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CQP · Cheniere Energy Partners

22 filings

10-K

CQP 10-K Annual Reports

Cheniere Energy Partners - 22 annual reports

Filing record · 2016–202610-K1210-Q338-K177

2025
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2025
Cheniere Energy Partners, L.P. (CQP) reported net income of $2,987 million for 2025, up from $2,510 million in 2024, on total revenues of $10,758 million (versus $8,704 million). The increase was primarily attributed to $344 million of favorable changes in the fair value of derivative instruments and a $199 million increase in revenues net of feedstock cost from higher Henry Hub pricing, partially offset by lower volumes from planned maintenance on two Trains. Operating cash flow was $2,768 million, and total distributions paid were $2,064 million. The company ended 2025 with $182 million of cash and cash equivalents and $2.0 billion of total available liquidity, against $14.6 billion of senior notes outstanding. The Sabine Pass LNG Terminal has total production capacity of over 30 mtpa, and approximately 85% of anticipated production from the Liquefaction Project is contracted through the mid-2030s under SPAs and IPM agreements, with about 13 years of weighted average remaining life. The company is developing the SPL Expansion Project, with expected peak capacity of up to approximately 20 mtpa, targeting a final investment decision in 2026/2027, subject to remaining FERC approvals and commercial and financing arrangements. Credit ratings were upgraded during 2025, with S&P assigning BBB+ to CQP in November 2025. Key risks highlighted include customer concentration, with five customers accounting for 76% of total revenues from contracts with external customers in 2025, dependence on derivative valuations (including a Level 3 liability of $500 million), funding requirements for expansion, evolving U.S. trade policy affecting U.S.-built vessel requirements for LNG exports, and LNG market price competition as global supply grows.
Feb 26, 2026
2024
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2024
Cheniere Energy Partners, L.P. reported 2024 total revenues of $8.70 billion, down from $9.66 billion in 2023, and net income of $2.51 billion, down from $4.25 billion. The filing attributes the $1.7 billion net income decline primarily to $1.7 billion lower gains from changes in the fair value of derivatives, mainly tied to the IPM agreement with Tourmaline Oil Marketing Corp. Regasification and LNG sales are supported by long-term contracts: the company states it has contracted approximately 80% of anticipated production from the Liquefaction Project, with approximately 13 years of weighted average remaining life as of December 31, 2024. Operating cash flow was $2.97 billion, and the company paid distributions of $2.24 billion in cash during 2024, declaring aggregate distributions of $3.465 per common unit for the year. Balance sheet and liquidity: at December 31, 2024, the partnership had $270 million of cash and cash equivalents, $109 million of restricted cash, $1.8 billion of available credit facility commitments, and $15.2 billion of total debt before unamortized discount and debt issuance costs. Total available liquidity was $2.155 billion. In May 2024 the company issued $1.2 billion of 5.750% Senior Notes due 2034, and Moody's upgraded its issuer credit rating to Baa2 from Ba1. The company is developing the SPL Expansion Project, with capacity of up to approximately 20 mtpa. Its FERC application is pending, and the DOE authorized exports to FTA countries in October 2024. The filing states that development requires acceptable commercial and financing arrangements before a positive final investment decision. Risk and concentration considerations: the derivative-heavy earnings profile can produce large swings in reported net income, as shown by gains of $388 million in 2024 compared with $2.1 billion in 2023. Customer concentration is significant, with BG Gulf Coast LNG, LLC and affiliates accounting for 22% of 2024 revenues. Cheniere Energy, Inc. owns 48.6% of the common units, and the partnership has no employees, relying on Cheniere personnel under services agreements.
Feb 20, 2025
2023
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2023
Cheniere Energy Partners, L.P. (CQP) reported net income of $4.254 billion for 2023, up from $2.498 billion in 2022, on total revenues of $9.664 billion versus $17.206 billion. The filing attributes the net income increase primarily to a $3.2 billion favorable variance from changes in fair value and settlements of derivatives, including a $1.8 billion non-cash gain on the Tourmaline IPM Agreement. Revenues declined mainly because of lower pricing per MMBtu tied to decreased Henry Hub prices, and cost of sales fell from $11.887 billion to $2.721 billion. Net cash provided by operating activities was $3.109 billion, and the partnership paid $2.907 billion in distributions. Net income per common unit was $6.95 versus $3.27. The Sabine Pass LNG Terminal has six operational Trains with total production capacity of approximately 30 mtpa. Through SPAs and an IPM agreement, the partnership has contracted approximately 85% of anticipated production, with approximately 14 years of weighted average remaining life as of December 31, 2023. The five largest customers each accounted for between 11% and 23% of 2023 total revenues. Fixed fees under executed SPAs are described as approximately $3.4 billion annually, and estimated revenues under executed SPAs total $138.6 billion. At year-end 2023, the partnership had $575 million of cash and cash equivalents, $56 million of restricted cash, and total available liquidity of $2.351 billion, including $1.7 billion of available credit facility commitments. Total debt was $16.0 billion. The partnership declared distributions of $4.12 per common unit for 2023 and a fourth-quarter 2023 distribution of $1.035 per unit. The SPL Expansion Project, with potential capacity of up to approximately 20 mtpa, entered FERC pre-filing review in May 2023, and the filing states that a positive final investment decision will require acceptable commercial and financing arrangements.
