From the company via BusinessWire:
November 08, 2018 08:00 AM Eastern Standard Time
Cheniere Reports Third Quarter 2018 Results and Provides Business and
Guidance Update
Raises 2018 Guidance and Provides 2019 Guidance
Raises Run Rate Production and Financial Guidance
Announces 24-Year LNG Sale and Purchase Agreement with PGNiG
Achieves First LNG Production From Train 5 of SPL Project
Signs EPC Contract with Bechtel for Train 6 of SPL Project and Issues
Limited Notice to Proceed
HOUSTON--(BUSINESS WIRE)--Cheniere Energy, Inc. (NYSE American: LNG):
Strategic
- In November 2018, we entered into a 24-year LNG Sale and Purchase Agreement (“SPA”) with Polish state-owned oil and gas company Polskie Gornictwo Naftowe i Gazownictwo S.A. (“PGNiG”) for the sale of approximately 1.45 million tonnes per annum (“mtpa”) of LNG on a delivered ex-ship basis. Deliveries will commence in 2019, with the full annual quantity commencing in 2023. The purchase price for LNG is indexed to the monthly Henry Hub price, plus a fee.
- In November 2018, Sabine Pass Liquefaction, LLC (“SPL”) entered into an Engineering, Procurement, and Construction (“EPC”) contract with Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) for Train 6 of the SPL Project (defined below). SPL also issued limited notice to proceed to Bechtel to commence early engineering, procurement, and site works.
- In September 2018, we entered into a 15-year LNG SPA with Vitol Inc. (“Vitol”) for the sale of approximately 0.7 mtpa of LNG beginning in 2018.
- In August 2018, we entered into a 25-year LNG SPA with CPC Corporation, Taiwan (“CPC”) for the sale of approximately 2 mtpa of LNG beginning in 2021.
- As of October 31, 2018, more than 215 cargoes have been produced, loaded, and exported from the SPL Project year to date. To date, more than 475 cumulative LNG cargoes have been exported from the SPL Project, with deliveries to 29 countries and regions worldwide.
- In August 2018, feed gas was introduced to Train 1 of the CCL Project (defined below) as part of the commissioning process. In September 2018, feed gas was introduced to Train 5 of the SPL Project as part of the commissioning process, and first LNG production from Train 5 occurred in October 2018.
- For the nine months ended September 30, 2018, we achieved Consolidated Adjusted EBITDA of over $2.0 billion and Distributable Cash Flow of approximately $470 million.
- In September 2018, we closed the previously announced merger of Cheniere Energy Partners LP Holdings, LLC (“Cheniere Partners Holdings”) with our wholly owned subsidiary. As a result of the merger, all of the publicly-held shares of Cheniere Partners Holdings not owned by us were canceled and shareholders received 0.4750 shares of our common stock for each publicly-held share of Cheniere Partners Holdings.
- In September 2018, Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) issued an aggregate principal amount of $1.1 billion of 5.625% Senior Notes due 2026 (the “2026 CQP Senior Notes”). Net proceeds of the offering, after deducting commissions, fees and expenses, were used to prepay all of the outstanding indebtedness under Cheniere Partners’ credit facilities (the “CQP Credit Facilities”). After applying the proceeds from this offering, only a $115 million revolving credit facility remains as part of the CQP Credit Facilities, and both the 2026 CQP Senior Notes and Cheniere Partners’ outstanding $1.5 billion of 5.250% Senior Notes due 2025 became unsecured....
