Annual report pursuant to Section 13 and 15(d)

Schedule I - Condensed Financial Information of Registrant

v3.8.0.1
Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2017
Parent Company [Member]  
Condensed Financial Statements, Captions [Line Items]  
Schedule I - Condensed Financial Information of Registrant
CHENIERE ENERGY, INC.

CONDENSED BALANCE SHEETS
(in millions) 
 
December 31,
 
2017
 
2016
ASSETS
 

 
 
Cash and cash equivalents
$
—

 
$
—

Non-current restricted cash
—

 
7

Property, plant and equipment, net
15

 
15

Debt issuance and deferred financing costs, net
12

 
—

Investments in affiliates
(435
)
 
(145
)
Total assets
$
(408
)
 
$
(123
)
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
Current liabilities
$
8

 
$
8

 
 
 
 
Long-term debt, net
1,348

 
1,265

 
 
 
 
Stockholders’ deficit
(1,764
)
 
(1,396
)
Total liabilities and stockholders’ deficit
$
(408
)
 
$
(123
)

































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

CONDENSED STATEMENTS OF OPERATIONS
(in millions) 
 
Year Ended December 31,
 
2017
 
2016
 
2015
General and administrative expense
$
7

 
$
6

 
$
—

 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
Interest expense, net
(118
)
 
(104
)
 
(93
)
Interest expense, net—affiliates
—

 
(7
)
 
(9
)
Interest income—affiliates
—

 
24

 
34

Equity loss of affiliates
(268
)
 
(517
)
 
(907
)
Total other expense
(386
)
 
(604
)
 
(975
)
 
 
 
 
 
 
Net loss attributable to common stockholders
$
(393
)
 
$
(610
)
 
$
(975
)




































The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(in millions) 
 
Year Ended December 31,
 
2017
 
2016
 
2015
Net cash used in operating activities
$
(4
)
 
$
(102
)
 
$
(176
)
 
 
 
 
 
 
Cash flows from investing activities
 

 
 

 
 

Investments in affiliates
209

 
202

 
(181
)
Net cash provided by (used in) investing activities
209


202


(181
)
 
 
 
 
 
 
Cash flows from financing activities
 

 
 

 
 

Proceeds from issuance of debt
—

 
—

 
500

Debt issuance and deferred financing costs
(15
)
 
—

 
(4
)
Distribution and dividends to non-controlling interest
(185
)
 
(80
)
 
(80
)
Proceeds from exercise of stock options
—

 
—

 
2

Payments related to tax withholdings for share-based compensation
(12
)
 
(20
)
 
(61
)
Other
—

 
—

 
1

Net cash provided by (used in) financing activities
(212
)
 
(100
)
 
358

 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
(7
)
 
—

 
1

Cash, cash equivalents and restricted cash—beginning of period
7

 
7

 
6

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

 
$
7

 
$
7



Balances per Condensed Balance Sheets:
 
December 31
 
2017
 
2016
Cash and cash equivalents
$
—

 
$
—

Non-current restricted cash
—

 
7

Total cash, cash equivalents and restricted cash
$
—

 
$
7






















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

As of December 31, 2017 and 2016, our debt consisted of the following (in millions): 
 
 
December 31,
 
 
2017
 
2016
Long-term debt:
 
 
 
 
4.875% Convertible Unsecured Notes due 2021, net of unamortized discount of $121 and $146
 
$
1,040

 
$
960

4.25% Convertible Senior Notes due 2045, net of unamortized discount of $314 and $317
 
311

 
308

$750 million Cheniere Revolving Credit Facility
 
—

 
—

Unamortized debt issuance costs
 
(3
)
 
(3
)
Total long-term debt, net
 
$
1,348


$
1,265



Below is a schedule of future principal payments that we are obligated to make on our outstanding debt at December 31, 2017 (in millions): 
Years Ending December 31,
 
Principal Payments
2018
 
$
—

2019
 
—

2020
 
—

2021
 
1,161

2022
 
—

Thereafter
 
625

Total
 
$
1,786



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 $94 million note and $57 million in related accumulated interest payable to Cheniere Terminals. This $151 million forgiveness of debt during the year ended December 31, 2016 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, 2017 and 2016, there were no liabilities recognized under these guarantee arrangements.

CHENIERE ENERGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS—CONTINUED

NOTE 4 —SUPPLEMENTAL CASH FLOW INFORMATION

The following table provides supplemental disclosure of cash flow information (in millions): 
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Non-cash capital contributions (1)
 
$
(268
)
 
$
(517
)
 
$
(907
)
Non-cash capital contribution from subsidiaries for forgiveness of debt
 
—

 
151

 
—

Non-cash capital distribution to subsidiaries for forgiveness of debt
 
—

 
(868
)
 
—

Issuance of stock to acquire additional interest in Cheniere Holdings
 
2

 
94

 
—

 
(1)
Amounts represent equity losses of affiliates.