Cheniere Energy, Inc. Reports 3nd Quarter Results.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Cheniere Energy, Inc. (AMEX AMEX See: American Stock Exchange :LNG LNG (liquefied natural gas): see under natural gas. ) reported a net loss of $5,639,289, or $0.29 per share (basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the quarter ended September September: see month. 30, 2004, compared to a net loss of $2,387,021, or $0.16 per share (basic and diluted), during the corresponding period in 2003. The major factors contributing to the net loss during the third quarter of 2004 were: (1) LNG receiving terminal development expenses of $3,334,982, which were partially offset by a $416,831 minority interest in the operations of Corpus Christi Corpus Christi, in Christianity Corpus Christi [Lat.,=body of Christ], feast of the Western Church, observed on the Thursday after Trinity Sunday (or on the following Sunday). LNG, L.P. ("Corpus [Latin, Body, aggregate, or mass.] Corpus might be used to mean a human body, or a body or group of laws. The term is used often in Civil Law to denote a substantial or positive fact, as opposed to one that is ambiguous. LNG"), (2) other general and administrative expenses of $1,916,300 and (3) the Company's equity share of the net loss in Freeport LNG Development, L.P. ("Freeport LNG") of $582,798. Cheniere's working capital at September 30, 2004, was $6,372,798 compared to $155,526 at December 31, 2003. The increase is primarily attributable to the sale of our common stock through a private placement offering in January 2004 and exercises of warrants and stock options that resulted in aggregate net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $19,137,182. We also received a $2,500,000 payment from Freeport LNG, which was payable pursuant to the sale of a 60% interest in the Freeport LNG project, and $2,818,898 in partnership contributions from the Corpus LNG minority owner. Major uses of working capital included $17,821,846 related to LNG terminal development and other general and administrative expenses during the nine months ended September 30, 2004. For additional information, please refer to the Cheniere Energy, Inc. Form 10-Q Form 10-Q See 10-Q. filing with the Securities and Exchange Commission for the quarter ended September 30, 2004. Cheniere Energy, Inc. is a Houston-based developer of liquefied natural gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. receiving terminals and a Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east E&P company. Cheniere is developing Gulf Coast LNG receiving terminals near Sabine Pass Sabine Pass is the natural outlet of Sabine Lake into the Gulf of Mexico. It borders Jefferson County, Texas, and Cameron Parish, Louisiana. The First Battle of Sabine Pass, and the second Battle of Sabine Pass took place at Sabine Pass during the American Civil War. in Cameron Parish, LA, and near Corpus Christi, TX. Cheniere is also a 30% limited partner in Freeport LNG Development, L.P., which is developing an LNG receiving terminal in Freeport, Texas Freeport is a city in Brazoria County, Texas within the Houston–Sugar Land–Baytown Metropolitan Area and is situated in Southeast Texas. As of the 2000 U.S. Census, the city population was 12,708 and is about sixteen miles away from Angleton. . Cheniere conducts exploration for oil and gas in the Gulf of Mexico using a regional database of 7,000 square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. of PSTM PSTM Pre-Stack Time Migration (seismic processing) PSTM Photon Scanning Tunneling Microscopy 3D seismic data. Cheniere also owns 9% of Gryphon Exploration Company, along with Warburg War·burg , Otto Heinrich 1883-1970. German biochemist. He won a 1931 Nobel Prize for research on the respiration of cells. , Pincus Pin·cus , Gregory Goodwin 1903-1967. American physiologist. Through his studies of natural hormones that inhibit ovulation in mammals, he developed the first effective oral contraceptive, which was first tested in 1954. Equity Partners, L.P. which owns 91%. Additional information about Cheniere Energy, Inc. may be found on its website at www.cheniere.com. This press release contains certain statements that may include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere's business strategy, plans and objectives and (ii) statements expressing beliefs and expectations regarding the development of Cheniere's LNG receiving terminal business. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere's periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.
Cheniere Energy, Inc.
Selected Financial Information
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Revenues $465,249 $135,245 $1,132,240 $366,665
--------- --------- ---------- ---------
Operating Costs and Expenses
Production Taxes 14,956 - 29,184 -
Depreciation, Depletion
and Amortization 265,601 101,003 631,956 251,006
General and
Administrative Expenses
LNG Terminal
Development 3,334,982 2,343,534 12,664,635 3,360,643
Non-Cash
Compensation 438,542 - 2,699,375 -
Other 1,916,300 615,254 5,157,211 1,728,055
--------- --------- ---------- ---------
Total General and
Administrative
Expenses 5,689,824 2,958,788 20,521,221 5,088,698
--------- --------- ---------- ---------
Total Operating
Costs and
Expenses 5,970,381 3,059,791 21,182,361 5,339,704
--------- --------- ---------- ---------
Loss from Operations (5,505,132) (2,924,546) (20,050,121)(4,973,039)
Equity in Net Income
(Loss) of Limited
Partnership (582,798) (595,688) 84,473 (2,655,635)
Gain on Sale of LNG Assets - - - 4,760,000
Gain on Sale of Limited
Partnership Interest - - - 423,454
Reimbursement from Limited
Partnership Investment - - 2,500,000 -
Interest and Other
Income 31,810 1,002 48,283 2,288
Minority Interest 416,831 1,132,211 2,650,210 1,552,978
--------- --------- ---------- ---------
Net Loss $(5,639,289) $(2,387,021) $(14,767,155) $(889,954)
=========== =========== ============ =========
Net Loss Per Share -
Basic & Diluted $(0.29) $(0.16) $(0.79) $(0.06)
=========== =========== ============ =========
Weighted Average Shares
Outstanding -
Basic & Diluted 19,273,175 15,180,473 18,768,228 14,306,270
=========== =========== ============ =========
(Unaudited)
9/30/2004 12/31/2003
------------ ------------
Current Assets $9,266,861 $4,487,352
Oil and Gas Properties, net,
full cost method 19,406,474 19,134,954
LNG Site & Other Related Costs 534,999 310,500
Fixed Assets, net 984,809 578,281
Investment in Limited
Partnership 84,473 -
Debt Issuance Costs 509,180 -
Intangible LNG Assets 80,670 79,670
Other 15,910 -
------------ ------------
Total Assets $30,883,376 $24,590,757
============ ============
Current Liabilities $2,894,063 $4,331,826
Deferred Revenue 1,000,000 1,000,000
Minority Interest 288,720 120,032
Stockholders' Equity 26,700,593 19,138,899
------------ ------------
Total Liabilities and
Stockholders' Equity $30,883,376 $24,590,757
============ ============
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