Post Earnings Coverage as Cheniere's Revenue Rocketed an Astonishing 1654%; Turns Profitable
Upcoming AWS Coverage on Spectra Energy Partners Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on Cheniere Energy, Inc. (NYSE: LNG). The Company announced its first quarter fiscal 2017 financial results on May 04, 2017. The natural gas Company blew past earnings and revenue forecasts. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Cheniere Energy's competitors within the Oil & Gas Pipelines space, Spectra Energy Partners, L.P. (NYSE: SEP), reported on May 10, 2017, its Q1 2017 financial results. AWS will be initiating a research report on Spectra Energy Partners in the coming days.
Today, AWS is promoting its earnings coverage on LNG; touching on SEP. Get our free coverage by signing up to: http://www.activewallst.com/register/.
Earnings Reviewed
For the quarter ended March 31, 2017, Cheniere's total revenues increased $1.14 billion to $1.21 billion compared to revenue of $69 million in Q1 2016, primarily as a result of the commencement of operations at the SPL Project in May 2016 upon the substantial completion of Train 1, followed by the substantial completion of Trains 2 and 3 in September 2016 and March 2017, respectively.
Cheniere's consolidated adjusted EBITDA for Q1 2017 was $483 million compared to a loss of $45 million for Q1 2016. The increase in consolidated adjusted EBITDA was primarily due to increased income from operations.
During Q1 2017, Cheniere's total operating costs and expenses increased $675 million to $835 million compared to $160 million in Q1 2016, primarily as a result of the commencement of operations at the SPL Project. The Company's depreciation and amortization expense increased to $74 million in the reported quarter as it began depreciation of its assets related to Trains 1 through 3 of the SPL Project upon reaching substantial completion.
Cheniere reported net income of $54 million, or $0.23 per share, for Q1 2017 compared to a net loss of $321 million, or $1.41 per share, for Q1 2016. The increase in net income was primarily due to increased income from operations and decreased derivative loss, partially offset by increased interest expense and loss on early extinguishment of debt. The Company's earnings numbers surpassed Wall Street's estimates for a loss of $0.37 per share.
Capital Resources
As of March 31, 2017, Cheniere had cash and cash equivalents of $923 million available to the Company. In addition, Cheniere had current and non-current restricted cash of $2.0 billion designated for the following purposes: $1.5 billion for the SPL Project; $143 million for the CCL Project; $225 million for restricted purposes under the terms of Cheniere Partners' credit facilities; and $119 million for other restricted purposes.
Liquefaction Projects
SPL Project: through Cheniere Partners, the Company is developing up to six Trains at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Each Train is expected to have a nominal production capacity of approximately 4.5 million tons per annum ("mtpa") of LNG. Trains 1, 2, and 3 are operational; Train 4 is undergoing commissioning; Train 5 is under construction; and Train 6 is being commercialized and has all necessary regulatory approvals in place.
Cheniere is developing up to three Trains near Corpus Christi, Texas. 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 mtpa of LNG. Trains 1 and 2 are under construction, and Train 3 is being commercialized and has all necessary regulatory approvals in place. Additionally, the Company is developing two additional trains adjacent to the project and has initiated the regulatory approval process with respect to those Trains.
Stock Performance
At the close of trading session on Monday, May 22, 2017, Cheniere Energy's share price finished the trading session at $49.32, slightly down 0.86%. A total volume of 2.08 million shares exchanged hands, which was higher than the 3 months average volume of 1.80 million shares. The stock has soared 4.14% and 30.24% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the Company have surged 19.04%. At Monday's closing price, the stock's net capitalization stands at $11.49 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
