Supplemental Guarantor Information | SUPPLEMENTAL GUARANTOR INFORMATION Our CQP Senior Notes are jointly and severally guaranteed by each of our subsidiaries other than SPL (the “Guarantors”) and, subject to certain conditions governing its guarantee, Sabine Pass LP (collectively with SPL, the “Non-Guarantors”). These guarantees are full and unconditional, subject to certain customary release provisions including (1) the sale, exchange, disposition or transfer (by merger, consolidation or otherwise) of the capital stock or all or substantially all of the assets of the Guarantors, (2) upon the liquidation or dissolution of a Guarantor, (3) following the release of a Guarantor from its guarantee obligations and (4) upon the legal defeasance or satisfaction and discharge of obligations under the CQP Indenture . See Note 10—Debt in this quarterly report and Note 11—Debt of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the year ended December 31, 2018 for additional information regarding the CQP Senior Notes . The following is condensed consolidating financial information for Cheniere Partners (“Parent Issuer”), the Guarantors on a combined basis and the Non-Guarantors on a combined basis. We have accounted for investments in subsidiaries using the equity method. Condensed Consolidating Balance Sheet June 30, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 1,009 $ 7 $ — $ — $ 1,016 Restricted cash — — 596 — 596 Accounts and other receivables — 3 240 — 243 Accounts receivable—affiliate 1 31 166 (32 ) 166 Advances to affiliate — 134 206 (115 ) 225 Inventory — 13 91 — 104 Derivative assets — — 17 — 17 Other current assets — 13 54 — 67 Other current assets—affiliate — 1 21 (21 ) 1 Total current assets 1,010 202 1,391 (168 ) 2,435 Property, plant and equipment, net 79 2,457 13,722 (26 ) 16,232 Operating lease assets, net — 87 21 (16 ) 92 Debt issuance costs, net 11 — 9 — 20 Non-current derivative assets — — 37 — 37 Investments in subsidiaries 2,947 508 — (3,455 ) — Other non-current assets, net — 25 132 — 157 Total assets $ 4,047 $ 3,279 $ 15,312 $ (3,665 ) $ 18,973 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 7 $ 67 $ — $ 74 Accrued liabilities 37 28 1,011 — 1,076 Due to affiliates 1 145 44 (146 ) 44 Deferred revenue — 21 101 — 122 Deferred revenue—affiliate — 21 — (21 ) — Current operating lease liabilities — 6 — — 6 Derivative liabilities — — 8 — 8 Other current liabilities—affiliate — 1 — (1 ) — Total current liabilities 38 229 1,231 (168 ) 1,330 Long-term debt, net 3,208 — 13,512 — 16,720 Non-current operating lease liabilities — 81 5 — 86 Non-current derivative liabilities — — 12 — 12 Other non-current liabilities — 1 2 — 3 Other non-current liabilities—affiliate — 21 16 (16 ) 21 Partners’ equity 801 2,947 534 (3,481 ) 801 Total liabilities and partners’ equity $ 4,047 $ 3,279 $ 15,312 $ (3,665 ) $ 18,973 Condensed Consolidating Balance Sheet December 31, 2018 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — $ — Restricted cash 779 6 756 — 1,541 Accounts and other receivables 1 1 346 — 348 Accounts receivable—affiliate 1 40 113 (40 ) 114 Advances to affiliate — 104 210 (86 ) 228 Inventory — 12 87 — 99 Derivative assets — — 6 — 6 Other current assets — 2 18 — 20 Other current assets—affiliate — — 21 (21 ) — Total current assets 781 165 1,557 (147 ) 2,356 Property, plant and equipment, net 79 2,128 13,209 (26 ) 15,390 Debt issuance costs, net 1 — 12 — 13 Non-current derivative assets — — 31 — 31 Investments in subsidiaries 2,544 440 — (2,984 ) — Other non-current assets, net — 26 158 — 184 Total assets $ 3,405 $ 2,759 $ 14,967 $ (3,157 ) $ 17,974 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 4 $ 11 $ — $ 15 Accrued liabilities 39 14 768 — 821 Due to affiliates — 127 48 (126 ) 