2023 Q1 Form 10-K Financial Statement

#000138365023000008 Filed on February 23, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $2.917B $4.725B $17.21B
YoY Change -12.35% 45.03% 82.38%
Cost Of Revenue $596.0M $1.770B $13.10B
YoY Change -78.61% -25.35% 110.73%
Gross Profit $2.321B $2.955B $4.111B
YoY Change 329.02% 233.15% 27.67%
Gross Profit Margin 79.57% 62.54% 23.89%
Selling, General & Admin $25.00M $24.00M $97.00M
YoY Change -3.85% 4.35% 3.19%
% of Gross Profit 1.08% 0.81% 2.36%
Research & Development $0.00
YoY Change -100.0%
% of Gross Profit 0.0%
Depreciation & Amortization $167.0M $165.0M $634.0M
YoY Change 9.15% 17.86% 13.82%
% of Gross Profit 7.2% 5.58% 15.42%
Operating Expenses $192.0M $197.0M $731.0M
YoY Change 7.26% 20.86% 73000.0%
Operating Profit $2.129B $2.758B $3.380B
YoY Change 488.12% 280.94% 32.19%
Interest Expense $208.0M -$229.0M $870.0M
YoY Change 2.46% 17.44% 4.69%
% of Operating Profit 9.77% -8.3% 25.74%
Other Income/Expense, Net -$194.0M $11.00M -$882.0M
YoY Change -4.43% 266.67% -4.85%
Pretax Income $1.935B $2.507B $2.498B
YoY Change 1116.98% 393.5% 53.16%
Income Tax
% Of Pretax Income
Net Earnings $1.935B $2.237B $2.498B
YoY Change 1116.98% 340.35% 53.25%
Net Earnings / Revenue 66.34% 47.34% 14.52%
Basic Earnings Per Share
Diluted Earnings Per Share $3.50 $4.62 $3.27
COMMON SHARES
Basic Shares Outstanding 484.0M shares 484.0M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $834.0M $904.0M $904.0M
YoY Change -27.85% 3.2% 3.2%
Cash & Equivalents $834.0M $904.0M $904.0M
Short-Term Investments
Other Short-Term Assets $44.00M $50.00M $201.0M
YoY Change -52.69% -42.53% -2.43%
Inventory $150.0M $160.0M $160.0M
Prepaid Expenses
Receivables $259.0M $603.0M $1.331B
Other Receivables $10.00M $24.00M $24.00M
Total Short-Term Assets $1.933B $2.620B $2.620B
YoY Change -20.58% 18.44% 18.44%
LONG-TERM ASSETS
Property, Plant & Equipment $16.59B $16.73B $16.81B
YoY Change -1.94% -0.62% -0.67%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $171.0M $163.0M $73.00M
YoY Change -0.58% -5.78% -8.75%
Total Long-Term Assets $16.88B $17.01B $17.01B
YoY Change -1.97% -0.78% -0.78%
TOTAL ASSETS
Total Short-Term Assets $1.933B $2.620B $2.620B
Total Long-Term Assets $16.88B $17.01B $17.01B
Total Assets $18.82B $19.63B $19.63B
YoY Change -4.28% 1.42% 1.42%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $70.00M $32.00M $32.00M
YoY Change 191.67% 52.38% 52.38%
Accrued Expenses $674.0M $1.378B $1.394B
YoY Change -41.85% 28.42% 28.48%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $60.00M $0.00
YoY Change
Total Short-Term Liabilities $1.348B $2.421B $2.421B
YoY Change -15.75% 80.0% 80.0%
LONG-TERM LIABILITIES
Long-Term Debt $16.15B $16.20B $16.22B
YoY Change -6.05% -5.7% -5.59%
Other Long-Term Liabilities $2.257B $3.127B $3.127B
YoY Change -27.29% 2550.0%
Total Long-Term Liabilities $16.15B $16.20B $19.34B
YoY Change -6.05% -5.7% 11.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.348B $2.421B $2.421B
Total Long-Term Liabilities $16.15B $16.20B $19.34B
Total Liabilities $17.49B $18.62B $21.76B
YoY Change -6.87% 0.52% 16.76%
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 -$950.0M -$2.131B -$2.131B
YoY Change
Total Liabilities & Shareholders Equity $18.82B $19.63B $19.63B
YoY Change -4.28% 1.42% 1.42%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $1.935B $2.237B $2.498B
YoY Change 1116.98% 340.35% 53.25%
Depreciation, Depletion And Amortization $167.0M $165.0M $634.0M
YoY Change 9.15% 17.86% 13.82%
Cash From Operating Activities $847.0M $1.707B $4.149B
YoY Change 5.88% 173.56% 81.1%
INVESTING ACTIVITIES
Capital Expenditures $89.00M $95.00M $451.0M
YoY Change 2.3% -162.09% -30.4%
Acquisitions
YoY Change
Other Investing Activities $5.000M $0.00
YoY Change
Cash From Investing Activities -$94.00M -$95.00M -$451.0M
YoY Change 8.05% -37.91% -30.4%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$755.0M -1.799B -$3.676B
YoY Change 91.14% 33.95% 86.03%
NET CHANGE
Cash From Operating Activities $847.0M 1.707B $4.149B
Cash From Investing Activities -$94.00M -95.00M -$451.0M
Cash From Financing Activities -$755.0M -1.799B -$3.676B
Net Change In Cash -$2.000M -187.0M $22.00M
YoY Change -100.63% -78.56% -106.61%
FREE CASH FLOW
Cash From Operating Activities $847.0M $1.707B $4.149B
Capital Expenditures $89.00M $95.00M $451.0M
Free Cash Flow $758.0M $1.612B $3.698B
YoY Change 6.31% 107.46% 125.08%

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CY2022 us-gaap Nature Of Operations
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ORGANIZATION AND NATURE OF OPERATIONS<div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We own the natural gas liquefaction and export facility located in Cameron Parish, Louisiana at Sabine Pass (the “Sabine Pass LNG Terminal”) which has six operational Trains, with Train 6 having achieved substantial completion on February 4, 2022, for a total operational production capacity of approximately 30 mtpa of LNG (the “Liquefaction Project”). The Sabine Pass LNG Terminal also has operational regasification facilities</span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> that include </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">five LNG storage tanks, vaporizers and three marine berths, with the third berth having achieved substantial completion on October 27, 2022. </span><span style="color:#231f20;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We also own</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> a 94-mile pipeline through our subsidiary, CTPL, that interconnects the Sabine Pass LNG Terminal with a number of large interstate and intrastate pipelines (the “Creole Trail Pipeline”).</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have increased available liquefaction capacity at our Liquefaction Project as a result of debottlenecking and other optimization projects. We hold a significant land position at the Sabine Pass LNG Terminal, which provides opportunity for further liquefaction capacity expansion. The development of this site or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before we make a positive final investment decision. </span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of December 31, 2022, Cheniere owned 48.6% of our limited partner interest in the form of 239.9 million of our common units. Cheniere also owns 100% of our general partner interest and our incentive distribution rights (“IDRs”).</span></div>
