Current report filing

Supplemental Guarantor Information

v3.8.0.1
Supplemental Guarantor Information
3 Months Ended
Mar. 31, 2018
Supplemental Guarantor Financial Information [Abstract]  
Supplemental Guarantor Information
SUPPLEMENTAL GUARANTOR INFORMATION

Our 2025 CQP Senior Notes are jointly and severally guaranteed by each of our subsidiaries other than SPL and, subject to certain conditions governing the release of its guarantee, Sabine Pass LNG-LP, LLC (the “CQP Guarantors”). These guarantees are full and unconditional, subject to certain customary release provisions including (1) the sale, exchange, disposition or transfer (by merger, consolidation or otherwise) of the capital stock or all or substantially all of the assets of the Guarantors, (2) upon the liquidation or dissolution of a Guarantor, (3) following the release of a Guarantor from its guarantee obligations and (4) upon the legal defeasance or satisfaction and discharge of obligations under the CQP Indenture. See Note 11—Debt of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the year ended December 31, 2017 for additional information regarding the 2025 CQP Senior Notes.

The following is condensed consolidating financial information for CQP (“Parent Issuer”), the CQP Guarantors on a combined basis and SPL (“Non-Guarantor”). We have accounted for investments in subsidiaries using the equity method.

Condensed Consolidating Balance Sheet
March 31, 2018
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$

 
$

 
$

Restricted cash
903

 
13

 
561

 

 
1,477

Accounts and other receivables
1

 
1

 
238

 

 
240

Accounts receivable—affiliate

 
26

 
114

 
(26
)
 
114

Advances to affiliate

 
76

 
91

 
(70
)
 
97

Inventory

 
11

 
72

 

 
83

Other current assets
13

 
3

 
38

 

 
54

Other current assets—affiliate

 

 
22

 
(22
)
 

Total current assets
917

 
130

 
1,136

 
(118
)
 
2,065

 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
79

 
2,157

 
12,933

 
(24
)
 
15,145

Debt issuance costs, net
18

 

 
16

 

 
34

Non-current derivative assets
15

 

 
9

 

 
24

Investments in subsidiaries
2,308

 
180

 

 
(2,488
)
 

Other non-current assets, net

 
38

 
159

 

 
197

Total assets
$
3,337

 
$
2,505

 
$
14,253

 
$
(2,630
)
 
$
17,465

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND PARTNERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
4

 
$
7

 
$

 
$
11

Accrued liabilities
43

 
15

 
451

 

 
509

Due to affiliates

 
94

 
32

 
(96
)
 
30

Deferred revenue

 
26

 
69

 

 
95

Deferred revenue—affiliate

 
22

 

 
(22
)
 

Derivative liabilities

 

 
4

 

 
4

Total current liabilities
43

 
161

 
563

 
(118
)
 
649

 
 
 
 
 
 
 
 
 
 
Long-term debt, net
2,569

 

 
13,483

 

 
16,052

Non-current derivative liabilities

 

 
3

 

 
3

Other non-current liabilities

 
11

 

 

 
11

Other non-current liabilities—affiliate

 
25

 

 

 
25

 
 
 
 
 
 
 
 
 
 
Partners’ equity
725

 
2,308

 
204

 
(2,512
)
 
725

Total liabilities and partners’ equity
$
3,337

 
$
2,505

 
$
14,253

 
$
(2,630
)
 
$
17,465


Condensed Consolidating Balance Sheet
December 31, 2017
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$

 
$

 
$

 
$

 
$

Restricted cash
1,033

 
12

 
544

 

 
1,589

Accounts and other receivables

 
2

 
189

 

 
191

Accounts receivable—affiliate

 
36

 
163

 
(36
)
 
163

Advances to affiliate

 
20

 
26

 
(10
)
 
36

Inventory

 
10

 
85

 

 
95

Other current assets
8

 
3

 
54

 

 
65

Other current assets—affiliate

 

