What is the primary reason for this 10-K/A filing?

This filing (Amendment No. 2) is primarily to update the auditor reports and consents from PricewaterhouseCoopers LLP to new auditors (UMFS&L and KPMG LLP) for historical financial statements, specifically relating to the 2001 financial statements of Cheniere and Gryphon Exploration Company. It also provides consents for these updated reports to be incorporated into registration statements.

What was Cheniere Energy's financial performance in 2003?

Cheniere Energy reported a net loss of $5.3 million for the year ended December 31, 2003. This represents an improvement compared to the net loss of $5.6 million in 2002 and a significant reduction from the $11.7 million net loss in 2001. While oil and gas revenue increased from 2002, the overall business is still reporting losses.

What is the company's strategic focus based on the financial statements?

The financial statements highlight Cheniere's dual focus on oil and gas exploration/development and LNG receiving terminal development. The significant gains recognized from LNG asset and partnership sales in 2003, alongside increased G&A expenses for LNG terminal development, suggest a strong strategic push and investment in the LNG sector. The oil and gas segment's revenue has decreased substantially from 2001, further indicating a potential shift in strategic priorities towards LNG.

What is the company's liquidity and funding outlook?

As of December 31, 2003, Cheniere had $1.26 million in cash and cash equivalents. While the company reported recurring losses, subsequent events disclosed indicate positive developments. In January 2004, Cheniere completed a private placement raising over $13.8 million and received a $2.5 million payment from Freeport LNG. These events, along with exercises of warrants and options, significantly improved the company's pro forma working capital, suggesting management's confidence in meeting liquidity requirements through various means, including capital raises and operational developments.

LNG 10-K Filed Jul 20, 2004

Summary

This filing is an amendment to Cheniere Energy, Inc.'s 2003 10-K, primarily to update auditor reports and consents. The financial statements reflect the fiscal year ending December 31, 2003. Cheniere continues to operate in two main segments: LNG receiving terminal development and oil and gas exploration. The company reported a net loss of $5.3 million for 2003, an improvement from the $5.6 million loss in 2002 and significantly better than the $11.7 million loss in 2001. While revenue from oil and gas sales increased in 2003 compared to 2002, it was substantially lower than 2001, indicating a shift in focus or market conditions. The company made significant strides in its LNG terminal development business, evidenced by gains on the sale of LNG assets and partnership interests, and is strategically positioning itself in this sector. Despite the ongoing net losses, the company's balance sheet shows an increase in cash and a reduction in long-term liabilities, coupled with strategic capital raises and financing activities that suggest a focus on future development and operational viability.

Key Highlights

1Cheniere Energy reported a net loss of $5.3 million for the fiscal year ended December 31, 2003, an improvement from previous years.
2Revenues from oil and gas sales increased to $657,467 in 2003 from $239,055 in 2002, though significantly down from $2,372,632 in 2001.
3The company recognized significant gains from the sale of LNG assets ($4.76 million) and a limited partnership interest ($0.42 million) in 2003, indicating progress in its LNG terminal development segment.
4Total assets grew to $24.6 million in 2003 from $21.1 million in 2002, with a substantial increase in cash and cash equivalents to $1.26 million.
5Operating costs and expenses, particularly in General and Administrative (G&A) for LNG terminal development, increased significantly to $9.25 million in 2003 from $3.48 million in 2002.
6The company ended 2003 with a substantial net operating loss (NOL) carryforward of approximately $26.5 million for tax purposes.
7Subsequent events in early 2004 detail a private placement raising over $13.8 million, indicating a focus on future capital needs for LNG development.

Cheniere Energy, Inc. Annual Report (Amendment), Year Ended Dec 31, 2003

Summary

Key Highlights

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