Feb 22, 2024
2022
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2022
Cheniere Energy Partners, L.P. (CQP) is a Delaware limited partnership formed in 2006 by Cheniere that provides LNG to integrated energy companies, utilities and energy trading companies. Its core asset is the Sabine Pass LNG Terminal in Cameron Parish, Louisiana, with six operational Trains (Train 6 reached substantial completion on February 4, 2022), roughly 30 mtpa of operational production capacity, three marine berths (third berth substantially completed October 27, 2022), about 4 Bcf/d of regasification capacity, and a 94-mile Creole Trail Pipeline. The partnership has contracted approximately 85% of Liquefaction Project capacity under SPAs and an IPM agreement, with approximately 15 years of weighted average remaining life as of December 31, 2022. For 2022, total revenues were $17.206 billion (versus $9.434 billion in 2021) and net income was $2.498 billion (versus $1.630 billion). Results were aided by a $765 million lump sum fee from Chevron for early termination of its regasification agreement, but were offset by $1.1 billion of net losses from changes in fair value of derivatives, mainly related to the IPM agreement assigned to SPL in March 2022. Partners' equity moved to a deficit of $(2.131) billion at year-end, largely reflecting the $2.7 billion non-cash distribution recognized on the novation of that IPM agreement. Operating cash flow was $4.149 billion, and cash and cash equivalents were $904 million at December 31, 2022. Debt totaled $16.3 billion, and the company reported that it and SPL were in compliance with covenants. Credit ratings were upgraded during 2022, with CQP's S&P rating moving to investment grade (BBB). Distributions declared for 2022 totaled $4.25 per common unit, and a distribution of $1.07 per unit was declared on January 27, 2023.
Feb 23, 2023
2021
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2021
Cheniere Energy Partners, L.P. (NYSE American: CQP) reported strong 2021 results driven by its Sabine Pass LNG terminal. Net income rose to $1,630 million from $1,183 million in 2020, and total revenues increased to $9,434 million from $6,167 million, primarily from higher revenues per MMBtu as customers took delivery of cargoes and from higher Henry Hub prices. Train 6 of the Liquefaction Project achieved substantial completion on February 4, 2022, bringing total production capacity to approximately 30 mtpa. The partnership has contracted approximately 75% of the Liquefaction Project's production capacity under long-term SPAs, with approximately 16 years of weighted average remaining life as of December 31, 2021. The balance sheet carried $17.3 billion of total debt outstanding (before unamortized premium, discount and debt issuance costs) against $0.9 billion of cash and cash equivalents and $1.6 billion of available credit facility commitments. Net cash provided by operating activities was $2,291 million in 2021, up from $1,751 million, and the partnership issued $2.7 billion of senior notes while redeeming $3.6 billion. In February 2022, management announced the initiation of quarterly distributions comprised of a base amount of $0.775 per unit plus a variable amount, and S&P upgraded the issuer credit rating from BB to BB+. The filing also discloses contingent matters, including a Louisiana Department of Environmental Quality compliance matter and a PHMSA matter in which SPL agreed to pay a reduced civil penalty of $1,458,200. Management does not expect either to have a material adverse impact on financial results. Partnership ownership is concentrated, with Cheniere owning 48.6% of the common units. Key risks include dependence on customers under long-term contracts, reliance on Cheniere for personnel, and conflicts of interest with the general partner.
Feb 24, 2022
2020
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2020
Cheniere Energy Partners, L.P. (CQP), a Delaware limited partnership formed by Cheniere Energy, Inc., provides LNG services and operates the Sabine Pass LNG terminal in Cameron Parish, Louisiana. As of December 31, 2020, SPL was operating five liquefaction Trains with a sixth under construction, expected to be substantially completed in the second half of 2022, for a total production capacity of approximately 30 mtpa. Train 6 was 77.6% complete overall. SPL has fixed-price long-term SPAs with eight third parties covering approximately 75% of capacity from Trains 1 through 6, with an annual fixed fee of approximately $2.9 billion from third-party customers for Trains 1 through 5, rising to at least $3.3 billion once Train 6 begins commercial delivery. Revenues were $6.167 billion in 2020 versus $6.838 billion in 2019, and net income was $1.183 billion, or $2.32 per common unit, versus $1.175 billion, or $2.25 per unit, in 2019. The filing cites $553 million of LNG revenue recognized on cargoes customers elected not to take, and it notes that customers remain obligated to pay fixed fees for those cargoes. Liquidity at year-end 2020 included $1.2 billion of cash and cash equivalents and total debt of $17.8 billion on a consolidated basis before unamortized premium, discount and debt issuance costs. The company refinanced $2.0 billion of SPL's 5.625% notes due 2021 with 4.500% notes due 2030 issued in May 2020, and it entered a $1.2 billion SPL working capital facility maturing in March 2025. Distributions paid during 2020 totaled $1.4 billion across common, subordinated and general partner units, including IDRs. Subordinated units converted to common units on a one-for-one basis in August 2020. The company reported that it had no employees and relied on Cheniere subsidiaries for personnel, and that substantially all of its anticipated 2021 revenue depends on the Sabine Pass LNG terminal. Key risks highlighted include the Train 6 construction timeline and cost (EPC contract price of approximately $2.5 billion, with $1.9 billion incurred as of year-end 2020), customer performance and termination rights under long-term contracts, COVID-19 effects on operations and construction, the concentration of revenue in one facility, and the conflicts of interest arising from Cheniere's control of the general partner. Debt maturities total $1.0 billion in 2022, $1.5 billion in 2023, $2.0 billion in 2024 and $3.5 billion in 2025.
