EXHIBIT 99.1

CHENIERE ENERGY, INC. NEWS RELEASE
Cheniere Energy, Inc. Reports Second Quarter 2014 Results
Houston, Texas - July 31, 2014 - Cheniere Energy, Inc. (“Cheniere”) (NYSE MKT: LNG) reported a net loss attributable to common stockholders of $201.9 million, or $0.90 per share (basic and diluted), for the three months ended June 30, 2014, compared to a net loss attributable to common stockholders of $154.8 million, or $0.71 per share (basic and diluted), for the comparable 2013 period. For the six months ended June 30, 2014, Cheniere reported a net loss attributable to common stockholders of $299.7 million, or $1.34 per share (basic and diluted), compared to a net loss attributable to common stockholders of$271.9 million, or $1.26 per share (basic and diluted), during the corresponding period of 2013.

Results include significant items for the three and six months ended June 30, 2014 of $189.8 million and $236.6 million, compared to $7.1 million and $41.6 million for the comparable 2013 periods, respectively. The significant items for the three and six months ended June 30, 2014 related to liquefied natural gas (“LNG”) terminal development expenses, derivative losses, and loss on early extinguishment of debt. LNG terminal development expenses were primarily for the liquefaction facilities being developed by us near Corpus Christi, Texas (the “Corpus Christi Liquefaction Project”), and for the liquefaction facilities Cheniere Energy Partners, L.P. (“Cheniere Partners”) is developing through Sabine Pass Liquefaction, LLC (“Sabine Pass Liquefaction”) at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the “Sabine Pass Liquefaction Project”). Derivative losses were primarily the result of the change in fair value of Sabine Pass Liquefaction’s interest rate derivatives to hedge the exposure to volatility in a portion of the floating-rate interest payments under Sabine Pass Liquefaction’s four credit facilities (the “2013 Liquefaction Credit Facilities”). Loss on early extinguishment of debt was related to Sabine Pass Liquefaction’s write-off of debt issuance costs in connection with the early extinguishment of $2.1 billion of the 2013 Liquefaction Credit Facilities.

General and administrative expense decreased $67.4 million and $79.3 million in the three and six months ended June 30, 2014, respectively, as compared to the three and six months ended June 30, 2013, primarily as a result of the timing of awards under bonus plans relating to the Sabine Pass Liquefaction Project. Included in general and administrative expenses were non-cash compensation expenses of $24.6 million and $59.2 million for the three and six months ended June 30, 2014, respectively, compared to $103.2 million and $162.4 million for the comparable 2013 periods, respectively.

Results are reported on a consolidated basis and include our ownership interest in Cheniere Partners, which is based on our 100% ownership of the general partner and 84.5% ownership interest in Cheniere Energy Partners LP Holdings, LLC which owns 55.9% of Cheniere Partners.

Overview of Recent Significant Events

▪
Our wholly owned subsidiary, Corpus Christi Liquefaction, LLC (“Corpus Christi Liquefaction”), has entered into LNG Sale and Purchase Agreements (“SPAs”) beginning in the second quarter 2014 through July 2014 with the following customers for the Corpus Christi Liquefaction Project:

◦
Endesa Generación, S.A. (which has been assigned to Endesa S.A.) and Endesa S.A. (together, “Endesa”) under which Endesa has agreed to purchase a total of 117.3 million MMBtu of LNG per year (approximately 2.25 mtpa) upon the date of the first commercial delivery of LNG from Train 1;
◦
Iberdrola S.A. (“Iberdrola”) under which Iberdrola has agreed to purchase a total of 39.7 million MMBtu of LNG per year (approximately 0.76 mtpa) upon the date of first commercial delivery of LNG from Train 2. In addition, Corpus Christi Liquefaction will provide Iberdrola with bridging volumes of 19.8 million MMBtu per contract year, starting on the date on which Train 1 becomes commercially operable and ending on the date of the first commercial delivery of LNG from Train 2;
◦
Gas Natural Fenosa LNG SL (“Gas Natural Fenosa”) under which Gas Natural Fenosa has agreed to purchase a total of 78.2 million MMBtu of LNG per year (approximately 1.5 mtpa) upon the date of first commercial delivery of LNG from Train 2;




