exhibit_99-1.htm

Houston, Texas – August 7, 2009 – Cheniere Energy, Inc. (“Cheniere”) (NYSE Amex: LNG) reported a net loss of $13.0 million, or $0.25 per share (basic and diluted), for the second quarter of 2009 compared with a net loss of $136.5 million, or $2.90 per share (basic and diluted), during the corresponding period in 2008. The decrease in the net loss compared to the prior period of $123.5 million was largely due to the $78.6 million of restructuring charges included in the second quarter 2008 results and a $45.4 million gain on the early extinguishment of debt recognized in the second quarter of 2009. Excluding these two items, our net losses for the second quarter of 2009 and 2008 would have been $58.4 million, or $1.13 per share (basic and diluted), and $57.9 million, or $1.23 per share (basic and diluted), respectively. In addition, results include the impact of the adoption of APB 14-1, Accounting for Convertible Debt Instruments That May Be Settled In Cash Upon Conversion, which was applied retrospectively to all periods presented.

Income from operations was $0.3 million for the second quarter of 2009 compared to a loss from operations of $103.5 million for the corresponding period in 2008. Excluding the impact of the $78.6 million of restructuring charges during the second quarter of 2008, our loss from operations in the second quarter of 2008 would have been $24.9 million, compared to income from operations of $0.3 million in the second quarter of 2009. Revenues increased $37.0 million largely as a result of commencement of revenues under a third-party terminal use agreement (“TUA”) on April 1, 2009. LNG receiving terminal and pipeline development expenses decreased $2.5 million and LNG receiving terminal and pipeline operating expenses and depreciation expenses increased by $8.8 million and $9.5 million, respectively, as the initial 2.6 Bcf/d sendout capacity and 10.1 Bcf storage capacity at the Sabine Pass LNG receiving terminal was placed into service during the second half of 2008. General and administrative expenses decreased $3.9 million to $15.4 million primarily due to the restructuring initiatives implemented during 2008. General and administrative expenses include non-cash compensation expenses of approximately $5.0 million in the second quarter of 2009 and $2.8 million in the corresponding period in 2008.

As of June 30, 2009, the Sabine Pass LNG receiving terminal had begun receiving capacity reservation fee payments from all three of its TUA customers, Total Gas and Power North America, Inc., Chevron U.S.A., Inc. and Cheniere Marketing as the latest TUA commencement date became effective in July 2009.

During the second quarter of 2009, Cheniere retired $120.4 million aggregate principal amount of its 2.25% Convertible Senior Unsecured Notes due 2012 in exchange for $30.0 million cash and 4.0 million shares through a series of transactions. Cheniere issued the shares pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended, contained in Section 3(a)(9) of such Act. Due to Cheniere’s retirement of the notes, future interest payments were reduced by approximately $8.7 million.

The remaining construction of 1.4 Bcf/d sendout capacity and 6.7 Bcf of storage capacity at the Sabine Pass LNG receiving terminal is nearing completion and the LNG receiving terminal is expected to be fully operational with sendout capacity of 4.0 Bcf/d and storage capacity of 16.8 Bcf by the third quarter of 2009. Total estimated construction costs excluding financing costs are $1.559 billion with costs incurred as of June 30, 2009 totaling $1.499 billion. Costs are anticipated to be funded with available cash held by Sabine Pass LNG, L.P. (“Sabine Pass”).

Restricted cash and cash equivalents and treasury securities at June 30, 2009 were $265.0 million of which $259.7 million were held at Cheniere Energy Partners, L.P. (“Cheniere Partners”) and $5.3 million were held at Cheniere. Restricted cash held by Cheniere Partners includes approximately $82.4 million in a permanent debt service reserve fund and $13.7 million for one month of interest as required by the Sabine Pass senior notes indenture, $34.9 million available for distributions to Cheniere Partners’ common unitholders and general partner and $128.8 million for construction, working capital and general purposes at Sabine Pass.

Cheniere estimates that it has sufficient liquidity in the form of cash and cash equivalents and working capital to fund operations and pursue its commercial strategy for the next several years. Cheniere expects approximately $35 million from restricted cash to be released to unrestricted cash during the third quarter of 2009.

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.

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’s business strategy, plans and objectives and (ii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG receiving terminal and pipeline businesses. 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.

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008
				(As adjusted) (2)						(As adjusted) (2)
Revenues
Operating costs and expenses	$	37,959		$	914		$	39,193		$	2,391
LNG receiving terminal and pipeline development expenses		91			2,566			—			9,282
LNG receiving terminal and pipeline operating expenses		9,251			416			18,029			416
Oil and gas production and exploration costs		77			138			164			300
Depreciation, depletion and amortization		12,795			3,333			24,857			5,617
General and administrative expenses		15,422			19,364			33,219			50,043
Restructuring charges		—			78,564			—			78,564
Total operating costs and expenses		37,636			104,381			76,269			144,222

Income (Loss) from operations		323			(103,467	)		(37,076	)		(141,831	)

Derivative gain (loss)		762			(11,536	)		3,324			(12,366	)
Loss from equity method investments		—			(3,000	)		—			(4,800	)
Gain on early extinguishment of debt		45,363			—			45,363			—
Interest expense, net		(61,959	)		(25,612	)		(115,209	)		(50,212	)
Interest income		388			4,801			1,199			14,405
Other income (expense)		46			(34	)		(17	)		(71	)
Income tax benefit		—			—			—			—
Minority interest		2,026			2,305			6,624			3,670
Net loss	$	(13,051	)	$	(136,543	)	$	(95,792	)	$	(191,205	)

Net loss per common share—basic and diluted	$	(0.25	)	$	(2.90	)	$	(1.91	)	$	(4.06	)

Weighted average number of common shares outstanding—basic and diluted		51,576			47,129			50,121			47,053

	June 30, 2009 Unaudited			December 31, 2008 (As adjusted) (2)
Cash and Cash Equivalents	$	88,946		$	102,192
Restricted Cash and Cash Equivalents		147,229			301,550
LNG Inventory		10,699			—
Other Current Assets		21,548			12,850
Non-Current Restricted Cash, Cash Equivalents and Treasury Securities		117,770			159,312
Property, Plant and Equipment, net		2,236,269			2,170,158
Debt Issuance Costs, net		50,840			55,688
Goodwill		76,844			76,844
Other Assets		35,640			41,488
Total Assets	$	2,785,785		$	2,920,082

Current Liabilities	$	83,601		$	66,133
Long-Term Debt, net of discount		3,016,320			3,082,362
Deferred Revenue		35,500			37,500
Other Liabilities		14,599			8,141
Non-Controlling Interest		230,342			250,162
Stockholders’ (Deficit) Equity		(594,577	)		(524,216	)
Total Liabilities and Stockholders’ (Deficit) Equity	$	2,785,785		$	2,920,082

June 30, 2009	Sabine Pass LNG, L.P.		Cheniere Energy Partners, L.P.		Other Cheniere Energy, Inc.		Consolidated Cheniere Energy, Inc.
Cash and cash equivalents	$	—	$	—	$	88,946	$	88,946
Restricted cash, cash equivalents		224,856		34,878		5,265		264,999
Total	$	224,856	$	34,878	$	94,211	$	353,945

(2)

Effective January 1, 2009, Cheniere adopted Financial Accounting Standards Board Staff Position Accounting Principles Board No. 14-1, Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion. As such, the Balance Sheet as of December 31, 2008 and Cheniere’s Consolidated Statements of Operations for the three and six months ended June 30, 2008 have been adjusted to reflect this adoption.