| Business Segment Information |
BUSINESS SEGMENT INFORMATION
We have two reportable segments: LNG terminal business and LNG and natural gas marketing business. We determine our reportable segments by identifying each segment that engaged in business activities from which it may earn revenues and incur expenses, had operating results regularly reviewed by the entities' chief operating decision maker for purposes of resource allocation and performance assessment, and had discrete financial information.
We own and operate the Sabine Pass LNG terminal located on the Sabine Pass shipping channel in Louisiana through our ownership interest in and management agreements with Cheniere Partners. We own 100% of the general partner interest in Cheniere Partners and 84.5% of Cheniere Holdings, which owns a 55.9% limited partner interest in Cheniere Partners. We are developing a natural gas liquefaction facility near Corpus Christi, Texas. The Sabine Pass LNG terminal includes existing infrastructure of five LNG storage tanks with capacity of approximately 16.9 Bcfe, two docks that can accommodate vessels with capacity of up to 265,000 cubic meters, vaporizers with regasification capacity of approximately 4.0 Bcf/d and pipeline facilities interconnecting the Sabine Pass LNG terminal with a number of large interstate pipelines. Cheniere Partners is developing and constructing the Sabine Pass Liquefaction Project at the Sabine Pass LNG terminal adjacent to the existing regasification facilities.
Our LNG and natural gas marketing reporting segment consists of Cheniere Marketing, LLC ("Cheniere Marketing") marketing LNG and natural gas on its own behalf and assisting Cheniere Investments in an effort to utilize the regasification capacity held at the Sabine Pass LNG terminal.
The following table summarizes revenues (losses), loss from operations and total assets for each of our reporting segments (in thousands):
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Segments |
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LNG Terminal |
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LNG & Natural Gas Marketing |
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Corporate and Other (1) |
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Total
Consolidation
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As of or for the Three Months Ended March 31, 2014 |
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Revenues (losses) (2) |
$ |
67,191 |
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$ |
2,832 |
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|
$ |
(2,473 |
) |
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$ |
67,550 |
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Intersegment revenues (losses) (3) (4) |
772 |
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|
2,174 |
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(2,946 |
) |
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— |
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Depreciation, depletion and amortization |
14,406 |
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|
152 |
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|
917 |
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|
15,475 |
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Loss from operations |
(7,516 |
) |
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(11,594 |
) |
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(28,502 |
) |
|
(47,612 |
) |
Interest expense, net |
(40,373 |
) |
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— |
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|
103 |
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(40,270 |
) |
Loss before income taxes and non-controlling interest (5) |
(77,354 |
) |
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(11,727 |
) |
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(33,172 |
) |
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(122,253 |
) |
Stock-based compensation |
3,050 |
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|
6,510 |
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28,138 |
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37,698 |
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Goodwill |
76,819 |
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— |
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— |
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76,819 |
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Total assets |
8,520,986 |
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62,955 |
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940,675 |
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9,524,616 |
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Expenditures for additions to long-lived assets |
659,779 |
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|
314 |
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25,911 |
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686,004 |
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As of or for the Three Months Ended March 31, 2013 |
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Revenues (losses) (2) |
$ |
66,630 |
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$ |
(1,157 |
) |
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$ |
433 |
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$ |
65,906 |
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Intersegment revenues (losses) (3) (4) |
569 |
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|
(592 |
) |
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23 |
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— |
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Depreciation, depletion and amortization |
14,380 |
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|
249 |
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|
484 |
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|
15,113 |
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Loss from operations |
(5,824 |
) |
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(20,667 |
) |
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(40,963 |
) |
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(67,454 |
) |
Interest expense, net |
(51,916 |
) |
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— |
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11,654 |
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(40,262 |
) |
Loss before income taxes and non-controlling interest (5) |
(74,882 |
) |
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(20,656 |
) |
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(29,171 |
) |
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(124,709 |
) |
Stock-based compensation |
6,288 |
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11,063 |
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48,661 |
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66,012 |
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Goodwill |
76,819 |
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— |
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— |
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76,819 |
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Total assets |
6,377,204 |
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59,703 |
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144,912 |
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6,581,819 |
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Expenditures for additions to long-lived assets |
556,575 |
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— |
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|
607 |
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557,182 |
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(1) |
Includes corporate activities, oil and gas exploration, development and exploitation, strategic activities and certain intercompany eliminations. These activities have been included in the corporate and other column due to the lack of a material impact that these activities have on our consolidated financial statements. |
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(2) |
Substantially all of the LNG terminal revenues relate to regasification capacity reservation fee payments made by Total Gas & Power North America, Inc. and Chevron U.S.A. Inc. LNG and natural gas marketing and trading revenue consists primarily of the domestic marketing of natural gas imported into the Sabine Pass LNG terminal and international revenue allocations using a cost plus transfer pricing methodology. |
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(3) |
Intersegment revenues primarily related to our LNG terminal segment are from tug revenues from Cheniere Marketing. These LNG terminal segment intersegment revenues are eliminated with intersegment losses in our Consolidated Statements of Operations. |
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(4) |
Intersegment revenues (losses) related to our LNG and natural gas marketing segment are primarily a result of international revenue allocations using a cost plus transfer pricing methodology and from Cheniere Marketing's tug costs. These LNG and natural gas marketing segment intersegment revenues (losses) are eliminated with intersegment revenues (losses) in our Consolidated Statements of Operations. |
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(5) |
Items to reconcile loss from operations and loss before income taxes and non-controlling interest include consolidated other income (expense) amounts as presented on our Consolidated Statements of Operations primarily related to our LNG terminal segment. |
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