Feb 24, 2021
2019
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2019
Cheniere Energy Partners, L.P. (NYSE American: CQP) reported net income of $1.2 billion, or $2.25 per common unit, for 2019, compared with $1.3 billion, or $2.51 per common unit, in 2018. Total revenues were $6.84 billion for 2019 versus $6.43 billion in 2018, and income from operations was $2.04 billion versus $1.98 billion. The Partnership operates the Sabine Pass LNG terminal in Louisiana through subsidiaries SPL and SPLNG, with five liquefaction Trains in operation and Train 6 under construction. Management made a final investment decision on Train 6 in May 2019, and the filing gives its expected substantial completion as 1H 2023 at 43.7% overall completion. Nearly all of the Partnership's anticipated 2020 revenue depends on this one facility, and its long-term SPAs are fixed-fee contracts with eight third-party customers. Liquidity and leverage are central to the investment case. At December 31, 2019, the Partnership had $1.8 billion of cash and cash equivalents and $17.8 billion of total debt before unamortized premium, discount and issuance costs. In September 2019 it issued $1.5 billion of 4.500% Senior Notes due 2029 and used the proceeds to prepay its $750 million term loan. Distributions to unitholders totaled $1.3 billion in 2019, and a $0.63 per unit distribution was declared on January 28, 2020. The filing also notes that approximately $2.9 billion in annual fixed fees from third-party SPA customers covers Trains 1 through 5, rising to at least $3.3 billion once Train 6 begins commercial delivery. The filing identifies concentration and structural risks. Customers BG, Naturgy, KOGAS, GAIL and Total each account for 10% or more of revenues, and Cheniere, the general partner's parent, controls the general partner and has limited obligations to offer the Partnership new assets. The Partnership has no employees and depends on Cheniere subsidiaries for personnel. It reports effective internal control over financial reporting and discloses two regulatory matters, a self-reported LDEQ Title V compliance matter and a PHMSA Consent Order related to a February 2018 leak. Management does not expect either to have a material adverse impact on its financial results.
Feb 25, 2020
2018
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2018
Cheniere Energy Partners, L.P. (CQP) reported net income of $1.27 billion, or $2.51 per common unit, for 2018, compared with net income of $490 million ($1.32 loss per common unit) in 2017. Total revenues rose to $6.43 billion from $4.30 billion, driven by additional Trains of the Liquefaction Project entering operation at the Sabine Pass LNG terminal. Train 5 was 99.7% complete at year-end, with substantial completion expected in 1Q 2019, and Train 6 has a December 2018 SPA with PETRONAS and limited notices to proceed to Bechtel; its final investment decision remains contingent on commercial arrangements and financing. The partnership's balance sheet carries $16.3 billion of total debt before unamortized premium, discount and debt issuance costs, against zero cash and cash equivalents and $1.5 billion of current restricted cash at December 31, 2018. Partners' equity was $800 million. Operating cash flow was $1.87 billion in 2018, versus $977 million in 2017, while investing outflows were $804 million and financing outflows were $1.12 billion, including $1.1 billion of distributions to unitholders. The company issued $1.1 billion of 5.625% Senior Notes due 2026 in September 2018 and used the proceeds to prepay its CQP Credit Facilities. Investors should weigh the concentration of revenue in a single facility and a small number of customers: BG, Naturgy, KOGAS and GAIL each accounted for more than 10% of 2018 revenues, at 28%, 21%, 23% and 19%. The filing also notes that the partnership had not been profitable historically before 2018, that Train 6 requires significant additional funding, and that the risk factors cover dependence on Cheniere, which controls the general partner.
