Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Entity File Number | 333-215435 |
Entity Registrant Name | Cheniere Corpus Christi Holdings, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 47-1929160 |
Entity Address, Address Line One | 700 Milam Street |
Entity Address, Address Line Two | Suite 1900 |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77002 |
City Area Code | 713 |
Local Phone Number | 375-5000 |
Title of 12(b) Security | None |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001693317 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||||
Cash and cash equivalents | $ 0 | $ 0 | ||||
Restricted cash | 279,170 | 289,141 | ||||
Accounts and other receivables | 38,576 | 24,989 | ||||
Accounts receivable—affiliate | 30,613 | 21,060 | ||||
Advances to affiliate | 69,140 | 94,397 | ||||
Inventory | 63,274 | 26,198 | ||||
Derivative assets | 5,498 | 15,627 | ||||
Derivative assets—related party | 1,807 | 2,132 | ||||
Other current assets | 20,606 | 15,217 | ||||
Other current assets—affiliate | 31 | 633 | ||||
Total current assets | 508,715 | 489,394 | ||||
Property, plant and equipment, net | 12,077,658 | 11,138,825 | ||||
Debt issuance and deferred financing costs, net | 17,788 | 38,012 | ||||
Non-current derivative assets | 7,678 | 19,032 | ||||
Non-current derivative assets—related party | 614 | 3,381 | ||||
Other non-current assets, net | 51,546 | 31,709 | ||||
Total assets | 12,663,999 | 11,720,353 | ||||
Current liabilities | ||||||
Accounts payable | 29,196 | 16,202 | ||||
Accrued liabilities | 385,208 | 162,205 | ||||
Accrued liabilities—related party | 4,174 | 0 | ||||
Current debt | 0 | 168,000 | ||||
Due to affiliates | 19,451 | 25,086 | ||||
Derivative liabilities | 25,348 | 13,576 | ||||
Other current liabilities | 1,106 | 0 | ||||
Other current liabilities—affiliate | 506 | 0 | ||||
Total current liabilities | 464,989 | 385,069 | ||||
Long-term debt, net | 10,221,597 | 9,245,552 | ||||
Non-current derivative liabilities | 77,218 | 8,595 | ||||
Other non-current liabilities | 6,775 | 0 | ||||
Other non-current liabilities—affiliate | 846 | 0 | ||||
Member’s equity | 1,892,574 | $ 2,009,870 | 2,081,137 | $ 2,115,084 | $ 1,921,968 | $ 1,667,276 |
Total liabilities and member’s equity | $ 12,663,999 | $ 11,720,353 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||||
Revenues | $ 300,073 | $ 0 | $ 406,154 | $ 0 | ||
Revenues from contracts with customers | 300,958 | 0 | 406,228 | 0 | ||
Operating costs and expenses | ||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 181,136 | 1,031 | 238,665 | 1,147 | ||
Cost of sales—related party | 24,230 | 0 | 35,753 | 0 | ||
Operating and maintenance expense | 60,817 | 1,103 | 92,672 | 1,953 | ||
Operating and maintenance expense—affiliate | 15,459 | 551 | 20,706 | 1,017 | ||
Development expense | 532 | 89 | 532 | 123 | ||
Development expense—affiliate | 38 | 0 | 38 | 0 | ||
General and administrative expense | 1,542 | 1,185 | 3,079 | 2,035 | ||
General and administrative expense—affiliate | 2,407 | 595 | 3,562 | 998 | ||
Depreciation and amortization expense | 57,300 | 1,387 | 79,624 | 1,758 | ||
Impairment expense and loss on disposal of assets | 0 | 0 | 313 | 0 | ||
Total operating costs and expenses | 343,461 | 5,941 | 474,944 | 9,031 | ||
Loss from operations | (43,388) | (5,941) | (68,790) | (9,031) | ||
Other income (expense) | ||||||
Interest expense, net of capitalized interest | (73,052) | 0 | (84,810) | 0 | ||
Loss on modification or extinguishment of debt | 0 | (15,332) | 0 | (15,332) | ||
Derivative gain (loss), net | (73,821) | 28,566 | (108,908) | 97,415 | ||
Other income (expense) | 1,354 | 26 | 2,324 | (41) | ||
Total other income (expense) | (145,519) | 13,260 | (191,394) | 82,042 | ||
Net income (loss) | (188,907) | $ (71,277) | 7,319 | $ 65,692 | (260,184) | 73,011 |
LNG [Member] | ||||||
Revenues | ||||||
Revenues | 118,525 | 0 | 131,581 | 0 | ||
Revenues from contracts with customers | 119,410 | 0 | 131,655 | 0 | ||
LNG—affiliate [Member] | ||||||
Revenues | ||||||
Revenues from contracts with customers | $ 181,548 | $ 0 | $ 274,573 | $ 0 |
Consolidated Statements of Memb
Consolidated Statements of Member's Equity - USD ($) $ in Thousands | Total | Cheniere CCH HoldCo I, LLC [Member] |
Member's equity, beginning of period at Dec. 31, 2017 | $ 1,667,276 | $ 1,667,276 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 189,000 | 189,000 |
Net income (loss) | 65,692 | 65,692 |
Member's equity, end of period at Mar. 31, 2018 | 1,921,968 | 1,921,968 |
Member's equity, beginning of period at Dec. 31, 2017 | 1,667,276 | 1,667,276 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Net income (loss) | 73,011 | |
Member's equity, end of period at Jun. 30, 2018 | 2,115,084 | 2,115,084 |
Member's equity, beginning of period at Mar. 31, 2018 | 1,921,968 | 1,921,968 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 185,797 | 185,797 |
Net income (loss) | 7,319 | 7,319 |
Member's equity, end of period at Jun. 30, 2018 | 2,115,084 | 2,115,084 |
Member's equity, beginning of period at Dec. 31, 2018 | 2,081,137 | 2,081,137 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 10 | 10 |
Net income (loss) | (71,277) | (71,277) |
Member's equity, end of period at Mar. 31, 2019 | 2,009,870 | 2,009,870 |
Member's equity, beginning of period at Dec. 31, 2018 | 2,081,137 | 2,081,137 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Net income (loss) | (260,184) | |
Member's equity, end of period at Jun. 30, 2019 | 1,892,574 | 1,892,574 |
Member's equity, beginning of period at Mar. 31, 2019 | 2,009,870 | 2,009,870 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||
Capital contributions | 71,611 | 71,611 |
Net income (loss) | (188,907) | (188,907) |
Member's equity, end of period at Jun. 30, 2019 | $ 1,892,574 | $ 1,892,574 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income (loss) | $ (260,184) | $ 73,011 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization expense | 79,624 | 1,758 |
Amortization of debt issuance costs | 4,959 | 0 |
Loss on modification or extinguishment of debt | 0 | 15,332 |
Total losses (gains) on derivatives, net | 101,456 | (96,265) |
Net cash provided by (used for) settlement of derivative instruments | 3,514 | (5,145) |
Impairment expense and loss on disposal of assets | 313 | 0 |
Other | 839 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (38,519) | (58) |
Accounts receivable—affiliate | (22,339) | 0 |
Inventory | (30,843) | (6,935) |
Accounts payable and accrued liabilities | 133,641 | 6,785 |
Accrued liabilities—related party | 4,174 | 0 |
Due to affiliates | 5,598 | (376) |
Advances to affiliate | (30,907) | 0 |
Other, net | (3,931) | (1,938) |
Other, net—affiliate | (381) | (295) |
Net cash used in operating activities | (52,986) | (14,126) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (839,498) | (1,202,502) |
Other | (2,143) | 3,789 |
Net cash used in investing activities | (841,641) | (1,198,713) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 1,371,674 | 1,675,800 |
Repayments of debt | (558,000) | (281,455) |
Debt issuance and deferred financing costs | (639) | (45,402) |
Debt extinguishment cost | 0 | (7,956) |
Capital contributions | 71,621 | 323,415 |
Net cash provided by financing activities | 884,656 | 1,664,402 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (9,971) | 451,563 |
Cash, cash equivalents and restricted cash—beginning of period | 289,141 | 226,559 |
Cash, cash equivalents and restricted cash—end of period | $ 279,170 | $ 678,122 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Balances per Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Balances per Consolidated Balance Sheets: | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 279,170 | 289,141 | ||
Total cash, cash equivalents and restricted cash | $ 279,170 | $ 289,141 | $ 678,122 | $ 226,559 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION We are in various stages of developing natural gas liquefaction and export facilities at the Corpus Christi LNG terminal (the “Liquefaction Facilities”) near Corpus Christi, Texas and a 23 -mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with several interstate and intrastate natural gas pipelines (the “Corpus Christi Pipeline” and together with the Liquefaction Facilities, the “Liquefaction Project”) through our wholly owned subsidiaries CCL and CCP, respectively. The Liquefaction Project is being developed in stages with the first phase being three Trains (“Phase 1”). The first stage includes Trains 1 and 2 , two LNG storage tanks, one complete marine berth and a second partial berth and all of the Liquefaction Project ’s necessary infrastructure facilities (“Stage 1”) . The second stage includes Train 3, one LNG storage tank and the completion of the second partial berth (“Stage 2”) . Train 1 is operational, Train 2 is undergoing commissioning and Train 3 is under construction. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the year ended December 31, 2018 . In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications did not have a material effect on our consolidated financial position, results of operations or cash flows. Results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2019 . We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. The provision for income taxes, taxes payable and deferred income tax balances have been recorded as if we had filed all tax returns on a separate return basis from Cheniere. Tax elections under a separate return basis may differ from tax elections taken on the consolidated federal income tax return of Cheniere. Recent Accounting Standards We adopted ASU 2016-02, Leases (Topic 842) , and subsequent amendments thereto on January 1, 2019 using the optional transition approach to apply the standard at the beginning of the first quarter of 2019 with no retrospective adjustments to prior periods. This standard requires a lessee to recognize leases on its balance sheet by recording a lease liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The adoption of the standard did not materially impact our Consolidated Financial Statements. Upon adoption of the standard, we recorded right-of-use assets of $8.1 million in other non-current assets, net, and lease liabilities of $0.5 million in other current liabilities—affiliate, $5.2 million other non-current liabilities and $1.2 million in other non-current liabilities—affiliate. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash [Abstract] | |
Restricted Cash | RESTRICTED CASH Restricted cash consists of funds that are contractually and legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Consolidated Balance Sheets. As of June 30, 2019 and December 31, 2018 , restricted cash consisted of the following (in thousands): June 30, December 31, 2019 2018 Current restricted cash Liquefaction Project $ 279,170 $ 289,141 Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of our debt holders, we are required to deposit all cash received into reserve accounts controlled by the collateral trustee. The usage or withdrawal of such cash is restricted to the payment of liabilities related to the Liquefaction Project |
Accounts and Other Receivables
Accounts and Other Receivables | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLES As of June 30, 2019 and December 31, 2018 , accounts and other receivables consisted of the following (in thousands): June 30, December 31, 2019 2018 Trade receivable $ 22,641 $ 51 Other accounts receivable 15,935 24,938 Total accounts and other receivables $ 38,576 $ 24,989 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of June 30, 2019 and December 31, 2018 , inventory consisted of the following (in thousands): June 30, December 31, 2019 2018 Natural gas $ 3,625 $ 1,326 LNG 9,496 — Materials and other 50,153 24,872 Total inventory $ 63,274 $ 26,198 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT As of June 30, 2019 and December 31, 2018 , property, plant and equipment, net consisted of the following (in thousands): June 30, December 31, 2019 2018 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 6,641,022 $ 618,547 LNG site and related costs 275,820 44,725 LNG terminal construction-in-process 5,232,298 10,470,577 Accumulated depreciation (84,565 ) (7,416 ) Total LNG terminal costs, net 12,064,575 11,126,433 Fixed assets Fixed assets 18,321 15,534 Accumulated depreciation (5,238 ) (3,142 ) Total fixed assets, net 13,083 12,392 Property, plant and equipment, net $ 12,077,658 $ 11,138,825 Depreciation expense was $57.1 million and $1.4 million during the three months ended June 30, 2019 and 2018 , respectively, and $79.4 million and $1.7 million during the six months ended June 30, 2019 and 2018 , respectively. We realized offsets to LNG terminal costs of $8.3 million and $82.5 million during the three and six months ended June 30, 2019 , respectively, that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the Liquefaction Project, during the testing phase for its construction. We did no t realize any offsets to LNG terminal costs during the three and six months ended June 30, 2018 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into the following derivative instruments that are reported at fair value: • interest rate swaps (“Interest Rate Derivatives”) to hedge the exposure to volatility in a portion of the floating-rate interest payments on our credit facility (the “CCH Credit Facility”) and to hedge against changes in interest rates that could impact our anticipated future issuance of debt (“ Interest Rate Forward Start Derivatives ” and, collectively with the Interest Rate Derivatives , CCH Interest Rate Derivatives ”) and • commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (collectively, the “Liquefaction Supply Derivatives”) . We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow hedging instruments, and changes in fair value are recorded within our Consolidated Statements of Operations to the extent not utilized for the commissioning process. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , which are classified as derivative assets , derivative assets—related party, non-current derivative assets , non-current derivative assets—related party, derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in thousands): Fair Value Measurements as of June 30, 2019 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Interest Rate Derivatives asset (liability) $ — $ (88,187 ) $ — $ (88,187 ) $ — $ 18,069 $ — $ 18,069 Interest Rate Forward Start Derivatives liability — (6,640 ) — (6,640 ) — — — — Liquefaction Supply Derivatives asset (liability) (1,219 ) 2,992 6,085 7,858 1,299 2,990 (4,357 ) (68 ) We value our Interest Rate Derivatives using an income-based approach, utilizing observable inputs to the valuation model including interest rate curves, risk adjusted discount rates, credit spreads and other relevant data. We value our Liquefaction Supply Derivatives using a market-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated conditions precedent, including evaluating whether the respective market is available as pipeline infrastructure is developed. The fair value of our Physical Liquefaction Supply Derivatives incorporates risk premiums related to the satisfaction of conditions precedent, such as completion and placement into service of relevant pipeline infrastructure to accommodate marketable physical gas flow. As of June 30, 2019 and December 31, 2018 , some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure was under development to accommodate marketable physical gas flow. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which may be impacted by inputs that are unobservable in the marketplace. The curves used to generate the fair value of our Physical Liquefaction Supply Derivatives are based on basis adjustments applied to forward curves for a liquid trading point. In addition, there may be observable liquid market basis information in the near term, but terms of a Physical Liquefaction Supply Derivatives contract may exceed the period for which such information is available, resulting in a Level 3 classification. In these instances, the fair value of the contract incorporates extrapolation assumptions made in the determination of the market basis price for future delivery periods in which applicable commodity basis prices were either not observable or lacked corroborative market data. As of June 30, 2019 and December 31, 2018 , some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure is under development to accommodate marketable physical gas flow. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas market basis spreads due to the contractual notional amount represented by our Level 3 positions, which is a substantial portion of our overall Physical Liquefaction Supply Derivatives portfolio. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2019 : Net Fair Value Asset (in thousands) Valuation Approach Significant Unobservable Input Significant Unobservable Inputs Range Physical Liquefaction Supply Derivatives $6,085 Market approach incorporating present value techniques Henry Hub Basis Spread $(0.700) - $0.050 The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives , including those with related parties, during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance, beginning of period $ 1,610 $ (207 ) $ (4,357 ) $ (91 ) Realized and mark-to-market gains: Included in cost of sales 4,369 324 7,733 675 Purchases and settlements: Purchases 181 (111 ) 918 (111 ) Settlements 50 — 2,113 — Transfers out of Level 3 (1) (125 ) 467 (322 ) — Balance, end of period $ 6,085 $ 473 $ 6,085 $ 473 Change in unrealized gains (losses) relating to instruments still held at end of period $ 4,369 $ 324 $ 7,733 $ 675 (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. Derivative assets and liabilities arising from our derivative contracts with the same counterparty are reported on a net basis, as all counterparty derivative contracts provide for the unconditional right of set-off in the event of default. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. CCH Interest Rate Derivatives During the six months ended June 30, 2019 , there were no changes to the terms of our Interest Rate Derivatives , which we entered into to protect against volatility of future cash flows and hedge a portion of the variable interest payments on the CCH Credit Facility . In June 2019, we entered into the Interest Rate Forward Start Derivatives to hedge against changes in interest rates that could impact anticipated future issuance of debt by CCH, which is anticipated by the end of 2020. As of June 30, 2019 , we had the following CCH Interest Rate Derivatives outstanding: Initial Notional Amount Maximum Notional Amount Effective Date Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received Interest Rate Derivatives $28.8 million $4.7 billion May 20, 2015 May 31, 2022 2.30% One-month LIBOR Interest Rate Forward Start Derivatives $1.0 billion $1.0 billion June 30, 2020 September 30, 2030 2.11% Three-month LIBOR The following table shows the fair value and location of our CCH Interest Rate Derivatives on our Consolidated Balance Sheets (in thousands): June 30, 2019 December 31, 2018 Interest Rate Derivatives Interest Rate Forward Start Derivatives Total Interest Rate Derivatives Interest Rate Forward Start Derivatives Total Consolidated Balance Sheet Location Derivative assets $ — $ — $ — $ 10,556 $ — $ 10,556 Non-current derivative assets — — — 7,918 — 7,918 Total derivative assets — — — 18,474 — 18,474 Derivative liabilities (20,626 ) — (20,626 ) (7 ) — (7 ) Non-current derivative liabilities (67,561 ) (6,640 ) (74,201 ) (398 ) — (398 ) Total derivative liabilities (88,187 ) (6,640 ) (94,827 ) (405 ) — (405 ) Derivative asset (liability), net $ (88,187 ) $ (6,640 ) $ (94,827 ) $ 18,069 $ — $ 18,069 The following table shows the changes in the fair value and settlements of our CCH Interest Rate Derivatives recorded in derivative gain (loss), net on our Consolidated Statements of Operations during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest Rate Derivatives gain (loss) $ (67,181 ) $ 28,566 $ (102,268 ) $ 97,415 Interest Rate Forward Start Derivatives loss (6,640 ) — (6,640 ) — Liquefaction Supply Derivatives CCL has entered into primarily index-based physical natural gas supply contracts and associated economic hedges to purchase natural gas for the commissioning and operation of the Liquefaction Project. The terms of the physical natural gas supply contracts range up to eight years , some of which commence upon the satisfaction of certain conditions precedent. As of June 30, 2019 and December 31, 2018 , CCL had secured up to approximately 2,787 TBtu and 2,801 TBtu , respectively, of natural gas feedstock through natural gas supply contracts, of which 57 TBtu and 55 TBtu, respectively, were for a natural gas supply contract CCL has with a related party. The forward notional for our Liquefaction Supply Derivatives was approximately 2,905 TBtu and 2,854 TBtu as of June 30, 2019 and December 31, 2018 , respectively. The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in thousands): Fair Value Measurements as of (1) Consolidated Balance Sheet Location June 30, 2019 December 31, 2018 Derivative assets $ 5,498 $ 5,071 Derivative assets—related party 1,807 2,132 Non-current derivative assets 7,678 11,114 Non-current derivative assets—related party 614 3,381 Total derivative assets 15,597 21,698 Derivative liabilities (4,722 ) (13,569 ) Non-current derivative liabilities (3,017 ) (8,197 ) Total derivative liabilities (7,739 ) (21,766 ) Derivative asset (liability), net $ 7,858 $ (68 ) (1) Does not include collateral calls of $4.3 million and $4.5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as June 30, 2019 and December 31, 2018 , respectively. The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives on our Consolidated Statements of Operations during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Consolidated Statements of Operations Location (1) 2019 2018 2019 2018 Liquefaction Supply Derivatives loss LNG revenues $ (885 ) $ — $ (74 ) $ — Liquefaction Supply Derivatives gain (loss) Cost of sales 2,752 (1,034 ) 10,617 (1,150 ) Liquefaction Supply Derivatives loss Cost of sales—related party (1,279 ) — (3,091 ) — (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. Consolidated Balance Sheet Presentation Our derivative instruments are presented on a net basis on our Consolidated Balance Sheets as described above. The following table shows the fair value of our derivatives outstanding on a gross and net basis (in thousands): Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting Derivative Assets (Liabilities) As of June 30, 2019 Interest Rate Derivatives $ (88,659 ) $ 472 $ (88,187 ) Interest Rate Forward Start Derivatives (6,640 ) — (6,640 ) Liquefaction Supply Derivatives 16,432 (835 ) 15,597 Liquefaction Supply Derivatives (14,300 ) 6,561 (7,739 ) As of December 31, 2018 Interest Rate Derivatives $ 19,520 $ (1,046 ) $ 18,474 Interest Rate Derivatives (413 ) 8 (405 ) Liquefaction Supply Derivatives 31,770 (10,072 ) 21,698 Liquefaction Supply Derivatives (29,996 ) 8,230 (21,766 ) |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS As of June 30, 2019 and December 31, 2018 , other non-current assets, net consisted of the following (in thousands): June 30, December 31, 2019 2018 Advances and other asset conveyances to third parties to support LNG terminals $ 17,912 $ 18,209 Operating lease assets 7,364 — Tax-related payments and receivables 3,450 3,783 Information technology service assets 2,420 2,435 Advances made under EPC and non-EPC contracts 10,905 — Other 9,495 7,282 Total other non-current assets, net $ 51,546 $ 31,709 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES As of June 30, 2019 and December 31, 2018 , accrued liabilities consisted of the following (in thousands): June 30, December 31, 2019 2018 Interest costs and related debt fees $ 128,619 $ 994 Accrued natural gas purchases 87,990 91,910 Liquefaction Project costs 146,304 46,964 Other 22,295 22,337 Total accrued liabilities $ 385,208 $ 162,205 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of June 30, 2019 and December 31, 2018 , our debt consisted of the following (in thousands): June 30, December 31, 2019 2018 Long-term debt 7.000% Senior Secured Notes due 2024 (“2024 CCH Senior Notes”) $ 1,250,000 $ 1,250,000 5.875% Senior Secured Notes due 2025 (“2025 CCH Senior Notes”) 1,500,000 1,500,000 5.125% Senior Secured Notes due 2027 (“2027 CCH Senior Notes”) 1,500,000 1,500,000 CCH Credit Facility 6,137,412 5,155,737 Unamortized premium, discount and debt issuance costs, net (165,815 ) (160,185 ) Total long-term debt, net 10,221,597 9,245,552 Current debt $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) — 168,000 Total debt, net $ 10,221,597 $ 9,413,552 Credit Facilities Below is a summary of our credit facilities outstanding as of June 30, 2019 (in thousands): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,403,714 $ 350,000 Incremental commitments 1,565,961 850,000 Less: Outstanding balance 6,137,412 — Commitments terminated 3,832,263 — Letters of credit issued — 338,037 Available commitment $ — $ 861,963 Interest rate on outstanding balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 4.15% n/a Maturity date June 30, 2024 June 29, 2023 Restrictive Debt Covenants As of June 30, 2019 , we were in compliance with all covenants related to our debt agreements. Interest Expense Total interest expense consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Total interest cost $ 137,970 $ 106,619 $ 270,633 $ 207,814 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction (64,918 ) (106,619 ) (185,823 ) (207,814 ) Total interest expense, net $ 73,052 $ — $ 84,810 $ — Fair Value Disclosures The following table shows the carrying amount, which is net of unamortized premium, discount and debt issuance costs, and estimated fair value of our debt (in thousands): June 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Senior notes (1) $ 4,195,434 $ 4,744,100 $ 4,191,754 $ 4,228,750 Credit facilities (2) 6,026,163 6,026,163 5,221,798 5,221,798 (1) Includes 2024 CCH Senior Notes , 2025 CCH Senior Notes and 2027 CCH Senior Notes (collectively, the “CCH Senior Notes”) . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of the CCH Senior Notes and other similar instruments. (2) Includes CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 LNG revenues $ 119,410 $ — $ 131,655 $ — LNG revenues—affiliate 181,548 — 274,573 — Total revenues from customers 300,958 — 406,228 — Net derivative losses (1) (885 ) — (74 ) — Total revenues $ 300,073 $ — $ 406,154 $ — (1) See Note 6—Derivative Instruments for additional information about our derivatives. Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues $ 33.8 11 $ 33.9 12 LNG revenues—affiliate 1.0 14 1.0 14 Total revenues $ 34.8 $ 34.9 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. We have elected the following exemptions which omit certain potential future sources of revenue from the table above: (1) We omit from the table above all performance obligations that are part of a contract that has an original expected duration of one year or less. (2) We omit from the table above all variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation when that performance obligation qualifies as a series. The table above excludes substantially all variable consideration under our SPAs. The amount of revenue from variable fees that is not included in the transaction price will vary based on the future prices of Henry Hub throughout the contract terms, to the extent customers elect to take delivery of their LNG, and adjustments to the consumer price index. Certain of our contracts contain additional variable consideration based on the outcome of contingent events and the movement of various indexes. We have not included such variable consideration in the transaction price to the extent the consideration is considered constrained due to the uncertainty of ultimate pricing and receipt. Approximately 46% of our LNG revenues during each of the three and six months ended June 30, 2019 were related to variable consideration received from customers. All of our LNG revenues—affiliate were related to variable consideration received from customers during the three and six months ended June 30, 2019 . We have entered into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching a final investment decision on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are considered completed contracts for revenue recognition purposes and are included in the transaction price above when the conditions are considered probable of being met. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues—affiliate Cheniere Marketing Agreements $ 181,548 $ — $ 274,573 $ — Cost of sales—related party Natural Gas Supply Agreement 24,230 — 35,753 — Operating and maintenance expense—affiliate Services Agreements 15,270 355 20,341 588 Land Agreements 189 196 365 429 Total operating and maintenance expense—affiliate 15,459 551 20,706 1,017 Development expense—affiliate Services Agreements 38 — 38 — General and administrative expense—affiliate Services Agreements 2,407 595 3,562 998 We had $19.5 million and $25.1 million due to affiliates as of June 30, 2019 and December 31, 2018 , respectively, under agreements with affiliates, as described below. LNG Sale and Purchase Agreements CCL has a fixed price SPA with Cheniere Marketing International LLP (“ Cheniere Marketing ”) (the “Cheniere Marketing Base SPA”) with a term of 20 years which allows Cheniere Marketing to purchase, at its option, (1) up to a cumulative total of 150 TBtu of LNG within the commissioning periods for Trains 1 through 3, (2) any LNG produced from the end of the commissioning period for Train 1 until the date of first commercial delivery of LNG from Train 1 and (3) any excess LNG produced by the Liquefaction Facilities that is not committed to customers under third-party SPAs. Under the Cheniere Marketing Base SPA , Cheniere Marketing may, without charge, elect to suspend deliveries of cargoes (other than commissioning cargoes) scheduled for any month under the applicable annual delivery program by providing specified notice in advance. Additionally, CCL has a fixed price SPA with an approximate term of 23 years with Cheniere Marketing which allows them to purchase volumes of approximately 15 TBtu per annum of LNG. As of June 30, 2019 and December 31, 2018 , CCL had $30.6 million and $21.1 million of accounts receivable—affiliate, respectively, under these agreements. Services Agreements Gas and Power Supply Services Agreement (“G&P Agreement”) CCL has a G&P Agreement with Cheniere Energy Shared Services, Inc. (“Shared Services”), a wholly owned subsidiary of Cheniere, pursuant to which Shared Services will manage the gas and power procurement requirements of CCL. The services include, among other services, exercising the day-to-day management of CCL’s natural gas and power supply requirements, negotiating agreements on CCL’s behalf and providing other administrative services. Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities , for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. Operation and Maintenance Agreements (“O&M Agreements”) CCL has an O&M Agreement (“CCL O&M Agreement”) with Cheniere LNG O&M Services, LLC (“O&M Services”), a wholly owned subsidiary of Cheniere, pursuant to which CCL receives all of the necessary services required to construct, operate and maintain the Liquefaction Facilities . The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, administering various agreements, information technology services and other services required to operate and maintain the Liquefaction Facilities . Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities , for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. CCP has an O&M Agreement (“CCP O&M Agreement”) with O&M Services pursuant to which CCP receives all of the necessary services required to construct, operate and maintain the Corpus Christi Pipeline . The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, information technology services and other services required to operate and maintain the Corpus Christi Pipeline . CCP is required to reimburse O&M Services for all operating expenses incurred on behalf of CCP. Management Services Agreements (“MSAs”) CCL has an MSA with Shared Services pursuant to which Shared Services manages the construction and operation of the Liquefaction Facilities , excluding those matters provided for under the G&P Agreement and the CCL O&M Agreement. The services include, among other services, exercising the day-to-day management of CCL’s affairs and business, managing CCL’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Liquefaction Facilities and obtaining insurance. Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of expenses. After substantial completion of each Train, CCL will pay, in addition to the reimbursement of related expenses, a monthly fee equal to 3% of the capital expenditures incurred in the previous month and a fixed monthly fee of $375,000 for services with respect to such Train. CCP has an MSA with Shared Services pursuant to which Shared Services manages CCP’s operations and business, excluding those matters provided for under the CCP O&M Agreement. The services include, among other services, exercising the day-to-day management of CCP’s affairs and business, managing CCP’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Corpus Christi Pipeline and obtaining insurance. CCP is required to reimburse Shared Services for the aggregate of all costs and expenses incurred in the course of performing the services under the MSA. Natural Gas Supply Agreement CCL has entered into a natural gas supply contract to obtain feed gas for the operation of the Liquefaction Project through September 2020 with a related party in the ordinary course of business. CCL recorded $24.2 million and $35.8 million in cost of sales—related party under this contract during the three and six months ended June 30, 2019 , respectively. Of this amount, $4.2 million and zero was included in accrued liabilities—related party as of June 30, 2019 and December 31, 2018 , respectively. CCL did no t have any transactions during the three and six months ended June 30, 2018 under this contract. CCL also has recorded derivative assets—related party of $1.8 million and $2.1 million and non-current derivative assets—related party of $0.6 million and $3.4 million as of June 30, 2019 and December 31, 2018 , respectively, related to this contract. Agreements with Midship Pipeline CCL has entered into a transportation precedent agreement and a negotiated rate agreement with Midship Pipeline Company, LLC (“Midship Pipeline”) to secure firm pipeline transportation capacity for a period of 10 years following commencement of the approximately 200 -mile natural gas pipeline project which Midship Pipeline is constructing. In May 2018, CCL issued a letter of credit to Midship Pipeline for drawings up to an aggregate maximum amount of $16.2 million . Midship Pipeline had no t made any drawings on this letter of credit as of June 30, 2019 . Land Agreements Lease Agreements CCL has agreements with Cheniere Land Holdings, LLC (“Cheniere Land Holdings”), a wholly owned subsidiary of Cheniere, to lease the land owned by Cheniere Land Holdings for the Liquefaction Facilities . The total annual lease payment is $0.6 million , and the terms of the agreements range from three years to five years . Easement Agreements CCL has agreements with Cheniere Land Holdings which grant CCL easements on land owned by Cheniere Land Holdings for the Liquefaction Facilities . The total annual payment for easement agreements is $0.1 million , excluding any previously paid one-time payments, and the terms of the agreements range from three years to five years . Dredge Material Disposal Agreement CCL has a dredge material disposal agreement with Cheniere Land Holdings that terminates in 2042 which grants CCL permission to use land owned by Cheniere Land Holdings for the deposit of dredge material from the construction and maintenance of the Liquefaction Facilities . Under the terms of the agreement, CCL will pay Cheniere Land Holdings $0.50 per cubic yard of dredge material deposits up to 5.0 million cubic yards and $4.62 per cubic yard for any quantities above that. Tug Hosting Agreement In February 2017, CCL entered into a tug hosting agreement with Corpus Christi Tug Services, LLC (“Tug Services”), a wholly owned subsidiary of Cheniere, to provide certain marine structures, support services and access necessary at the Liquefaction Facilities for Tug Services to provide its customers with tug boat and marine services. Tug Services is required to reimburse CCL for any third-party costs incurred by CCL in connection with providing the goods and services. State Tax Sharing Agreements CCL has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which CCL and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, CCL will pay to Cheniere an amount equal to the state and local tax that CCL would be required to pay if CCL’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from CCL under this agreement; therefore, Cheniere has not demanded any such payments from CCL. The agreement is effective for tax returns due on or after May 2015. CCP has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which CCP and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, CCP will pay to Cheniere an amount equal to the state and local tax that CCP would be required to pay if CCP’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from CCP under this agreement; therefore, Cheniere has not demanded any such payments from CCP. The agreement is effective for tax returns due on or after May 2015. Equity Contribution Agreements Equity Contribution Agreement In May 2018, we amended and restated the existing equity contribution agreement with Cheniere (the “Equity Contribution Agreement”) pursuant to which Cheniere agreed to provide cash contributions up to approximately $1.1 billion , not including $2.0 billion previously contributed under the original equity contribution agreement. As of June 30, 2019 , we have received $71.6 million in contributions under the Equity Contribution Agreement. Cheniere is only required to make additional contributions under the Equity Contribution Agreement after the commitments under the CCH Credit Facility have been reduced to zero and to the extent cash flows from operations of the Liquefaction Project are unavailable for Liquefaction Project costs. Early Works Equity Contribution Agreement In conjunction with the amendment and restatement of the Equity Contribution Agreement, we terminated the early works equity contribution agreement with Cheniere entered into in December 2017. Prior to termination in May 2018, we had received $250.0 million |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2019 2018 2019 2018 2019 2018 Customer A 38% —% 34% —% —% —% Customer B 19% —% 17% —% 58% —% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental disclosure of cash flow information (in thousands): Six Months Ended June 30, 2019 2018 Noncash capital contribution for conveyance of property, plant and equipment from affiliate $ — $ 51,381 The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) was $269.0 million and $698.7 million as of June 30, 2019 and 2018 , respectively. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | SUPPLEMENTAL GUARANTOR INFORMATION Our CCH Senior Notes are jointly and severally guaranteed by our subsidiaries, CCL, CCP and CCP GP (each a “Guarantor” and collectively, the “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) the designation of the Guarantor as an “unrestricted subsidiary” in accordance with the CCH Indenture , (3) upon the legal defeasance or covenant defeasance or discharge of obligations under the CCH Indenture and (4) the release and discharge of the Guarantors pursuant to the Common Security and Account Agreement. See Note 9—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 CCH Senior Notes . The following is condensed consolidating financial information for CCH (“Parent Issuer”) and the Guarantors . We did not have any non-guarantor subsidiaries as of June 30, 2019 . Condensed Consolidating Balance Sheet June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 271,057 8,113 — 279,170 Accounts and other receivables — 38,576 — 38,576 Accounts receivable—affiliate — 30,613 — 30,613 Advances to affiliate — 69,140 — 69,140 Inventory — 63,274 — 63,274 Derivative assets — 5,498 — 5,498 Derivative assets—related party — 1,807 — 1,807 Other current assets 352 20,254 — 20,606 Other current assets—affiliate — 33 (2 ) 31 Total current assets 271,409 237,308 (2 ) 508,715 Property, plant and equipment, net 1,272,273 10,805,385 — 12,077,658 Debt issuance and deferred financing costs, net 17,788 — — 17,788 Non-current derivative assets — 7,678 — 7,678 Non-current derivative assets—related party — 614 — 614 Investments in subsidiaries 10,968,324 — (10,968,324 ) — Other non-current assets, net — 51,546 — 51,546 Total assets $ 12,529,794 $ 11,102,531 $ (10,968,326 ) $ 12,663,999 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 365 $ 28,831 $ — $ 29,196 Accrued liabilities 129,154 256,054 — 385,208 Accrued liabilities—related party — 4,174 — 4,174 Due to affiliates 140 19,311 — 19,451 Derivative liabilities 20,626 4,722 — 25,348 Other current liabilities — 1,106 — 1,106 Other current liabilities—affiliate — 506 — 506 Total current liabilities 150,285 314,704 — 464,989 Long-term debt, net 10,221,597 — — 10,221,597 Non-current derivative liabilities 74,201 3,017 — 77,218 Deferred tax liabilities — 3,645 (3,645 ) — Other non-current liabilities — 6,775 — 6,775 Other non-current liabilities—affiliate — 846 — 846 Member’s equity 2,083,711 10,773,544 (10,964,681 ) 1,892,574 Total liabilities and member’s equity $ 12,529,794 $ 11,102,531 $ (10,968,326 ) $ 12,663,999 Condensed Consolidating Balance Sheet December 31, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 282,248 6,893 — 289,141 Accounts and other receivables — 24,989 — 24,989 Accounts receivable—affiliate — 21,060 — 21,060 Advances to affiliate — 94,397 — 94,397 Inventory — 26,198 — 26,198 Derivative assets 10,556 5,071 — 15,627 Derivative assets—related party — 2,132 — 2,132 Other current assets 178 15,039 — 15,217 Other current assets—affiliate — 634 (1 ) 633 Total current assets 292,982 196,413 (1 ) 489,394 Property, plant and equipment, net 1,094,671 10,044,154 — 11,138,825 Debt issuance and deferred financing costs, net 38,012 — — 38,012 Non-current derivative assets 7,917 11,115 — 19,032 Non-current derivative assets—related party — 3,381 — 3,381 Investments in subsidiaries 10,194,296 — (10,194,296 ) — Other non-current assets, net 1 31,708 — 31,709 Total assets $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 71 $ 16,131 $ — $ 16,202 Accrued liabilities 1,242 160,963 — 162,205 Current debt 168,000 — — 168,000 Due to affiliates — 25,086 — 25,086 Derivative liabilities 6 13,570 — 13,576 Total current liabilities 169,319 215,750 — 385,069 Long-term debt, net 9,245,552 — — 9,245,552 Non-current derivative liabilities 398 8,197 — 8,595 Deferred tax liability — 2,008 (2,008 ) — Member’s equity 2,212,610 10,060,816 (10,192,289 ) 2,081,137 Total liabilities and member’s equity $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 118,525 $ — $ 118,525 LNG revenues—affiliate — 181,548 — 181,548 Total revenues — 300,073 — 300,073 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 181,136 — 181,136 Cost of sales—related party — 24,230 — 24,230 Operating and maintenance expense — 60,817 — 60,817 Operating and maintenance expense—affiliate — 15,459 — 15,459 Development expense — 532 — 532 Development expense—affiliate — 38 — 38 General and administrative expense 486 1,056 — 1,542 General and administrative expense—affiliate — 2,407 — 2,407 Depreciation and amortization expense 6,079 51,221 — 57,300 Total operating costs and expenses 6,565 336,896 — 343,461 Loss from operations (6,565 ) (36,823 ) — (43,388 ) Other income (expense) Interest expense, net of capitalized interest (73,052 ) — — (73,052 ) Derivative loss, net (73,821 ) — — (73,821 ) Other expense 1,285 81 (12 ) 1,354 Total other income (expense) (145,588 ) 81 (12 ) (145,519 ) Loss before income taxes (152,153 ) (36,742 ) (12 ) (188,907 ) Income tax provision — (2,541 ) 2,541 — Net loss $ (152,153 ) $ (39,283 ) $ 2,529 $ (188,907 ) Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 1,031 — 1,031 Operating and maintenance expense — 1,103 — 1,103 Operating and maintenance expense—affiliate — 551 — 551 Development expense — 89 — 89 General and administrative expense 450 735 — 1,185 General and administrative expense—affiliate — 595 — 595 Depreciation and amortization expense 12 1,375 — 1,387 Total expenses 462 5,479 — 5,941 Loss from operations (462 ) (5,479 ) — (5,941 ) Other income (expense) Loss on modification or extinguishment of debt (15,332 ) — — (15,332 ) Derivative gain, net 28,566 — — 28,566 Other income 25 3,277 (3,276 ) 26 Total other income 13,259 3,277 (3,276 ) 13,260 Income (loss) before income taxes 12,797 (2,202 ) (3,276 ) 7,319 Income tax provision — (328 ) 328 — Net income (loss) $ 12,797 $ (2,530 ) $ (2,948 ) $ 7,319 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 131,581 $ — $ 131,581 LNG revenues—affiliate — 274,573 — 274,573 Total revenues — 406,154 — 406,154 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 238,665 — 238,665 Cost of sales—related party — 35,753 — 35,753 Operating and maintenance expense — 92,672 — 92,672 Operating and maintenance expense—affiliate — 20,706 — 20,706 Development expense — 532 — 532 Development expense—affiliate — 38 — 38 General and administrative expense 897 2,182 — 3,079 General and administrative expense—affiliate — 3,562 — 3,562 Depreciation and amortization expense 8,144 71,480 — 79,624 Impairment expense and gain on disposal of assets — 313 — 313 Total operating costs and expenses 9,041 465,903 — 474,944 Loss from operations (9,041 ) (59,749 ) — (68,790 ) Other income (expense) Interest expense, net of capitalized interest (84,810 ) — — (84,810 ) Derivative loss, net (108,908 ) — — (108,908 ) Other income 2,178 230 (84 ) 2,324 Total other income (expense) (191,540 ) 230 (84 ) (191,394 ) Loss before income taxes (200,581 ) (59,519 ) (84 ) (260,184 ) Income tax provision — (1,637 ) 1,637 — Net loss $ (200,581 ) $ (61,156 ) $ 1,553 $ (260,184 ) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 1,147 — 1,147 Operating and maintenance expense — 1,953 — 1,953 Operating and maintenance expense—affiliate — 1,017 — 1,017 Development expense — 123 — 123 General and administrative expense 549 1,486 — 2,035 General and administrative expense—affiliate — 998 — 998 Depreciation and amortization expense 25 1,733 — 1,758 Total operating costs and expenses 574 8,457 — 9,031 Loss from operations (574 ) (8,457 ) — (9,031 ) Other income (expense) Loss on modification or extinguishment of debt (15,332 ) — — (15,332 ) Derivative gain, net 97,415 — — 97,415 Other income (expense) (43 ) 7,753 (7,751 ) (41 ) Total other income 82,040 7,753 (7,751 ) 82,042 Income (loss) before income taxes 81,466 (704 ) (7,751 ) 73,011 Income tax provision — (1,225 ) 1,225 — Net income (loss) $ 81,466 $ (1,929 ) $ (6,526 ) $ 73,011 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ (16,351 ) $ (18,351 ) $ (18,284 ) $ (52,986 ) Cash flows from investing activities Property, plant and equipment, net (87,327 ) (752,171 ) — (839,498 ) Investments in subsidiaries (1,313,687 ) — 1,313,687 — Distributions received from affiliates 521,518 — (521,518 ) — Other — (2,143 ) — (2,143 ) Net cash used in investing activities (879,496 ) (754,314 ) 792,169 (841,641 ) Cash flows from financing activities Proceeds from issuances of debt 1,371,674 — — 1,371,674 Repayments of debt (558,000 ) — — (558,000 ) Debt issuance and deferred financing costs (639 ) — — (639 ) Capital contributions 71,621 1,313,687 (1,313,687 ) 71,621 Distributions — (539,802 ) 539,802 — Net cash provided by financing activities 884,656 773,885 (773,885 ) 884,656 Net increase (decrease) in cash, cash equivalents and restricted cash (11,191 ) 1,220 — (9,971 ) Cash, cash equivalents and restricted cash—beginning of period 282,248 6,893 — 289,141 Cash, cash equivalents and restricted cash—end of period $ 271,057 $ 8,113 $ — $ 279,170 Balances per Condensed Consolidating Balance Sheet: June 30, 2019 Parent Issuer Guarantors Eliminations Consolidated Cash and cash equivalents $ — $ — $ — $ — Restricted cash 271,057 8,113 — 279,170 Total cash, cash equivalents and restricted cash $ 271,057 $ 8,113 $ — $ 279,170 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ (5,975 ) $ (8,151 ) $ — $ (14,126 ) Cash flows from investing activities Property, plant and equipment, net (201,944 ) (1,000,558 ) — (1,202,502 ) Investments in subsidiaries (1,005,925 ) — 1,005,925 — Other — 3,789 — 3,789 Net cash used in investing activities (1,207,869 ) (996,769 ) 1,005,925 (1,198,713 ) Cash flows from financing activities Proceeds from issuances of debt 1,675,800 — — 1,675,800 Repayments of debt (281,455 ) — — (281,455 ) Debt issuance and deferred financing costs (45,402 ) — — (45,402 ) Debt extinguishment cost (7,956 ) — — (7,956 ) Capital contributions 323,415 1,005,925 (1,005,925 ) 323,415 Net cash provided by financing activities 1,664,402 1,005,925 (1,005,925 ) 1,664,402 Net increase in cash, cash equivalents and restricted cash 450,558 1,005 — 451,563 Cash, cash equivalents and restricted cash—beginning of period 226,559 — — 226,559 Cash, cash equivalents and restricted cash—end of period $ 677,117 $ 1,005 $ — $ 678,122 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the year ended December 31, 2018 . In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. Certain reclassifications have been made to conform prior period information to the current presentation. The reclassifications did not have a material effect on our consolidated financial position, results of operations or cash flows. |
Income Taxes, Policy | We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. The provision for income taxes, taxes payable and deferred income tax balances have been recorded as if we had filed all tax returns on a separate return basis from Cheniere. Tax elections under a separate return basis may differ from tax elections taken on the consolidated federal income tax return of Cheniere. |
Recent Accounting Standards | Recent Accounting Standards We adopted ASU 2016-02, Leases (Topic 842) , and subsequent amendments thereto on January 1, 2019 using the optional transition approach to apply the standard at the beginning of the first quarter of 2019 with no retrospective adjustments to prior periods. This standard requires a lessee to recognize leases on its balance sheet by recording a lease liability representing the obligation to make future lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. The adoption of the standard did not materially impact our Consolidated Financial Statements. Upon adoption of the standard, we recorded right-of-use assets of $8.1 million in other non-current assets, net, and lease liabilities of $0.5 million in other current liabilities—affiliate, $5.2 million other non-current liabilities and $1.2 million in other non-current liabilities—affiliate. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restricted Cash [Abstract] | |
Schedule of Restricted Cash | As of June 30, 2019 and December 31, 2018 , restricted cash consisted of the following (in thousands): June 30, December 31, 2019 2018 Current restricted cash Liquefaction Project $ 279,170 $ 289,141 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | As of June 30, 2019 and December 31, 2018 , accounts and other receivables consisted of the following (in thousands): June 30, December 31, 2019 2018 Trade receivable $ 22,641 $ 51 Other accounts receivable 15,935 24,938 Total accounts and other receivables $ 38,576 $ 24,989 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of June 30, 2019 and December 31, 2018 , inventory consisted of the following (in thousands): June 30, December 31, 2019 2018 Natural gas $ 3,625 $ 1,326 LNG 9,496 — Materials and other 50,153 24,872 Total inventory $ 63,274 $ 26,198 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of June 30, 2019 and December 31, 2018 , property, plant and equipment, net consisted of the following (in thousands): June 30, December 31, 2019 2018 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 6,641,022 $ 618,547 LNG site and related costs 275,820 44,725 LNG terminal construction-in-process 5,232,298 10,470,577 Accumulated depreciation (84,565 ) (7,416 ) Total LNG terminal costs, net 12,064,575 11,126,433 Fixed assets Fixed assets 18,321 15,534 Accumulated depreciation (5,238 ) (3,142 ) Total fixed assets, net 13,083 12,392 Property, plant and equipment, net $ 12,077,658 $ 11,138,825 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 , which are classified as derivative assets , derivative assets—related party, non-current derivative assets , non-current derivative assets—related party, derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in thousands): Fair Value Measurements as of June 30, 2019 December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Interest Rate Derivatives asset (liability) $ — $ (88,187 ) $ — $ (88,187 ) $ — $ 18,069 $ — $ 18,069 Interest Rate Forward Start Derivatives liability — (6,640 ) — (6,640 ) — — — — Liquefaction Supply Derivatives asset (liability) (1,219 ) 2,992 6,085 7,858 1,299 2,990 (4,357 ) (68 ) |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2019 : Net Fair Value Asset (in thousands) Valuation Approach Significant Unobservable Input Significant Unobservable Inputs Range Physical Liquefaction Supply Derivatives $6,085 Market approach incorporating present value techniques Henry Hub Basis Spread $(0.700) - $0.050 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives , including those with related parties, during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Balance, beginning of period $ 1,610 $ (207 ) $ (4,357 ) $ (91 ) Realized and mark-to-market gains: Included in cost of sales 4,369 324 7,733 675 Purchases and settlements: Purchases 181 (111 ) 918 (111 ) Settlements 50 — 2,113 — Transfers out of Level 3 (1) (125 ) 467 (322 ) — Balance, end of period $ 6,085 $ 473 $ 6,085 $ 473 Change in unrealized gains (losses) relating to instruments still held at end of period $ 4,369 $ 324 $ 7,733 $ 675 (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Net Presentation on Consolidated Balance Sheets | The following table shows the fair value of our derivatives outstanding on a gross and net basis (in thousands): Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting Derivative Assets (Liabilities) As of June 30, 2019 Interest Rate Derivatives $ (88,659 ) $ 472 $ (88,187 ) Interest Rate Forward Start Derivatives (6,640 ) — (6,640 ) Liquefaction Supply Derivatives 16,432 (835 ) 15,597 Liquefaction Supply Derivatives (14,300 ) 6,561 (7,739 ) As of December 31, 2018 Interest Rate Derivatives $ 19,520 $ (1,046 ) $ 18,474 Interest Rate Derivatives (413 ) 8 (405 ) Liquefaction Supply Derivatives 31,770 (10,072 ) 21,698 Liquefaction Supply Derivatives (29,996 ) 8,230 (21,766 ) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2019 , we had the following CCH Interest Rate Derivatives outstanding: Initial Notional Amount Maximum Notional Amount Effective Date Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received Interest Rate Derivatives $28.8 million $4.7 billion May 20, 2015 May 31, 2022 2.30% One-month LIBOR Interest Rate Forward Start Derivatives $1.0 billion $1.0 billion June 30, 2020 September 30, 2030 2.11% Three-month LIBOR |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our CCH Interest Rate Derivatives on our Consolidated Balance Sheets (in thousands): June 30, 2019 December 31, 2018 Interest Rate Derivatives Interest Rate Forward Start Derivatives Total Interest Rate Derivatives Interest Rate Forward Start Derivatives Total Consolidated Balance Sheet Location Derivative assets $ — $ — $ — $ 10,556 $ — $ 10,556 Non-current derivative assets — — — 7,918 — 7,918 Total derivative assets — — — 18,474 — 18,474 Derivative liabilities (20,626 ) — (20,626 ) (7 ) — (7 ) Non-current derivative liabilities (67,561 ) (6,640 ) (74,201 ) (398 ) — (398 ) Total derivative liabilities (88,187 ) (6,640 ) (94,827 ) (405 ) — (405 ) Derivative asset (liability), net $ (88,187 ) $ (6,640 ) $ (94,827 ) $ 18,069 $ — $ 18,069 |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value and settlements of our CCH Interest Rate Derivatives recorded in derivative gain (loss), net on our Consolidated Statements of Operations during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest Rate Derivatives gain (loss) $ (67,181 ) $ 28,566 $ (102,268 ) $ 97,415 Interest Rate Forward Start Derivatives loss (6,640 ) — (6,640 ) — |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in thousands): Fair Value Measurements as of (1) Consolidated Balance Sheet Location June 30, 2019 December 31, 2018 Derivative assets $ 5,498 $ 5,071 Derivative assets—related party 1,807 2,132 Non-current derivative assets 7,678 11,114 Non-current derivative assets—related party 614 3,381 Total derivative assets 15,597 21,698 Derivative liabilities (4,722 ) (13,569 ) Non-current derivative liabilities (3,017 ) (8,197 ) Total derivative liabilities (7,739 ) (21,766 ) Derivative asset (liability), net $ 7,858 $ (68 ) (1) Does not include collateral calls of $4.3 million and $4.5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as June 30, 2019 and December 31, 2018 , respectively. |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives on our Consolidated Statements of Operations during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Consolidated Statements of Operations Location (1) 2019 2018 2019 2018 Liquefaction Supply Derivatives loss LNG revenues $ (885 ) $ — $ (74 ) $ — Liquefaction Supply Derivatives gain (loss) Cost of sales 2,752 (1,034 ) 10,617 (1,150 ) Liquefaction Supply Derivatives loss Cost of sales—related party (1,279 ) — (3,091 ) — (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | As of June 30, 2019 and December 31, 2018 , other non-current assets, net consisted of the following (in thousands): June 30, December 31, 2019 2018 Advances and other asset conveyances to third parties to support LNG terminals $ 17,912 $ 18,209 Operating lease assets 7,364 — Tax-related payments and receivables 3,450 3,783 Information technology service assets 2,420 2,435 Advances made under EPC and non-EPC contracts 10,905 — Other 9,495 7,282 Total other non-current assets, net $ 51,546 $ 31,709 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | As of June 30, 2019 and December 31, 2018 , accrued liabilities consisted of the following (in thousands): June 30, December 31, 2019 2018 Interest costs and related debt fees $ 128,619 $ 994 Accrued natural gas purchases 87,990 91,910 Liquefaction Project costs 146,304 46,964 Other 22,295 22,337 Total accrued liabilities $ 385,208 $ 162,205 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | As of June 30, 2019 and December 31, 2018 , our debt consisted of the following (in thousands): June 30, December 31, 2019 2018 Long-term debt 7.000% Senior Secured Notes due 2024 (“2024 CCH Senior Notes”) $ 1,250,000 $ 1,250,000 5.875% Senior Secured Notes due 2025 (“2025 CCH Senior Notes”) 1,500,000 1,500,000 5.125% Senior Secured Notes due 2027 (“2027 CCH Senior Notes”) 1,500,000 1,500,000 CCH Credit Facility 6,137,412 5,155,737 Unamortized premium, discount and debt issuance costs, net (165,815 ) (160,185 ) Total long-term debt, net 10,221,597 9,245,552 Current debt $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) — 168,000 Total debt, net $ 10,221,597 $ 9,413,552 |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of June 30, 2019 (in thousands): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,403,714 $ 350,000 Incremental commitments 1,565,961 850,000 Less: Outstanding balance 6,137,412 — Commitments terminated 3,832,263 — Letters of credit issued — 338,037 Available commitment $ — $ 861,963 Interest rate on outstanding balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 4.15% n/a Maturity date June 30, 2024 June 29, 2023 |
Schedule of Interest Expense | Total interest expense consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Total interest cost $ 137,970 $ 106,619 $ 270,633 $ 207,814 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction (64,918 ) (106,619 ) (185,823 ) (207,814 ) Total interest expense, net $ 73,052 $ — $ 84,810 $ — |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table shows the carrying amount, which is net of unamortized premium, discount and debt issuance costs, and estimated fair value of our debt (in thousands): June 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Senior notes (1) $ 4,195,434 $ 4,744,100 $ 4,191,754 $ 4,228,750 Credit facilities (2) 6,026,163 6,026,163 5,221,798 5,221,798 (1) Includes 2024 CCH Senior Notes , 2025 CCH Senior Notes and 2027 CCH Senior Notes (collectively, the “CCH Senior Notes”) . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of the CCH Senior Notes and other similar instruments. (2) Includes CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers during the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 LNG revenues $ 119,410 $ — $ 131,655 $ — LNG revenues—affiliate 181,548 — 274,573 — Total revenues from customers 300,958 — 406,228 — Net derivative losses (1) (885 ) — (74 ) — Total revenues $ 300,073 $ — $ 406,154 $ — (1) See Note 6—Derivative Instruments for additional information about our derivatives. |
Transaction Price Allocated to Future Performance Obligations | The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues $ 33.8 11 $ 33.9 12 LNG revenues—affiliate 1.0 14 1.0 14 Total revenues $ 34.8 $ 34.9 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Consolidated Statements of Operations for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues—affiliate Cheniere Marketing Agreements $ 181,548 $ — $ 274,573 $ — Cost of sales—related party Natural Gas Supply Agreement 24,230 — 35,753 — Operating and maintenance expense—affiliate Services Agreements 15,270 355 20,341 588 Land Agreements 189 196 365 429 Total operating and maintenance expense—affiliate 15,459 551 20,706 1,017 Development expense—affiliate Services Agreements 38 — 38 — General and administrative expense—affiliate Services Agreements 2,407 595 3,562 998 |
Customer Concentration (Tables)
Customer Concentration (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2019 2018 2019 2018 2019 2018 Customer A 38% —% 34% —% —% —% Customer B 19% —% 17% —% 58% —% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in thousands): Six Months Ended June 30, 2019 2018 Noncash capital contribution for conveyance of property, plant and equipment from affiliate $ — $ 51,381 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 271,057 8,113 — 279,170 Accounts and other receivables — 38,576 — 38,576 Accounts receivable—affiliate — 30,613 — 30,613 Advances to affiliate — 69,140 — 69,140 Inventory — 63,274 — 63,274 Derivative assets — 5,498 — 5,498 Derivative assets—related party — 1,807 — 1,807 Other current assets 352 20,254 — 20,606 Other current assets—affiliate — 33 (2 ) 31 Total current assets 271,409 237,308 (2 ) 508,715 Property, plant and equipment, net 1,272,273 10,805,385 — 12,077,658 Debt issuance and deferred financing costs, net 17,788 — — 17,788 Non-current derivative assets — 7,678 — 7,678 Non-current derivative assets—related party — 614 — 614 Investments in subsidiaries 10,968,324 — (10,968,324 ) — Other non-current assets, net — 51,546 — 51,546 Total assets $ 12,529,794 $ 11,102,531 $ (10,968,326 ) $ 12,663,999 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 365 $ 28,831 $ — $ 29,196 Accrued liabilities 129,154 256,054 — 385,208 Accrued liabilities—related party — 4,174 — 4,174 Due to affiliates 140 19,311 — 19,451 Derivative liabilities 20,626 4,722 — 25,348 Other current liabilities — 1,106 — 1,106 Other current liabilities—affiliate — 506 — 506 Total current liabilities 150,285 314,704 — 464,989 Long-term debt, net 10,221,597 — — 10,221,597 Non-current derivative liabilities 74,201 3,017 — 77,218 Deferred tax liabilities — 3,645 (3,645 ) — Other non-current liabilities — 6,775 — 6,775 Other non-current liabilities—affiliate — 846 — 846 Member’s equity 2,083,711 10,773,544 (10,964,681 ) 1,892,574 Total liabilities and member’s equity $ 12,529,794 $ 11,102,531 $ (10,968,326 ) $ 12,663,999 Condensed Consolidating Balance Sheet December 31, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 282,248 6,893 — 289,141 Accounts and other receivables — 24,989 — 24,989 Accounts receivable—affiliate — 21,060 — 21,060 Advances to affiliate — 94,397 — 94,397 Inventory — 26,198 — 26,198 Derivative assets 10,556 5,071 — 15,627 Derivative assets—related party — 2,132 — 2,132 Other current assets 178 15,039 — 15,217 Other current assets—affiliate — 634 (1 ) 633 Total current assets 292,982 196,413 (1 ) 489,394 Property, plant and equipment, net 1,094,671 10,044,154 — 11,138,825 Debt issuance and deferred financing costs, net 38,012 — — 38,012 Non-current derivative assets 7,917 11,115 — 19,032 Non-current derivative assets—related party — 3,381 — 3,381 Investments in subsidiaries 10,194,296 — (10,194,296 ) — Other non-current assets, net 1 31,708 — 31,709 Total assets $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ 71 $ 16,131 $ — $ 16,202 Accrued liabilities 1,242 160,963 — 162,205 Current debt 168,000 — — 168,000 Due to affiliates — 25,086 — 25,086 Derivative liabilities 6 13,570 — 13,576 Total current liabilities 169,319 215,750 — 385,069 Long-term debt, net 9,245,552 — — 9,245,552 Non-current derivative liabilities 398 8,197 — 8,595 Deferred tax liability — 2,008 (2,008 ) — Member’s equity 2,212,610 10,060,816 (10,192,289 ) 2,081,137 Total liabilities and member’s equity $ 11,627,879 $ 10,286,771 $ (10,194,297 ) $ 11,720,353 |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statement of Operations Three Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 118,525 $ — $ 118,525 LNG revenues—affiliate — 181,548 — 181,548 Total revenues — 300,073 — 300,073 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 181,136 — 181,136 Cost of sales—related party — 24,230 — 24,230 Operating and maintenance expense — 60,817 — 60,817 Operating and maintenance expense—affiliate — 15,459 — 15,459 Development expense — 532 — 532 Development expense—affiliate — 38 — 38 General and administrative expense 486 1,056 — 1,542 General and administrative expense—affiliate — 2,407 — 2,407 Depreciation and amortization expense 6,079 51,221 — 57,300 Total operating costs and expenses 6,565 336,896 — 343,461 Loss from operations (6,565 ) (36,823 ) — (43,388 ) Other income (expense) Interest expense, net of capitalized interest (73,052 ) — — (73,052 ) Derivative loss, net (73,821 ) — — (73,821 ) Other expense 1,285 81 (12 ) 1,354 Total other income (expense) (145,588 ) 81 (12 ) (145,519 ) Loss before income taxes (152,153 ) (36,742 ) (12 ) (188,907 ) Income tax provision — (2,541 ) 2,541 — Net loss $ (152,153 ) $ (39,283 ) $ 2,529 $ (188,907 ) Condensed Consolidating Statement of Operations Three Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 1,031 — 1,031 Operating and maintenance expense — 1,103 — 1,103 Operating and maintenance expense—affiliate — 551 — 551 Development expense — 89 — 89 General and administrative expense 450 735 — 1,185 General and administrative expense—affiliate — 595 — 595 Depreciation and amortization expense 12 1,375 — 1,387 Total expenses 462 5,479 — 5,941 Loss from operations (462 ) (5,479 ) — (5,941 ) Other income (expense) Loss on modification or extinguishment of debt (15,332 ) — — (15,332 ) Derivative gain, net 28,566 — — 28,566 Other income 25 3,277 (3,276 ) 26 Total other income 13,259 3,277 (3,276 ) 13,260 Income (loss) before income taxes 12,797 (2,202 ) (3,276 ) 7,319 Income tax provision — (328 ) 328 — Net income (loss) $ 12,797 $ (2,530 ) $ (2,948 ) $ 7,319 Condensed Consolidating Statement of Operations Six Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 131,581 $ — $ 131,581 LNG revenues—affiliate — 274,573 — 274,573 Total revenues — 406,154 — 406,154 Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 238,665 — 238,665 Cost of sales—related party — 35,753 — 35,753 Operating and maintenance expense — 92,672 — 92,672 Operating and maintenance expense—affiliate — 20,706 — 20,706 Development expense — 532 — 532 Development expense—affiliate — 38 — 38 General and administrative expense 897 2,182 — 3,079 General and administrative expense—affiliate — 3,562 — 3,562 Depreciation and amortization expense 8,144 71,480 — 79,624 Impairment expense and gain on disposal of assets — 313 — 313 Total operating costs and expenses 9,041 465,903 — 474,944 Loss from operations (9,041 ) (59,749 ) — (68,790 ) Other income (expense) Interest expense, net of capitalized interest (84,810 ) — — (84,810 ) Derivative loss, net (108,908 ) — — (108,908 ) Other income 2,178 230 (84 ) 2,324 Total other income (expense) (191,540 ) 230 (84 ) (191,394 ) Loss before income taxes (200,581 ) (59,519 ) (84 ) (260,184 ) Income tax provision — (1,637 ) 1,637 — Net loss $ (200,581 ) $ (61,156 ) $ 1,553 $ (260,184 ) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Revenues $ — $ — $ — $ — Operating costs and expenses Cost of sales (excluding depreciation and amortization expense shown separately below) — 1,147 — 1,147 Operating and maintenance expense — 1,953 — 1,953 Operating and maintenance expense—affiliate — 1,017 — 1,017 Development expense — 123 — 123 General and administrative expense 549 1,486 — 2,035 General and administrative expense—affiliate — 998 — 998 Depreciation and amortization expense 25 1,733 — 1,758 Total operating costs and expenses 574 8,457 — 9,031 Loss from operations (574 ) (8,457 ) — (9,031 ) Other income (expense) Loss on modification or extinguishment of debt (15,332 ) — — (15,332 ) Derivative gain, net 97,415 — — 97,415 Other income (expense) (43 ) 7,753 (7,751 ) (41 ) Total other income 82,040 7,753 (7,751 ) 82,042 Income (loss) before income taxes 81,466 (704 ) (7,751 ) 73,011 Income tax provision — (1,225 ) 1,225 — Net income (loss) $ 81,466 $ (1,929 ) $ (6,526 ) $ 73,011 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2019 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ (16,351 ) $ (18,351 ) $ (18,284 ) $ (52,986 ) Cash flows from investing activities Property, plant and equipment, net (87,327 ) (752,171 ) — (839,498 ) Investments in subsidiaries (1,313,687 ) — 1,313,687 — Distributions received from affiliates 521,518 — (521,518 ) — Other — (2,143 ) — (2,143 ) Net cash used in investing activities (879,496 ) (754,314 ) 792,169 (841,641 ) Cash