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of our 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 </span></div>accompanying notes. Management evaluates its estimates and related assumptions regularly, including those related to fair value measurements of derivatives and other instruments, useful lives of property, plant and equipment, certain valuations including leases and asset retirement obligations (“AROs”) as further discussed under the respective sections within this note. Changes in facts and circumstances or additional information may result in revised estimates, and actual results may differ from these estimates.
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<div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Concentration of Credit Risk</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"> </span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject us to a concentration of credit risk consist principally of derivative instruments and accounts receivable related to our long-term SPAs and regasification contracts, each discussed further below. Additionally, we maintain cash balances at financial institutions, which may at times be in excess of federally insured levels. We have not incurred credit losses related to these cash balances to date.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Certain of 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 within margin deposits. We monitor counterparty creditworthiness on an ongoing basis; however, we cannot predict sudden changes in counterparties’ 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.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">SPL has entered into fixed price long-term SPAs generally with terms of 20 years with 11 third parties and has entered into agreements with Cheniere Marketing. SPL is dependent on the respective customers’ creditworthiness and their willingness to perform under their respective SPAs. </span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">See </span><span style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline"><a href="#i4ee9499bf882416ba9ed80fa7e5e2e83_115" style="color:#0000ff;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%;text-decoration:underline">Note 17—Customer Concentration</a></span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> for additional details about our customer concentration.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our arrangements with our customers incorporate certain provisions to mitigate our exposure to credit losses and include, under certain circumstances, customer collateral, netting of exposures through the use of industry standard commercial agreements and, as described above, margin deposits with certain counterparties in the over-the-counter derivative market, with such margin deposits primarily facilitated by independent system operators and by clearing brokers. Payments on margin deposits, either by us or by the counterparty depending on the position, are required when the value of a derivative exceeds our pre-established credit limit with the counterparty. Margin deposits are returned to us (or to the counterparty) on or near the settlement date for non-exchange traded derivatives, and we exchange margin calls on a daily basis for exchange traded transactions.</span></div>
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CY2022Q4 us-gaap Long Term Debt
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CY2021Q4 us-gaap Long Term Debt
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CY2022 us-gaap Interest Expense
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CY2021Q4 cqp Lease Rightof Use Asset
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CY2022Q4 cqp Lease Liability
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CY2021Q4 cqp Lease Liability
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CY2022 us-gaap Lease Cost
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CY2021 us-gaap Lease Cost
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CY2020 us-gaap Lease Cost
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CY2022Q4 us-gaap Finance Lease Liability Payments Due Next Twelve Months
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CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Five
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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CY2022Q4 us-gaap Finance Lease Liability Payments Due After Year Five
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2022Q4 us-gaap Finance Lease Liability Payments Due
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CY2022Q4 us-gaap Finance Lease Liability Undiscounted Excess Amount
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CY2022Q4 us-gaap Operating Lease Liability
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CY2022Q4 us-gaap Finance Lease Liability
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CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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CY2022Q4 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P23Y4M24D
