Cheniere Energy Partners, L.P. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Supplemental Guarantor Information

Supplemental Guarantor Information

3 Months Ended

Mar. 31, 2020

Supplemental Guarantor Information [Abstract]

SUPPLEMENTAL GUARANTOR INFORMATION

Our CQP Senior Notes are jointly and severally guaranteed by each of our subsidiaries other than SPL (the “Guarantors”) and, subject to certain conditions governing its guarantee, Sabine Pass LP (collectively with SPL, the “Non-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 indenture governing the CQP Senior Notes. See Note 10—Debt in this quarterly report and Note 11—Debt of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the year ended December 31, 2019 for additional information regarding the CQP Senior Notes.

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



Condensed Consolidating Balance Sheet
March 31, 2020
(in millions)

	Parent Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1,731	$	3	$	—	$	—		$	1,734
Restricted cash	—		—		109		—			109
Accounts and other receivables	—		3		256		—			259
Accounts receivable—affiliate	—		24		38		(24		)	38
Advances to affiliate	—		128		122		(104		)	146
Inventory	—		13		85		—			98
Derivative assets	—		—		13		—			13
Other current assets	—		14		35		—			49
Other current assets—affiliate	—		2		21		(21		)	2
Total current assets	1,731		187		679		(149		)	2,448

Property, plant and equipment, net	79		2,451		13,972		(26		)	16,476
Operating lease assets, net	—		88		20		(16		)	92
Debt issuance costs, net	9		—		11		—			20
Non-current derivative assets	—		—		41		—			41
Investments in subsidiaries	3,168		718		—		(3,886		)	—
Other non-current assets, net	—		18		138		—			156
Total assets	$	4,987	$	3,462	$	14,861	$	(4,077	)	$	19,233

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	—	$	3	$	5	$	—		$	8
Accrued liabilities	108		20		441		—			569
Current debt	—		—		1,996		—			1,996
Due to affiliates	3		120		35		(128		)	30
Deferred revenue	—		22		72		—			94
Deferred revenue—affiliate	—		21		—		(21		)	—
Current operating lease liabilities	—		6		—		—			6
Derivative liabilities	—		—		12		—			12
Total current liabilities	111		192		2,561		(149		)	2,715

Long-term debt, net	4,056		—		11,535		—			15,591
Non-current operating lease liabilities	—		81		4		—			85
Non-current derivative liabilities	—		—		2		—			2
Other non-current liabilities	—		1		—		—			1
Other non-current liabilities—affiliate	—		20		15		(16		)	19

Partners’ equity	820		3,168		744		(3,912		)	820
Total liabilities and partners’ equity	$	4,987	$	3,462	$	14,861	$	(4,077	)	$	19,233



Condensed Consolidating Balance Sheet
December 31, 2019
(in millions)

	Parent Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	1,778	$	3	$	—	$	—		$	1,781
Restricted cash	—		—		181		—			181
Accounts and other receivables	—		5		292		—			297
Accounts receivable—affiliate	—		43		104		(42		)	105
Advances to affiliate	—		145		133		(120		)	158
Inventory	—		13		103		—			116
Derivative assets	—		—		17		—			17
Other current assets	—		15		36		—			51
Other current assets—affiliate	—		1		22		(22		)	1
Total current assets	1,778		225		888		(184		)	2,707

Property, plant and equipment, net	79		2,454		13,861		(26		)	16,368
Operating lease assets, net	—		88		21		(15		)	94
Debt issuance costs, net	9		—		6		—			15
Non-current derivative assets	—		—		32		—			32
Investments in subsidiaries	2,963		508		—		(3,471		)	—
Other non-current assets, net	—		24		144		—			168
Total assets	$	4,829	$	3,299	$	14,952	$	(3,696	)	$	19,384

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	—	$	2	$	38	$	—		$	40
Accrued liabilities	56		24		629		—			709
Due to affiliates	3		155		49		(161		)	46
Deferred revenue	—		23		132		—			155
Deferred revenue—affiliate	—		22		—		(21		)	1
Current operating lease liabilities	—		6		—		—			6
Derivative liabilities	—		—		9		—			9
Total current liabilities	59		232		857		(182		)	966

Long-term debt, net	4,055		—		13,524		—			17,579
Non-current operating lease liabilities	—		82		5		—			87
Non-current derivative liabilities	—		—		16		—			16
Other non-current liabilities	—		1		—		—			1
Other non-current liabilities—affiliate	—		21		16		(17		)	20

Partners’ equity	715		2,963		534		(3,497		)	715
Total liabilities and partners’ equity	$	4,829	$	3,299	$	14,952	$	(3,696	)	$	19,384



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2020
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated

Revenues
LNG revenues	$	—		$	—		$	1,449		$	—		$	1,449
LNG revenues—affiliate	—			—			188			—			188
Regasification revenues	—			67			—			—			67
Regasification revenues—affiliate	—			67			—			(67		)	—
Other revenues	—			14			—			—			14
Other revenues—affiliate	—			62			—			(62		)	—
Total revenues	—			210			1,637			(129		)	1,718