49 Deferred revenue — 25 91 — 116 Deferred revenue—affiliate — 22 — (21 ) 1 Derivative liabilities — — 66 — 66 Total current liabilities 39 192 984 (147 ) 1,068 Long-term debt, net 2,566 — 13,500 — 16,066 Non-current derivative liabilities — — 14 — 14 Other non-current liabilities — 1 3 — 4 Other non-current liabilities—affiliate — 22 — — 22 Partners’ equity 800 2,544 466 (3,010 ) 800 Total liabilities and partners’ equity $ 3,405 $ 2,759 $ 14,967 $ (3,157 ) $ 17,974 Condensed Consolidating Statement of Income Three Months Ended June 30, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,171 $ — $ 1,171 LNG revenues—affiliate — — 455 — 455 Regasification revenues — 67 — — 67 Regasification revenues—affiliate — 65 — (65 ) — Other revenues — 12 — — 12 Other revenues—affiliate — 65 — (65 ) — Total revenues — 209 1,626 (130 ) 1,705 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — — 880 — 880 Cost of sales—affiliate — — 9 (9 ) — Operating and maintenance expense — 24 138 — 162 Operating and maintenance expense—affiliate — 38 115 (116 ) 37 General and administrative expense 1 — 2 — 3 General and administrative expense—affiliate 3 8 21 (5 ) 27 Depreciation and amortization expense — 20 118 — 138 Impairment expense and loss on disposal of assets — — 3 — 3 Total operating costs and expenses 4 90 1,286 (130 ) 1,250 Income (loss) from operations (4 ) 119 340 — 455 Other income (expense) Interest expense, net of capitalized interest (37 ) (2 ) (191 ) — (230 ) Equity earnings of subsidiaries 268 150 — (418 ) — Other income 5 1 1 — 7 Total other income (expense) 236 149 (190 ) (418 ) (223 ) Net income $ 232 $ 268 $ 150 $ (418 ) $ 232 Condensed Consolidating Statement of Income Three Months Ended June 30, 2018 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,155 $ — $ 1,155 LNG revenues—affiliate — — 178 — 178 Regasification revenues — 65 — — 65 Regasification revenues—affiliate — 66 — (66 ) — Other revenues — 9 — — 9 Other revenues—affiliate — 80 — (80 ) — Total revenues — 220 1,333 (146 ) 1,407 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 2 695 1 698 Cost of sales—affiliate — — 7 (7 ) — Operating and maintenance expense — 14 84 — 98 Operating and maintenance expense—affiliate — 42 107 (119 ) 30 Development expense — — 1 — 1 General and administrative expense 1 — 1 — 2 General and administrative expense—affiliate 3 7 12 (5 ) 17 Depreciation and amortization expense — 19 87 — 106 Total operating costs and expenses 4 84 994 (130 ) 952 Income (loss) from operations (4 ) 136 339 (16 ) 455 Other income (expense) Interest expense, net of capitalized interest (34 ) (2 ) (148 ) — (184 ) Derivative gain, net 3 — — — 3 Equity earnings of subsidiaries 313 193 — (506 ) — Other income 3 2 2 — 7 Total other income (expense) 285 193 (146 ) (506 ) (174 ) Net income $ 281 $ 329 $ 193 $ (522 ) $ 281 Condensed Consolidating Statement of Income Six Months Ended June 30, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 2,538 $ — $ 2,538 LNG revenues—affiliate — — 760 — 760 Regasification revenues — 133 — — 133 Regasification revenues—affiliate — 131 — (131 ) — Other revenues — 23 — — 23 Other revenues—affiliate — 124 — (124 ) — Total revenues — 411 3,298 (255 ) 3,454 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — — 1,759 — 1,759 Cost of sales—affiliate — — 18 (18 ) — Operating and maintenance expense — 52 248 — 300 Operating and maintenance expense—affiliate — 71 222 (227 ) 66 General and administrative expense 2 1 3 — 6 General and administrative expense—affiliate 6 14 36 (8 ) 48 Depreciation and amortization expense 1 37 214 — 252 Impairment expense and loss on disposal of assets — — 5 — 5 Total operating costs and expenses 9 175 2,505 (253 ) 2,436 Income (loss) from operations (9 ) 236 793 (2 ) 1,018 