 | Andrews Kurth LLP 600 Travis, Suite 4200 Houston, Texas 77002 +1.713.220.4200 Phone +1.713.220.4285 Fax andrewskurth.com |
November 7, 2013
VIA EDGAR AND HAND DELIVERY
Mr. James Allegretto
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street, N.E.
Washington, D.C. 20549
| Re: | Cheniere Energy Partners LP Holdings, LLC |
| Registration Statement on Form S-1 |
| Filed October 18, 2013 |
| File No. 333-191298 |
Dear Mr. Allegretto:
Thank you for the opportunity today to discuss the Registration Statement on Form S-1 (Commission File No. 333-191298) (the “Registration Statement”) of Cheniere Energy Partners LP Holdings, LLC (“Holdings”). Accompanying this letter are supplemental materials, which are being furnished by Holdings as requested during today’s conversation. Please direct any questions you have with respect to the materials furnished herewith to Jerry Smith, Chief Accounting Officer of the Company, at (713) 375-5620 or jerry.smith@cheniere.com.
Very truly yours,
/s/ George J. Vlahakos
George J. Vlahakos
Austin Beijing Dallas Dubai Houston London New York Research Triangle Park The Woodlands Washington, DC
November 7, 2013
Page 2
Earnings per Common Unit Discussion
Below is the calculation of Cheniere Energy Partners, L.P.’s (“Cheniere Partners”) earnings per unit to present the allocated net loss attributable to the Creole Trail Pipeline Business as if those losses were distributed to each participating security holder.
| Limited Partner Units | ||||||||||||||||||||
| Total | Common Units | Class B Units | Subordinated Units | General Partner | ||||||||||||||||
Six Months Ended June 30, 2013 (unaudited) | ||||||||||||||||||||
Net loss (unaudited) | $ | (98,743 | ) | |||||||||||||||||
Declared distributions (unaudited) | 49,508 | 48,518 | — | — | 990 | |||||||||||||||
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Assumed allocation of undistributed net loss (unaudited) | (148,251 | ) | ||||||||||||||||||
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Assumed allocation of undistributed net loss attributable to partners (unaudited) | (37,741 | ) | — | (89,519 | ) | (2,597 | ) | |||||||||||||
Assumed allocation of undistributed net loss attributable to Creole Trail Pipeline Business (unaudited) | (5,346 | ) | (12,680 | ) | (368 | ) | ||||||||||||||
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Assumed allocation of net income (loss) (unaudited) | $ | 5,431 | $ | — | $ | (102,199 | ) | $ | (1,975 | ) | ||||||||||
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Weighted average units outstanding | 51,345 | 135,587 | 135,384 | |||||||||||||||||
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Net income (loss) per unit | Revised | $ | 0.11 | $ | — | $ | (0.75 | ) | ||||||||||||
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| $ | 0.21 | $ | (0.66 | ) | ||||||||||||||||
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Six Months Ended June 30, 2012 (unaudited) | ||||||||||||||||||||
Net loss (unaudited) | $ | (55,448 | ) | |||||||||||||||||
Declared distributions (unaudited) | 27,207 | 26,663 | — | — | 544 | |||||||||||||||
Amortization of beneficial conversion feature of Class B Units (unaudited) | — | (892 | ) | 4,737 | (3,845 | ) | ||||||||||||||
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Assumed allocation of undistributed net loss (unaudited) | (82,655 | ) | ||||||||||||||||||
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Assumed allocation of undistributed net loss attributable to partners (unaudited) | (13,169 | ) | — | (56,803 | ) | (1,428 | ) | |||||||||||||
Assumed allocation of undistributed net loss attributable to Creole Trail Pipeline Business (unaudited) | (2,076 | ) | (8,954 | ) | (225 | ) | ||||||||||||||
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Assumed allocation of net income (loss) (unaudited) | $ | 10,526 | $ | 4,737 | $ | (69,602 | ) | $ | (1,109 | ) | ||||||||||
