What is the status of the Sabine Pass LNG receiving terminal?

The Sabine Pass LNG receiving terminal reached substantial completion and achieved full operability in the third quarter of 2009. Its entire 4.0 Bcf/d regasification capacity is fully reserved under long-term Terminal Use Agreements (TUAs) with Total Gas & Power North America, Chevron U.S.A., and Cheniere Marketing, ensuring significant future revenue.

How did Cheniere's financial performance improve in Q3 2009?

Cheniere's net loss decreased significantly by 41% to $42.5 million in Q3 2009 compared to $71.6 million in Q3 2008. This improvement was driven by the commencement of TUA payments from key customers, a gain recognized from the early extinguishment of debt, the absence of restructuring charges from the prior year, and a reduction in general and administrative expenses.

What is Cheniere's liquidity and capital resources situation?

As of September 30, 2009, Cheniere had $87.4 million in unrestricted cash and cash equivalents and $266.2 million in restricted cash and cash equivalents. The company believes it possesses sufficient cash and working capital to fund its operating expenses and other cash requirements until at least August 2011, when principal payments may first be required on its existing indebtedness.

What are the future development plans for other projects?

Cheniere is contemplating final investment decisions for the Corpus Christi LNG receiving terminal and the Creole Trail LNG receiving terminal, as well as the natural gas pipeline business. These decisions are contingent upon securing acceptable commercial arrangements and financing for each respective project.

LNG 10-Q Quarterly Report Q3 FY2009 — Revenue, Net Income, EPS

Summary

Cheniere Energy, Inc. reported its third-quarter 2009 financial results, marked by the substantial completion and full operability of its Sabine Pass LNG receiving terminal. This milestone is a significant achievement, as the terminal's entire regasification capacity is now secured under long-term Terminal Use Agreements (TUAs) with Total Gas & Power North America and Chevron U.S.A., along with a TUA for its subsidiary, Cheniere Marketing. These agreements ensure a substantial stream of future revenue, bolstering the company's financial outlook. Operationally, the company experienced a significant reduction in net loss compared to the prior year's period, driven by the commencement of TUA payments and a gain from debt extinguishment. While the company continues to manage substantial long-term debt, the progress in terminal operations and the secured revenue streams provide a positive trajectory. Investors should note the ongoing development of other projects, such as the Corpus Christi and Creole Trail LNG terminals, and the natural gas pipeline business, which are contingent on securing further commercial and financing arrangements.

Key Highlights

1Substantial completion and full operability of the Sabine Pass LNG receiving terminal achieved in Q3 2009, within budget.
2Entire 4.0 Bcf/d regasification capacity at Sabine Pass LNG is fully reserved under long-term TUAs with Total, Chevron, and Cheniere Marketing.
3Commencement of TUA payments from Total (April 1, 2009) and Chevron (July 1, 2009) significantly boosted revenues.
4Net loss decreased by 41% to $42.5 million for Q3 2009 compared to $71.6 million in Q3 2008.
5Achieved a $45.4 million gain on early extinguishment of debt during the nine months ended September 30, 2009, through an exchange of convertible notes for cash and common stock.
6The company believes it has sufficient cash to fund operations until at least August 2011, the earliest date principal payments may be required on existing indebtedness.
7Phase 1 of the Creole Trail Pipeline is operational, with future phases dependent on commercial and financing agreements.

Cheniere Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2009

Summary

Key Highlights

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