Summary
Cheniere Energy, Inc. (LNG) filed an 8-K on August 11, 2005, to disclose a significant development regarding an SEC investigation. The Securities and Exchange Commission (SEC) has formally issued an order and commenced a nonpublic factual investigation into the Company's actions and communications. This investigation covers matters related to agreements and negotiations with Chevron USA, a public offering of common stock in December 2004, and trading in Cheniere's securities by current and former directors, officers, employees, and other individuals. The Company stated that it has cooperated fully with a prior informal inquiry and intends to continue its full cooperation with the SEC's formal investigation. Investors should be aware that the scope of such investigations can evolve, and the Company may not be aware of all potential issues being considered by the SEC. This formal investigation introduces uncertainty and potential risk for Cheniere Energy.
Key Highlights
- 1SEC has formally commenced a nonpublic factual investigation of Cheniere Energy.
- 2The investigation concerns actions and communications related to Chevron USA agreements/negotiations.
- 3The probe also covers Cheniere's December 2004 public offering of common stock.
- 4Trading in Cheniere's securities is also under investigation.
- 5The investigation involves current and former directors, officers, employees, and other persons.
- 6Cheniere Energy has cooperated with prior informal inquiries and pledges full cooperation with the formal investigation.
- 7The scope and subject matter of the investigation may change over time.