Exhibit 99.1 Cheniere Energy Reports Fourth Quarter and 2005 Results HOUSTON--(BUSINESS WIRE)--March 13, 2006--Cheniere Energy, Inc. (AMEX:LNG) reported a net loss of $18.4 million, or $0.34 per share (basic and diluted), for the fourth quarter of 2005 compared with a net loss of $9.8 million, or $0.23 per share (basic and diluted), during the corresponding period in 2004. The major factors contributing to the fourth quarter net loss in 2005 were LNG receiving terminal development expenses of $7.1 million and general and administrative expenses of $12.0 million. Financial results for the year ended December 31, 2005 reflect a net loss of $29.8 million, or $0.56 per share (basic and diluted), compared to a net loss of $24.6 million, or $0.63 per share (basic and diluted), in 2004. The major factors contributing to our net loss of $29.8 million in 2005 were LNG receiving terminal development expenses of $22.0 million and general and administrative expenses of $29.1 million, which were offset by the $20.2 million gain on the sale of Cheniere's investment in Gryphon Exploration Company ("Gryphon"). Absent the gain on the sale of our investment in Gryphon, we would have reported a net loss of $50.0 million, or $0.94 per share (basic and diluted), for 2005. Cheniere's working capital at December 31, 2005 was $810.1 million, an increase of $504.3 million from $305.8 million at December 31, 2004. The increase in working capital was primarily attributable to the completion of a $600 million term loan and the issuance of $325 million of Convertible Senior Unsecured notes in 2005. These sources of funds were partially offset by construction costs at Cheniere's Sabine Pass LNG receiving terminal, the cost of hedging the potential dilution from the conversion of the convertible notes up to a market price of $70.00 per share of Cheniere common stock, funds used in operations and debt issuance costs. Note: On April 8, 2005, Cheniere's Board of Directors declared a two-for-one stock split effective April 22, 2005. Accordingly, all references to weighted average shares outstanding and per share amounts in this press release have been retroactively adjusted to reflect this stock split. Cheniere Energy, Inc. is a Houston based energy company engaged in developing LNG receiving terminals and Gulf of Mexico exploration & production. Cheniere is building a 100% owned Gulf Coast LNG receiving terminal near Sabine Pass in Cameron Parish, LA. and developing 100% owned Gulf Coast LNG receiving terminals near Corpus Christi, TX and near the Creole Trail in Cameron Parish, LA. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is building an LNG receiving terminal in Freeport, Texas. Cheniere explores for oil and gas in the Gulf of Mexico using a regional database of 7,000 square miles of PSTM 3D seismic data. 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 meaning 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 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, except per share data) Three Months Ended Year Ended December 31, December 31, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- (unaudited) Revenues $851 $866 $3,005 $1,998 --------- --------- --------- --------- Operating Costs and Expenses LNG Receiving Terminal Development Expenses 7,119 3,752 22,020 17,166 Oil and Gas Production Costs 70 88 237 117 Depreciation, Depletion and Amortization 1,965 692 3,702 1,324 General and Administrative Expenses 12,031 5,369 29,145 12,476 --------- --------- --------- --------- Total Operating Costs and Expenses 21,185 9,901 55,104 31,083 --------- --------- --------- --------- Loss from Operations (20,334) (9,035) (52,099) (29,085) Gain on Sale of Investment in Unconsolidated Affiliate -- -- 20,206 -- Equity in Net Income (Loss) of Limited Partnership 2,201 (1,431) (1,031) (1,346) Reimbursement from Limited Partnership Investment -- -- -- 2,500 Derivative Gain 574 -- 837 -- Interest Expense (12,316) -- (17,373) -- Interest Income 9,406 453 17,520 501 Income Tax Benefit 2,045 -- 2,045 -- Minority Interest -- 212 97 2,862 --------- --------- --------- --------- Net Loss $(18,424) $(9,801) $(29,798) $(24,568) ========= ========= ========= ========= Net Loss Per Common Share - Basic and Diluted $(0.34) $(0.23) $(0.56) $(0.63) ========= ========= ========= ========= Weighted Average Common Shares Outstanding - Basic and Diluted 53,773 42,939 53,097 38,895 ========= ========= ========= ========= December 31, December 31, 2005 2004 ------------ ------------ Cash and Cash Equivalents $692,592 $308,443 Restricted Cash and Cash Equivalents 160,885 -- Advances to EPC Contractor 8,087 -- Other Current Assets 9,899 2,838 Non-Current Restricted Cash and Cash Equivalents 16,500 -- Property, Plant and Equipment, Net 298,083 20,880 Debt Issuance Costs, Net 43,008 1,302 Goodwill 76,844 -- Other Assets 2,226 104 ------------ ------------ Total Assets $1,308,124 $333,567 ============ ============ Current Liabilities $61,322 $5,529 Long-Term Debt 917,500 -- Deferred Revenue 41,000 23,000 Long-Term Derivative Liability 1,682 -- Other Liabilities and Minority Interest 102 437 Stockholders' Equity 286,518 304,601 ------------ ------------ Total Liabilities and Stockholders' Equity $1,308,124 $333,567 ============ ============ CONTACT: Cheniere Energy, Inc., Houston David Castaneda, 713-265-0202