61,939
Long-Term Debt 2,757,000 2,357,000
Deferred Revenue 41,000 41,000
Other Liabilities 6,874 1,302
Minority Interest 300,795 --
Stockholders' (Deficit) Equity (123,242) 143,247
------------ ------------
Total Liabilities and Stockholders'
(Deficit) Equity $ 3,084,424 $2,604,488
============ ============
(1) Please refer to Cheniere Energy, Inc. Quarterly Report on Form 10-
Q for the period ended June 30, 2007, filed with the Securities
and Exchange Commission.
Source: Cheniere Energy, Inc.
Released August 8, 2007