Operating costs and expenses
Cost of sales (excluding items shown separately below)	—			—			699			—			699
Cost of sales—affiliate	—			—			12			(12		)	—
Operating and maintenance expense	—			13			139			—			152
Operating and maintenance expense—affiliate	—			33			113			(113		)	33
General and administrative expense	1			—			1			—			2
General and administrative expense—affiliate	4			7			18			(4		)	25
Depreciation and amortization expense	1			20			117			—			138
Impairment expense and loss on disposal of assets	—			5			—			—			5
Total operating costs and expenses	6			78			1,099			(129		)	1,054

Income (loss) from operations	(6		)	132			538			—			664

Other income (expense)
Interest expense, net of capitalized interest	(54		)	(2		)	(178		)	—			(234		)
Loss on modification or extinguishment of debt	—			—			(1		)	—			(1		)
Equity earnings of subsidiaries	490			360			—			(850		)	—
Other income, net	5			—			1			—			6
Total other income (expense)	441			358			(178		)	(850		)	(229		)

Net income	$	435		$	490		$	360		$	(850	)	$	435



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2019
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated

Revenues
LNG revenues	$	—		$	—		$	1,367		$	—		$	1,367
LNG revenues—affiliate	—			—			305			—			305
Regasification revenues	—			66			—			—			66
Regasification revenues—affiliate	—			66			—			(66		)	—
Other revenues	—			11			—			—			11
Other revenues—affiliate	—			59			—			(59		)	—
Total revenues	—			202			1,672			(125		)	1,749

Operating costs and expenses
Cost of sales (excluding items shown separately below)	—			—			879			—			879
Cost of sales—affiliate	—			—			9			(9		)	—
Operating and maintenance expense	—			28			110			—			138
Operating and maintenance expense—affiliate	—			33			107			(111		)	29
General and administrative expense	1			1			1			—			3
General and administrative expense—affiliate	3			6			15			(3		)	21
Depreciation and amortization expense	1			17			96			—			114
Impairment expense and loss on disposal of assets	—			—			2			—			2
Total operating costs and expenses	5			85			1,219			(123		)	1,186

Income (loss) from operations	(5		)	117			453			(2		)	563

Other income (expense)
Interest expense, net of capitalized interest	(36		)	(1		)	(150		)	—			(187		)
Equity earnings of subsidiaries	422			308			—			(730		)	—
Other income, net	4			—			5			—			9
Total other income (expense)	390			307			(145		)	(730		)	(178		)

Net income	$	385		$	424		$	308		$	(732	)	$	385



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2020
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by operating activities	$	490		$	521		$	374		$	(850	)	$	535

Cash flows from investing activities
Property, plant and equipment, net	—			(24		)	(293		)	—			(317		)
Investments in subsidiaries	(286		)	(225		)	—			511			—
Return of capital	79			11			—			(90		)	—
Net cash used in investing activities	(207		)	(238		)	(293		)	421			(317		)

Cash flows from financing activities
Debt issuance and other financing costs	—			—			(7		)	—			(7		)
Distributions to parent	—			(568		)	(371		)	939			—
Contributions from parent	—			285			225			(510		)	—
Distributions to owners	(330		)	—			—			—			(330		)
Net cash used in financing activities	(330		)	(283		)	(153		)	429			(337		)

Net decrease in cash, cash equivalents and restricted cash	(47		)	—			(72		)	—			(119		)
Cash, cash equivalents and restricted cash—beginning of period	1,778			3			181			—			1,962
Cash, cash equivalents and restricted cash—end of period	$	1,731		$	3		$	109		$	—		$	1,843

Balances per Condensed Consolidating Balance Sheet:



	March 31, 2020
	Parent Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Cash and cash equivalents	$	1,731	$	3	$	—	$	—	$	1,734
Restricted cash	—		—		109		—		109
Total cash, cash equivalents and restricted cash	$	1,731	$	3	$	109	$	—	$	1,843



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2019
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash flows provided by operating activities	$	404		$	364		$	213		$	(637	)	$	344

Cash flows from investing activities
Property, plant and equipment, net	—			(5		)	(280		)	2			(283		)
Investments in subsidiaries	(218		)	(164		)	—			382			—
Other	—			—			(1		)	—			(1		)
Net cash used in investing activities	(218		)	(169		)	(281		)	384			(284		)

Cash flows from financing activities
Distributions to parent	—			(404		)	(231		)	635			—
Contributions from parent	—			218			164			(382		)	—
Distributions to owners	(304		)	—			—			—			(304		)
Net cash used in financing activities	(304		)	(186		)	(67		)	253			(304		)

Net increase (decrease) in cash, cash equivalents and restricted cash	(118		)	9			(135		)	—			(244		)
Cash, cash equivalents and restricted cash—beginning of period	779			6			756			—			1,541
Cash, cash equivalents and restricted cash—end of period	$	661		$	15		$	621		$	—		$	1,297