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Weighted average units outstanding | 31,173 | 1,221 | 135,384 | |||||||||||||||||
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Net income (loss) per unit | Revised | $ | 0.34 | $ | 3.88 | $ | (0.51 | ) | ||||||||||||
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| $ | 0.40 | $ | (0.45 | ) | ||||||||||||||||
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Year Ended December 30, 2012 | ||||||||||||||||||||
Net loss | $ | (175,431 | ) | |||||||||||||||||
Declared distributions | 61,501 | 60,271 | — | — | 1,230 | |||||||||||||||
Amortization of beneficial conversion feature of Class B Units | — | (5,149 | ) | 25,319 | (20,170 | ) | ||||||||||||||
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Assumed allocation of undistributed net loss | (236,932 | ) | ||||||||||||||||||
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Assumed allocation of undistributed net loss attributable to partners | (46,061 | ) | — | (157,917 | ) | (7,659 | ) | |||||||||||||
Assumed allocation of undistributed net loss attributable to Creole Trail Pipeline Business | (5,565 | ) | (19,224 | ) | (506 | ) | ||||||||||||||
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Assumed allocation of net income (loss) | $ | 3,496 | $ | 25,319 | $ | (197,311 | ) | $ | (6,935 | ) | ||||||||||
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Weighted average units outstanding | 33,470 | 43,303 | 135,384 | |||||||||||||||||
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Net income (loss) per unit | Revised | $ | 0.10 | $ | 0.58 | $ | (1.46 | ) | ||||||||||||
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| $ | 0.27 | $ | (1.32 | ) | ||||||||||||||||
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Year Ended December 30, 2011 | ||||||||||||||||||||
Net loss | $ | (53,560 | ) | |||||||||||||||||
Declared distributions | 50,136 | 49,134 | — | — | 1,002 | |||||||||||||||
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Assumed allocation of undistributed net loss | (103,696 | ) | ||||||||||||||||||
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Assumed allocation of undistributed net loss attributable to partners | (14,819 | ) | — | (64,713 | ) | (1,623 | ) | |||||||||||||
Assumed allocation of undistributed net loss attributable to Creole Trail Pipeline Business | (4,116 | ) | (17,974 | ) | (451 | ) | ||||||||||||||
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Assumed allocation of net income (loss) | $ | 30,199 | $ | — | $ | (82,687 | ) | $ | (1,072 | ) | ||||||||||
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Weighted average units outstanding | 27,910 | — | 135,384 | |||||||||||||||||
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Net income (loss) per unit | Revised | $ | 1.08 | $ | — | $ | (0.61 | ) | ||||||||||||
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| $ | 1.23 | $ | (0.48 | ) | ||||||||||||||||
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November 7, 2013
Page 3
Cash Flow Presentation
Below are proposed changes to certain of Cheniere Partners’ cash flow statement line items to clarify what the restricted cash and cash equivalents were used for.
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2012 | 2011 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
Cash flows from operating activities | ||||||||||||||||
Net loss | $ | (196,850 | ) | (106,818 | ) | $ | (175,431 | ) | $ | (53,560 | ) | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation | 43,150 | 43,135 | 57,498 | 57,883 | ||||||||||||
Use of restricted cash and cash equivalents for certain operating activities | 107,142 | 36,676 | 78,714 | — | ||||||||||||
Investment in restricted cash and cash equivalents | (35,627 | ) | (41,197 | ) | (3,654 | ) | — | |||||||||
Non-cash LNG inventory write-downs | 27,851 | 9,237 | 9,393 | 392 | ||||||||||||
