Early Access

10-KPeriod: FY2015

Cheniere Energy, Inc. Annual Report, Year Ended Dec 31, 2015

Filed February 19, 2016For Securities:LNG

Summary

Cheniere Energy, Inc. (LNG) has reported its annual results for the fiscal year ending December 31, 2015. The company is heavily invested in the development and construction of two major Liquefied Natural Gas (LNG) export facilities: the Sabine Pass LNG terminal in Louisiana and the Corpus Christi LNG terminal in Texas. Financially, Cheniere reported a significant net loss attributable to common stockholders of $975.1 million for the year, an increase from the previous year's loss of $547.9 million. This widened loss is attributed to increased interest expenses, general and administrative expenses, impairment charges, and derivative losses. The company's operations are capital-intensive, with substantial ongoing investments in construction. As of December 31, 2015, Cheniere had approximately $17.3 billion in total debt outstanding. Despite the net loss, the company is progressing with its construction milestones, with Trains 1 and 2 at Sabine Pass nearing completion and expected to produce LNG in early to mid-2016. Investors should closely monitor construction progress, financing activities for future trains, and the securing of long-term contracts.

Financial Statements
Beta
Revenue$271.00M
Cost of Revenue-$15.00M
Gross Profit$286.00M
R&D Expenses$42.00M
SG&A Expenses$363.00M
Operating Expenses$720.00M
Operating Income-$449.00M
Interest Expense$322.00M
Net Income-$975.00M
EPS (Basic)$-4.30
Shares Outstanding (Basic)226.90M
Shares Outstanding (Diluted)226.90M

Key Highlights

  • 1Cheniere Energy reported a net loss of $975.1 million for the year ended December 31, 2015, an increase from the prior year's loss.
  • 2The company is actively developing two major LNG export facilities: Sabine Pass LNG terminal (Louisiana) and Corpus Christi LNG terminal (Texas), with multiple liquefaction 'Trains' under construction.
  • 3Total debt outstanding as of December 31, 2015, was $17.3 billion.
  • 4Construction progress at Sabine Pass LNG terminal was advanced, with Trains 1 & 2 approximately 97.4% complete and expected to commence operations in early to mid-2016.
  • 5The Corpus Christi LNG terminal project was approximately 29.2% complete for Stage 1 as of December 31, 2015, with Trains 1 & 2 anticipated to produce LNG in late 2018.
  • 6Cheniere has secured long-term Sale and Purchase Agreements (SPAs) for a significant portion of the planned LNG export capacity at both facilities.
  • 7The company's business strategy focuses on integrating the abundant U.S. natural gas market with international markets.

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