| Segment Reporting Disclosure [Text Block] |
Business Segment Information
We have three operating business segments: LNG terminal business, natural gas pipeline business and LNG and natural gas marketing business. These operating segments reflect lines of business for which separate financial information is produced internally and are subject to evaluation by our chief operating decision makers in deciding how to allocate resources.
Our LNG terminal business segment consists of the operational Sabine Pass LNG terminal, approximately 88.8% owned at September 30, 2011, in western Cameron Parish, Louisiana on the Sabine Pass Channel and two other LNG terminals that are in various stages of development at the following locations: Corpus Christi LNG, 100% owned, near Corpus Christi, Texas; and Creole Trail LNG, 100% owned, at the mouth of the Calcasieu Channel in central Cameron Parish, Louisiana.
Our natural gas pipeline business segment consists of the Creole Trail Pipeline, consisting of 94 miles of natural gas pipeline connecting the Sabine Pass LNG terminal to numerous interconnection points with existing interstate natural gas pipelines in southwest Louisiana, and other natural gas pipelines in various stages of development to provide access to North American natural gas markets.
Our LNG and natural gas marketing business segment is seeking to monetize the 2.0 Bcf/d of regasification capacity at the Sabine Pass LNG terminal held by a subsidiary of Cheniere Partners; develop a portfolio of long-term, short-term, and spot LNG purchase and sale agreements; assist Cheniere Partners' subsidiary in negotiations with potential customers for bi-directional service at the Sabine Pass LNG terminal; and enter into business relationships for the domestic marketing of natural gas imported by Cheniere Marketing as LNG to the Sabine Pass LNG terminal.
The following table summarizes revenues, net income (loss) from operations and total assets for each of our operating segments (in thousands):
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Segments |
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LNG Terminal |
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Natural
Gas Pipeline
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LNG & Natural Gas Marketing |
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Corporate and Other (1) |
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Total
Consolidation
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As of or for the Three Months Ended September 30, 2011 |
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Revenues |
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$ |
68,375 |
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$ |
11 |
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$ |
(2,999 |
) |
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$ |
426 |
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$ |
65,813 |
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Intersegment revenues (losses) (2) (3) |
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1,238 |
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9 |
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(1,154 |
) |
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(93 |
) |
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— |
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Depreciation, depletion and amortization |
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10,869 |
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3,717 |
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328 |
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357 |
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15,271 |
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Non-cash compensation |
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403 |
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104 |
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(430 |
) |
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2,201 |
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2,278 |
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Income (loss) from operations |
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38,383 |
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(7,194 |
) |
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(12,482 |
) |
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(8,352 |
) |
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10,355 |
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Interest expense, net |
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(43,318 |
) |
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(11,543 |
) |
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— |
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(10,264 |
) |
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(65,125 |
) |
Goodwill |
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76,819 |
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— |
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— |
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— |
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76,819 |
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Total assets |
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1,937,126 |
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541,559 |
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63,108 |
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109,650 |
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2,651,443 |
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Expenditures for additions to long-lived assets |
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1,450 |
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30 |
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— |
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112 |
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1,592 |
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As of or for the Three Months Ended September 30, 2010 |
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Revenues |
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$ |
65,945 |
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$ |
21 |
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$ |
1,533 |
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$ |
749 |
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$ |
68,248 |
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Intersegment revenues (losses) (4) (5) (6) (7) |
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672 |
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— |
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(276 |
) |
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(396 |
) |
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— |
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Depreciation, depletion and amortization |
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10,645 |
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3,800 |
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260 |
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925 |
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15,630 |
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Non-cash compensation |
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397 |
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121 |
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916 |
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2,014 |
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3,448 |
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Income (loss) from operations |
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34,907 |
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(5,559 |
) |
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(3,976 |
) |
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(2,989 |
) |
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22,383 |
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Interest expense, net |
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(47,963 |
) |
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(11,401 |
) |
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— |
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(4,535 |
) |
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(63,899 |
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Goodwill |
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76,819 |
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— |
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— |
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— |
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76,819 |
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Total assets |
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1,948,286 |
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557,948 |
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93,494 |
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16,750 |
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2,616,478 |
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Expenditures for additions to long-lived assets |
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342 |
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(221 |
) |
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— |
