Annual report pursuant to Section 13 and 15(d)

Schedule 1—Condensed Financial Information of Registrant (Notes)

v2.4.1.9
Schedule 1—Condensed Financial Information of Registrant (Notes) (Parent Company [Member])
 12 Months Ended
Dec. 31, 2014
Parent Company [Member]
  
Condensed Financial Statements, Captions [Line Items]  
Schedule I - Condensed Financial Information of Registrant
SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF REGISTRANT—

CHENIERE ENERGY PARTNERS, L.P.

CONDENSED BALANCE SHEETS
(in thousands) 
 
 
December 31,
 
 
2014
 
2013
ASSETS
 
 

 
 

Current assets
 
 

 
 

Cash and cash equivalents
 
$
222,130

 
$
314,782

Accounts receivable—affiliates
 
9,568

 
—

Prepaid expenses and other
 
104

 
112

Total current assets
 
231,802

 
314,894

 
 
 
 
 
Investment in affiliates
 
902,612

 
1,328,613

Other
 
123

 
—

Total assets
 
$
1,134,537

 
$
1,643,507

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND PARTNERS’ EQUITY
 
 
 
 

Current liabilities
 


 


Accrued liabilities—affiliates
 
$
3,033

 
$
3,135

Other current liabilities
 
775

 
628

Total current liabilities
 
3,808

 
3,763

 
 
 
 
 
Commitments and contingencies
 


 


 
 
 
 
 
Partners’ equity
 
1,130,729

 
1,639,744

Total liabilities and partners’ equity
 
$
1,134,537

 
$
1,643,507


























The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY PARTNERS, L.P.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands) 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Operating costs and expenses
 
$
3,383

 
$
3,041

 
$
7,074

Operating costs and expenses—affiliates
 
11,556

 
11,376

 
11,188

Loss from operations
 
(14,939
)
 
(14,417
)
 
(18,262
)
 
 
 
 
 
 
 
Interest expense, net
 
—

 
—

 
12

Interest income
 
162

 
242

 
235

Equity loss of affiliates
 
(395,259
)
 
(243,942
)
 
(157,416
)
Net loss
 
$
(410,036
)
 
$
(258,117
)
 
$
(175,431
)
 
 
 
 
 
 
 
Other comprehensive income (loss) attributable to affiliates
 
—

 
27,240

 
(27,240
)
Comprehensive loss
 
$
(410,036
)
 
$
(230,877
)
 
$
(202,671
)





































The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY PARTNERS, L.P.

CONDENSED STATEMENTS OF CASH FLOWS
(in thousands) 
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
Cash flows from operating activities
 
$
(24,416
)
 
$
(13,056
)
 
$
(17,508
)
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
Investment in subsidiaries
 
(77,847
)
 
(405,452
)
 
(1,785,866
)
Distributions received from affiliates, net
 
108,625

 
369,726

 
61,529

Purchase of Creole Trail Pipeline Business, net
 
—

 
(313,892
)
 
—

Other
 
—

 
—

 
3

Net cash provided by (used in) investing activities
 
30,778

 
(349,618
)
 
(1,724,334
)
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 

 
 

Proceeds from sale of Class B units
 
—

 
—

 
1,887,342

Distributions to owners
 
(99,014
)
 
(91,386
)
 
(57,821
)
Proceeds from sale of partnership common and general partner units
 
—

 
375,897

 
250,021

Deferred financing costs
 
—

 
—

 
(874
)
Net cash provided by (used in) financing activities
 
(99,014
)
 
284,511

 
2,078,668

 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
 
(92,652
)
 
(78,163
)
 
336,826

Cash and cash equivalents—beginning of year
 
314,782

 
392,945

 
56,119

Cash and cash equivalents—end of year
 
$
222,130

 
$
314,782

 
$
392,945






























The accompanying notes are an integral part of these condensed financial statements.
CHENIERE ENERGY PARTNERS, L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
The condensed financial statements represent the financial information required by Securities and Exchange Commission Regulation S-X 5-04 for Cheniere Energy Partners, L.P. (“Cheniere Partners”).
 
A substantial amount of Cheniere Partners’ operating, investing, and financing activities are conducted by its affiliates. In the condensed financial statements, Cheniere Partners’ investments in affiliates are presented under the equity method of accounting. Under this method, the assets and liabilities of affiliates are not consolidated. The investments in net assets of the affiliates are recorded in the balance sheets. The gain (loss) from operations of the affiliates is reported on a net basis as equity in net gains (losses) of affiliates.

In May 2013, we acquired Cheniere Energy, Inc.’s (“Cheniere”) ownership interest in Cheniere Creole Trail Pipeline, L.P. (“CTPL”) and Cheniere Pipeline GP Interest, LLC (collectively, the “Creole Trail Pipeline Business”), thereby providing us with ownership of a 94-mile pipeline interconnecting the Sabine Pass LNG terminal with a number of large interstate pipelines. The effect on reported equity on including the prior results of the Creole Trail Pipeline Business is reported as Investment in affiliates in our Condensed Balance Sheet and Equity loss of affiliates in our Condensed Statement of Operations. The purchase has been accounted for as a transfer of net assets between entities under common control. We recognize transfers of net assets between entities under common control at Cheniere’s historical basis in the net assets sold. In addition, transfers of net assets between entities under common control are accounted for as if the transfer occurred at the beginning of the period, and prior years are retroactively adjusted to furnish comparative information.
 
The condensed financial statements should be read in conjunction with Cheniere Partners’ Consolidated Financial Statements.

NOTE 2—GUARANTEES

Guarantees on Behalf of CTPL

In May 2013, CTPL entered into the 2017 CTPL Term Loan, which is being used to fund modifications to the Creole Trail Pipeline and for general business purposes. CTPL incurred $10.0 million of direct lender fees that were recorded as a debt discount. The 2017 CTPL Term Loan matures in 2017 when the full amount of the outstanding principal obligations must be repaid. CTPL’s loans may be repaid, in whole or in part, at any time without premium or penalty. As of December 31, 2014, CTPL had borrowed the full amount of $400.0 million available under the 2017 CTPL Term Loan. Cheniere Partners has guaranteed on behalf of CTPL all principal, interest, costs, fees and expenses owed under the 2017 CTPL Term Loan.

 NOTE 3—SUPPLEMENTAL CASH FLOW INFORMATION
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
 
(in thousands)
Non-cash capital contributions (1)
 
$
(395,259
)
 
$
(225,792
)
 
$
(132,121
)
Non-cash capital contributions related to the Creole Trail Pipeline Business (1)
 
—

 
(18,150
)
 
(25,295
)
 
(1)
Amounts represent equity gains (losses) of affiliates not funded by Cheniere Partners.