01—Abstract
Summary
Summary of the 10-K/A filed April 30, 2018. Cited figures are marked; the original filing is the authoritative source.
Cheniere Energy, Inc. (LNG) filed an amendment to its 2017 Annual Report on Form 10-K on April 29, 2018.
This filing primarily details the exhibits and financial statement schedules related to the company's operations and agreements. For investors, the key takeaway is the extensive list of contracts and agreements that underpin Cheniere's substantial infrastructure projects, particularly in liquefied natural gas (LNG) export facilities. These exhibits provide critical detail on the framework governing its significant revenue streams and operational capabilities.
The array of documents includes various indentures for senior secured notes and convertible notes, indicating a complex capital structure and ongoing financing activities. Furthermore, numerous LNG terminal use agreements, sales and purchase agreements, and construction contracts with major players in the energy sector (like Total, Chevron, Bechtel) highlight the company's established market position and operational scale. Investors should review these agreements for insights into long-term revenue visibility, counterparty risk, and project execution details.
02—Key points
Key Highlights
- The filing is an amendment to the 2017 10-K, primarily listing exhibits, offering detailed contractual information.
- Extensive documentation of various senior secured and convertible notes indicates significant debt financing.
- Numerous LNG Terminal Use Agreements with major energy companies (e.g., Total, Chevron) underscore long-term customer commitments and operational capacity.
- Engineering, Procurement, and Construction (EPC) agreements with Bechtel for Sabine Pass and Corpus Christi liquefaction facilities show the scale of ongoing project development.
- Amended and restated LNG Sale and Purchase Agreements with diverse buyers (e.g., Gas Natural Fenosa, GAIL, BG Gulf Coast LNG, PT Pertamina) illustrate broad market reach.
- Inclusion of stock incentive plans and employment agreements points to executive compensation and employee engagement strategies.
- The sheer volume and detail of referenced agreements suggest a mature and complex operational and financial structure.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2017, Cheniere Energy, Inc. lost $0.07.
- Revenue$5.60B100.0%
- Cost of revenue−$3.12B55.7%
- Gross profit$2.48B44.3%
- Operating costs−$1.09B19.5%
- Operating income$1.39B24.8%
- Interest, other & tax−$1.78B31.8%
- Net income−$393.0M7.0%
Where FY2017 revenue went
$5.60B- Cost of revenue: $3.12B, 56% of revenue
- Operating income: $1.39B, 25% of revenue
- Other operating costs: $827.0M, 15% of revenue
- R&D: $10.0M, 0.2% of revenue
- SG&A: $256.0M, 4.6% of revenue
Kept 25% as operating incomeR&D $10.0M · 0.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2017filed April 30, 2018Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $5.60B$1.28B | +336.6% |
| Cost of Revenue | $3.12B$582.00M | +436.1% |
| Gross Profit | $2.48B$701.00M | +253.9% |
| R&D Expenses | $10.00M$7.00M | +42.9% |
| SG&A Expenses | $256.00M$260.00M | −1.5% |
| Operating Expenses | $4.21B$1.31B | +220.9% |
| Operating Income | $1.39B-$30.00M | +4726.7% |
| Interest Expense | $747.00M$488.00M | +53.1% |
| Net Income | -$393.00M-$610.00M | +35.6% |
| EPS (Basic) | $-1.68$-2.67 | +37.1% |
| EPS (Diluted) | $-1.68$-2.67 | +37.1% |
| Shares Outstanding (Basic) | 233.10M228.80M | +1.9% |
| Shares Outstanding (Diluted) | 233.10M228.80M | +1.9% |
05—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K amendment filed on April 29, 2018?
This filing is an amendment to Cheniere Energy's 2017 Annual Report (10-K). Its main purpose is to list and incorporate by reference various exhibits, including material contracts, agreements, and financial statements. For investors, it serves as a comprehensive appendix to the main 10-K, providing detailed documentation of the company's key operational and financial arrangements.
What types of agreements are most significant for investors in this exhibit list?
Investors should pay close attention to the LNG Terminal Use Agreements, LNG Sale and Purchase Agreements, and the various Indentures related to debt financing. These documents provide insights into the company's revenue streams, customer base, long-term contracts, project financing, and overall capital structure, which are crucial for assessing financial health and future growth prospects.
Does this filing provide updated financial performance figures for 2017?
This specific filing (10-K/A) is primarily an exhibit list and does not present updated financial performance figures. The detailed financial statements and management's discussion and analysis would have been included in the original Form 10-K filing. This amendment serves to provide the underlying documentation for the information presented in the initial report.
What do the numerous construction agreements with Bechtel signify?
The extensive list of agreements and change orders with Bechtel for both Sabine Pass and Corpus Christi liquefaction facilities indicates significant ongoing construction and development activities. It highlights the company's commitment to expanding its infrastructure, which is key for future growth, but also points to potential complexities and cost management related to large-scale projects.
06—Continue