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(1,295 |
) |
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(1,174 |
) |
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As of or for the Nine Months Ended September 30, 2011 |
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Revenues |
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$ |
205,678 |
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$ |
42 |
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$ |
10,055 |
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$ |
2,079 |
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$ |
217,854 |
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Intersegment revenues (losses) (2) (3) |
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12,452 |
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34 |
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(12,010 |
) |
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(476 |
) |
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— |
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Depreciation, depletion and amortization |
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32,554 |
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11,214 |
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847 |
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1,667 |
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46,282 |
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Non-cash compensation |
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1,609 |
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445 |
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5,232 |
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9,343 |
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16,629 |
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Income (loss) from operations |
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108,095 |
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(18,542 |
) |
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(19,512 |
) |
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(19,661 |
) |
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50,380 |
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Interest expense, net |
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(129,952 |
) |
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(34,161 |
) |
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— |
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(29,754 |
) |
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(193,867 |
) |
Expenditures for additions to long-lived assets |
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7,619 |
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114 |
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12 |
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547 |
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8,292 |
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As of or for the Nine Months Ended September 30, 2010 |
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Revenues |
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$ |
199,109 |
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$ |
58 |
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$ |
14,703 |
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$ |
2,170 |
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$ |
216,040 |
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Intersegment revenues (losses) (4) (5) (6) (7) |
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128,382 |
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255 |
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(127,012 |
) |
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(1,625 |
) |
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— |
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Depreciation, depletion and amortization |
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32,008 |
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11,296 |
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832 |
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2,730 |
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46,866 |
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Non-cash compensation |
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1,241 |
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375 |
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4,517 |
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7,300 |
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13,433 |
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Income (loss) from operations |
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235,440 |
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(16,407 |
) |
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(129,255 |
) |
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(11,658 |
) |
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78,120 |
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Interest expense, net |
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(140,323 |
) |
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(33,795 |
) |
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— |
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(23,926 |
) |
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(198,044 |
) |
Expenditures for additions to long-lived assets |
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2,279 |
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(326 |
) |
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(349 |
) |
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(1,371 |
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233 |
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(1) |
Includes corporate activities, oil and gas exploration, development and exploitation activities and certain intercompany eliminations. Our oil and gas exploration, development and exploitation operating activities have been included in the corporate and other column due to the lack of a material impact that these activities have on our consolidated financial statements. |
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(2) |
Intersegment revenues related to our LNG terminal segment are primarily from tug revenues from Cheniere Marketing and the receipt of 80% of gross margins earned by Cheniere Marketing in monetizing the TUA capacity of Cheniere Energy Investments, LLC ("Cheniere Investments") at the Sabine Pass LNG terminal in the three and nine months ended September 30, 2011. These LNG terminal segment intersegment revenues are eliminated with intersegment expenses in our Consolidated Statements of Operations.
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(3) |
Intersegment losses related to our LNG and natural gas marketing segment are primarily from Cheniere Marketing's tug costs and the payment of 80% of gross margins earned by Cheniere Marketing in monetizing the TUA capacity of Cheniere Investments at the Sabine Pass LNG terminal in the three and nine months ended September 30, 2011. These LNG terminal segment intersegment costs are eliminated with intersegment revenues in our Consolidated Statements of Operations.
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(4) |
Intersegment revenues related to our LNG terminal segment are primarily from TUA capacity reservation fee revenues and tug revenues of $0.3 million and $127.0 million that were received from our LNG and natural gas marketing segment for the three and nine months ended September 30, 2010, respectively. These LNG terminal segment intersegment revenues are eliminated with intersegment expenses in our Consolidated Statements of Operations.
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(5) |
Intersegment revenues related to our natural gas pipeline segment are primarily from transportation fees charged by our natural gas pipeline segment to our LNG terminal and LNG and natural gas marketing segments to transport natural gas that was regasified at the Sabine Pass LNG terminal. These natural gas pipeline segment intersegment revenues are eliminated with intersegment expenses in our Consolidated Statements of Operations. |
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(6) |
Intersegment losses related to our LNG and natural gas marketing segment are primarily from TUA capacity reservation fee expenses and tug costs of $0.7 million and $128.4 million that were incurred from our LNG terminal segment for the three and nine months ended September 30, 2010, respectively. These costs and expenses are classified as marketing trading gains (losses) as they are considered capacity contracts related to our energy trading and risk management activities. These LNG and natural gas marketing segment intersegment costs and expenses are eliminated with intersegment revenues in our Consolidated Statements of Operations.
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(7) |
Intersegment losses related to corporate and other are from various transactions between our LNG terminal, natural gas pipeline and LNG and natural gas marketing segments in which revenue recorded by one operating segment is eliminated with a non-revenue line item (i.e., operating expense or is capitalized) by the other operating segment. |
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