 
21

 
(21
)
 

Total current assets
1,041

 
83

 
1,082

 
(67
)
 
2,139

 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
80

 
2,164

 
12,920

 
(25
)
 
15,139

Debt issuance costs, net
20

 

 
18

 

 
38

Non-current derivative assets
14

 

 
17

 

 
31

Investments in subsidiaries
2,076

 
(63
)
 

 
(2,013
)
 

Other non-current assets, net

 
37

 
169

 

 
206

Total assets
$
3,231

 
$
2,221

 
$
14,206

 
$
(2,105
)
 
$
17,553

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND PARTNERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
4

 
$
8

 
$

 
$
12

Accrued liabilities
23

 
8

 
606

 

 
637

Due to affiliates

 
47

 
66

 
(45
)
 
68

Deferred revenue

 
27

 
84

 

 
111

Deferred revenue—affiliate

 
22

 

 
(21
)
 
1

Other current liabilities—affiliate

 
1

 

 
(1
)
 

Total current liabilities
23

 
109

 
764

 
(67
)
 
829

 
 
 
 
 
 
 
 
 
 
Long-term debt, net
2,569

 

 
13,477

 

 
16,046

Non-current deferred revenue

 
1

 

 

 
1

Non-current derivative liabilities

 

 
3

 

 
3

Other non-current liabilities

 
10

 

 

 
10

Other non-current liabilities—affiliate

 
25

 

 

 
25

 
 
 
 
 
 
 
 
 
 
Partners’ equity (deficit)
639

 
2,076

 
(38
)
 
(2,038
)
 
639

Total liabilities and partners’ equity (deficit)
$
3,231

 
$
2,221

 
$
14,206

 
$
(2,105
)
 
$
17,553



Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2018
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
LNG revenues
$

 
$

 
$
1,015

 
$

 
$
1,015

LNG revenues—affiliate

 

 
503

 

 
503

Regasification revenues

 
65

 

 

 
65

Regasification revenues—affiliate

 
64

 

 
(64
)
 

Other revenues

 
10

 

 

 
10

Other revenues—affiliate

 
55

 

 
(55
)
 

Total revenues

 
194

 
1,518

 
(119
)
 
1,593

 
 
 
 
 
 
 
 
 
 
Operating costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization expense shown separately below)

 

 
838

 
(1
)
 
837

Cost of sales—affiliate

 

 
8

 
(8
)
 

Operating and maintenance expense

 
17

 
78

 

 
95

Operating and maintenance expense—affiliate

 
32

 
103

 
(109
)
 
26

General and administrative expense
1

 
1

 
2

 

 
4

General and administrative expense—affiliate
3

 
4

 
12

 
(1
)
 
18

Depreciation and amortization expense
1

 
18

 
86

 

 
105

Total operating costs and expenses
5

 
72

 
1,127

 
(119
)
 
1,085

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
(5
)
 
122

 
391

 

 
508

 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(34
)
 

 
(151
)
 

 
(185
)
Derivative gain, net
8

 

 

 

 
8

Equity earnings of subsidiaries
363

 
242

 

 
(605
)
 

Other income (expense)
3

 
(1
)
 
2

 

 
4

Total other income (expense)
340

 
241

 
(149
)
 
(605
)
 
(173
)
 
 
 
 
 
 
 
 
 
 
Net income
$
335

 
$
363

 
$
242

 
$
(605
)
 
$
335


Condensed Consolidating Statement of Operations
Three Months Ended March 31, 2017
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
LNG revenues
$

 
$

 
$
492

 
$

 
$
492

LNG revenues—affiliate

 

 
331

 

 
331

Regasification revenues

 
65

 

 

 
65

Regasification revenues—affiliate

 
33

 

 
(33
)
 

Other revenues

 
2

 

 

 
2

Other revenues—affiliate

 
51

 

 
(50
)
 
1

Total revenues

 
151

 
823

 
(83
)
 
891

 
 
 
 
