Annual report pursuant to Section 13 and 15(d)

Schedule I - Condensed Financial Information of Registrant

v3.10.0.1
Schedule I - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2018
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,
 
2018
 
2017
ASSETS
 

 
 
Cash and cash equivalents
$
—

 
$
—

Restricted cash
—

 
—

Other current assets
1

 
—

Property, plant and equipment, net
14

 
15

Debt issuance and deferred financing costs, net
21

 
12

Investments in affiliates
883

 
(435
)
Total assets
$
919

 
$
(408
)
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
Current liabilities
$
9

 
$
8

 
 
 
 
Long-term debt, net
1,436

 
1,348

 
 
 
 
Stockholders’ deficit
(526
)
 
(1,764
)
Total liabilities and stockholders’ deficit
$
919

 
$
(408
)
































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,
 
2018
 
2017
 
2016
General and administrative expense
$
8

 
$
7

 
$
6

 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
Interest expense, net
(128
)
 
(118
)
 
(104
)
Interest expense, net—affiliates
—

 
—

 
(7
)
Interest income—affiliates
—

 
—

 
24

Equity income (loss) of affiliates
607

 
(268
)
 
(517
)
Total other income (expense)
479

 
(386
)
 
(604
)
 
 
 
 
 
 
Net income (loss) attributable to common stockholders
$
471

 
$
(393
)
 
$
(610
)




































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,
 
2018
 
2017
 
2016
Net cash provided by (used in) operating activities
$
48

 
$
(4
)
 
$
(102
)
 
 
 
 
 
 
Cash flows from investing activities
 

 
 

 
 

Investments in affiliates
568

 
209

 
202

Net cash provided by investing activities
568


209


202

 
 
 
 
 
 
Cash flows from financing activities
 

 
 

 
 

Debt issuance and deferred financing costs
(13
)
 
(15
)
 
—

Distribution and dividends to non-controlling interest
(576
)
 
(185
)
 
(80
)
Payments related to tax withholdings for share-based compensation
(20
)
 
(12
)
 
(20
)
Other
(7
)
 
—

 
—

Net cash used in financing activities
(616
)
 
(212
)
 
(100
)
 
 
 
 
 
 
Net decrease in cash, cash equivalents and restricted cash
—

 
(7
)
 
—

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

 
7

 
7

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

 
$
—

 
$
7



Balances per Condensed Balance Sheets:
 
December 31
 
2018
 
2017
Cash and cash equivalents
$
—

 
$
—

Restricted cash
—

 
—

Total cash, cash equivalents and restricted cash
$
—

 
$
—
























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 income (loss) 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, 2018 and 2017, our debt consisted of the following (in millions): 
 
 
December 31,
 
 
2018
 
2017
Long-term debt:
 
 
 
 
4.875% Convertible Unsecured Notes due 2021
 
$
1,218

 
$
1,161

4.25% Convertible Senior Notes due 2045
 
625

 
625

$1.25 billion Cheniere Revolving Credit Facility
 
—

 
—

Unamortized premium, discount and debt issuance costs, net
 
(407
)
 
(438
)
Total long-term debt, net
 
$
1,436


$
1,348



In December 2018, we amended and restated the Cheniere Revolving Credit Facility to increase total commitments under the Cheniere Revolving Credit Facility from $750 million to $1.25 billion.

Below is a schedule of future principal payments that we are obligated to make on our outstanding debt at December 31, 2018 (in millions): 
Years Ending December 31,
 
Principal Payments
2019
 
$
—

2020
 
—

2021
 
1,218

2022
 
—

2023
 
—

Thereafter
 
625

Total
 
$
1,843



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.

CHENIERE ENERGY, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS—CONTINUED

NOTE 3—GUARANTEES
 
Obligations under Certain Guarantee Contracts

Cheniere has various financial and performance guarantees and indemnifications which are issued in the normal course of business. These contracts include performance guarantees and stand-by letters of credit. Cheniere enters into these arrangements to facilitate commercial transactions with third parties by enhancing the value of the transaction to the third party. As of December 31, 2018, outstanding guarantees and other assurances aggregated approximately $494 million of varying duration, consisting of parental guarantees. No liabilities were recognized under these guarantee arrangements as of December 31, 2018.

NOTE 4 —SUPPLEMENTAL CASH FLOW INFORMATION

The following table provides supplemental disclosure of cash flow information (in millions): 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Cash paid during the period for interest, net of amounts capitalized
 
$
32

 
$
31

 
$
20

Non-cash investing and financing activities:
 
 
 
 
 
 
Non-cash capital distribution (contributions) (1)
 
607

 
(268
)
 
(517
)
Issuance of stock to acquire additional interest in Cheniere Holdings
 
702

 
2

 
94

Non-cash capital contribution from subsidiaries for forgiveness of debt
 
—

 
—

 
151

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

 
—

 
(868
)
 
(1)
Amounts represent equity income (losses) of affiliates.