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Financial Instruments (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
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| Fair Value of Derivative Assets and Liabilities |
The following table (in thousands) shows the fair value of our derivative assets and liabilities that are required to be measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, which are classified as prepaid expenses and other, non-current derivative assets and other current liabilities in our Consolidated Balance Sheets.
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Fair Value Measurements as of |
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September 30, 2014 |
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December 31, 2013 |
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Quoted Prices in Active Markets
(Level 1)
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Total |
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Quoted Prices in Active Markets
(Level 1)
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Total |
LNG Inventory Derivatives liability |
$ |
— |
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$ |
(219 |
) |
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$ |
— |
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$ |
(219 |
) |
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$ |
— |
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$ |
(171 |
) |
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$ |
— |
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$ |
(171 |
) |
Fuel Derivatives asset (liability) |
— |
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(144 |
) |
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— |
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(144 |
) |
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— |
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126 |
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— |
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126 |
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Interest Rate Derivatives asset |
— |
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15,059 |
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— |
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15,059 |
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— |
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84,639 |
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— |
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84,639 |
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| Fair Value of Derivative Instruments by Balance Sheet Location |
The following table (in thousands) shows the fair value and location of our LNG Inventory Derivatives and Fuel Derivatives on our Consolidated Balance Sheets:
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Fair Value Measurements as of |
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Balance Sheet Location |
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September 30, 2014 |
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December 31, 2013 |
LNG Inventory Derivatives liability |
Prepaid expenses and other |
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$ |
(219 |
) |
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$ |
(171 |
) |
Fuel Derivatives asset (liability) |
Prepaid expenses and other |
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(144 |
) |
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126 |
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| Schedule of Notional Amounts of Outstanding Derivative Positions |
At September 30, 2014, Sabine Pass Liquefaction had the following Interest Rate Derivatives outstanding:
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Initial Notional Amount |
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Maximum Notional Amount |
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Effective Date |
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Maturity Date |
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Weighted Average Fixed Interest Rate Paid |
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Variable Interest Rate Received |
Interest Rate Derivatives - Not Designated |
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$20.0 million |
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$2.5 billion |
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August 14, 2012 |
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July 31, 2019 |
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1.98% |
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One-month LIBOR |
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| Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) |
The following table (in thousands) details the effect of our Interest Rate Derivatives included in Other Comprehensive Income (“OCI”) and AOCI for the nine months ended September 30, 2014 and 2013:
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Gain (Loss) in Other Comprehensive Income |
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Gain (Loss) Reclassified from AOCI into Interest Expense (Effective Portion) |
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Losses Reclassified into Earnings as a Result of Discontinuance of Cash Flow Hedge Accounting |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
Interest Rate Derivatives - Designated |
$ |
— |
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$ |
21,297 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(5,806 |
) |
Interest Rate Derivatives - Settlements |
— |
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(30 |
) |
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— |
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— |
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— |
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(167 |
) |
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| Derivative Gross Presentation on Consolidated Balance Sheets |
The following table (in thousands) shows the fair value of our derivatives outstanding on a gross and net basis:
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Gross Amounts Recognized |
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Gross Amounts Offset in the Consolidated Balance Sheets |
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Net Amounts Presented in the Consolidated Balance Sheets |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Offsetting Derivative Assets (Liabilities) |
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Derivative Instrument |
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Cash Collateral Received (Paid) |
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Net Amount |
As of September 30, 2014: |
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LNG Inventory Derivatives |
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$ |
(219 |
) |
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$ |
(219 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Fuel Derivatives |
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(144 |
) |
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(144 |
) |
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— |
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— |
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— |
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— |
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Interest Rate Derivatives - Not Designated |
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15,059 |
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— |
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15,059 |
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— |
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— |
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15,059 |
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As of December 31, 2013: |
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LNG Inventory Derivatives |
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(171 |
) |
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(171 |
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— |
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— |
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— |
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— |
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Fuel Derivatives |
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126 |
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— |
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126 |
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— |
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— |
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126 |
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Interest Rate Derivatives - Not Designated |
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98,123 |