flows from financing activities Proceeds from issuances of debt 1,371,674 — — 1,371,674 Repayments of debt (558,000 ) — — (558,000 ) Debt issuance and deferred financing costs (639 ) — — (639 ) Capital contributions 71,621 1,313,687 (1,313,687 ) 71,621 Distributions — (539,802 ) 539,802 — Net cash provided by financing activities 884,656 773,885 (773,885 ) 884,656 Net increase (decrease) in cash, cash equivalents and restricted cash (11,191 ) 1,220 — (9,971 ) Cash, cash equivalents and restricted cash—beginning of period 282,248 6,893 — 289,141 Cash, cash equivalents and restricted cash—end of period $ 271,057 $ 8,113 $ — $ 279,170 Balances per Condensed Consolidating Balance Sheet: June 30, 2019 Parent Issuer Guarantors Eliminations Consolidated Cash and cash equivalents $ — $ — $ — $ — Restricted cash 271,057 8,113 — 279,170 Total cash, cash equivalents and restricted cash $ 271,057 $ 8,113 $ — $ 279,170 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2018 (in thousands) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ (5,975 ) $ (8,151 ) $ — $ (14,126 ) Cash flows from investing activities Property, plant and equipment, net (201,944 ) (1,000,558 ) — (1,202,502 ) Investments in subsidiaries (1,005,925 ) — 1,005,925 — Other — 3,789 — 3,789 Net cash used in investing activities (1,207,869 ) (996,769 ) 1,005,925 (1,198,713 ) Cash flows from financing activities Proceeds from issuances of debt 1,675,800 — — 1,675,800 Repayments of debt (281,455 ) — — (281,455 ) Debt issuance and deferred financing costs (45,402 ) — — (45,402 ) Debt extinguishment cost (7,956 ) — — (7,956 ) Capital contributions 323,415 1,005,925 (1,005,925 ) 323,415 Net cash provided by financing activities 1,664,402 1,005,925 (1,005,925 ) 1,664,402 Net increase in cash, cash equivalents and restricted cash 450,558 1,005 — 451,563 Cash, cash equivalents and restricted cash—beginning of period 226,559 — — 226,559 Cash, cash equivalents and restricted cash—end of period $ 677,117 $ 1,005 $ — $ 678,122 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019USD ($)unitmitrains | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Nature of Operations and Basis of Presentation [Line Items] | |||
Other non-current assets, net | $ 51,546 | $ 31,709 | |
Other current liabilities—affiliate | 506 | 0 | |
Other non-current liabilities | 6,775 | 0 | |
Other non-current liabilities—affiliate | $ 846 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
Nature of Operations and Basis of Presentation [Line Items] | |||
Other non-current assets, net | $ 8,100 | ||
Other current liabilities—affiliate | 500 | ||
Other non-current liabilities | 5,200 | ||
Other non-current liabilities—affiliate | $ 1,200 | ||
Corpus Christi Pipeline [Member] | |||
Nature of Operations and Basis of Presentation [Line Items] | |||
Length Of Natural Gas Pipeline | mi | 23 | ||
Corpus Christi LNG Terminal [Member] | |||
Nature of Operations and Basis of Presentation [Line Items] | |||
Number of Liquefaction LNG Trains | trains | 3 | ||
Corpus Christi LNG Terminal [Member] | Stage 1 [Member] | |||
Nature of Operations and Basis of Presentation [Line Items] | |||
Number of Liquefaction LNG Trains | trains | 2 | ||
Number of LNG Storage Tanks | unit | 2 | ||
Number of Marine Berths | unit | 1 | ||
Corpus Christi LNG Terminal [Member] | Stage 2 [Member] | |||
Nature of Operations and Basis of Presentation [Line Items] | |||
Number of Liquefaction LNG Trains | trains | 1 | ||
Number of LNG Storage Tanks | unit | 1 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 279,170 | $ 289,141 |
Liquefaction Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 279,170 | $ 289,141 |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade receivable | $ 22,641 | $ 51 |
Other accounts receivable | 15,935 | 24,938 |
Total accounts and other receivables | $ 38,576 | $ 24,989 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventory | $ 63,274 | $ 26,198 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 3,625 | 1,326 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 9,496 | 0 |
Materials and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 50,153 | $ 24,872 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 57.1 | $ 1.4 | $ 79.4 | $ 1.7 |
Offsets to LNG terminal costs | $ 8.3 | $ 0 | $ 82.5 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 12,077,658 | $ 11,138,825 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (84,565) | (7,416) |
Property, plant and equipment, net | 12,064,575 | 11,126,433 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,641,022 | 618,547 |
LNG site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 275,820 | 44,725 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,232,298 | 10,470,577 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,321 | 15,534 |
Accumulated depreciation | (5,238) | (3,142) |
Property, plant and equipment, net | $ 13,083 | $ 12,392 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - CCL [Member] - tbtu | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Natural Gas Supply Agreement [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Energy Units Secured Through Natural Gas Supply Agreements | 57 | 55 |
Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Energy Units Secured Through Natural Gas Supply Agreements | 2,787 | 2,801 |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 8 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 2,905 | 2,854 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (88,187) | $ 18,069 |
Interest Rate Derivatives [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Interest Rate Derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (88,187) | 18,069 |
Interest Rate Derivatives [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Interest Rate Forward Start Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (6,640) | 0 |
Interest Rate Forward Start Derivatives [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Interest Rate Forward Start Derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (6,640) | 0 |
Interest Rate Forward Start Derivatives [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Liquefaction Supply Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 7,858 | (68) |
Liquefaction Supply Derivatives [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (1,219) | 1,299 |
Liquefaction Supply Derivatives [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 2,992 | 2,990 |
Liquefaction Supply Derivatives [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 6,085 | $ (4,357) |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Net Fair Value Asset | $ 6,085,000 |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Inputs Basis Spread | (0.700) |
Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value Inputs Basis Spread | $ 0.050 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ 1,610 | $ (207) | $ (4,357) | $ (91) | |
Realized and mark-to-market gains: | |||||
Included in cost of sales | 4,369 | 324 | 7,733 | 675 | |
Purchases and settlements: | |||||
Purchases | 181 | (111) | 918 | (111) | |
Settlements | 50 | 0 | 2,113 | 0 | |
Transfers out of Level 3 | [1] | (125) | 467 | (322) | 0 |
Balance, end of period | 6,085 | 473 | 6,085 | 473 | |
Change in unrealized gains (losses) relating to instruments still held at end of period | $ 4,369 | $ 324 | $ 7,733 | $ 675 | |
[1] | Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Interest Rate Derivatives [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 28.8 |
Effective Date | May 20, 2015 |
Maturity Date | May 31, 2022 |
Weighted Average Fixed Interest Rate Paid | 2.30% |
Variable Interest Rate Received | One-month LIBOR |
Interest Rate Derivatives [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 4,700 |
Interest Rate Forward Start Derivatives [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 1,000 |
Effective Date | Jun. 30, 2020 |
Maturity Date | Sep. 30, 2030 |
Weighted Average Fixed Interest Rate Paid | 2.11% |
Variable Interest Rate Received | Three-month LIBOR |
Interest Rate Forward Start Derivatives [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Notional Amount | $ 1,000 |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 5,498 | $ 15,627 | |
Derivative assets—related party | 1,807 | 2,132 | |
Non-current derivative assets | 7,678 | 19,032 | |
Non-current derivative assets—related party | 614 | 3,381 | |
Derivative liabilities | (25,348) | (13,576) | |
Non-current derivative liabilities | (77,218) | (8,595) | |
Derivative asset (liability), net | |||
Total Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 0 | 18,474 | |
Total derivative liabilities | (94,827) | (405) | |
Derivative asset (liability), net | (94,827) | 18,069 | |
Total Interest Rate Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 10,556 | |
Total Interest Rate Derivatives [Member] | Non-current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | 0 | 7,918 | |
Total Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (20,626) | (7) | |
Total Interest Rate Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (74,201) | (398) | |
Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 0 | 18,474 | |
Total derivative liabilities | (88,187) | (405) | |
Derivative asset (liability), net | (88,187) | 18,069 | |
Interest Rate Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 10,556 | |
Interest Rate Derivatives [Member] | Non-current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | 0 | 7,918 | |
Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (20,626) | (7) | |
Interest Rate Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (67,561) | (398) | |
Interest Rate Forward Start Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 0 | 0 | |
Total derivative liabilities | (6,640) | 0 | |
Derivative asset (liability), net | (6,640) | 0 | |
Interest Rate Forward Start Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 0 | 0 | |
Interest Rate Forward Start Derivatives [Member] | Non-current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | 0 | 0 | |
Interest Rate Forward Start Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 0 | 0 | |
Interest Rate Forward Start Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (6,640) | 0 | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 15,597 | 21,698 |
Total derivative liabilities | [1] | (7,739) | (21,766) |
Derivative asset (liability), net | [1] | 7,858 | (68) |
Derivative, collateral call | 4,300 | 4,500 | |
Liquefaction Supply Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 5,498 | 5,071 |
Liquefaction Supply Derivatives [Member] | Derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets—related party | [1] | 1,807 | 2,132 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [1] | 7,678 | 11,114 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets—related party | [1] | 614 | 3,381 |
Liquefaction Supply Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | (4,722) | (13,569) |
Liquefaction Supply Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [1] | $ (3,017) | $ (8,197) |
[1] | Does not include collateral calls of $4.3 million and $4.5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as June 30, 2019 and December 31, 2018 , respectively. |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Interest Rate Derivatives [Member] | Derivative gain (loss), net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | $ (67,181) | $ 28,566 | $ (102,268) | $ 97,415 | |
Interest Rate Forward Start Derivatives [Member] | Derivative gain (loss), net [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | (6,640) | 0 | (6,640) | 0 | |
Liquefaction Supply Derivatives [Member] | LNG Revenues [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | (885) | 0 | (74) | 0 |
Liquefaction Supply Derivatives [Member] | Cost of Sales [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | 2,752 | (1,034) | 10,617 | (1,150) |
Liquefaction Supply Derivatives [Member] | Cost of sales—related party [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative gain (loss), net | [1] | $ (1,279) | $ 0 | $ (3,091) | $ 0 |
[1] | Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Interest Rate Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 19,520 | |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (1,046) | |
Derivative Assets (Liabilities), at Fair Value, Net | 18,474 | |
Interest Rate Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | $ (88,659) | (413) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 472 | 8 |
Derivative Assets (Liabilities), at Fair Value, Net | (88,187) | (405) |
Interest Rate Forward Start Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (6,640) | |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | (6,640) | 0 |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 16,432 | 31,770 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (835) | (10,072) |
Derivative Assets (Liabilities), at Fair Value, Net | 15,597 | 21,698 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (14,300) | (29,996) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 6,561 | 8,230 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (7,739) | $ (21,766) |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Advances and other asset conveyances to third parties to support LNG terminals | $ 17,912 | $ 18,209 |
Operating lease assets | 7,364 | 0 |
Tax-related payments and receivables | 3,450 | 3,783 |
Information technology service assets | 2,420 | 2,435 |
Advances made under EPC and non-EPC contracts | 10,905 | 0 |
Other | 9,495 | 7,282 |
Total other non-current assets, net | $ 51,546 | $ 31,709 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Interest costs and related debt fees | $ 128,619 | $ 994 |
Accrued natural gas purchases | 87,990 | 91,910 |
Liquefaction Project costs | 146,304 | 46,964 |
Other | 22,295 | 22,337 |
Total accrued liabilities | $ 385,208 | $ 162,205 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized premium, discount and debt issuance costs, net | $ (165,815,000) | $ (160,185,000) |
Long-term Debt, Net | 10,221,597,000 | 9,245,552,000 |
Current debt | 0 | 168,000,000 |
Total Debt, Net | 10,221,597,000 | 9,413,552,000 |
2024 CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,250,000,000 | 1,250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