Feb 26, 2019
2017
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2017
Cheniere Energy Partners, L.P. (NYSE American: CQP) reported net income of $490 million for 2017, compared with net losses of $171 million in 2016 and $319 million in 2015, on total revenues of $4.30 billion (2016: $1.10 billion). Revenue growth was driven by the start of operations at Trains 1 through 4 of the Liquefaction Project at the Sabine Pass LNG terminal, with LNG revenues of $2.64 billion plus $1.39 billion from affiliates. Operating cash flow was $977 million, and distributions paid to unitholders totaled $294 million. The company had zero cash and cash equivalents at year-end, $1.6 billion of current restricted cash, and $16.2 billion of total debt outstanding before discounts, premiums and issuance costs. The filing describes the company's dependence on long-term fixed-fee contracts: six fixed-price SPAs with terms of at least 20 years cover roughly 80% to 95% of expected adjusted nominal capacity of Trains 1 through 5, and annual fixed fees are approximately $2.9 billion once Train 5 starts. Train 5 was 83.1% complete at December 31, 2017, with expected substantial completion in 1H 2019. Train 6 has all necessary regulatory approvals, but the company says it will need significant additional funding, and a final investment decision depends on an EPC contract, commercial arrangements and financing. Total expected capital costs for Trains 1 through 5 are $12.5 billion to $13.5 billion before financing costs. Key risks highlighted include concentration in a single facility, reliance on counterparties such as BG, Gas Natural Fenosa and KOGAS, which accounted for 39%, 27% and 23% of third-party revenues respectively, and significant refinancing needs, with $1.1 billion maturing in 2020 and $2.0 billion in 2021. The filing also discloses a PHMSA Corrective Action Order issued in February 2018 following a minor LNG leak, an open LDEQ compliance matter, and a pending JMCB lawsuit challenging an ITE tax contract, which management views as remote in terms of material adverse effect.
Feb 21, 2018
2016
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2016
Cheniere Energy Partners, L.P. (NYSE MKT: CQP) reported a 2016 net loss of $171.2 million ($0.20 per common unit), improved from a net loss of $318.9 million in 2015, as total revenues rose to $1.10 billion from $270.0 million. The increase reflects the start of LNG operations at the Sabine Pass Liquefaction Project: Trains 1 and 2 achieved substantial completion and began operating activities in May and September 2016, respectively. Operating cash flow was essentially break-even at negative $0.2 million, while investing cash outflows of $2.35 billion and financing inflows of $2.52 billion funded construction of Trains 1 through 5. Total debt outstanding was $14.6 billion at year-end, against zero cash and cash equivalents and $604.9 million of current restricted cash. The partnership's revenue base is supported by long-term contracts: six fixed-price, 20-year SPAs for approximately 19.75 mtpa, or about 88% of expected nominal capacity of Trains 1 through 5, with annual fixed fees of roughly $2.9 billion in aggregate. Regasification capacity at the Sabine Pass LNG terminal is fully contracted under two long-term TUAs. Train 3 was in commissioning, Trains 4 and 5 were under construction with expected substantial completion in 2H 2017 and 2H 2019, and Train 6 had not yet reached a final investment decision. Management expects total capital costs for Trains 1 through 5 of $17.0 billion to $18.0 billion after financing costs. Key risks highlighted include the partnership's lack of profitability history, reliance on a single facility, dependence on Cheniere affiliates and Bechtel for construction, substantial indebtedness with maturities concentrated from 2022 to 2027, and a pending lawsuit challenging an Louisiana industrial tax exemption contract, which management considers remote as a material adverse risk. Distributions of $0.425 per common unit per quarter continued, funded from accumulated operating surplus.
Feb 24, 2017
2015-A
Cheniere Energy Partners Annual Report (Amendment), Year Ended Dec 31, 2015
This filing sets out Item 9B (Other Information) and the Item 15 exhibit index for Cheniere Energy Partners, L.P.'s annual report for the fiscal year ended December 31, 2015, signed February 29, 2016 by Michael J. Wortley, Senior Vice President and Chief Financial Officer, and Leonard Travis, Chief Accounting Officer. It states that Cheniere Energy Partners did not engage in any transactions with Iran or with persons or entities related to Iran during 2015, which is the sole compliance disclosure the partnership makes under Section 13(r) of the Securities Exchange Act of 1934. The filing also reports, as relayed from Blackstone Group L.P., the Iran-related activities of two portfolio companies that may be deemed affiliates of the partnership through Blackstone's ownership. Blackstone CQP Holdco LP holds more than 29% of the partnership's outstanding equity interests and has three representatives on the Board of Directors of the general partner. Hilton Worldwide Holdings reported that an Iranian governmental delegation stayed one night at the Transcorp Hilton Abuja, generating revenues of approximately $5,320 and net profit of approximately $495. Travelport Worldwide reported gross revenues of approximately $551,000 and net profits of approximately $389,000 from travel technology services provided to Iran Air and Iran Air Tours. The partnership states it has not independently verified these disclosures. The exhibit index lists the partnership's and its subsidiaries' organizational documents, indentures and senior secured notes, credit facilities, LNG terminal use and sale and purchase agreements, engineering, procurement and construction agreements for the Sabine Pass LNG liquefaction facilities (including Stage 2 and Stage 3), management and operation agreements, and incentive plan forms. Several exhibits are incorporated by reference to earlier filings, while others are noted as filed with the original filing or furnished with it.
