Cheniere Energy Reports First Quarter 2007 Results.HOUSTON -- Cheniere Energy, Inc. (AMEX AMEX See: American Stock Exchange :LNG LNG (liquefied natural gas): see under natural gas. ) reported a net loss of $34.6 million, or $0.63 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 first quarter of 2007 compared with a net loss of $15.8 million, or $0.29 per share (basic and diluted), during the corresponding period in 2006. The primary reasons for the $18.8 million increase in the net loss between periods relate to the following: an $8.1 million increase in general and administrative expenses primarily related to increased personnel costs from the expansion of the company's business; a $15.3 million increase in interest expense related to the $2.032 billion senior notes issued by Cheniere Energy's wholly-owned subsidiary, 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. LNG, L.P., in November 2006; a $7.4 million income tax benefit recorded in the prior period associated with interest rate hedges. These increases to the net loss were partially offset by an increase in interest income of $12.0 million attributable to the proceeds of the $2.032 billion senior notes offering. As of March 31, 2007, Cheniere Energy reported unrestricted cash and cash equivalents of $583.6 million compared to $463.0 million at December 31, 2006. The primary source of the increase was the receipt of $164.5 million in 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). from the sale of Cheniere Energy Partners, L.P. ("Cheniere Partners") (AMEX:CQP CQP Certificat de Qualification Professionnelle CQP California QSO Party CQP Corpus Query Processor CQP Complete Quality Process CQP Cursos de Qualificação Profissional CQP Center on Quality Policing CQP Capacitor Qualification Program ) common units to the public. These units were held by a wholly-owned subsidiary of Cheniere Energy and were sold in conjunction with Cheniere Partners' initial public offering ("IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ") which closed on March 26, 2007. Cheniere Energy also reported that on March 31, 2007, the company held restricted cash, cash equivalents and treasury securities totaling $1.2 billion, comprised of $738.8 million for the completion of the Sabine Pass LNG receiving terminal construction to 4 billion cubic feet per day of capacity, $353.7 million for interest payments relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Sabine Pass LNG, L.P. senior notes and $98.4 million as a reserve for distributions to the common unit holders of Cheniere Partners and related distributions to its general partner. Subsequent to the reported period, the underwriters of the IPO exercised their over-allotment option to purchase additional common units on April 16, 2007, which resulted in net proceeds to Cheniere Energy of $39.4 million. Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States The Gulf Coast region of the United States comprises the coasts of states which border the Gulf of Mexico. The states of Texas, Louisiana, Mississippi, Alabama, and Florida are known as the Gulf States. All Gulf States are located in the Southern region of the United States. . Cheniere is pursuing related LNG business opportunities both upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger and downstream of the terminals. Cheniere is also the founder and holds a 30% limited partner interest in a fourth LNG receiving terminal. Additional information about Cheniere Energy, Inc. may be found on its web site at www.cheniere.com. For additional information, please refer to the Cheniere Energy, Inc. Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended March 31, 2007, filed with the Securities and Exchange Commission. 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 meanings 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. (Financial Table Follows) [TABLE OMITTED] [TABLE OMITTED] |
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