◦
Woodside Energy Trading Singapore Pte Ltd (“Woodside”) under which Woodside has agreed to purchase a total of 44.1 million MMBtu of LNG per year (approximately 0.85 mtpa) upon the date of first commercial delivery of LNG from Train 2;
◦
PT Pertamina (Persero) (“Pertamina”) under which Pertamina has agreed to purchase an additional 39.7 million MMBtu of LNG per year (approximately 0.76 mtpa) upon the date of first commercial delivery of LNG from Train 2; and
◦
Électricité de France, S.A. (“EDF”) under which EDF has agreed to purchase 40.0 million MMBtu of LNG per year (approximately 0.77 mtpa) upon the date of first commercial delivery of LNG from Train 3. In addition, Corpus Christi Liquefaction will provide EDF with bridging volumes of 20.0 million MMBtu per contract year, starting on the date on which Train 2 becomes commercially operable and ending on the date of the first commercial delivery of LNG from Train 3.
▪
In May 2014, Sabine Pass Liquefaction issued an aggregate principal amount of $2.0 billion of 5.75% Senior Secured Notes due 2024 and $0.5 billion of 5.625% Senior Secured Notes due 2023. Net proceeds from the offering of approximately $2.5 billion were used to repay certain outstanding indebtedness under the 2013 Liquefaction Credit Facilities, and the remaining proceeds are being used to pay a portion of the capital costs in connection with the construction of the first four natural gas liquefaction trains (“Trains”) of the Sabine Pass Liquefaction Project in lieu of a terminated portion of the commitments under the 2013 Liquefaction Credit Facilities.
Liquefaction Projects Update
Sabine Pass Liquefaction Project
Through Cheniere Partners we are developing up to six Trains, each with an expected nominal production capacity of approximately 4.5 mtpa at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.
The Trains are in various stages of development.
▪
Construction on Trains 1 and 2 began in August 2012, and as of June 30, 2014, the overall project for Trains 1 and 2 was approximately 69% complete, which is ahead of the contractual schedule. Based on our current construction schedule, we anticipate that Train 1 will produce LNG as early as late 2015.

▪
Construction on Trains 3 and 4 began in May 2013, and as of June 30, 2014, the overall project for Trains 3 and 4 was approximately 36% complete, which is ahead of the contractual schedule. We expect Trains 3 and 4 to become operational in late 2016 and 2017, respectively.

▪
Trains 5 and 6 are under development. We have entered into SPAs for approximately 3.75 mtpa in aggregate that commence with the date of first commercial delivery for Train 5. We have received authorizations from the Department of Energy (“DOE”) to export 503 Bcf per year of LNG volumes from Trains 5 and 6 to free trade agreement (“FTA”) countries. Authorization to export LNG to non-FTA countries is pending. Federal Energy Regulatory Commission (“FERC”) authorization is also pending. We will contemplate making a final investment decision to commence construction on Trains 5 and 6 based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory approvals and obtaining financing.
Corpus Christi Liquefaction Project
We continue to make progress on the commercialization and development of the Corpus Christi Liquefaction Project, which is being designed for up to three Trains with expected aggregate nominal production capacity of approximately 13.5 mtpa of LNG.

▪
To date, we have entered into SPAs aggregating approximately 6.9 mtpa of LNG volumes commencing with Trains 1 and 2 and 0.77 mtpa of LNG volumes commencing with Train 3.

▪
We have received authorization from the DOE to export up to 767 Bcf per year of domestically produced LNG to FTA countries. Authorization to export LNG to non-FTA countries is pending. FERC authorization is also pending.

We will contemplate making a final investment decision to commence construction of the Corpus Christi Liquefaction Project based upon, among other things, entering into acceptable commercial arrangements, receiving all regulatory




approvals and obtaining financing.
Timelines for Liquefaction Projects
 
 
Target Date
 
 
Sabine Pass Liquefaction
 
Corpus Christi Liquefaction
Milestone
 
Trains
1 & 2
 
Trains
3 & 4
 
Trains
5 & 6
 
 
DOE export authorization
 
Received
 
Received
 
Received FTA
Pending Non-FTA
 
Received FTA; Pending Non-FTA
Definitive commercial agreements
 
Completed 7.7 mtpa
 
Completed 8.3 mtpa
 
T5: Completed
T6: 2014
 
T1-T2: Completed
- BG Gulf Coast LNG, LLC
 
4.2 mtpa
 
1.3 mtpa
 
 
 
 
- Gas Natural Fenosa
 
3.5 mtpa
 
 
 
 
 
 
- KOGAS
 
 
 
3.5 mtpa
 
 
 
 
- GAIL (India) Ltd.
 