Feb 29, 2016
2015
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2015
Cheniere Energy Partners, L.P. (NYSE MKT: CQP) reported a 2015 net loss of $318.9 million, compared with $410.0 million in 2014, as it continues to build the Liquefaction Project at the Sabine Pass LNG terminal. Total revenues were $270.0 million in 2015 and operating income was $3.0 million. The partnership's current revenue base comes from regasification capacity under two third-party terminal use agreements (about $125 million annually each from Total and Chevron) and SPL's $250 million annual capacity payments to SPLNG. Total long-term debt stood at $11.8 billion before discounts and premiums as of December 31, 2015, with $1.7 billion maturing in 2016. The Liquefaction Project is advancing ahead of schedule. Trains 1 and 2 were 97.4% and 79.5% complete for Trains 3 and 4 as of year-end, and Train 5 was 14.9% complete. The filing states that first LNG from Train 1 was produced in February 2016, and Train 2 is expected to produce LNG as early as mid-2016. Fixed-price, 20-year SPAs covering about 19.75 mtpa for Trains 1 through 5 carry aggregate annual fixed fees of approximately $2.9 billion. Train 6 remains uncontracted and subject to a future final investment decision. Investors should weigh the partnership's heavy leverage, its history of net losses, and its dependence on a single facility and on Cheniere-affiliated service providers. Common unit distributions remained at $0.425 per quarter, but distributions on subordinated units have not been paid since the quarter ended March 31, 2010. In January 2016 the partnership engaged 13 financial institutions to arrange up to approximately $2.8 billion of senior secured credit facilities to refinance SPLNG and CTPL debt.
Feb 19, 2016
2014
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2014
Cheniere Energy Partners, L.P. (NYSE MKT: CQP) reported a 2014 net loss of $410.0 million, compared with $258.1 million in 2013 and $175.4 million in 2012, as it continued to build the Liquefaction Project at the Sabine Pass LNG terminal in Louisiana. Revenues were essentially flat at $268.7 million, while total operating expenses were $269.6 million, leaving a loss from operations of $0.9 million. The loss was driven mainly by a $118.0 million derivative loss, net, and a $114.3 million loss on early extinguishment of debt. The company states it has no employees and relies on Cheniere affiliates for management, and that substantially all of its anticipated 2015 revenue will depend on the single Sabine Pass LNG facility. The company's near-term value rests on the Liquefaction Project. As of December 31, 2014, overall completion was approximately 81% for Trains 1 and 2 and 54% for Trains 3 and 4, which the filing describes as ahead of the contractual schedule. Train 1 is expected to produce LNG as early as late 2015. Sabine Pass Liquefaction has fixed-fee, 20-year SPAs that the filing says equate to approximately $2.3 billion annually for Trains 1 through 4. Total expected capital costs for Trains 1 through 4 are estimated at $9.0 to $10.0 billion before financing costs. Total debt was $9.0 billion on a consolidated basis at year-end 2014, and cash flow from the project is not expected until late 2015 at the earliest. For unitholders, the filing notes that the $0.425 quarterly distribution on common units continued, but the partnership's distributions are only partly covered by operating surplus until Trains 1 and 2 begin commercial operations, which the filing does not expect before at least 2016. Subordinated units have received no distributions since the quarter ended March 31, 2010. Management also states that Train 5 and Train 6 require significant additional funding, and that Total and Centrica SPAs may be terminated if conditions precedent, including a final investment decision on Train 5, are not met by June 30, 2015.
Feb 20, 2015
2013
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2013
Cheniere Energy Partners, L.P. (NYSE MKT: CQP) reported a 2013 net loss of $258.1 million, compared with $175.4 million in 2012, as it develops the Sabine Pass Liquefaction Project. The partnership's existing business is its Sabine Pass LNG regasification terminal, with approximately 4.0 Bcf/d of regasification capacity fully contracted under two long-term third-party terminal use agreements (Total and Chevron, each about $125 million annually) and a 2.0 Bcf/d agreement held by Sabine Pass Liquefaction (about $250 million annually). Train 1 is expected to produce LNG as early as late 2015, and Trains 1 through 4 are estimated to cost between $9.0 billion and $10.0 billion before financing costs. Overall, the partnership's future cash flows depend on completing construction on schedule, since it expects no significant operating cash flow under the SPAs until late 2015 at the earliest. Total debt outstanding was $6.6 billion at December 31, 2013 (before discounts and premiums), up from $2.2 billion at year-end 2012. Much of the increase came from Sabine Pass Liquefaction senior notes and credit facilities, plus a $400.0 million CTPL credit facility used to fund the Creole Trail Pipeline modifications. Cash and cash equivalents were $351.0 million, with $1,252.7 million of restricted cash held for specific project and debt-service purposes. Operating cash flow was $35.7 million in 2013 compared with negative $37.7 million in 2012. Investors should note that the partnership has not been profitable historically, has not paid distributions on its subordinated units since the quarter ended March 31, 2010, and pays a common unit distribution of $0.425 per quarter that management indicates is not fully covered by current operating surplus. Its general partner and affiliates have significant conflicts of interest, and Cheniere affiliates hold a substantial stake in the partnership, which adds to unitholder risk until the Liquefaction Project generates cash flow.
