Why did Cheniere Energy change its auditor from PricewaterhouseCoopers (PWC) to Mann Frankfort?

The 8-K filing states that Cheniere Energy dismissed PWC and engaged Mann Frankfort. The reason for the dismissal is not explicitly detailed beyond the change itself, but it's noted that the change was approved by the audit committee and that there were no disagreements with PWC on accounting matters.

Are there any concerns raised by the previous auditor, PWC, in their past reports?

Yes, PWC's audit reports for the fiscal years ended December 31, 2001, and December 31, 2000, included explanatory paragraphs. For the 2001 report, there was substantial doubt about Cheniere's ability to continue as a going concern. For the 2000 report, there were concerns about the recoverability of Cheniere's unevaluated oil and gas properties.

What is the significance of the letter from PWC to the SEC?

The letter from PWC to the SEC is a standard requirement when a company changes its auditor. It allows PWC to confirm whether they agree with the company's statements about the auditor change and to disclose any disagreements if they exist. This provides transparency for investors and regulators.

LNG 8-K SEC Disclosure — Oct 22, 2002

Q: Does the change in auditor indicate any accounting issues at Cheniere?

The filing explicitly states that there were no disagreements between Cheniere and PWC on any matters of accounting principles, financial statement disclosure, or auditing scope or procedure. This suggests the change was not due to unresolved disputes on these specific points.

Summary

Cheniere Energy, Inc. (LNG) filed an 8-K on October 22, 2002, to report a significant change in its principal accounting firm. The company dismissed PricewaterhouseCoopers LLP (PWC) and engaged Mann Frankfort Stein & Lipp CPAs, L.L.P. as its new auditor for the fiscal year ending December 31, 2002. This change was approved by the company's audit committee. Importantly, the filing states there were no disagreements with PWC on any accounting principles, financial statement disclosures, or auditing procedures during the past two fiscal years and the interim period. However, investors should note that PWC's previous audit reports did include explanatory paragraphs highlighting substantial doubt about Cheniere's ability to continue as a going concern for the year ended December 31, 2001, and concerns regarding the recoverability of oil and gas properties for the year ended December 31, 2000. Cheniere has requested a letter from PWC confirming their agreement with the company's disclosures regarding the auditor change.

Key Highlights

1Cheniere Energy, Inc. changed its principal accountant, dismissing PricewaterhouseCoopers LLP (PWC) and appointing Mann Frankfort Stein & Lipp CPAs, L.L.P.
2The change in auditors was approved by Cheniere's audit committee.
3There were no reported disagreements between Cheniere and PWC regarding accounting principles, financial disclosures, or auditing procedures.
4PWC's prior audit report for the fiscal year ended December 31, 2001, contained an explanatory paragraph expressing substantial doubt about Cheniere's ability to continue as a going concern.
5PWC's prior audit report for the fiscal year ended December 31, 2000, included an explanatory paragraph regarding the recoverability of the company's unevaluated oil and gas properties.
6Cheniere has requested PWC to provide a letter to the SEC regarding the accuracy of the disclosures about the auditor change.
7There were no consultations with the new auditor, Mann Frankfort, on accounting principles or audit opinions prior to their engagement.

Cheniere Energy, Inc. 8-K Report (Oct 22, 2002)

Summary

Key Highlights

Frequently Asked Questions