 
 
3.5 mtpa
 
 
 
 
- Total Gas & Power N.A.
 
 
 
 
 
2.0 mtpa
 
 
- Centrica plc
 
 
 
 
 
1.75 mtpa
 
 
- PT Pertamina
 
 
 
 
 
 
 
1.52 mtpa
- Endesa, S.A.
 
 
 
 
 
 
 
2.25 mtpa
- Iberdrola, S.A.
 
 
 
 
 
 
 
0.76 mtpa
- Gas Natural Fenosa LNG SL
 
 
 
 
 
 
 
1.50 mtpa
- Woodside Energy Trading Singapore
 
 
 
 
 
 
 
0.85 mtpa
- Électricité de France, S.A.
 
 
 
 
 
 
 
0.77 mtpa
EPC contract
 
Completed
 
Completed
 
2015
 
Completed
Financing
 
 
 
 
 
2015
 
2014
- Equity
 
Completed
 
Completed 
 
 
 
 
- Debt commitments
 
Received
 
 Received
 
 
 
 
FERC authorization
 
 
 
 
 
 
 
 
- FERC Order
 
Received
 
Received
 
2014/2015
 
2014/2015
- Certificate to commence construction
 
Received
 
Received
 
 
 
 
Issue Notice to Proceed
 
Completed
 
Completed
 
2015
 
2015
Commence operations
 
2015/2016
 
2016/2017
 
2018/2019
 
2018/2019

Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses, and owns and operates the Sabine Pass LNG terminal and Creole Trail Pipeline in Louisiana. Cheniere is pursuing related business opportunities both upstream and downstream of the Sabine Pass LNG terminal. Through its subsidiary, Cheniere Energy Partners, L.P., Cheniere is developing a liquefaction project at the Sabine Pass LNG terminal adjacent to the existing regasification facilities for up to six Trains, each of which is expected to have a nominal production capacity of approximately 4.5 mtpa. Construction has begun on Trains 1 through 4 at the Sabine Pass Liquefaction Project. Cheniere has also initiated a project to develop liquefaction facilities near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed for up to three Trains, with expected aggregate nominal production capacity of approximately 13.5 mtpa of LNG, three LNG storage tanks with capacity of 10.1 Bcfe and two LNG carrier docks. Commencement of construction for the Corpus Christi Liquefaction Project is subject, but not limited, to obtaining regulatory approvals, entering into long-term customer contracts sufficient to underpin financing of the project, obtaining financing, and Cheniere making a final investment decision. Cheniere believes that LNG exports from the Corpus Christi Liquefaction Project could commence as early as 2018.
For additional information, please refer to the Cheniere Energy, Inc. website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, 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 fact, 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, including the construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal




and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements and (vi) statements regarding future discussions and entry into contracts. 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, except per share data)
(unaudited)

 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2014
 
2013
 
2014
 
2013
Revenues
 
 
 
 
 
 
 
LNG terminal revenues
$
66,841

 
$
66,426

 
$
133,260

 
$
132,487

Marketing and trading revenues (losses)
324

 
416

 
981

 
(149
)
Other
480

 
335

 
954

 
745

Total revenues
67,645

 
67,177

 
135,195

 
133,083

 
 
 
 
 
 
 
 
Operating costs and expenses
 
 
 
 
 
 
 
General and administrative expense
67,720

 
135,076

 
141,528

 
220,875

Depreciation
17,298

 
15,173

 
32,773

 
30,286

LNG terminal operating expense
29,409

 
31,068

 
43,096

 
46,327

LNG terminal development expense
15,263

 
22,081

 
27,375

 
39,168

Other
90

 
57

 
170

 
159

Total operating costs and expenses
129,780

 
203,455

 
244,942

 
336,815

 
 
 
 
 
 
 
 
Loss from operations
(62,135
)
 
(136,278
)
 
(109,747
)
 