Feb 21, 2014
2012-A
Cheniere Energy Partners Annual Report (Amendment), Year Ended Dec 31, 2012
Cheniere Energy Partners, L.P. (CQP) reports in this filing that its wholly owned subsidiary, Sabine Pass LNG, L.P., closed the sale of $420 million aggregate principal amount of 6.5% Senior Secured Notes due 2020 on October 16, 2012. The notes were sold in a private placement, mature November 1, 2020, and are senior secured obligations. The Indenture includes customary covenants, a debt payment account requirement, and optional redemption provisions, including a right to redeem up to 35% of the notes at 106.5% of principal from equity offering proceeds before November 1, 2015. The filing also discloses amendments dated February 18, 2013 to LNG Sale and Purchase Agreements with KOGAS and GAIL. Under the amended agreements, the start dates for first commercial LNG delivery from Train 3 (KOGAS) and Train 4 (GAIL) are aligned with the EPC Contract completion dates, and the deadline for satisfying certain conditions precedent, including final investment decisions, moves from June 30, 2013 to December 31, 2013. For compliance purposes, the Partnership states that it did not engage in any transactions with Iran or Iran-related persons during 2012. It also discloses, based on notice from Blackstone (an approximately 30% equity holder with board representation that may be deemed an affiliate), third-party activities involving TRW Automotive Holdings Corp. and Travelport Limited, which the Partnership says it has not independently verified.
Mar 1, 2013
2012
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2012
Cheniere Energy Partners, L.P. (NYSE MKT: CQP) reported a net loss of $150.1 million for 2012, compared with a net loss of $31.0 million in 2011, as it moved into the construction phase of its Sabine Pass Liquefaction Project. Revenues were $264.3 million in 2012 versus $283.8 million in 2011, and income from operations fell to $63.5 million from $144.6 million. Operating cash flow was negative at $26.2 million. The partnership's existing business is the Sabine Pass LNG regasification terminal, where roughly 4.0 Bcf/d of capacity is fully contracted under terminal use agreements with Total, Chevron and Sabine Pass Liquefaction. The company states it does not expect to receive cash flows from operations under any SPA until the end of 2015 at the earliest. Funding for construction was substantially completed in 2012 and early 2013. The partnership sold 133.3 million Class B units for $2.0 billion in gross proceeds, closed a $3.6 billion Liquefaction Credit Facility, and issued $420.0 million of 6.50% notes due 2020 by Sabine Pass LNG. In February 2013 Sabine Pass Liquefaction issued $1.5 billion of 5.625% notes due 2021. Long-term debt, net of discount, was $2.17 billion at December 31, 2012. Train 1 and Train 2 were 18% complete as of December 31, 2012, with Bechtel EPC contract prices of $3.97 billion for Trains 1 and 2 and $3.77 billion for Trains 3 and 4. For investors, the key issues are execution and financing risk. The filing states that Train 1 is expected to produce LNG as early as the end of 2015, that construction cost estimates for Trains 1 and 2 are $4.5 billion to $5.0 billion before financing costs, and that the partnership has not paid distributions on its subordinated units since the quarter ended March 31, 2010. Customer contracts supply approximately $2.6 billion of annual fixed fees once all five SPAs commence, but those fees depend on the customers' continued performance and on the trains being completed on schedule.
Feb 22, 2013
2011
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2011
Cheniere Energy Partners, L.P. (CQP) is a Delaware limited partnership formed by Cheniere Energy, Inc. Its sole operating asset is the Sabine Pass LNG terminal in Cameron Parish, Louisiana, with regasification capacity of approximately 4.0 Bcf/d and 16.9 Bcf of LNG storage. Roughly 2.0 Bcf/d of that capacity is reserved under long-term take-or-pay terminal use agreements with Total and Chevron, each paying about $125 million per year for 20 years, and a further 2.0 Bcf/d is held by Cheniere Investments under a TUA with payments of about $250 million per year through at least September 30, 2028. The Cheniere Investments capacity payments are eliminated on consolidation, and cash to unitholders depends on a Variable Capacity Rights Agreement with Cheniere Marketing and on Sabine Pass LNG's ability to distribute cash under the Sabine Pass Indenture. For 2011, total revenues were $283.8 million, down from $399.3 million in 2010, mainly because of the July 2010 TUA assignment to Cheniere Investments. The company reported a net loss of $31.0 million, compared with net income of $107.6 million in 2010. Cash and cash equivalents were $81.4 million at year-end, against $2.2 billion of senior notes outstanding, including $550.0 million due 2013 and $1,666.0 million due 2016. Common unit distributions were $0.425 per quarter, but no distributions have been paid on subordinated units since the quarter ended March 31, 2010. The main investment thesis rests on a planned liquefaction project at the terminal. Sabine Pass Liquefaction has signed four LNG sale and purchase agreements covering about 89% of expected nameplate capacity, and a lump-sum turnkey EPC contract with Bechtel for LNG trains 1 and 2 at $3.9 billion. The filing estimates total construction cost for the four trains at $9.0 billion to $10.0 billion before financing costs, and it states that financing and FERC authorization are still required before construction can proceed.
