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Financial Instruments (Tables)
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3 Months Ended |
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Mar. 31, 2014
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| Derivative Instruments, Gain (Loss) [Line Items] |
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| Fair Value of Derivative Assets and Liabilities |
The following table (in thousands) shows the fair value of our derivative assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2014 and December 31, 2013, which are classified as prepaid expenses and other, non-current derivative assets and other current liabilities in our Consolidated Balance Sheets.
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Fair Value Measurements as of |
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March 31, 2014 |
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December 31, 2013 |
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Quoted Prices in Active Markets
(Level 1)
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Total |
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Quoted Prices in Active Markets
(Level 1)
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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Total |
LNG Inventory Derivatives liability |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(171 |
) |
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$ |
— |
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$ |
(171 |
) |
Fuel Derivatives asset |
— |
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283 |
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— |
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283 |
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— |
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126 |
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— |
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126 |
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Interest Rate Derivatives asset |
— |
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51,626 |
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— |
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51,626 |
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— |
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84,639 |
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— |
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84,639 |
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| Fair Value of Derivative Instruments by Balance Sheet Location |
The following table (in thousands) shows the fair value and location of our LNG Inventory Derivatives and Fuel Derivatives on our Consolidated Balance Sheets:
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Fair Value Measurements as of |
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Balance Sheet Location |
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March 31, 2014 |
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December 31, 2013 |
LNG Inventory Derivatives asset (liability) |
Prepaid expenses and other |
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$ |
— |
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$ |
(171 |
) |
Fuel Derivatives asset |
Prepaid expenses and other |
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283 |
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126 |
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| Schedule of Notional Amounts of Outstanding Derivative Positions |
At March 31, 2014, Sabine Pass Liquefaction had the following Interest Rate Derivatives outstanding:
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Initial Notional Amount |
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Maximum Notional Amount |
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Effective Date |
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Maturity Date |
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Weighted Average Fixed Interest Rate Paid |
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Variable Interest Rate Received |
Interest Rate Derivatives - Not Designated |
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$20.0 million |
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$2.9 billion |
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August 14, 2012 |
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July 31, 2019 |
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1.98% |
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One-month LIBOR |
Interest Rate Derivatives - Not Designated |
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— |
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$671.0 million |
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June 5, 2013 |
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May 28, 2020 |
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2.05% |
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One-month LIBOR |
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| Schedule of Interest Rate Derivatives |
The following table (in thousands) shows the fair value of our Interest Rate Derivatives:
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Fair Value Measurements as of |
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Balance Sheet Location |
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March 31, 2014 |
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December 31, 2013 |
Interest Rate Derivatives - Not Designated |
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Non-current derivative assets |
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$ |
71,170 |
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$ |
98,123 |
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Interest Rate Derivatives - Not Designated |
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Other current liabilities |
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(19,544 |
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(13,484 |
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| Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) |
The following table (in thousands) details the effect of our Interest Rate Derivatives included in Other Comprehensive Income ("OCI") and AOCI for the three months ended March 31, 2014 and 2013:
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Gain (Loss) in Other Comprehensive Income |
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Gain (Loss) Reclassified from AOCI into Interest Expense (Effective Portion) |
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Losses Reclassified into Earnings as a Result of Discontinuance of Cash Flow Hedge Accounting |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
Interest Rate Derivatives - Designated |
$ |
— |
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$ |
21,297 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Interest Rate Derivatives - Settlements |
— |
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(30 |
) |
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— |
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— |
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— |
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— |
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| Derivative Gross Presentation on Consolidated Balance Sheets |
Our commodity and interest rate derivatives are presented on a net basis on our Consolidated Balance Sheets as described above. The following table (in thousands) shows the fair value of our derivatives outstanding on a gross and net basis:
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Gross Amounts Recognized |
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Gross Amounts Offset in the Consolidated Balance Sheets |
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Net Amounts Presented in the Consolidated Balance Sheets |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Offsetting Derivative Assets (Liabilities) |
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Derivative Instrument |
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Cash Collateral Received (Paid) |
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Net Amount |
As of March 31, 2014: |
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Fuel Derivatives |
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$ |
283 |
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$ |
— |
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$ |
283 |
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$ |
— |
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$ |
— |
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$ |
283 |
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LNG Inventory Derivatives |
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— |
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— |
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— |
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— |
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— |
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— |