 
 
 
 
 
 
Operating costs and expenses
 
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization expense shown separately below)

 

 
510

 
3

 
513

Cost of sales—affiliate

 

 
4

 
(4
)
 

Operating and maintenance expense
1

 
10

 
39

 

 
50

Operating and maintenance expense—affiliate

 
34

 
59

 
(75
)
 
18

General and administrative expense
1

 

 
2

 

 
3

General and administrative expense—affiliate
3

 
3

 
17

 
(1
)
 
22

Depreciation and amortization expense

 
19

 
47

 

 
66

Total operating costs and expenses
5

 
66

 
678

 
(77
)
 
672

 
 
 
 
 
 
 
 
 
 
Income (loss) from operations
(5
)
 
85

 
145

 
(6
)
 
219

 
 
 
 
 
 
 
 
 
 
Other income (expense)
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(25
)
 

 
(105
)
 

 
(130
)
Loss on early extinguishment of debt

 

 
(42
)
 

 
(42
)
Derivative gain (loss), net
2

 

 
(2
)
 

 

Equity earnings (losses) of subsidiaries
75

 
(4
)
 

 
(71
)
 

Total other income (expense)
52

 
(4
)
 
(149
)
 
(71
)
 
(172
)
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
47

 
$
81

 
$
(4
)
 
$
(77
)
 
$
47



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
$
(10
)
 
$
135

 
$
206

 
$

 
$
331

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 
(5
)
 
(189
)
 

 
(194
)
Investments in subsidiaries
(38
)
 

 

 
38

 

Distributions received from affiliates, net
167

 

 

 
(167
)
 

Net cash provided by (used in) investing activities
129

 
(5
)
 
(189
)
 
(129
)
 
(194
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Distributions to parent

 
(167
)
 

 
167

 

Contributions from parent

 
38

 

 
(38
)
 

Distributions to owners
(249
)
 

 

 

 
(249
)
Net cash used in financing activities
(249
)
 
(129
)
 

 
129

 
(249
)
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
(130
)
 
1

 
17

 

 
(112
)
Cash, cash equivalents and restricted cash—beginning of period
1,033

 
12

 
544

 

 
1,589

Cash, cash equivalents and restricted cash—end of period
$
903

 
$
13

 
$
561

 
$

 
$
1,477



Balances per Condensed Consolidating Balance Sheet:
 
March 31, 2018
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash and cash equivalents
$

 
$

 
$

 
$

 
$

Restricted cash
903

 
13

 
561

 

 
1,477

Total cash, cash equivalents and restricted cash
$
903

 
$
13

 
$
561

 
$

 
$
1,477


Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2017
(in millions)
 
 
 
 
 
 
 
 
 
 
 
Parent Issuer
 
Guarantors
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
$
(29
)
 
$
32

 
$
116

 
$
(4
)
 
$
115

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net

 

 
(528
)
 
4

 
(524
)
Investments in subsidiaries
(127
)
 

 

 
127

 

Distributions received from affiliates, net
159

 

 

 
(159
)
 

Net cash provided by (used in) investing activities
32

 

 
(528
)
 
(28
)
 
(524
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Proceeds from issuances of debt

 

 
2,314

 

 
2,314

Repayments of debt

 

 
(703
)
 

 
(703
)
Debt issuance and deferred financing costs

 

 
(26
)
 

 
(26
)
Distributions to parent

 
(159
)
 

 
159

 

Contributions from parent

 
127

 

 
(127
)
 

Distributions to owners
(25
)
 

 

 

 
(25
)
Net cash provided by (used in) financing activities
(25
)
 
(32
)
 
1,585

 
32

 
1,560

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
(22
)
 

 
1,173

 

 
1,151

Cash, cash equivalents and restricted cash—beginning of period
234

 
13

 
358

 

 
605

Cash, cash equivalents and restricted cash—end of period
$
212

 
$
13

 
$
1,531

 
$

 
$
1,756