01—Abstract
Summary
Summary of the 10-K/A filed March 22, 2012. Cited figures are marked; the original filing is the authoritative source.
The provided text is not the body of the 10-K.
It is the Part IV exhibit index of an amendment ("Amendment No. 1") to Cheniere Energy, Inc.'s annual report. It contains no financial statements, MD&A, revenue, earnings, cash flow, or balance sheet data, so it cannot support a full assessment of the company's financial performance or valuation. Investors should obtain the complete original 10-K and this amendment to evaluate results.
The exhibit list does show the strategic direction of the business as of early 2012. Sabine Pass Liquefaction, LLC signed long-term FOB LNG sale and purchase agreements with BG Gulf Coast LNG, Gas Natural Aprovisionamientos, GAIL (India), and Korea Gas Corporation, and entered a lump-sum turnkey EPC contract with Bechtel for the Sabine Pass liquefaction facility. These contracts point to a shift from regasification-terminal and capacity-based revenue toward liquefaction and export.
Sabine Pass Liquefaction is a subsidiary of Cheniere Energy Partners, L.P., so these agreements are relevant to both entities. The exhibits also reference a substantial debt structure, including a Credit Agreement from 2008 administered by The Bank of New York Mellon with multiple amendments through a Tenth Amendment dated January 5, 2012, along with senior secured notes due 2013 and 2016 issued through Sabine Pass LNG, L.P.
Capacity-rights and terminal-use agreements with Total, Chevron, and JPMorgan LNG remain in effect. Investors should weigh these obligations and the dependence on a few large counterparties when assessing the company.
02—Key points
Key Highlights
- The document is Part IV (Exhibit Index) of Amendment No. 1 to the annual report, so it does not contain the full financial statements or MD&A.
- Sabine Pass Liquefaction, LLC signed long-term FOB LNG sale and purchase agreements with BG Gulf Coast LNG (October 2011, amended January 2012), Gas Natural (November 2011), GAIL India (December 2011), and Korea Gas Corporation (January 2012).
- A lump-sum turnkey EPC agreement for the Sabine Pass LNG liquefaction facility was signed with Bechtel Oil, Gas and Chemicals, dated November 11, 2011.
- The company has a credit agreement from August 2008 administered by The Bank of New York Mellon, with a Tenth Amendment dated January 5, 2012.
- Sabine Pass LNG, L.P. has outstanding senior secured notes (7.25% due 2013 and 7.50% due 2016) and a 2006 indenture.
- Long-term LNG terminal use and capacity rights agreements with Total, Chevron, and JPMorgan LNG underpin existing terminal revenues.
- Executive compensation plans, including the 2008 retention plans, 2011 Incentive Plan, and 2011-2013 Bonus Plan, were referenced, along with the Ernst & Young consent and SOX certifications.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-K/AFY2011filed March 22, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $290.44M$291.51M | −0.4% |
| R&D Expenses | $40.80M$11.97M | +240.8% |
| Operating Expenses | $232.30M$186.89M | +24.3% |
| Operating Income | $58.15M$104.62M | −44.4% |
| Interest Expense | $259.39M$262.05M | −1.0% |
| Net Income | -$198.76M-$76.20M | −160.8% |
| EPS (Basic) | $-2.60$-1.37 | −89.8% |
| Shares Outstanding (Basic) | 76.48M55.77M | +37.2% |
05—Questions
Frequently Asked Questions
Does this filing contain Cheniere's financial results for the year?
No. The text provided is only the exhibit index for Amendment No. 1. It does not include income statements, balance sheets, cash flows, or MD&A. The full 10-K and amendment are needed to evaluate reported financial performance.
What major long-term commercial contracts are referenced?
Sabine Pass Liquefaction, LLC has FOB LNG sale and purchase agreements with BG Gulf Coast LNG, Gas Natural Aprovisionamientos, GAIL (India), and Korea Gas Corporation. These contracts support the planned liquefaction export business, but the exhibit index does not state their volumes, prices, or terms.
What construction contract supports the Sabine Pass liquefaction project?
A Lump Sum Turnkey Agreement dated November 11, 2011 was signed between Sabine Pass Liquefaction, LLC (Owner) and Bechtel Oil, Gas and Chemicals, Inc. (Contractor) for engineering, procurement, and construction. The exhibit index does not disclose its price or schedule.
What debt and credit obligations are referenced?
The exhibits reference a 2008 Credit Agreement with The Bank of New York Mellon as administrative and collateral agent, amended multiple times through a Tenth Amendment dated January 5, 2012. Sabine Pass LNG, L.P. also has senior secured notes due 2013 (7.25%) and 2016 (7.50%). Outstanding balances and covenant terms are not included in this excerpt.
Why would this document matter to investors even without financial data?
The exhibit list shows the company's contract base, financing structure, and governance arrangements. The LNG sales agreements and EPC contract point to a strategic move toward liquefaction and exports. Investors should review the full filing to quantify these contracts' financial impact and the related debt.
06—Continue