2015 Q4 Form 10-K Financial Statement

#000138365016000087 Filed on February 19, 2016

View on sec.gov

Income Statement

Concept 2015 Q4 2015 2014 Q4
Revenue $67.27M $270.0M $66.56M
YoY Change 1.07% 0.48% -0.66%
Cost Of Revenue $22.10M -$31.00M $14.90M
YoY Change 48.32% 8964.33% 21.14%
Gross Profit $45.10M $301.0M $51.70M
YoY Change -12.77% 11.88% -5.48%
Gross Profit Margin 67.04% 111.48% 77.68%
Selling, General & Admin $45.40M $137.4M $30.50M
YoY Change 48.85% 19.26% -1.29%
% of Gross Profit 100.67% 45.64% 58.99%
Research & Development $400.0K $3.000M $1.100M
YoY Change -63.64% -67.81% -67.65%
% of Gross Profit 0.89% 1.0% 2.13%
Depreciation & Amortization $18.10M $66.00M $14.80M
YoY Change 22.3% 12.63% 3.5%
% of Gross Profit 40.13% 21.93% 28.63%
Operating Expenses $63.90M $267.0M $46.40M
YoY Change 37.72% -0.44% -4.53%
Operating Profit -$18.74M $3.000M $5.275M
YoY Change -455.24% 482.52% -2.82%
Interest Expense -$37.40M $185.0M -$76.30M
YoY Change -50.98% 4.5% 362.42%
% of Operating Profit 6166.67% -1446.45%
Other Income/Expense, Net $100.0K -$322.0M $200.0K
YoY Change -50.0% -21.57% 0.0%
Pretax Income -$56.00M -$318.9M -$70.80M
YoY Change -20.9% -22.22% 15.5%
Income Tax
% Of Pretax Income
Net Earnings -$56.04M -$319.0M -$70.84M
YoY Change -20.89% -22.2% 15.63%
Net Earnings / Revenue -83.3% -118.15% -106.43%
Basic Earnings Per Share $0.01
Diluted Earnings Per Share -$0.09 -$944.0K -$209.6K
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q4 2015 2014 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $146.0M $146.2M $249.0M
YoY Change -41.37% -41.28% -29.06%
Cash & Equivalents $146.2M $146.2M $248.8M
Short-Term Investments
Other Short-Term Assets $14.18M $288.7M $199.0M
YoY Change -92.87% 40.16% -16.03%
Inventory $16.67M $16.67M $7.786M
Prepaid Expenses
Receivables $742.0K $41.11M $333.0K
Other Receivables $0.00 $741.0K $0.00
Total Short-Term Assets $493.5M $493.5M $486.5M
YoY Change 1.43% 1.33% -20.65%
LONG-TERM ASSETS
Property, Plant & Equipment $11.93B $11.93B $8.978B
YoY Change 32.89% 32.9% 40.64%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $232.0M $408.1M $124.5M
YoY Change 86.34% -55.79% 50.76%
Total Long-Term Assets $12.34B $12.34B $9.901B
YoY Change 24.63% 24.63% 25.27%
TOTAL ASSETS
Total Short-Term Assets $493.5M $493.5M $486.5M
Total Long-Term Assets $12.34B $12.34B $9.901B
Total Assets $12.83B $12.83B $10.39B
YoY Change 23.54% 23.54% 21.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.41M $16.41M $8.598M
YoY Change 90.82% 82.3% -15.26%
Accrued Expenses $224.3M $224.3M $136.6M
YoY Change 64.22% 63.72% -19.68%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.673B $1.673B $0.00
YoY Change
Total Short-Term Liabilities $2.063B $2.063B $214.8M
YoY Change 860.63% 859.54% -19.23%
LONG-TERM LIABILITIES
Long-Term Debt $10.02B $10.02B $8.991B
YoY Change 11.42% 11.43% 36.72%
Other Long-Term Liabilities $175.0K $38.88M $2.452M
YoY Change -92.86% -23.76% 1170.47%
Total Long-Term Liabilities $10.02B $10.06B $8.994B
YoY Change 11.39% 11.23% 36.76%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.063B $2.063B $214.8M
Total Long-Term Liabilities $10.02B $10.06B $8.994B
Total Liabilities $12.08B $12.12B $9.209B
YoY Change 31.2% 30.93% 34.58%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $713.0M $712.9M $1.131B
YoY Change
Total Liabilities & Shareholders Equity $12.83B $12.83B $10.39B
YoY Change 23.54% 23.54% 21.97%

Cashflow Statement

Concept 2015 Q4 2015 2014 Q4
OPERATING ACTIVITIES
Net Income -$56.04M -$319.0M -$70.84M
YoY Change -20.89% -22.2% 15.63%
Depreciation, Depletion And Amortization $18.10M $66.00M $14.80M
YoY Change 22.3% 12.63% 3.5%
Cash From Operating Activities $6.600M -$171.0M $34.50M
YoY Change -80.87% 24.78% -33.4%
INVESTING ACTIVITIES
Capital Expenditures -$781.1M $2.913B -$677.4M
YoY Change 15.31% 10.11% -78.29%
Acquisitions $0.00
YoY Change
Other Investing Activities $775.2M $62.00M $663.8M
YoY Change 16.78% 59.47% -78.69%
Cash From Investing Activities -$5.900M -$2.975B -$13.60M
YoY Change -56.62% 10.82% 138.6%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $0.00
YoY Change -100.0%
Cash From Financing Activities -25.00M $2.591B 74.10M
YoY Change -133.74% 17.41% -118.04%
NET CHANGE
Cash From Operating Activities 6.600M -$171.0M 34.50M
Cash From Investing Activities -5.900M -$2.975B -13.60M
Cash From Financing Activities -25.00M $2.591B 74.10M
Net Change In Cash -24.30M -$555.0M 95.00M
YoY Change -125.58% -9.72% -126.05%
FREE CASH FLOW
Cash From Operating Activities $6.600M -$171.0M $34.50M
Capital Expenditures -$781.1M $2.913B -$677.4M
Free Cash Flow $787.7M -$3.084B $711.9M
YoY Change 10.65% 10.83% -77.56%