2025 CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | |
2027 CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |
CCH Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 6,137,412,000 | $ 5,155,737,000 |
CCH Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Current debt | 0 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Outstanding balance, current | $ 0 | $ 168,000 |
CCH Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | 8,403,714 | |
Incremental commitments | 1,565,961 | |
Outstanding balance | 6,137,412 | $ 5,155,737 |
Commitments terminated | 3,832,263 | |
Letters of credit issued | 0 | |
Available commitment | $ 0 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Weighted average interest rate of outstanding balance | 4.15% | |
Maturity Date | Jun. 30, 2024 | |
CCH Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
CCH Credit Facility [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
CCH Working Capital Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | $ 350,000 | |
Incremental commitments | 850,000 | |
Outstanding balance, current | 0 | |
Commitments terminated | 0 | |
Letters of credit issued | 338,037 | |
Available commitment | $ 861,963 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Maturity Date | Jun. 29, 2023 | |
CCH Working Capital Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
CCH Working Capital Facility [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
CCH Working Capital Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
CCH Working Capital Facility [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Total interest cost | $ 137,970 | $ 106,619 | $ 270,633 | $ 207,814 |
Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction | (64,918) | (106,619) | (185,823) | (207,814) |
Total interest expense, net | $ 73,052 | $ 0 | $ 84,810 | $ 0 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | $ 10,221,597 | $ 9,413,552 | |
Senior notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | 4,195,434 | 4,191,754 |
Senior notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [1] | 4,744,100 | 4,228,750 |
Credit facilities [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 6,026,163 | 5,221,798 |
Credit facilities [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Lines of Credit, Fair Value Disclosure | [2] | $ 6,026,163 | $ 5,221,798 |
[1] | Includes 2024 CCH Senior Notes , 2025 CCH Senior Notes and 2027 CCH Senior Notes (collectively, the “CCH Senior Notes”) . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of the CCH Senior Notes and other similar instruments. | ||
[2] | Includes CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
LNG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 46.00% | 46.00% |
LNG—affiliate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 100.00% | 100.00% |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | $ 300,958 | $ 0 | $ 406,228 | $ 0 | |
Revenues | 300,073 | 0 | 406,154 | 0 | |
LNG [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 119,410 | 0 | 131,655 | 0 | |
Revenues | 118,525 | 0 | 131,581 | 0 | |
LNG—affiliate [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 181,548 | 0 | 274,573 | 0 | |
Losses from derivative instruments [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | $ (885) | $ 0 | $ (74) | $ 0 |
[1] | See Note 6—Derivative Instruments |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | Jun. 30, 2019 | Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 34.8 | $ 34.9 | |
LNG [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 33.8 | $ 33.9 | |
Weighted Average Recognition Timing | [1] | 11 years | 12 years |
LNG—affiliate [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 1 | $ 1 | |
Weighted Average Recognition Timing | [1] | 14 years | 14 years |
[1] | The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Cost of sales—related party | $ 24,230 | $ 0 | $ 35,753 | $ 0 |
Operating and maintenance expense—affiliate | 15,459 | 551 | 20,706 | 1,017 |
Development expense—affiliate | 38 | 0 | 38 | 0 |
General and administrative expense—affiliate | 2,407 | 595 | 3,562 | 998 |
Cheniere Marketing SPA and Cheniere Marketing Base SPA [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenues—affiliate | 181,548 | 0 | 274,573 | 0 |
Natural Gas Supply Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales—related party | 24,230 | 0 | 35,753 | |
Service Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cost of sales—related party | 0 | |||
Operating and maintenance expense—affiliate | 15,270 | 355 | 20,341 | 588 |
Development expense—affiliate | 38 | 38 | 0 | |
General and administrative expense—affiliate | 2,407 | 595 | 3,562 | 998 |
Land Agreements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating and maintenance expense—affiliate | $ 189 | $ 196 | $ 365 | $ 429 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)miyd3tbtu | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | May 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||
Due to affiliates | $ 19,451,000 | $ 19,451,000 | $ 25,086,000 | |||
Accounts receivable—affiliate | 30,613,000 | 30,613,000 | 21,060,000 | |||
Cost of sales—related party | 24,230,000 | $ 0 | 35,753,000 | $ 0 | ||
Accrued liabilities—related party | 4,174,000 | 4,174,000 | 0 | |||
Derivative assets—related party | 1,807,000 | 1,807,000 | 2,132,000 | |||
Non-current derivative assets—related party | 614,000 | 614,000 | 3,381,000 | |||
Equity contributions | 71,621,000 | 323,415,000 | ||||
CCH Credit Facility [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Letters of credit issued | 0 | 0 | ||||
CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 16,200,000 | |||||
Midship Pipeline [Member] | CCL [Member] | Midship Pipeline Letter of Credit [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Letters of credit issued | 0 | $ 0 | ||||
Cheniere Marketing Base SPA [Member] | Cheniere Marketing [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
SPA, Term of Agreement | 20 years | |||||
Cheniere Marketing Base SPA [Member] | Cheniere Marketing [Member] | CCL [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Contract Volumes | tbtu | 150 | |||||
Cheniere Marketing SPA [Member] | Cheniere Marketing [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
SPA, Term of Agreement | 23 years | |||||
Contract Volumes | tbtu | 15 | |||||
Accounts receivable—affiliate | 30,600,000 | $ 30,600,000 | 21,100,000 | |||
Service Agreements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of sales—related party | 0 | |||||
Gas and Power Supply Services Agreement [Member] | Shared Services [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Committed Monthly Fee | 125,000 | 125,000 | ||||
Operation and Maintenance Agreement [Member] | O&M Services [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Committed Monthly Fee | 125,000 | 125,000 | ||||
Management Services Agreement [Member] | Shared Services [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related Party Transaction, Committed Monthly Fee | 375,000 | $ 375,000 | ||||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 3.00% | |||||
Natural Gas Supply Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of sales—related party | 24,230,000 | 0 | $ 35,753,000 | |||
Natural Gas Supply Agreement [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Cost of sales—related party | 24,200,000 | $ 0 | 35,800,000 | $ 0 | ||
Accrued liabilities—related party | 4,200,000 | 4,200,000 | 0 | |||
Derivative assets—related party | 1,800,000 | 1,800,000 | 2,100,000 | |||
Non-current derivative assets—related party | $ 600,000 | $ 600,000 | $ 3,400,000 | |||
Natural Gas Transportation Agreement [Member] | Midship Pipeline [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Agreement Term | 10 years | |||||
Length Of Natural Gas Pipeline | mi | 200 | |||||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Annual lease payment | $ 600,000 | |||||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Lease Term | 3 years | 3 years | ||||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Lease Term | 5 years | 5 years | ||||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Annual lease payment | $ 100,000 | |||||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Agreement Term | 3 years | |||||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Agreement Term | 5 years | |||||
Dredge Material Disposal Agreement [Member] | Cheniere Land Holdings [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Dredge Material Deposits, Price Per Cubic Yard Of Deposit | $ 0.50 | |||||
Dredge Material Deposits, Deposit Threshold | yd3 | 5,000,000 | |||||
Dredge Material Deposits, Price Per Cubic Yard Of Deposit After Exceeding Threshold | $ 4.62 | |||||
Tax Sharing Agreement [Member] | Cheniere [Member] | CCL [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Income Taxes Paid, Net | 0 | |||||
Tax Sharing Agreement [Member] | Cheniere [Member] | CCP [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Income Taxes Paid, Net | 0 | |||||
Equity Contribution Agreement [Member] | Cheniere [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity contributions | 71,600,000 | |||||
Equity Contribution Agreement [Member] | Cheniere [Member] | CCH Credit Facility [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Additional Contribution Requirement, Debt Instrument, Commitments Reduction Threshold | 0 | |||||
Equity Contribution Agreement [Member] | Cheniere [Member] | Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity contributions | 1,100,000,000 | |||||
Previous Equity Contributions Agreement [Member] | Cheniere [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity contributions | 2,000,000,000 | |||||
Early Works Equity Contribution Agreement [Member] | Cheniere [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Equity contributions | $ 250,000,000 |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 38.00% | 0.00% | 34.00% | 0.00% | |
Customer A [Member] | Accounts Receivable from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 0.00% | 0.00% | |||
Customer B [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 19.00% | 0.00% | 17.00% | 0.00% | |
Customer B [Member] | Accounts Receivable from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 58.00% | 0.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Noncash capital contributions for conveyance of property, plant and equipment from affiliate | $ 0 | $ 51,381 |
Balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) | $ 269,000 | $ 698,700 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets | ||||||
Cash and cash equivalents | $ 0 | $ 0 | ||||
Restricted cash | 279,170 | 289,141 | ||||
Accounts and other receivables | 38,576 | 24,989 | ||||
Accounts receivable—affiliate | 30,613 | 21,060 | ||||
Advances to affiliate | 69,140 | 94,397 | ||||
Inventory | 63,274 | 26,198 | ||||
Derivative assets | 5,498 | 15,627 | ||||
Derivative assets—related party | 1,807 | 2,132 | ||||
Other current assets | 20,606 | 15,217 | ||||
Other current assets—affiliate | 31 | 633 | ||||
Total current assets | 508,715 | 489,394 | ||||
Property, plant and equipment, net | 12,077,658 | 11,138,825 | ||||
Debt issuance and deferred financing costs, net | 17,788 | 38,012 | ||||
Non-current derivative assets | 7,678 | 19,032 | ||||
Non-current derivative assets—related party | 614 | 3,381 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Other non-current assets, net | 51,546 | 31,709 | ||||
Total assets | 12,663,999 | 11,720,353 | ||||
Current liabilities | ||||||
Accounts payable | 29,196 | 16,202 | ||||
Accrued liabilities | 385,208 | 162,205 | ||||
Accrued liabilities—related party | 4,174 | 0 | ||||
Current debt | 0 | 168,000 | ||||
Due to affiliates | 19,451 | 25,086 | ||||
Derivative liabilities | 25,348 | 13,576 | ||||
Other current liabilities | 1,106 | 0 | ||||
Other current liabilities—affiliate | 506 | 0 | ||||
Total current liabilities | 464,989 | 385,069 | ||||
Long-term debt, net | 10,221,597 | 9,245,552 | ||||
Non-current derivative liabilities | 77,218 | 8,595 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Other non-current liabilities | 6,775 | 0 | ||||
Other non-current liabilities—affiliate | 846 | 0 | ||||
Member’s equity | 1,892,574 | $ 2,009,870 | 2,081,137 | $ 2,115,084 | $ 1,921,968 | $ 1,667,276 |
Total liabilities and member’s equity | 12,663,999 | 11,720,353 | ||||
Parent Issuer [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 271,057 | 282,248 | ||||
Accounts and other receivables | 0 | 0 | ||||
Accounts receivable—affiliate | 0 | 0 | ||||
Advances to affiliate | 0 | 0 | ||||
Inventory | 0 | 0 | ||||
Derivative assets | 0 | 10,556 | ||||
Derivative assets—related party | 0 | 0 | ||||
Other current assets | 352 | 178 | ||||
Other current assets—affiliate | 0 | 0 | ||||
Total current assets | 271,409 | 292,982 | ||||
Property, plant and equipment, net | 1,272,273 | 1,094,671 | ||||
Debt issuance and deferred financing costs, net | 17,788 | 38,012 | ||||
Non-current derivative assets | 0 | 7,917 | ||||
Non-current derivative assets—related party | 0 | 0 | ||||
Investments in subsidiaries | 10,968,324 | 10,194,296 | ||||
Other non-current assets, net | 0 | 1 | ||||
Total assets | 12,529,794 | 11,627,879 | ||||
Current liabilities | ||||||
Accounts payable | 365 | 71 | ||||
Accrued liabilities | 129,154 | 1,242 | ||||
Accrued liabilities—related party | 0 | |||||
Current debt | 168,000 | |||||
Due to affiliates | 140 | 0 | ||||
Derivative liabilities | 20,626 | 6 | ||||
Other current liabilities | 0 | |||||
Other current liabilities—affiliate | 0 | |||||
Total current liabilities | 150,285 | 169,319 | ||||
Long-term debt, net | 10,221,597 | 9,245,552 | ||||
Non-current derivative liabilities | 74,201 | 398 | ||||
Deferred tax liabilities | 0 | 0 | ||||
Other non-current liabilities | 0 | |||||
Other non-current liabilities—affiliate | 0 | |||||
Member’s equity | 2,083,711 | 2,212,610 | ||||
Total liabilities and member’s equity | 12,529,794 | 11,627,879 | ||||
Guarantors [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 8,113 | 6,893 | ||||
Accounts and other receivables | 38,576 | 24,989 | ||||
Accounts receivable—affiliate | 30,613 | 21,060 | ||||
