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, 2019

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 CQP Indenture. 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, 2018 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, 2019
(in millions)

	Parent Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	—	$	—	$	—		$	—
Restricted cash	661		15		621		—			1,297
Accounts and other receivables	1		2		205		—			208
Accounts receivable—affiliate	1		22		112		(22		)	113
Advances to affiliate	—		130		296		(110		)	316
Inventory	—		13		96		—			109
Other current assets	—		4		42		—			46
Other current assets—affiliate	—		1		21		(21		)	1
Total current assets	663		187		1,393		(153		)	2,090

Property, plant and equipment, net	79		2,117		13,446		(27		)	15,615
Operating lease assets, net	—		89		20		(16		)	93
Debt issuance costs, net	1		—		10		—			11
Non-current derivative assets	—		—		36		—			36
Investments in subsidiaries	2,779		680		—		(3,459		)	—
Other non-current assets, net	—		23		137		—			160
Total assets	$	3,522	$	3,096	$	15,042	$	(3,655	)	$	18,005

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	—	$	5	$	26	$	—		$	31
Accrued liabilities	74		27		624		—			725
Due to affiliates	—		132		51		(132		)	51
Deferred revenue	—		22		84		—			106
Deferred revenue—affiliate	—		21		—		(21		)	—
Current operating lease liabilities	—		5		—		—			5
Derivative liabilities	—		—		10		—			10
Total current liabilities	74		212		795		(153		)	928

Long-term debt, net	2,567		—		13,506		—			16,073
Non-current operating lease liabilities	—		83		4		—			87
Non-current derivative liabilities	—		—		10		—			10
Other non-current liabilities	—		1		3		—			4
Other non-current liabilities—affiliate	—		21		17		(16		)	22

Partners’ equity	881		2,779		707		(3,486		)	881
Total liabilities and partners’ equity	$	3,522	$	3,096	$	15,042	$	(3,655	)	$	18,005



Condensed Consolidating Balance Sheet
December 31, 2018
(in millions)

	Parent Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	—	$	—	$	—		$	—
Restricted cash	779		6		756		—			1,541
Accounts and other receivables	1		1		346		—			348
Accounts receivable—affiliate	1		40		113		(40		)	114
Advances to affiliate	—		104		210		(86		)	228
Inventory	—		12		87		—			99
Other current assets	—		2		24		—			26
Other current assets—affiliate	—		—		21		(21		)	—
Total current assets	781		165		1,557		(147		)	2,356

Property, plant and equipment, net	79		2,128		13,209		(26		)	15,390
Debt issuance costs, net	1		—		12		—			13
Non-current derivative assets	—		—		31		—			31
Investments in subsidiaries	2,544		440		—		(2,984		)	—
Other non-current assets, net	—		26		158		—			184
Total assets	$	3,405	$	2,759	$	14,967	$	(3,157	)	$	17,974

LIABILITIES AND PARTNERS’ EQUITY
Current liabilities
Accounts payable	$	—	$	4	$	11	$	—		$	15
Accrued liabilities	39		14		768		—			821
Due to affiliates	—		127		48		(126		)	49
Deferred revenue	—		25		91		—			116
Deferred revenue—affiliate	—		22		—		(21		)	1
Derivative liabilities	—		—		66		—			66
Total current liabilities	39		192		984		(147		)	1,068

Long-term debt, net	2,566		—		13,500		—			16,066
Non-current derivative liabilities	—		—		14		—			14
Other non-current liabilities	—		1		3		—			4
Other non-current liabilities—affiliate	—		22		—		—			22

Partners’ equity	800		2,544		466		(3,010		)	800
Total liabilities and partners’ equity	$	3,405	$	2,759	$	14,967	$	(3,157	)	$	17,974



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 depreciation and amortization expense 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	4			—			5			—			9
Total other income (expense)	390			307			(145		)	(730		)	(178		)

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



Condensed Consolidating Statement of Income
Three Months Ended March 31, 2018
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			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 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

Balances per Condensed Consolidating Balance Sheet:



	March 31, 2019
	Parent Issuer		Guarantors		Non-Guarantors		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—
Restricted cash	661		15		621		—		1,297
Total cash, cash equivalents and restricted cash	$	661	$	15	$	621	$	—	$	1,297



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2018
(in millions)

	Parent Issuer			Guarantors			Non-Guarantors			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