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19008000 USD
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24461000 USD
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0.02
CY2015 us-gaap Limited Liability Company Llc Or Limited Partnership Lp Managing Member Or General Partner Ownership Interest
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0.02
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0 USD
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21297000 USD
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0 USD
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0 USD
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180000000 USD
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100000000 USD
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177000000 USD
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0 USD
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9319000 USD
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2850000 USD
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195702000 USD
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13650000 USD
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2940000 USD
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2958000 USD
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4391000 USD
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67530000 USD
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84296000 USD
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CY2013 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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54235000 shares
CY2014 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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57079000 shares
CY2015 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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57081000 shares
CY2015 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentration of Credit Risk</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and restricted cash. We maintain cash balances at financial institutions, which may at times be in excess of federally insured levels. We have not incurred losses related to these balances to date.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Our commodity derivative transactions are executed through over-the-counter contracts which are subject to nominal credit risk as these transactions are settled on a daily margin basis with investment grade financial institutions. Collateral deposited for such contracts is recorded as other current asset. Our interest rate derivative instruments are placed with investment grade financial institutions whom we believe are acceptable credit risks. We monitor counterparty creditworthiness on an ongoing basis; however, we cannot predict sudden changes in counterparties&#8217; creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, we may not realize the benefit of some of our derivative instruments.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">SPLNG has entered into </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> long-term TUAs with unaffiliated third parties for regasification capacity at the Sabine Pass LNG terminal. SPLNG is dependent on the respective counterparties&#8217; creditworthiness and their willingness to perform under their respective TUAs. SPLNG has mitigated this credit risk by securing TUAs for a significant portion of its regasification capacity with creditworthy third-party customers with a minimum Standard&#160;&amp; Poor&#8217;s rating of AA.</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">SPL has entered into </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> fixed price </font><font style="font-family:inherit;font-size:10pt;">20</font><font style="font-family:inherit;font-size:10pt;">-year SPAs with </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> unaffiliated third parties. SPL is dependent on the respective counterparties&#8217; creditworthiness and their willingness to perform under their respective SPAs.</font></div></div>
CY2015 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ORGANIZATION AND NATURE OF OPERATIONS</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are a publicly traded Delaware limited partnership (NYSE MKT: CQP) formed by Cheniere. Through our wholly owned subsidiary, SPLNG, we own and operate the regasification facilities at the Sabine Pass LNG terminal </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">located on </font><font style="font-family:inherit;font-size:10pt;">the Sabine-Neches Waterway</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> less than four miles from the Gulf Coast. The Sabine Pass LNG terminal includes existing infrastructure of </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">five</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> LNG storage tanks with capacity of </font><font style="font-family:inherit;font-size:10pt;">approximately </font><font style="font-family:inherit;font-size:10pt;">16.9</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> Bcfe, </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">two</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> docks that can accommodate </font><font style="font-family:inherit;font-size:10pt;">vessels with nominal capacity of</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> up to </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">266,000</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> cubic meters and vaporizers with regasification capacity of approximately </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">4.0</font><font style="font-family:inherit;font-size:10pt;color:#231f20;"> Bcf/d. </font><font style="font-family:inherit;font-size:10pt;">We are developing and constructing </font><font style="font-family:inherit;font-size:10pt;color:#231f20;">natural gas liquefaction facilities (the &#8220;Liquefaction Project&#8221;) at the Sabine Pass LNG terminal adjacent to the existing regasification facilities </font><font style="font-family:inherit;font-size:10pt;">through our wholly owned subsidiary, SPL. We are constructing </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;"> Trains and developing a sixth Train, each of which is expected to have a nominal production capacity of approximately </font><font style="font-family:inherit;font-size:10pt;">4.5</font><font style="font-family:inherit;font-size:10pt;"> mtpa of LNG. We also own a </font><font style="font-family:inherit;font-size:10pt;">94</font><font style="font-family:inherit;font-size:10pt;">-mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines </font><font style="font-family:inherit;font-size:10pt;">(the &#8220;Creole Trail Pipeline&#8221;)</font><font style="font-family:inherit;font-size:10pt;"> through our wholly owned subsidiary, CTPL. </font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of December 31, </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;">, Cheniere owned </font><font style="font-family:inherit;font-size:10pt;">100%</font><font style="font-family:inherit;font-size:10pt;"> of our general partner interest and </font><font style="font-family:inherit;font-size:10pt;">80.1%</font><font style="font-family:inherit;font-size:10pt;"> of Cheniere Holdings, which owned </font><font style="font-family:inherit;font-size:10pt;">12.0 million</font><font style="font-family:inherit;font-size:10pt;"> of our common units, </font><font style="font-family:inherit;font-size:10pt;">45.3 million</font><font style="font-family:inherit;font-size:10pt;"> of our Class B units and </font><font style="font-family:inherit;font-size:10pt;">135.4 million</font><font style="font-family:inherit;font-size:10pt;"> of our subordinated units.</font></div></div>
CY2015 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of Consolidated Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and the accompanying notes. Management evaluates its estimates and related assumptions regularly, including those related to the value of property, plant and equipment, collectability of accounts receivable, derivative instruments, asset retirement obligations (&#8220;AROs&#8221;) and fair value measurements. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates.</font></div></div>

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