Advances to affiliate | 69,140 | 94,397 | ||||
Inventory | 63,274 | 26,198 | ||||
Derivative assets | 5,498 | 5,071 | ||||
Derivative assets—related party | 1,807 | 2,132 | ||||
Other current assets | 20,254 | 15,039 | ||||
Other current assets—affiliate | 33 | 634 | ||||
Total current assets | 237,308 | 196,413 | ||||
Property, plant and equipment, net | 10,805,385 | 10,044,154 | ||||
Debt issuance and deferred financing costs, net | 0 | 0 | ||||
Non-current derivative assets | 7,678 | 11,115 | ||||
Non-current derivative assets—related party | 614 | 3,381 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Other non-current assets, net | 51,546 | 31,708 | ||||
Total assets | 11,102,531 | 10,286,771 | ||||
Current liabilities | ||||||
Accounts payable | 28,831 | 16,131 | ||||
Accrued liabilities | 256,054 | 160,963 | ||||
Accrued liabilities—related party | 4,174 | |||||
Current debt | 0 | |||||
Due to affiliates | 19,311 | 25,086 | ||||
Derivative liabilities | 4,722 | 13,570 | ||||
Other current liabilities | 1,106 | |||||
Other current liabilities—affiliate | 506 | |||||
Total current liabilities | 314,704 | 215,750 | ||||
Long-term debt, net | 0 | 0 | ||||
Non-current derivative liabilities | 3,017 | 8,197 | ||||
Deferred tax liabilities | 3,645 | 2,008 | ||||
Other non-current liabilities | 6,775 | |||||
Other non-current liabilities—affiliate | 846 | |||||
Member’s equity | 10,773,544 | 10,060,816 | ||||
Total liabilities and member’s equity | 11,102,531 | 10,286,771 | ||||
Eliminations [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Accounts and other receivables | 0 | 0 | ||||
Accounts receivable—affiliate | 0 | 0 | ||||
Advances to affiliate | 0 | 0 | ||||
Inventory | 0 | 0 | ||||
Derivative assets | 0 | 0 | ||||
Derivative assets—related party | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Other current assets—affiliate | (2) | (1) | ||||
Total current assets | (2) | (1) | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Debt issuance and deferred financing costs, net | 0 | 0 | ||||
Non-current derivative assets | 0 | 0 | ||||
Non-current derivative assets—related party | 0 | 0 | ||||
Investments in subsidiaries | (10,968,324) | (10,194,296) | ||||
Other non-current assets, net | 0 | 0 | ||||
Total assets | (10,968,326) | (10,194,297) | ||||
Current liabilities | ||||||
Accounts payable | 0 | 0 | ||||
Accrued liabilities | 0 | 0 | ||||
Accrued liabilities—related party | 0 | |||||
Current debt | 0 | |||||
Due to affiliates | 0 | 0 | ||||
Derivative liabilities | 0 | 0 | ||||
Other current liabilities | 0 | |||||
Other current liabilities—affiliate | 0 | |||||
Total current liabilities | 0 | 0 | ||||
Long-term debt, net | 0 | 0 | ||||
Non-current derivative liabilities | 0 | 0 | ||||
Deferred tax liabilities | (3,645) | (2,008) | ||||
Other non-current liabilities | 0 | |||||
Other non-current liabilities—affiliate | 0 | |||||
Member’s equity | (10,964,681) | (10,192,289) | ||||
Total liabilities and member’s equity | $ (10,968,326) | $ (10,194,297) |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||||
Revenues | $ 300,073 | $ 0 | $ 406,154 | $ 0 | ||
Revenues from contracts with customers | 300,958 | 0 | 406,228 | 0 | ||
Operating costs and expenses | ||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 181,136 | 1,031 | 238,665 | 1,147 | ||
Cost of sales—related party | 24,230 | 0 | 35,753 | 0 | ||
Operating and maintenance expense | 60,817 | 1,103 | 92,672 | 1,953 | ||
Operating and maintenance expense—affiliate | 15,459 | 551 | 20,706 | 1,017 | ||
Development expense | 532 | 89 | 532 | 123 | ||
Development expense—affiliate | 38 | 0 | 38 | 0 | ||
General and administrative expense | 1,542 | 1,185 | 3,079 | 2,035 | ||
General and administrative expense—affiliate | 2,407 | 595 | 3,562 | 998 | ||
Depreciation and amortization expense | 57,300 | 1,387 | 79,624 | 1,758 | ||
Impairment expense and loss on disposal of assets | 0 | 0 | 313 | 0 | ||
Total operating costs and expenses | 343,461 | 5,941 | 474,944 | 9,031 | ||
Loss from operations | (43,388) | (5,941) | (68,790) | (9,031) | ||
Other income (expense) | ||||||
Interest expense, net of capitalized interest | (73,052) | 0 | (84,810) | 0 | ||
Loss on modification or extinguishment of debt | 0 | (15,332) | 0 | (15,332) | ||
Derivative gain (loss), net | (73,821) | 28,566 | (108,908) | 97,415 | ||
Other income (expense) | 1,354 | 26 | 2,324 | (41) | ||
Total other income (expense) | (145,519) | 13,260 | (191,394) | 82,042 | ||
Loss before income taxes | (188,907) | 7,319 | (260,184) | 73,011 | ||
Income tax provision | 0 | 0 | 0 | 0 | ||
Net income (loss) | (188,907) | $ (71,277) | 7,319 | $ 65,692 | (260,184) | 73,011 |
LNG [Member] | ||||||
Revenues | ||||||
Revenues | 118,525 | 0 | 131,581 | 0 | ||
Revenues from contracts with customers | 119,410 | 0 | 131,655 | 0 | ||
LNG—affiliate [Member] | ||||||
Revenues | ||||||
Revenues from contracts with customers | 181,548 | 0 | 274,573 | 0 | ||
Parent Issuer [Member] | ||||||
Revenues | ||||||
Revenues | 0 | 0 | ||||
Revenues from contracts with customers | 0 | |||||
Operating costs and expenses | ||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 0 | 0 | 0 | 0 | ||
Cost of sales—related party | 0 | 0 | ||||
Operating and maintenance expense | 0 | 0 | 0 | 0 | ||
Operating and maintenance expense—affiliate | 0 | 0 | 0 | 0 | ||
Development expense | 0 | 0 | 0 | 0 | ||
Development expense—affiliate | 0 | 0 | ||||
General and administrative expense | 486 | 450 | 897 | 549 | ||
General and administrative expense—affiliate | 0 | 0 | 0 | 0 | ||
Depreciation and amortization expense | 6,079 | 12 | 8,144 | 25 | ||
Impairment expense and loss on disposal of assets | 0 | |||||
Total operating costs and expenses | 6,565 | 462 | 9,041 | 574 | ||
Loss from operations | (6,565) | (462) | (9,041) | (574) | ||
Other income (expense) | ||||||
Interest expense, net of capitalized interest | (73,052) | (84,810) | ||||
Loss on modification or extinguishment of debt | (15,332) | (15,332) | ||||
Derivative gain (loss), net | (73,821) | 28,566 | (108,908) | 97,415 | ||
Other income (expense) | 1,285 | 25 | 2,178 | (43) | ||
Total other income (expense) | (145,588) | 13,259 | (191,540) | 82,040 | ||
Loss before income taxes | (152,153) | 12,797 | (200,581) | 81,466 | ||
Income tax provision | 0 | 0 | 0 | 0 | ||
Net income (loss) | (152,153) | 12,797 | (200,581) | 81,466 | ||
Parent Issuer [Member] | LNG [Member] | ||||||
Revenues | ||||||
Revenues | 0 | 0 | ||||
Parent Issuer [Member] | LNG—affiliate [Member] | ||||||
Revenues | ||||||
Revenues from contracts with customers | 0 | 0 | 0 | |||
Guarantors [Member] | ||||||
Revenues | ||||||
Revenues | 300,073 | 406,154 | ||||
Revenues from contracts with customers | 0 | |||||
Operating costs and expenses | ||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 181,136 | 1,031 | 238,665 | 1,147 | ||
Cost of sales—related party | 24,230 | 35,753 | ||||
Operating and maintenance expense | 60,817 | 1,103 | 92,672 | 1,953 | ||
Operating and maintenance expense—affiliate | 15,459 | 551 | 20,706 | 1,017 | ||
Development expense | 532 | 89 | 532 | 123 | ||
Development expense—affiliate | 38 | 38 | ||||
General and administrative expense | 1,056 | 735 | 2,182 | 1,486 | ||
General and administrative expense—affiliate | 2,407 | 595 | 3,562 | 998 | ||
Depreciation and amortization expense | 51,221 | 1,375 | 71,480 | 1,733 | ||
Impairment expense and loss on disposal of assets | 313 | |||||
Total operating costs and expenses | 336,896 | 5,479 | 465,903 | 8,457 | ||
Loss from operations | (36,823) | (5,479) | (59,749) | (8,457) | ||
Other income (expense) | ||||||
Interest expense, net of capitalized interest | 0 | 0 | ||||
Loss on modification or extinguishment of debt | 0 | 0 | ||||
Derivative gain (loss), net | 0 | 0 | 0 | 0 | ||
Other income (expense) | 81 | 3,277 | 230 | 7,753 | ||
Total other income (expense) | 81 | 3,277 | 230 | 7,753 | ||
Loss before income taxes | (36,742) | (2,202) | (59,519) | (704) | ||
Income tax provision | (2,541) | (328) | (1,637) | (1,225) | ||
Net income (loss) | (39,283) | (2,530) | (61,156) | (1,929) | ||
Guarantors [Member] | LNG [Member] | ||||||
Revenues | ||||||
Revenues | 118,525 | 131,581 | ||||
Guarantors [Member] | LNG—affiliate [Member] | ||||||
Revenues | ||||||
Revenues from contracts with customers | 181,548 | 0 | 274,573 | |||
Eliminations [Member] | ||||||
Revenues | ||||||
Revenues | 0 | 0 | ||||
Revenues from contracts with customers | 0 | |||||
Operating costs and expenses | ||||||
Cost of sales (excluding depreciation and amortization expense shown separately below) | 0 | 0 | 0 | 0 | ||
Cost of sales—related party | 0 | 0 | ||||
Operating and maintenance expense | 0 | 0 | 0 | 0 | ||
Operating and maintenance expense—affiliate | 0 | 0 | 0 | 0 | ||
Development expense | 0 | 0 | 0 | 0 | ||
Development expense—affiliate | 0 | 0 | ||||
General and administrative expense | 0 | 0 | 0 | 0 | ||
General and administrative expense—affiliate | 0 | 0 | 0 | 0 | ||
Depreciation and amortization expense | 0 | 0 | 0 | 0 | ||
Impairment expense and loss on disposal of assets | 0 | |||||
Total operating costs and expenses | 0 | 0 | 0 | 0 | ||
Loss from operations | 0 | 0 | 0 | 0 | ||
Other income (expense) | ||||||
Interest expense, net of capitalized interest | 0 | 0 | ||||
Loss on modification or extinguishment of debt | 0 | 0 | ||||
Derivative gain (loss), net | 0 | 0 | 0 | 0 | ||
Other income (expense) | (12) | (3,276) | (84) | (7,751) | ||
Total other income (expense) | (12) | (3,276) | (84) | (7,751) | ||
Loss before income taxes | (12) | (3,276) | (84) | (7,751) | ||
Income tax provision | 2,541 | 328 | 1,637 | 1,225 | ||
Net income (loss) | 2,529 | (2,948) | 1,553 | $ (6,526) | ||
Eliminations [Member] | LNG [Member] | ||||||
Revenues | ||||||
Revenues | 0 | 0 | ||||
Eliminations [Member] | LNG—affiliate [Member] | ||||||
Revenues | ||||||
Revenues from contracts with customers | $ 0 | $ 0 | $ 0 |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (52,986) | $ (14,126) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (839,498) | (1,202,502) |
Investments in subsidiaries | 0 | 0 |
Distributions received from affiliates | 0 | |
Other | (2,143) | 3,789 |
Net cash used in investing activities | (841,641) | (1,198,713) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 1,371,674 | 1,675,800 |
Repayments of debt | (558,000) | (281,455) |
Debt issuance and deferred financing costs | (639) | (45,402) |
Loss on modification or extinguishment of debt | 0 | (7,956) |
Capital contributions | 71,621 | 323,415 |
Distributions | 0 | |
Net cash provided by financing activities | 884,656 | 1,664,402 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (9,971) | 451,563 |
Cash, cash equivalents and restricted cash—beginning of period | 289,141 | 226,559 |
Cash, cash equivalents and restricted cash—end of period | 279,170 | 678,122 |
Parent Issuer [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (16,351) | (5,975) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (87,327) | (201,944) |
Investments in subsidiaries | (1,313,687) | (1,005,925) |
Distributions received from affiliates | 521,518 | |
Other | 0 | 0 |
Net cash used in investing activities | (879,496) | (1,207,869) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 1,371,674 | 1,675,800 |
Repayments of debt | (558,000) | (281,455) |
Debt issuance and deferred financing costs | (639) | (45,402) |
Loss on modification or extinguishment of debt | (7,956) | |
Capital contributions | 71,621 | 323,415 |
Distributions | 0 | |
Net cash provided by financing activities | 884,656 | 1,664,402 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (11,191) | 450,558 |
Cash, cash equivalents and restricted cash—beginning of period | 282,248 | 226,559 |
Cash, cash equivalents and restricted cash—end of period | 271,057 | 677,117 |
Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (18,351) | (8,151) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (752,171) | (1,000,558) |
Investments in subsidiaries | 0 | 0 |
Distributions received from affiliates | 0 | |
Other | (2,143) | 3,789 |
Net cash used in investing activities | (754,314) | (996,769) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Debt issuance and deferred financing costs | 0 | 0 |
Loss on modification or extinguishment of debt | 0 | |
Capital contributions | 1,313,687 | 1,005,925 |
Distributions | (539,802) | |
Net cash provided by financing activities | 773,885 | 1,005,925 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,220 | 1,005 |
Cash, cash equivalents and restricted cash—beginning of period | 6,893 | 0 |
Cash, cash equivalents and restricted cash—end of period | 8,113 | 1,005 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash used in operating activities | (18,284) | 0 |
Cash flows from investing activities | ||
Property, plant and equipment, net | 0 | 0 |
Investments in subsidiaries | 1,313,687 | 1,005,925 |
Distributions received from affiliates | (521,518) | |
Other | 0 | 0 |
Net cash used in investing activities | 792,169 | 1,005,925 |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Debt issuance and deferred financing costs | 0 | 0 |
Loss on modification or extinguishment of debt | 0 | |
Capital contributions | (1,313,687) | (1,005,925) |
Distributions | 539,802 | |
Net cash provided by financing activities | (773,885) | (1,005,925) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash—beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash—end of period | $ 0 | $ 0 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Condensed Consolidating Statements of Cash Flows - Balances per Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 279,170 | 289,141 | ||
Total cash, cash equivalents and restricted cash | 279,170 | 289,141 | $ 678,122 | $ 226,559 |
Parent Issuer [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 271,057 | 282,248 | ||
Total cash, cash equivalents and restricted cash | 271,057 | 282,248 | 677,117 | 226,559 |
Guarantors [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 8,113 | 6,893 | ||
Total cash, cash equivalents and restricted cash | 8,113 | 6,893 | 1,005 | 0 |
Eliminations [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents and restricted cash | $ 0 | $ 0 | $ 0 | $ 0 |