Non-cash LNG inventory—affiliate write-downs | — | 527 | 11,025 | 10,600 | ||||||||||||
Amortization of debt discount | 5,208 | 3,521 | 4,695 | 4,695 | ||||||||||||
Amortization of debt issuance costs | 3,383 | 8,373 | 4,362 | 4,382 | ||||||||||||
Non-cash derivative (gain) loss, net | (55,049 | ) | 300 | (619 | ) | (195 | ) | |||||||||
Loss on early extinguishment of debt | 80,510 | — | 1,470 | — | ||||||||||||
Other | 705 | 3,209 | 3,496 | — | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts and interest receivable | (21,171 | ) | (24,619 | ) | 481 | 866 | ||||||||||
Accounts receivable—affiliate | (1,614 | ) | (855 | ) | (1,690 | ) | 337 | |||||||||
Accounts payable and accrued liabilities | 46,113 | 41,463 | 2,214 | (1,148 | ) | |||||||||||
Due to affiliates | 33,556 | 29,218 | 2,425 | (1,789 | ) | |||||||||||
Deferred revenue | (2,955 | ) | (3,104 | ) | (4,089 | ) | (3,964 | ) | ||||||||
Advances to affiliate | (20,281 | ) | (3,627 | ) | (4,764 | ) | 2,851 | |||||||||
LNG inventory | (33,248 | ) | (9,519 | ) | (11,545 | ) | 347 | |||||||||
LNG inventory—affiliate | — | — | (11,076 | ) | (14,969 | ) | ||||||||||
Other | (994 | ) | (4,003 | ) | (646 | ) | 112 | |||||||||
Other—affiliate | 4,081 | 3,143 | — | — | ||||||||||||
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Net cash provided by (used in) operating activities | (16,090 | ) | (14,940 | ) | (37,741 | ) | 6,840 | |||||||||
Cash flows from investing activities | ||||||||||||||||
LNG terminal costs, net | (2,456,819 | ) | (876,593 | ) | (1,118,787 | ) | (257 | ) | ||||||||
Use of restricted cash and cash equivalents for the acquisition of property, plant and equipment | 2,498,664 | 887,902 | 1,114,742 | (7,137 | ) | |||||||||||
Purchase of Creole Trail Pipeline Business, net | (313,892 | ) | — | — | — | |||||||||||
Advances under long-term contracts | (12,528 | ) | (15,009 | ) | (740 | ) | (1,054 | ) | ||||||||
Other | (38,503 | ) | (2,382 | ) | ||||||||||||
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Net cash used in investing activities | (323,078 | ) | (6,082 | ) | (4,785 | ) | (8,448 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from Sabine Pass Liquefaction Senior Notes, net | 3,012,500 | — | — | — | ||||||||||||
Proceeds from 2020 Notes | — | — | 420,000 | — | ||||||||||||
Proceeds from CTPL Credit Facility, net | 391,978 | — | — | — | ||||||||||||
Proceeds from 2013 Liquefaction Credit Facility | 100,000 | — | — | |||||||||||||
Proceeds from sale of partnership common and general partner units, net | 375,897 | 240,114 | 250,022 | 70,157 | ||||||||||||
Proceeds from sale of Class B units | — | 1,387,560 | 1,887,342 | — | ||||||||||||
Contributions to Creole Trail Pipeline Business from Cheniere, net | 20,896 | 9,608 | 11,857 | 7,666 | ||||||||||||
Investment in restricted cash and cash equivalents | (3,243,670 | ) | (1,177,753 | ) | (1,458,619 | ) | — | |||||||||
Repayment of 2013 Notes | — | — | (550,000 | ) | — | |||||||||||
Debt issuance and deferred financing costs | (231,198 | ) | (210,126 | ) | (222,378 | ) | — | |||||||||
Proceeds from (repayment of) 2012 Liquefaction Credit Facility | (100,000 | ) | 100,000 | 100,000 | — | |||||||||||
Distributions to owners | (66,632 | ) | (40,696 | ) | (57,821 | ) | (48,149 | ) | ||||||||
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Net cash provided by financing activities | 259,771 | 308,707 | 380,403 | 29,674 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | (79,397 | ) | 287,685 | 337,877 | 28,066 | |||||||||||
Cash and cash equivalents—beginning of period | 419,292 | 81,415 | 81,415 | 53,349 | ||||||||||||
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Cash and cash equivalents—end of period | $ | 339,895 | $ | 369,100 | $ | 419,292 | $ | 81,415 | ||||||||
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| (1) | Retrospectively adjusted as described in Note 1. |