CY2021Q4 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.038
CY2022Q4 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
0.048
CY2021Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.036
CY2021Q4 us-gaap Finance Lease Weighted Average Discount Rate Percent
FinanceLeaseWeightedAverageDiscountRatePercent
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CY2022 us-gaap Operating Lease Payments
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10000000 usd
CY2021 us-gaap Operating Lease Payments
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CY2020 us-gaap Operating Lease Payments
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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0 usd
CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
7000000 usd
CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2020 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022 us-gaap Revenue Not From Contract With Customer
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CY2021 us-gaap Revenue Not From Contract With Customer
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CY2020 us-gaap Revenue Not From Contract With Customer
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CY2022 us-gaap Revenues
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CY2021 us-gaap Revenues
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CY2022 cqp Lng Volume Purchase Price Percentageof Henry Hub
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1.15
CY2022 cqp Regasification Capacity
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CY2022Q4 us-gaap Contract With Customer Asset Net
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CY2021Q4 us-gaap Contract With Customer Asset Net
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2022 cqp Contractwith Customer Liability Additions
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CY2022 us-gaap Contract With Customer Liability Revenue Recognized
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CY2022Q4 us-gaap Contract With Customer Liability
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CY2021Q4 cqp Contract With Customer Liability Affiliate
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CY2022 cqp Contract With Customer Liability Additions Affiliate
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8000000 usd
CY2022 cqp Contract With Customer Liability Revenue Recognized Affiliate
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3000000 usd
CY2022Q4 cqp Contract With Customer Liability Affiliate
ContractWithCustomerLiabilityAffiliate
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CY2022Q4 us-gaap Revenue Remaining Performance Obligation
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53600000000 usd
CY2021Q4 us-gaap Revenue Remaining Performance Obligation
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53300000000 usd
CY2022 us-gaap Affiliate Costs
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213000000 usd
CY2021 us-gaap Affiliate Costs
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84000000 usd
CY2020 us-gaap Affiliate Costs
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77000000 usd
CY2022 us-gaap Related Party Costs
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CY2021 us-gaap Related Party Costs
RelatedPartyCosts
17000000 usd
CY2020 us-gaap Related Party Costs
RelatedPartyCosts
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CY2022Q4 us-gaap Due To Affiliate Current
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74000000 usd
CY2021Q4 us-gaap Due To Affiliate Current
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67000000 usd
CY2022 us-gaap Net Income Loss
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2498000000 usd
CY2022 us-gaap Distribution Made To Limited Partner Cash Distributions Declared
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2982000000 usd
CY2022 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
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CY2021 us-gaap Net Income Loss
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1630000000 usd
CY2021 us-gaap Distribution Made To Limited Partner Cash Distributions Declared
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1486000000 usd
CY2021 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
144000000 usd
CY2020 us-gaap Net Income Loss
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1183000000 usd
CY2020 us-gaap Distribution Made To Limited Partner Cash Distributions Declared
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1375000000 usd
CY2020 us-gaap Undistributed Earnings Loss Allocated To Participating Securities Basic
UndistributedEarningsLossAllocatedToParticipatingSecuritiesBasic
-192000000 usd
CY2022Q4 us-gaap Loss Contingency Pending Claims Number
LossContingencyPendingClaimsNumber
0 item
CY2022 us-gaap Interest Paid Net
InterestPaidNet
777000000 usd
CY2021 us-gaap Interest Paid Net
InterestPaidNet
812000000 usd
CY2020 us-gaap Interest Paid Net
InterestPaidNet
904000000 usd
CY2022 us-gaap Construction In Progress Expenditures Incurred But Not Yet Paid
ConstructionInProgressExpendituresIncurredButNotYetPaid
273000000 usd
CY2021 us-gaap Construction In Progress Expenditures Incurred But Not Yet Paid
ConstructionInProgressExpendituresIncurredButNotYetPaid
324000000 usd
CY2020 us-gaap Construction In Progress Expenditures Incurred But Not Yet Paid
ConstructionInProgressExpendituresIncurredButNotYetPaid
212000000 usd
CY2022 dei Auditor Name
AuditorName
KPMG LLP
CY2022 dei Auditor Location
AuditorLocation
Houston, Texas
CY2022 dei Auditor Firm
AuditorFirmId
185

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