Cheniere Energy Inc. Reports 1st Quarter Results.Energy Editors/Business Editors HOUSTON--(BUSINESS WIRE)--May 14, 2004 Cheniere Energy Inc. (AMEX AMEX See: American Stock Exchange :LNG LNG (liquefied natural gas): see under natural gas. ) reported a net loss of $1,074,959, or $0.06 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. ), compared to net income of $3,121,309, or $0.23 per share (basic and diluted), during the corresponding period in 2003. The major factors contributing to the net loss during the first quarter of 2004 were: (1) LNG receiving terminal development expenses of $3,875,776 (which were offset by a $1,481,472 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.), (2) non-cash compensation of $1,825,834 related to 2004 stock awards and (3) other general and administrative expenses of $1,635,570. These factors were offset by a $2,500,000 reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. from Cheniere's limited partnership investment in Freeport Freeport, city, Bahamas Freeport, city (1990 pop. 25,115), Grand Bahama Island, Bahamas. A popular resort area, it developed out of a 1955 agreement between the Bahamian colonial government and a private development company to create a free port and LNG Development, L.P. ("Freeport LNG") and the Company's equity share of the net income in Freeport LNG of $2,155,175. Net income was recorded in the first quarter of 2003 as a result of a $4,760,000 gain on the sale of 60% of the Freeport LNG assets coupled with a $423,454 gain on the sale of a 10% limited partnership interest in the Freeport LNG terminal. These gains were partially offset by Cheniere's equity share of the loss in Freeport LNG of $1,200,000, and LNG receiving terminal development expenses and other general and administrative expenses totaling $914,172. Cheniere's working capital at March 31, 2004 was $13,301,242 compared to $155,526 at December December: see month. 31, 2003. The increase is primarily attributable to the previously announced sale of Cheniere 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 $15,272,308. Cheniere also received a $2,500,000 payment from Freeport LNG, which was payable pursuant to the sale of the 60% interest in the Freeport LNG project. 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 in 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. , La., and Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. . 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 Web site at www.cheniere.com, by contacting the company's investor and media relations department toll-free at 888-948-2036 or by writing to: Info@Cheniere.com. Except for the historical statements contained herein, this news release presents 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. that involve risks and uncertainties. Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Certain risks and uncertainties inherent in the company's business are set forth in the company's periodic reports that are filed with and available from the Securities and Exchange Commission. (Financial table follows)
Cheniere Energy Inc.
Selected Financial Information
(Unaudited)
Three Months Ended March 31,
----------------------------
2004 2003
------------- -------------
Revenues $332,345 $110,120
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Operating Costs and Expenses
Production Taxes 7,378 -
Depreciation, Depletion and
Amortization 205,425 58,692
General and Administrative Expenses
LNG Terminal Development 3,875,776 394,061
Non-Cash Compensation 1,825,834 -
Other 1,635,570 520,111
------------- -------------
Total General and Administrative
Expenses 7,337,180 914,172
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Total Operating Costs and Expenses 7,549,983 972,864
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Loss from Operations (7,217,638) (862,744)
Equity in Net Income (Loss) of Limited
Partnership 2,155,175 (1,200,000)
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 Income 6,032 599
Minority Interest 1,481,472 -
------------- -------------
Net Income (Loss) $(1,074,959) $3,121,309
============= =============
Net Income (Loss) Per Share - Basic and
Diluted $(0.06) $0.23
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Weighted Average Shares Outstanding -
Basic 18,109,258 13,297,393
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Weighted Average Shares Outstanding -
Diluted 18,109,258 13,500,481
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(Unaudited)
3/31/2004 12/31/2003
------------- -------------
Current Assets $16,606,003 $4,487,352
Oil and Gas Properties, net, full cost
method 19,587,010 19,134,954
LNG Site Costs 504,967 310,500
Fixed Assets, net 942,350 578,281
Investment in Limited Partnership 2,155,175 -
Intangible LNG Assets 79,670 79,670
------------- -------------
Total Assets $39,875,175 $24,590,757
============= =============
Current Liabilities $3,304,761 $4,331,826
Deferred Revenue 1,000,000 1,000,000
Minority Interest - 120,032
Stockholders' Equity 35,570,414 19,138,899
------------- -------------
Total Liabilities and Stockholders'
Equity $39,875,175 $24,590,757
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