Cheniere Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2014

Summary

Cheniere Energy, Inc. (LNG) reported a net loss attributable to common stockholders of $201.9 million, or $0.90 per share, for the second quarter of 2014, an increase from the $154.8 million loss in the same period of 2013. This widening loss was primarily driven by higher derivative losses and a significant loss on the early extinguishment of debt due to the refinancing of credit facilities. However, the company also saw a decrease in general and administrative expenses. Significant capital expenditures continue to be directed towards the construction of the Sabine Pass Liquefaction Project, with Trains 1 and 2, and Trains 3 and 4, progressing ahead of schedule. The company successfully raised substantial debt financing during the period to fund these ongoing construction projects. Despite the reported net loss, Cheniere emphasizes its ongoing development of liquefaction facilities and securing of long-term LNG sale and purchase agreements, which are crucial for future revenue generation and project viability.

Key Highlights

• 1Net loss attributable to common stockholders was $201.9 million for Q2 2014, a deterioration from Q2 2013 ($154.8 million loss).
• 2Loss per share was $0.90 for Q2 2014, compared to $0.71 in Q2 2013.
• 3Significant increase in derivative losses and loss on early extinguishment of debt contributed to the wider net loss.
• 4General and administrative expenses decreased significantly, partially offsetting the increased losses.
• 5Capital expenditures for the Sabine Pass Liquefaction Project remain substantial, with Trains 1-4 progressing ahead of schedule.
• 6The company successfully issued $2.5 billion in new senior secured notes to fund construction costs and repay existing debt.
• 7Total assets grew significantly to $11.9 billion as of June 30, 2014, from $9.7 billion at the end of 2013, reflecting ongoing project development.

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