8-KOther EventsExhibits & Filings

Cheniere Energy, Inc. 8-K Report, Corporate Update (Dec 9, 2004)

Filed December 9, 2004For Securities:LNG

Summary

Cheniere Energy, Inc. (LNG) filed an 8-K report on December 8, 2004, detailing two significant events. The company successfully closed a public offering of 5 million shares of common stock at $60 per share, raising substantial capital. However, on the same day, Cheniere received notice from ChevronTexaco that it would not be proceeding with negotiations for a limited partner interest in the Sabine Pass LNG partnership. This development is distinct from ChevronTexaco's separate decision regarding a Terminal Use Agreement for the Sabine Pass LNG terminal, which is expected by December 20, 2004.

Key Highlights

  • 1Cheniere Energy successfully closed a public offering, issuing 5 million shares of common stock at $60 per share.
  • 2The public offering closed on December 8, 2004.
  • 3ChevronTexaco has decided not to continue negotiations for a limited partner interest in Cheniere's Sabine Pass LNG partnership.
  • 4This decision by ChevronTexaco regarding the limited partner interest is separate from their potential Terminal Use Agreement.
  • 5ChevronTexaco is expected to confirm its decision on the Terminal Use Agreement by December 20, 2004.
  • 6The press release announcing these events and a letter from ChevronTexaco are included as exhibits to the 8-K filing.

Frequently Asked Questions

The primary purpose of this 8-K filing was to announce the closing of Cheniere Energy's public offering of common stock and to report on ChevronTexaco's decision regarding negotiations for a limited partner interest in the Sabine Pass LNG partnership.

Cheniere Energy raised capital from the sale of 5 million shares of common stock at $60 per share, resulting in gross proceeds of $300 million.

ChevronTexaco has decided not to pursue a limited partner interest in the Sabine Pass LNG partnership. However, they are still evaluating whether to enter into a Terminal Use Agreement for reserved capacity at the terminal, with a decision expected by December 20, 2004.

While ChevronTexaco will not be a limited partner in the Sabine Pass LNG partnership, the impact is mitigated by the fact that they are still considering a Terminal Use Agreement. Investors will be closely watching the December 20th decision to understand ChevronTexaco's full commitment to the terminal's capacity.