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Interest Rate Derivatives - Not Designated |
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71,170 |
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— |
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71,170 |
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— |
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— |
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71,170 |
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Interest Rate Derivatives - Not Designated |
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(19,544 |
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— |
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(19,544 |
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— |
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— |
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(19,544 |
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As of December 31, 2013: |
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Fuel Derivatives |
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126 |
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— |
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126 |
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— |
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— |
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126 |
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LNG Inventory Derivatives |
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(171 |
) |
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(171 |
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— |
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— |
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— |
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— |
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Interest Rate Derivatives - Designated |
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98,123 |
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— |
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98,123 |
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— |
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— |
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98,123 |
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Interest Rate Derivatives - Not Designated |
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(13,484 |
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— |
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(13,484 |
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— |
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— |
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(13,484 |
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| Schedule of Carrying Values and Estimated Fair Values of Debt Instruments |
ther financial instruments:
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March 31, 2014 |
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December 31, 2013 |
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Carrying
Amount
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Estimated
Fair Value
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Carrying
Amount
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Estimated
Fair Value
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2016 Notes, net of discount (1) |
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$ |
1,652,981 |
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$ |
1,824,478 |
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$ |
1,651,807 |
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$ |
1,868,607 |
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2020 Notes (1) |
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420,000 |
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441,000 |
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420,000 |
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432,600 |
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2021 Sabine Pass Liquefaction Senior Notes (1) |
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2,011,222 |
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2,079,101 |
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2,011,562 |
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1,961,273 |
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2022 Sabine Pass Liquefaction Senior Notes (1) |
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1,000,000 |
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1,042,500 |
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1,000,000 |
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982,500 |
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2023 Sabine Pass Liquefaction Senior Notes (1) |
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1,000,000 |
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997,500 |
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1,000,000 |
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935,000 |
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2013 Liquefaction Credit Facilities (2) |
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100,000 |
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100,000 |
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100,000 |
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100,000 |
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CTPL Credit Facility (3) |
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394,147 |
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400,000 |
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392,904 |
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400,000 |
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(1) |
The Level 2 estimated fair value was based on quotations obtained from broker-dealers who make markets in these and similar instruments based on the closing trading prices on March 31, 2014 and December 31, 2013, as applicable.
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(2) |
The Level 3 estimated fair value approximates the carrying amount because the interest rates are variable and reflective of market rates and Sabine Pass Liquefaction has the ability to call this debt at any time without penalty. |
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(3) |
The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and CTPL has the ability to call this debt at any time without penalty. |
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Trading Revenue [Member]
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| Derivative Instruments, Gain (Loss) [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives and Fuel Derivatives recorded in marketing and trading revenues (losses) on our Consolidated Statements of Operations during the three months ended March 31, 2014 and 2013:
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Three Months Ended March 31, |
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2014 |
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2013 |
LNG Inventory Derivatives gain (loss) |
$ |
184 |
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$ |
(524 |
) |
Fuel Derivatives gain |
165 |
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— |
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Derivative gain (loss), net [Member]
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| Derivative Instruments, Gain (Loss) [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our LNG Inventory Derivatives and Fuel Derivatives recorded in derivative loss, net on our Consolidated Statements of Operations during the three months ended March 31, 2014 and 2013:
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Three Months Ended March 31, |
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2014 |
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2013 |
LNG Inventory Derivatives loss |
$ |
(435 |
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$ |
— |
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Fuel Derivatives gain |
242 |
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515 |
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Interest Rate Contract [Member] | Derivative gain (loss), net [Member] | Not Designated as Hedging Instrument [Member]
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| Derivative Instruments, Gain (Loss) [Line Items] |
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| Derivative Instruments, Gain (Loss) |
The following table (in thousands) shows the changes in the fair value and settlements of our Interest Rate Derivatives - Not Designated recorded in derivative loss, net on our Consolidated Statements of Operations during the three months ended March 31, 2014 and 2013:
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Three Months Ended March 31, |
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2014 |
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2013 |
Interest Rate Derivatives - Not Designated loss |
$ |
(34,479 |
) |
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$ |
(17,983 |
) |
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