August 9, 2018 - 8:00 AM EDT
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Cheniere Partners Holdings Reports Second Quarter 2018 Results and Reconfirms Full Year 2018 Dividend Guidance

HOUSTON

Cheniere Energy Partners LP Holdings, LLC (“Cheniere Partners Holdings”) (NYSE American: CQH) reported net income of $125.0 million, or $0.54 per common share, for the three months ended June 30, 2018, compared to net income of $4.5 million, or $0.02 per common share, for the comparable 2017 period.

Cheniere Partners Holdings reported net income of $247.8 million, or $1.07 per common share, for the six months ended June 30, 2018, compared to net income of $9.0 million, or $0.04 per common share, for the comparable 2017 period.

Results include the distributions received from our limited partner interest in Cheniere Energy Partners, L.P. (“Cheniere Partners”), a publicly traded limited partnership (NYSE American: CQP).

The increase in net income for the three and six months ended June 30, 2018, compared to the three and six months ended June 30, 2017, was driven by increased equity income from our investment in Cheniere Partners primarily as a result of distributions being paid to our subordinated units, an increase in common units held by us subsequent to the conversion of Class B units into common units on August 2, 2017, and an increase in quarterly distributions per unit received from Cheniere Partners.

Our only business consists of owning Cheniere Partners common units and subordinated units representing an aggregate approximately 48.6% limited partner interest in Cheniere Partners as of June 30, 2018.

In June 2018, we reached a definitive agreement with Cheniere Energy, Inc. (“Cheniere”) (NYSE American: LNG) under which Cheniere will acquire all of the publicly-held shares of Cheniere Partners Holdings not already owned by Cheniere in a stock for share transaction pursuant to which our shareholders will receive a fixed exchange ratio of 0.4750 shares of Cheniere common stock for each outstanding publicly-held share of Cheniere Partners Holdings. The transaction is expected to close by the end of third quarter 2018, subject to customary closing conditions. Upon consummation of the transaction, Cheniere Partners Holdings will merge with and into a wholly owned subsidiary of Cheniere.

     

Summary 2018 Full Year Dividend Guidance

2018
Dividend per Share $ 2.25   -   $ 2.35
       

SPL Project Update

 
SPL Project
Liquefaction Train         Train 5     Train 6
Project Status Commissioning     Permitted
Project Completion Percentage(1) 95.1%
Expected Substantial Completion 1H 2019
 
Note: Project update excludes Trains in operation
(1) Project completion percentage as of June 30, 2018
 

Through Cheniere Partners, we are developing up to six natural gas liquefaction Trains (“Trains”) at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the “SPL Project”). Each Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 million tonnes per annum (“mtpa”) of LNG and an adjusted nominal production capacity of approximately 4.3 to 4.6 mtpa of LNG. Trains 1 through 4 are operational, Train 5 is undergoing commissioning, and Train 6 is being commercialized and has all necessary regulatory approvals in place.

Dividends

When Cheniere Partners makes cash distributions to us with respect to our Cheniere Partners units, we will pay dividends to our shareholders consisting of the cash that we receive from Cheniere Partners, less income taxes and reserves established by our Board of Directors.

Investor Conference Call and Webcast

Cheniere Energy, Inc. will host a conference call to discuss its financial and operating results for the second quarter on Thursday, August 9, 2018, at 10 a.m. Eastern time / 9 a.m. Central time. A listen-only webcast of the call and an accompanying slide presentation may be accessed through our website at www.cheniere.com. Following the call, an archived recording will be made available on our website. The call and accompanying slide presentation may include financial and operating results or other information regarding Cheniere Partners Holdings.

About Cheniere Partners Holdings

Cheniere Partners Holdings owns an approximately 48.6% limited partner interest in Cheniere Partners as of June 30, 2018. Cheniere Partners Holdings’ only business consists of owning Cheniere Partners units and, accordingly, its results of operations and financial condition are dependent on the performance of Cheniere Partners. Cheniere Partners is constructing and operating natural gas liquefaction facilities at the Sabine Pass LNG terminal. Cheniere Partners plans to construct up to six natural gas liquefaction Trains, which are in various stages of development, construction, and operations. Trains 1 through 4 are operational, Train 5 is undergoing commissioning, and Train 6 is being commercialized and has all necessary regulatory approvals in place. Each liquefaction Train is expected to have a nominal production capacity, which is prior to adjusting for planned maintenance, production reliability, and potential overdesign, of approximately 4.5 mtpa of LNG and an adjusted nominal production capacity of approximately 4.3 to 4.6 mtpa of LNG. Cheniere Partners also owns and operates regasification facilities at the Sabine Pass LNG terminal and the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines.

For additional information, please refer to the Cheniere Partners Holdings website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, filed with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ and Cheniere Partners Holdings’ business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding expectations regarding regulatory authorizations and approvals, (iii) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (iv) statements regarding the business operations and prospects of third parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, and (viii) statements regarding the anticipated completion of the proposed transaction with Cheniere and the timing thereof. Although Cheniere Partners Holdings 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 Partners Holdings’ 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 Partners Holdings’ 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 Partners Holdings does not assume a duty to update these forward-looking statements.

(Financial Tables Follow)

       

CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share data) (1)

(unaudited)

 
Three Months Ended Six Months Ended
June 30, June 30,
2018     2017 2018     2017
Equity income from investment in Cheniere Partners $ 131,930 $ 5,085 $ 251,866 $ 10,169
 
Expenses
General and administrative expense 2,760 345 3,109 691
General and administrative expense—affiliate 269   263   538   527
Total expenses 3,029   608   3,647   1,218
 
Income before income taxes 128,901 4,477 248,219 8,951
Income tax provision (3,907 ) (419 )
       
Net income $ 124,994   $ 4,477   $ 247,800   $ 8,951
 
Net income per common share—basic and diluted $ 0.54   $ 0.02   $ 1.07   $ 0.04
 

Weighted average number of common shares outstanding—basic and diluted

231,700 231,700 231,700 231,700
 
Cash dividends declared per common share $ 0.560   $ 0.020   $ 1.070   $ 0.040

____________________________

(1)

 

Please refer to the Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, filed with the Securities and Exchange Commission.

       

CHENIERE ENERGY PARTNERS LP HOLDINGS, LLC

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts) (1)

 
June 30, December 31,
2018 2017
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 329 $ 659
Prepaid and other current assets 326   55  
Total current assets 655 714
 
Deferred tax asset, net 224    
Total assets $ 879   $ 714  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 360 $ 76
 
Shareholders’ equity
Common shares: unlimited shares authorized, 231.7 million shares issued and outstanding at June 30, 2018 and December 31, 2017 664,931 664,931
Director voting share: 1 share authorized, issued and outstanding at June 30, 2018 and December 31, 2017
Additional paid-in-capital (271,757 ) (271,757 )
Accumulated deficit (392,655 ) (392,536 )
Total shareholders’ equity 519   638  
Total liabilities and shareholders’ equity $ 879   $ 714  

__________________________________

(1)   Please refer to the Cheniere Energy Partners LP Holdings, LLC Quarterly Report on Form 10-Q for the quarter ended June 30, 2018, filed with the Securities and Exchange Commission.

Cheniere Energy Partners LP Holdings, LLC
Investors
Randy Bhatia, 713-375-5479
Megan Light, 713-375-5492
or
Media Relations
Eben Burnham-Snyder, 713-375-5764


Source: Business Wire (August 9, 2018 - 8:00 AM EDT)

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