(203,732
)
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
Interest expense, net
(43,789
)
 
(42,016
)
 
(84,059
)
 
(82,278
)
Loss on early extinguishment of debt
(114,335
)
 
(80,510
)
 
(114,335
)
 
(80,510
)
Derivative gain (loss), net
(60,178
)
 
95,509

 
(94,859
)
 
78,041

Other income (expense)
(189
)
 
413

 
121

 
889

Total other expense
(218,491
)
 
(26,604
)
 
(293,132
)
 
(83,858
)
 
 
 
 
 
 
 
 
Loss before income taxes and non-controlling interest
(280,626
)
 
(162,882
)
 
(402,879
)
 
(287,590
)
Income tax provision
(84
)
 
(1,022
)
 
(176
)
 
(942
)
Net loss
(280,710
)
 
(163,904
)
 
(403,055
)
 
(288,532
)
Less: net loss attributable to non-controlling interest
(78,782
)
 
(9,140
)
 
(103,317
)
 
(16,664
)
Net loss attributable to common stockholders
$
(201,928
)
 
$
(154,764
)
 
$
(299,738
)
 
$
(271,868
)
 
 
 
 
 
 
 
 
Net loss per share attributable to common stockholders—basic and diluted
$
(0.90
)
 
$
(0.71
)
 
$
(1.34
)
 
$
(1.26
)
Weighted average number of common shares outstanding—basic and diluted
223,602

 
217,397

 
223,406

 
216,520












 
June 30,
 
December 31,
 
2014
 
2013
ASSETS
(unaudited)
 
 
Current assets
 
 
 
Cash and cash equivalents
$
889,887

 
$
960,842

Restricted cash and cash equivalents
670,659

 
598,064

Accounts and interest receivable
4,175

 
4,486

LNG inventory
5,800

 
10,563

Prepaid expenses and other
20,963

 
17,225

Total current assets
1,591,484

 
1,591,180

 
 
 
 
Non-current restricted cash and cash equivalents
1,855,769

 
1,031,399

Property, plant and equipment, net
7,933,868

 
6,454,399

Debt issuance costs, net
259,716

 
313,944

Non-current derivative assets
20,236

 
98,123

Goodwill
76,819

 
76,819

Other
121,403

 
107,373

Total assets
$
11,859,295

 
$
9,673,237

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities
 

 
 

Accounts payable
$
30,205

 
$
10,367

Accrued liabilities
320,918

 
186,552

Deferred revenue
26,639

 
26,593

Other
13,121

 
13,499

Total current liabilities
390,883

 
237,011

 
 
 
 
Long-term debt, net
8,987,850

 
6,576,273

Long-term deferred revenue
15,500

 
17,500

Other non-current liabilities
4,105

 
2,396

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Stockholders’ equity
 

 
 

Preferred stock, $0.0001 par value, 5.0 million shares authorized, none issued
—

 
—

Common stock, $0.003 par value
 

 
 

Authorized: 480.0 million shares at June 30, 2014 and December 31, 2013
 

 
 
Issued and outstanding: 238.1 million shares at June 30, 2014 and December 31, 2013
715

 
716

Treasury stock: 9.2 million shares and 9.0 million shares at June 30, 2014 and December 31, 2013, respectively, at cost
(189,646
)
 
(179,826
)
Additional paid-in-capital
2,533,119

 
2,459,699

Accumulated deficit
(2,400,645
)
 
(2,100,907
)
Total stockholders’ equity
(56,457
)
 
179,682

Non-controlling interest
2,517,414

 
2,660,375

Total equity
2,460,957

 
2,840,057

Total liabilities and equity
$
11,859,295

 
$
9,673,237






As of June 30, 2014, we had cash and cash equivalents of $889.9 million available to Cheniere. In addition, we had current and non-current restricted cash and cash equivalents of $2,526.4 million (which included current and non-current restricted cash and cash equivalents available to Cheniere Partners, Sabine Pass Liquefaction and Sabine Pass LNG, L.P.) designated for the following purposes: $2.1 billion for the Sabine Pass Liquefaction Project, $51.4 million for Cheniere Creole Trail Pipeline, L.P., $91.1 million for interest payments related to the Sabine Pass LNG senior secured notes, and $319.2 million for other restricted purposes.




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