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— |
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98,123 |
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— |
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— |
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98,123 |
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Interest Rate Derivatives - Not Designated |
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(13,484 |
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— |
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(13,484 |
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— |
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— |
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(13,484 |
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| Schedule of Carrying Values and Estimated Fair Values of Debt Instruments |
The following table (in thousands) shows the carrying amount and estimated fair value of our other financial instruments:
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September 30, 2014 |
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December 31, 2013 |
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Carrying
Amount
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Estimated
Fair Value
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Carrying
Amount
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Estimated
Fair Value
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2016 Sabine Pass LNG Senior Notes, net of discount (1) |
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$ |
1,655,328 |
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$ |
1,750,510 |
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$ |
1,651,807 |
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$ |
1,868,607 |
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2020 Sabine Pass LNG Senior Notes (1) |
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420,000 |
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432,600 |
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420,000 |
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432,600 |
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2021 Sabine Pass Liquefaction Senior Notes, net of premium (1) |
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2,010,530 |
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2,045,714 |
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2,011,562 |
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1,961,273 |
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2022 Sabine Pass Liquefaction Senior Notes (1) |
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1,000,000 |
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1,042,500 |
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1,000,000 |
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982,500 |
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2023 Sabine Pass Liquefaction Senior Notes, net of premium (1) |
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1,507,257 |
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1,507,257 |
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1,000,000 |
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935,000 |
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2024 Sabine Pass Liquefaction Senior Notes (1) |
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2,000,000 |
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2,010,000 |
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— |
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— |
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2013 Liquefaction Credit Facilities (2) |
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— |
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— |
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100,000 |
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100,000 |
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CTPL Credit Facility, net of discount (3) |
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396,645 |
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400,000 |
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392,904 |
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400,000 |
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(1) |
The Level 2 estimated fair value was based on quotations obtained from broker-dealers who make markets in these and similar instruments based on the closing trading prices on September 30, 2014 and December 31, 2013, as applicable.
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(2) |
The Level 3 estimated fair value approximates the carrying amount because the interest rates are variable and reflective of market rates and Sabine Pass Liquefaction has the ability to call this debt at any time without penalty. |
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(3) |
The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and CTPL has the ability to call this debt at any time without penalty. |
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Marketing and trading revenues (losses) [Member]
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| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives, and Fuel Derivatives recorded in marketing and trading revenues (losses) on our Consolidated Statements of Operations during the three and nine months ended September 30, 2014 and 2013:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
LNG Inventory Derivatives gain (loss) |
$ |
(289 |
) |
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$ |
14 |
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$ |
(32 |
) |
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$ |
(394 |
) |
Fuel Derivatives loss |
(236 |
) |
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(57 |
) |
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(123 |
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(57 |
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Derivative gain (loss), net [Member]
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| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives, and Fuel Derivatives recorded in derivative gain (loss), net on our Consolidated Statements of Operations during the three and nine months ended September 30, 2014 and 2013:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
LNG Inventory Derivatives gain (loss) |
$ |
194 |
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$ |
201 |
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$ |
(345 |
) |
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$ |
976 |
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Fuel Derivatives gain (loss) |
— |
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(55 |
) |
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281 |
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(3 |
) |
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Interest Rate Contract [Member]
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| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
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| Fair Value of Derivative Instruments by Balance Sheet Location |
The following table (in thousands) shows the fair value of our Interest Rate Derivatives:
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Fair Value Measurements as of |
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Balance Sheet Location |
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September 30, 2014 |
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December 31, 2013 |
Interest Rate Derivatives - Not Designated |
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Non-current derivative assets |
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$ |
32,161 |
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$ |
98,123 |
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Interest Rate Derivatives - Not Designated |
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Other current liabilities |
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(17,102 |
) |
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(13,484 |
) |
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Interest Rate Contract [Member] | Derivative gain (loss), net [Member]
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| Derivative Instruments and Hedging Activities Disclosures [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our Interest Rate Derivatives - Not Designated recorded in derivative gain (loss), net on our Consolidated Statements of Operations during the three and nine months ended September 30, 2014 and 2013:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
Interest Rate Derivatives - Not Designated |
$ |
5,379 |
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$ |
(22,481 |
) |
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$ |
(89,222 |
) |
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$ |
60,707 |
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