Exhibit 99.1
Cheniere Energy Partners Reports Second Quarter 2007 Results
HOUSTON--(BUSINESS WIRE)--Aug. 8, 2007--Cheniere Energy Partners,
L.P. (AMEX:CQP) reported a net loss of $12.0 million, or $0.07 per
limited partner unit (basic and diluted), for the second quarter of
2007. Cheniere Energy Partners ("Cheniere Partners") commenced
operations on March 26, 2007 upon successful completion of its initial
public offering and the concurrent contribution by its parent,
Cheniere Energy, Inc. (AMEX:LNG), of a 100% interest in the 4 billion
cubic feet per day Sabine Pass liquefied natural gas ("LNG") receiving
terminal currently under construction on the Sabine Pass Channel in
western Cameron Parish, Louisiana. To date, phase one of the terminal
project is 82.4% complete. Construction on the second phase commenced
in July 2006 and the project continues to progress as planned.
Cheniere Partners' operations for the three-months ended June 30,
2006 resulted in a net loss of $1.7 million. The net loss increase in
2007 is directly related to the $2.032 billion senior notes issued by
Cheniere Partners' wholly-owned subsidiary, Sabine Pass LNG, L.P.
("Sabine Pass") in November 2006.
Cheniere Partners reported restricted cash and securities totaling
$1.0 billion as of June 30, 2007, including $619.6 million set aside
to complete the construction of the Sabine Pass LNG receiving
terminal, $280.9 million for interest payments relating to the Sabine
Pass senior notes and $97.8 million as a reserve for distributions to
the Cheniere Partners' common unit holders.
Cheniere Energy Partners, L.P. is a Delaware limited partnership.
Through its wholly-owned subsidiary, Sabine Pass LNG, L.P., the
partnership is developing an LNG receiving terminal located in western
Cameron Parish, Louisiana on the Sabine Pass Channel scheduled to
commence operations in the second quarter of 2008. Additional
information about Cheniere Energy Partners, L.P. may be found on its
web site at www.cheniereenergypartners.com.
For additional information, please refer to the Cheniere Energy
Partners, L.P. Quarterly Report on Form 10-Q for the period ended June
30, 2007, filed with the Securities and Exchange Commission.
This press release contains certain statements that may include
"forward-looking statements" within the meanings of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. All statements, other than statements of historical facts,
included herein are "forward-looking statements." Included among
"forward-looking statements" are, among other things, (i) statements
regarding Cheniere Energy Partners' business strategy, plans and
objectives and (ii) statements expressing beliefs and expectations
regarding the development of Cheniere Energy Partners' LNG receiving
terminal business. Although Cheniere Energy Partners believes that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties, and
these expectations may prove to be incorrect. Cheniere Energy
Partners' actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in Cheniere Energy
Partners' periodic reports that are filed with and available from the
Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as of
the date of this press release. Other than as required under the
securities laws, Cheniere Energy Partners does not assume a duty to
update these forward-looking statements.
(Financial Table Follows)
Cheniere Energy Partners, L.P.
Selected Financial Information
(in thousands, except per unit data) (1)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2007 (2) 2006 (3) 2007 (2) 2006 (3)
--------- -------- --------- --------
Revenues $ -- $ -- $ -- $ --
Operating costs and expenses
Land Site Rental 370 390 771 771
Depreciation, Depletion and
Amortization 43 12 64 22
Labor and Overhead Charged
from Affiliate 2,268 1,082 3,592 2,108
Other 193 423 333 599
--------- -------- --------- --------
Total Operating Costs
and Expenses 2,874 1,907 4,760 3,500
--------- -------- --------- --------
Loss from Operations (2,874) (1,907) (4,760) (3,500)
Interest Expense (23,666) -- (49,483) --
Interest Income 14,549 23 29,394 72
Derivative Gain -- 162 -- 923
--------- -------- --------- --------
Net Loss $(11,991) $(1,722) $(24,849) $(2,505)
========= ======== ========= ========
Less:
Net loss through March 25, 2007 (12,128)
---------
Net loss to partners from March
26, 2007 through March 31, 2007 $(12,721)
=========
Allocation of Net Loss to
Partners:
Limited Partners' Interest (11,751) (12,467)
General Partner's Interest (240) (254)
--------- ---------
Net Loss to Partners $(11,991) $(12,721)
========= =========
Basin and diluted net loss per
limited partner unit $ 0.07 $ 0.08
========= =========
Weighted average limited
partners units outstanding used
for basic and diluted net loss
per unit calculation:
Common units 26,416 26,416
Subordinated units 135,384 135,384
June 30, December 31,
2007 (4) 2006 (5)
------------- -------------
(Unaudited)
Cash and Cash Equivalents $ 19 $ 7
Restricted Cash and Cash Equivalents 179,944 176,324
Other Current Assets 7,091 5,990
Non-Current Restricted Cash, Cash
Equivalents and Treasury Securities 818,416 982,613
Property, Plant and Equipment, Net 879,145 651,676
Debt Issuance Costs, Net 31,708 33,970
Other Assets 19,056 7,534
------------- -------------
Total Assets $ 1,935,379 $1,858,114
============= =============
Current Liabilities $ 41,943 $ 38,303
Long-Term Debt 2,032,079 2,032,000
Deferred Revenue 40,000 40,000
Other Liabilities 1,859 1,149
Total Partner's Deficit (180,502) (253,338)
------------- -------------
Total Liabilities and Partners' Deficit $ 1,935,379 $1,858,114
============= =============
(1) Please refer to Cheniere Energy Partners, L.P. Quarterly
Report on Form 10-Q for the period ended June 30, 2007, filed with the
Securities and Exchange Commission.
(2) Consolidated operating results of Cheniere Energy Partners,
L.P. and its consolidated subsidiaries for the three months ended June
30, 2007. Combined operating results of Cheniere Energy Partners,
L.P., Cheniere Energy Investments, LLC, Sabine Pass LNG-GP, Inc.,
Sabine Pass LNG-LP, LLC and Sabine Pass LNG, L.P. for the six months
ended June 30, 2007.
(3) Combined operating results of Sabine Pass LNG-GP, Inc., Sabine
Pass LNG-LP, LLC and Sabine Pass LNG, L.P. for the three and six
months ended June 30, 2006.
(4) Consolidated balance sheet of Cheniere Energy Partners, L.P.
and its consolidated subsidiaries at June 30, 2007.
(5) Combined balance sheet of Cheniere Energy Partners, L.P.,
Cheniere Energy Investments, LLC, Sabine Pass LNG-GP, Inc., Sabine
Pass LNG-LP, LLC and Sabine Pass LNG, L.P. at December 31, 2006.
CONTACT: Cheniere Energy Partners, L.P., Houston
Investor Relations:
Christina Cavarretta, 713-375-5100