Feb 24, 2012
2010-A
Cheniere Energy Partners Annual Report (Amendment), Year Ended Dec 31, 2010
Cheniere Energy Partners, L.P. (NYSE Amex: CQP) filed this amended annual report on Form 10-K/A for fiscal 2010, restating how it presents net income per unit. The restated basic and diluted net income per common unit for 2010 is $1.70, versus $0.65 per limited partner unit under the prior combined presentation, while total net income of $107.6 million is unchanged. Management concluded that internal control over financial reporting was not effective as of December 31, 2010, because of a material weakness in the per-unit presentation, and Ernst & Young's opinion on internal control was revised accordingly. The partnership's core asset is the Sabine Pass LNG terminal in Louisiana, with about 4.0 Bcf/d of regasification capacity fully contracted under three 20-year take-or-pay TUAs. Two third-party customers, Total and Chevron, each pay roughly $125 million per year. Since June 2010, Cheniere Investments, a subsidiary, has held the third TUA (about $250 million per year) after Cheniere Marketing assigned it, and that capacity is monetized through a variable capacity rights agreement that pays 80% of expected gross margin. Revenues fell to $399.3 million in 2010 from $416.8 million in 2009, and net income fell to $107.6 million from $186.9 million, mainly because of that assignment. For investors, the key issues are the $2.2 billion of senior secured notes maturing in 2013 and 2016, distributions that depend on Sabine Pass LNG being able to pass its fixed-charge coverage test, and the company's plan to add bi-directional liquefaction capacity, which it estimates could begin exporting as early as 2015. No distributions were paid on subordinated units for quarters after June 30, 2010, and the company has signed only non-binding memoranda of understanding with potential liquefaction customers.
Sep 12, 2011
2010
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2010
Cheniere Energy Partners, L.P. (NYSE Amex: CQP) reports results for 2010 from its Sabine Pass LNG terminal in western Cameron Parish, Louisiana. Net income was $107.6 million in 2010, down from $186.9 million in 2009, primarily because the Cheniere Marketing TUA was assigned to Cheniere Energy Investments effective July 1, 2010. Revenues were $399.3 million (2009: $416.8 million), and total expenses were $118.5 million. Cash and cash equivalents fell to $53.3 million at year-end, and total partners' deficit was $536.0 million. Operating cash flow decreased $130.2 million year over year, and the company did not pay distributions on subordinated units for quarters ending on or after June 30, 2010, though the common unit distribution remained $0.425 per quarter. The terminal's approximately 4.0 Bcf/d of regasification capacity is fully contracted under three 20-year TUAs: Total and Chevron each pay about $125 million per year, and Cheniere Investments pays about $250 million per year through at least September 30, 2028. The company is pursuing a liquefaction project to convert the terminal to bi-directional service, with up to four LNG Trains of about 4.0 mtpa each, potential export as early as 2015, and eight non-binding MOUs covering up to 9.8 mtpa. The FERC application was filed in January 2011, and estimated construction costs are approximately $400 per metric ton before financing costs. Final investment decision has not been made. Investors should note the company's dependence on Sabine Pass LNG distributions, which are restricted by the Sabine Pass Indenture (including a 2:1 fixed charge coverage test), and on Cheniere Marketing and Cheniere, which the filing describes as having a high risk of being financially unable to perform under the VCRA. Senior Notes totaling $2,215.5 million are due in 2013 ($550.0 million) and 2016 ($1,665.5 million). Cheniere owns about 89% of the partnership's equity securities.
