Annual report pursuant to Section 13 and 15(d)

Schedule I—Condensed Financial Information of Registrant

v3.6.0.2
Schedule I—Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2016
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,
 
2016
 
2015
ASSETS
 

 
 
Cash and cash equivalents
$
—

 
$
—

Current assets
287

 
132

Non-current restricted cash
6,575

 
6,572

Property, plant and equipment, net
14,987

 
8,899

Debt receivable—affiliates
—

 
843,629

Investments in affiliates
(145,252
)
 
(426,420
)
Other non-current assets
115

 
—

Total assets
$
(123,288
)
 
$
432,812

 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities
$
8,184

 
$
8,051

Current debt—affiliate
—

 
143,580

Long-term debt, net
1,264,953

 
1,183,031

 
 
 
 
Stockholders’ deficit
(1,396,425
)
 
(901,850
)
Total liabilities and equity
$
(123,288
)
 
$
432,812






























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

CONDENSED STATEMENTS OF OPERATIONS
(in thousands) 
 
Year Ended December 31,
 
2016
 
2015
 
2014
Operating costs and expenses
 
 
 
 
 
General and administrative expense (recovery)
$
5,741

 
$
(356
)
 
$
10,597

Depreciation expense
107

 
58

 
—

Total operating costs and expenses (recovery)
5,848


(298
)

10,597

 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
Interest expense, net
(103,784
)
 
(93,116
)
 
(4,205
)
Interest expense, net—affiliates
(7,314
)
 
(9,137
)
 
(9,137
)
Interest income
3

 
3

 
3

Interest income—affiliates
24,211

 
34,213

 
34,213

Equity loss of affiliates
(517,259
)
 
(907,370
)
 
(558,209
)
Total other expense
(604,143
)

(975,407
)

(537,335
)
 
 
 
 
 
 
Net loss attributable to common stockholders
$
(609,991
)
 
$
(975,109
)
 
$
(547,932
)
































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,
 
2016
 
2015
 
2014
Net cash used in operating activities
$
(101,345
)
 
$
(176,068
)
 
$
(180,990
)
 
 
 
 
 
 
Cash flows from investing activities
 

 
 

 
 

Investments in affiliates
201,750

 
(181,471
)
 
(869,842
)
Net cash provided by (used in) investing activities
201,750


(181,471
)

(869,842
)
 
 
 
 
 
 
Cash flows from financing activities
 

 
 

 
 

Proceeds from issuance of debt
—

 
500,000

 
1,000,000

Debt issuance and deferred financing costs
—

 
(4,129
)
 
(516
)
Proceeds from sale of common shares by Cheniere Holdings
—

 
—

 
228,781

Distribution and dividends to non-controlling interest
(80,055
)
 
(80,235
)
 
(79,517
)
Proceeds from exercise of stock options
50

 
2,279

 
10,805

Payments related to tax withholdings for share-based compensation
(20,397
)
 
(61,175
)
 
(112,323
)
Other
—

 
1,524

 
3,605

Net cash provided by (used in) financing activities
(100,402
)

358,264


1,050,835

 
 
 
 
 
 
Net increase in cash, cash equivalents and restricted cash
3


725


3

Cash, cash equivalents and restricted cash—beginning of period
6,572

 
5,847

 
5,844

Cash, cash equivalents and restricted cash—end of period
$
6,575

 
$
6,572

 
$
5,847



Balances per Condensed Balance Sheets:
 
December 31
 
2016
 
2015
 
2014
Cash and cash equivalents
$
—

 
$
—

 
$
—

Non-current restricted cash
6,575

 
6,572

 
5,847

Total cash, cash equivalents and restricted cash
$
6,575

 
$
6,572

 
$
5,847





















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 Condensed 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

In October 2016, Cheniere LNG Terminals, LLC (“Cheniere Terminals”), a wholly owned subsidiary of Cheniere, forgave Cheniere’s total previously outstanding current debt—affiliate balance, which was composed of a $93.7 million note and $57.2 million in related accumulated interest payable to Cheniere Terminals. This $150.9 million forgiveness of debt was recorded as a non-cash equity contribution to our subsidiaries on our Condensed Balance Sheet.

NOTE 3—GUARANTEES
 
Obligations under Certain Guarantee Contracts

Cheniere and certain of its subsidiaries enter into guarantee arrangements in the normal course of business to facilitate transactions with third parties. These arrangements include financial guarantees, letters of credit and debt guarantees. As of December 31, 2016 and 2015, there were no liabilities recognized under these guarantee arrangements.

NOTE 4 —SUPPLEMENTAL CASH FLOW INFORMATION

The following table provides supplemental disclosure of cash flow information (in thousands): 
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
Non-cash capital contributions (1)
 
$
(517,259
)
 
$
(907,370
)
 
$
(558,209
)
Non-cash capital contribution from subsidiaries for forgiveness of debt
 
150,895

 
—

 
—

Non-cash capital distribution to subsidiaries for forgiveness of debt
 
(867,840
)
 
—

 
—

Issuance of stock to acquire additional interest in Cheniere Holdings
 
93,575

 
—

 
—

 
(1)
Amounts represent equity losses of affiliates.