Annual report pursuant to Section 13 and 15(d)

Schedule I—Condensed Financial Information of Registrant

v3.3.1.900
Schedule I—Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2015
Parent Company [Member]  
Condensed Financial Statements, Captions [Line Items]  
Schedule I—Condensed Financial Information of Registrant
CHENIERE ENERGY, INC.

CONDENSED BALANCE SHEETS
(in thousands) 
 
December 31,
 
2015
 
2014
ASSETS
 

 
 
Current assets
$
132

 
$
—

Non-current restricted cash
6,572

 
5,847

Property, plant and equipment, net
8,899

 
2,596

Debt receivable—affiliates
843,629

 
809,416

Investments in affiliates
(426,420
)
 
(25,169
)
Other non-current assets
2,845

 
414

Total assets
$
435,657

 
$
793,104

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Accrued liabilities
$
8,051

 
$
8,086

Current debt—affiliate
143,580

 
134,444

Long-term debt, net
1,185,876

 
814,751

 
 
 
 
Stockholders’ deficit
(901,850
)
 
(164,177
)
Total liabilities and equity
$
435,657

 
$
793,104


























The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands) 
 
Year Ended December 31,
 
2015
 
2014
 
2013
Operating costs and expenses
 
 
 
 
 
Depreciation expense
58

 
—

 
—

General and administrative expense (recovery)
(356
)
 
10,597

 
1,171

Total operating costs and expenses
(298
)
 
10,597

 
1,171

 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
Interest expense, net
(93,116
)
 
(4,205
)
 
—

Interest expense, net—affiliates
(9,137
)
 
(9,137
)
 
(9,137
)
Interest income
3

 
3

 
—

Interest income—affiliates
34,213

 
34,213

 
34,213

Equity losses of affiliates
(907,370
)
 
(558,209
)
 
(531,827
)
Total other expense
(975,407
)
 
(537,335
)
 
(506,751
)
 
 
 
 
 
 
Net loss attributable to common stockholders
$
(975,109
)
 
$
(547,932
)
 
$
(507,922
)
 
 
 
 
 
 
Other comprehensive income
—

 
—

 
25,319

Comprehensive loss
$
(975,109
)
 
$
(547,932
)
 
$
(482,603
)




























The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY, INC.

CONDENSED STATEMENTS OF CASH FLOWS
(in thousands) 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Net cash used in operating activities
 
$
(117,915
)
 
$
(240
)
 
$
(5,796
)
 
 
 
 
 
 
 
Cash flows from investing activities
 
 

 
 

 
 

Investments in affiliates
 
(320,584
)
 
(901,329
)
 
139,494

Net cash provided by (used in) investing activities
 
(320,584
)
 
(901,329
)
 
139,494

 
 
 
 
 
 
 
Cash flows from financing activities
 
 

 
 

 
 

Proceeds from issuance of debt
 
500,000

 
1,000,000

 
—

Proceeds from sale of common stock, net
 
—

 
—

 
3,628

Payments related to tax withholdings for share-based compensation
 
(61,179
)
 
(112,324
)
 
(140,711
)
Excess tax benefit from share-based compensation
 
1,524

 
3,605

 
3,385

Proceeds from exercise of stock options
 
2,283

 
10,806

 
—

Other
 
(4,129
)
 
(518
)
 
—

Net cash provided by (used in) financing activities
 
438,499

 
901,569

 
(133,698
)
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
—

 
—

 
—

Cash and cash equivalents—beginning of period
 
—

 
—

 
—

Cash and cash equivalents—end of period
 
$
—

 
$
—

 
$
—































The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The condensed financial statements represent the financial information required by Securities and Exchange Commission Regulation S-X 5-04 for Cheniere.
 
In the condensed financial statements, Cheniere’s investments in affiliates are presented under the equity method of accounting. Under this method, the assets and liabilities of affiliates are not consolidated. The investments in net assets of the affiliates are recorded on the balance sheets. The loss from operations of the affiliates is reported on a net basis as investment in affiliates (investment in and equity in net losses of affiliates).
 
A substantial amount of Cheniere’s operating, investing and financing activities are conducted by its affiliates. The condensed financial statements should be read in conjunction with Cheniere’s Consolidated Financial Statements.

NOTE 2—DEBT
 
As of December 31, 2015 and 2014, our debt consisted of the following (in thousands):
 
 
December 31,
 
 
2015
 
2014
Note—Affiliate
 
$
143,580

 
$
134,444


 
Note—Affiliate

We have a $93.7 million long-term note (“Note—Affiliate”) with Cheniere Terminals, a wholly owned subsidiary of Cheniere. Borrowings under the Note—Affiliate bear interest equal to the terms of Cheniere Terminals’ credit agreement at a fixed rate of 9.75% per annum. Interest is calculated on the unpaid principal amount of the Note—Affiliate outstanding and is payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year.

NOTE 3—GUARANTEES
 
Guarantees on Behalf of Cheniere Marketing
  
Many of Cheniere Marketing’s natural gas purchase, sale, transportation and shipping agreements have been guaranteed by Cheniere. As of December 31, 2015, there was no liability that was recorded related to these guaranteed contracts.
 
Guarantee on behalf of Sabine Pass Tug Services, LLC
 
Sabine Pass Tug Services, LLC (“Tug Services”), a wholly owned subsidiary of Cheniere Partners, entered into a Marine Services Agreement (“Tug Agreement”) for four tugs with Alpha Marine Services, LLC. The initial term of the Tug Agreement ends on the tenth anniversary of the service date, with Tug Services having the option for two additional extension terms of five years each. This contract has been guaranteed by Cheniere for up to $5.0 million.

NOTE 4 —SUPPLEMENTAL CASH FLOW INFORMATION

The following table provides supplemental disclosure of cash flow information (in thousands): 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
Non-cash capital contributions (1)
 
$
(907,370
)
 
$
(558,209
)
 
$
(531,827
)
 
(1)
Amounts represent equity losses of affiliates.