Other income (expense) Interest expense, net of capitalized interest (73 ) (3 ) (341 ) — (417 ) Equity earnings of subsidiaries 690 458 — (1,148 ) — Other income 9 1 6 — 16 Total other income (expense) 626 456 (335 ) (1,148 ) (401 ) Net income $ 617 $ 692 $ 458 $ (1,150 ) $ 617 Condensed Consolidating Statement of Income Six Months Ended June 30, 2018 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 2,170 $ — $ 2,170 LNG revenues—affiliate — — 681 — 681 Regasification revenues — 130 — — 130 Regasification revenues—affiliate — 130 — (130 ) — Other revenues — 19 — — 19 Other revenues—affiliate — 135 — (135 ) — Total revenues — 414 2,851 (265 ) 3,000 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 2 1,533 — 1,535 Cost of sales—affiliate — — 15 (15 ) — Operating and maintenance expense — 31 162 — 193 Operating and maintenance expense—affiliate — 74 210 (228 ) 56 Development expense — — 1 — 1 General and administrative expense 2 1 3 — 6 General and administrative expense—affiliate 6 11 24 (6 ) 35 Depreciation and amortization expense 1 37 173 — 211 Total operating costs and expenses 9 156 2,121 (249 ) 2,037 Income (loss) from operations (9 ) 258 730 (16 ) 963 Other income (expense) Interest expense, net of capitalized interest (68 ) (2 ) (299 ) — (369 ) Derivative gain, net 11 — — — 11 Equity earnings of subsidiaries 676 435 — (1,111 ) — Other income 6 1 4 — 11 Total other income (expense) 625 434 (295 ) (1,111 ) (347 ) Net income $ 616 $ 692 $ 435 $ (1,127 ) $ 616 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 621 $ 723 $ 450 $ (1,154 ) $ 640 Cash flows from investing activities Property, plant and equipment, net — (21 ) (567 ) 3 (585 ) Investments in subsidiaries (908 ) (806 ) — 1,714 — Return of capital 503 390 — (893 ) — Other — — (1 ) — (1 ) Net cash used in investing activities (405 ) (437 ) (568 ) 824 (586 ) Cash flows from financing activities Proceeds from issuances of debt 649 — — — 649 Debt issuance and deferred financing costs (19 ) — — (19 ) Distributions to parent — (1,196 ) (848 ) 2,044 — Contributions from parent — 908 806 (1,714 ) — Distributions to owners (616 ) — — — (616 ) Other — 3 — — 3 Net cash provided by (used in) financing activities 14 (285 ) (42 ) 330 17 Net increase (decrease) in cash, cash equivalents and restricted cash 230 1 (160 ) — 71 Cash, cash equivalents and restricted cash—beginning of period 779 6 756 — 1,541 Cash, cash equivalents and restricted cash—end of period $ 1,009 $ 7 $ 596 $ — $ 1,612 Balances per Condensed Consolidating Balance Sheet: June 30, 2019 Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash and cash equivalents $ 1,009 $ 7 $ — $ — $ 1,016 Restricted cash — — 596 — 596 Total cash, cash equivalents and restricted cash $ 1,009 $ 7 $ 596 $ — $ 1,612 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by (used in) operating activities $ (7 ) $ 266 $ 604 $ (58 ) $ 805 Cash flows from investing activities Property, plant and equipment, net — (18 ) (327 ) — (345 ) Investments in subsidiaries (112 ) (25 ) — 137 — Return of capital — — — — — Distributions received from affiliates, net 277 — — (277 ) — Net cash provided by (used in) investing activities 165 (43 ) (327 ) (140 ) (345 ) Cash flows from financing activities Debt issuance and deferred financing costs (1 ) — — — (1 ) Distributions to parent — (335 ) — 335 — Contributions from parent — 112 25 (137 ) — Distributions to owners (527 ) — — — (527 ) Net cash provided by (used in) financing activities (528 ) (223 ) 25 198 (528 ) Net increase (decrease) in cash, cash equivalents and restricted cash (370 ) — 302 — (68 ) Cash, cash equivalents and restricted cash—beginning of period 1,033 12 544 — 1,589 Cash, cash equivalents and restricted cash—end of period $ 663 $ 12 $ 846 $ — $ 1,521 |