Mar 3, 2011
2009
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2009
Cheniere Energy Partners, L.P. (CQP) is a Delaware limited partnership that owns and operates the Sabine Pass LNG receiving terminal in western Cameron Parish, Louisiana. Construction was substantially completed in the third quarter of 2009, and as of December 31, 2009 the terminal had reached full operability with approximately 4.0 Bcf/d of regasification capacity and 16.9 Bcf of LNG storage, within budget. Substantially all of its anticipated 2010 revenue depends on this single asset, and the terminal's entire capacity is reserved under three long-term terminal use agreements (TUAs): Total and Chevron each pay about $125 million per year for 20 years, and Cheniere Marketing, an affiliate, pays about $250 million per year through at least September 30, 2028. For 2009, the partnership reported total revenue of $416.8 million and net income of $186.9 million, compared with a net loss of $78.3 million in 2008. Cash provided by operating activities was $234.3 million, and distributions to owners totaled $280.7 million. Cheniere Marketing's TUA payments and Cheniere's guarantee carry the most credit risk: the filing describes Cheniere Marketing as having limited capital and no credit rating, and Cheniere as rated CCC+ by Standard & Poor's. Long-term debt of $2.2 billion, consisting of Senior Notes, is secured by the terminal, and the filing says Sabine Pass LNG may distribute cash to the partnership only after meeting restrictive indenture conditions, including a 2:1 fixed charge coverage test. The quarterly distribution on common units is $0.425 per unit, unchanged across 2008 and 2009, and a distribution for the quarter ended December 31, 2009 was paid on February 12, 2010. Subordinated units will convert to common units only after the subordination period ends, which the filing expects no sooner than the distribution for the quarter ending March 31, 2012. Cheniere owns about 90.6% of the partnership, and the partnership has no employees, relying on its general partner and Cheniere affiliates for personnel and services.
Feb 26, 2010
2008
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2008
Cheniere Energy Partners, L.P. (CQP) is a Delaware limited partnership formed by Cheniere Energy, Inc. whose sole operating asset is the Sabine Pass LNG receiving terminal in western Cameron Parish, Louisiana. The terminal achieved commercial operability in September 2008, and its initial 2.6 Bcf/d of sendout capacity and 10.1 Bcf of storage are now able to accept commercial cargoes. Construction of the remaining 1.4 Bcf/d of sendout capacity and 6.7 Bcf of storage was approximately 88% complete as of December 31, 2008, with full operability expected in the third quarter of 2009. The full 4.0 Bcf/d of regasification capacity is contracted under three 20-year terminal use agreements with Total LNG USA, Chevron U.S.A. and Cheniere Marketing, LLC, the last of which is guaranteed by Cheniere and rated non-investment grade (CCC+). The partnership reported 2008 revenue of $15.0 million, all from the Cheniere Marketing TUA for the last three months of 2008, and a net loss of $78.3 million, compared with $49.0 million in 2007. Long-term debt totaled $2.18 billion, including $2,215.5 million of Senior Notes issued by Sabine Pass LNG, and interest payments on the notes are approximately $164.8 million per year. Cash distributions are funded from a distribution reserve of $32.8 million for the initial quarterly distribution of $0.425 per unit through the quarter ending June 30, 2009. The filing states that distributions beyond that point depend on Sabine Pass LNG meeting a fixed charge coverage ratio test of 2.0 to 1.0 after March 31, 2009, which requires consolidated cash flow of roughly $375 million. The main investor risks are counterparty concentration in Cheniere Marketing, the restrictive Sabine Pass Indenture, which can block distributions to the partnership, the lack of diversification with a single asset, and the fact that Cheniere controls the general partner and owns about 90.6% of the partnership. Management reported effective internal control over financial reporting as of December 31, 2008.
Feb 27, 2009
2007
Cheniere Energy Partners Annual Report, Year Ended Dec 31, 2007
Cheniere Energy Partners, L.P. (AMEX: CQP) is a Delaware limited partnership formed by Cheniere Energy, Inc. to own and operate the Sabine Pass LNG receiving terminal under construction in western Cameron Parish, Louisiana. The company is a development stage enterprise with no revenues, operating cash flows or operating history to date, and a cumulative net loss of $121.4 million from inception through December 31, 2007. Its net loss was $49.0 million in 2007. The company expects to begin receiving revenues from operations in the second quarter of 2008, and it estimates the aggregate cost to complete construction at approximately $1.5 billion before financing costs in Item 1 (versus $1.4 billion in Item 7). All of the terminal's approximately 4.0 Bcf/d of regasification capacity is contracted under three 20-year firm terminal use agreements (TUAs): Total LNG USA (about 1.0 Bcf/d, roughly $125 million per year), Chevron U.S.A. (about 1.0 Bcf/d, roughly $125 million per year), and Cheniere Marketing, Inc., an affiliate (about 2.0 Bcf/d, roughly $250 million per year beginning January 1, 2009). The filing emphasizes that Cheniere Marketing is a company with a limited operating history, no credit rating, and an unproven business strategy, and that Cheniere holds a non-investment grade B rating from Standard & Poor's. Cheniere guarantees Cheniere Marketing's obligations. Distributions to unitholders through the distribution made in respect of the quarter ending June 30, 2009 are funded from a $98.4 million distribution reserve and are described as a return of investment. The company had $2,032.6 million of indebtedness at year-end 2007, primarily the Sabine Pass LNG notes. The indenture restricts Sabine Pass LNG from making distributions to the partnership before phase 1 target completion, and after March 31, 2009 a fixed charge coverage ratio test of 2.0 to 1.0 could prevent distributions. The filing also notes that on February 25, 2008 Cheniere announced it was evaluating strategic options, including options to optimize the value of the terminal and the regasification capacity held by Cheniere Marketing.
Feb 27, 2008