Cheniere Energy, Inc. (NYSEMKT:LNG) reported a net loss attributable to common stockholders of $291.1 million, or $1.28 per share (basic and diluted), for the three months ended December 31, 2015, compared to a net loss attributable to common stockholders of $158.6 million, or $0.70 per share (basic and diluted), for the comparable 2014 period.  For the twelve months ended December 31, 2015, Cheniere reported a net loss attributable to common stockholders of $975.1 million, or $4.30 per share (basic and diluted), compared to a net loss attributable to common stockholders of $547.9 million, or $2.44 per share (basic and diluted), during the corresponding period of 2014.

Significant items for the three months ended December 31, 2015 totaled a loss of $80.2 million, compared to a loss of $30.2 million for the comparable 2014 period.  Significant items for the three months ended December 31, 2015 related to impairment expense due to the write-down of certain development projects and notes receivable, losses on early extinguishment of debt, and derivative gains associated with changes in long-term LIBOR during the period.  The significant item for the three months ended December 31, 2014 related to derivative losses.  For the twelve months ended December 31, 2015, significant items totaled a loss of $419.1 million, compared to a loss of $233.7 million for the comparable 2014 period. Significant items for the twelve months ended December 31, 2015 related to derivative losses, loss on early extinguishment of debt primarily related to the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC (“SPL”) in connection with the refinancing of a portion of its credit facilities in March 2015, and impairment expense. Significant items for the twelve months ended December 31, 2014 related to derivative losses, and losses on early extinguishment of debt.

Included in general and administrative expense were non-cash compensation expenses of $78.8 millionand $163.9 million for the three and twelve months ended December 31, 2015, respectively, compared to $16.3 million and $96.7 million for the comparable 2014 periods. The increase was primarily due to accelerated share-based compensation expense resulting from certain employee terminations.

Results are reported on a consolidated basis and include our ownership interest in Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE MKT: CQP), which is based on our 100% ownership of the general partner of Cheniere Partners and 80.1% ownership interest in Cheniere Energy Partners LP Holdings, LLC (NYSE MKT: CQH) which owns a 55.9% limited partner interest in Cheniere Partners.

Recent Significant Events

  • In October 2015, Cheniere Marketing International LLP entered into liquefied natural gas (“LNG”) sales arrangement with ENGIE S.A. (“ENGIE”) for the delivery of LNG cargoes on a delivered at terminal (“DAT”) basis. The sales arrangement with ENGIE covers the delivery of up to 12 cargoes per year, or 222 million MMBtus total, from 2018 to 2023.
  • In December 2015, the Cheniere Board of Directors appointed Neal Shear as Interim President and Chief Executive Officer and Andrea Botta as Chairman of the Board of Directors.
  • In January 2016, Cheniere Partners reported it expects substantial completion to occur on Trains 1 and 2 in May and August, respectively.

Liquefaction Projects Update

Sabine Pass LNG Terminal

Through Cheniere Partners, we are developing up to six natural gas liquefaction trains (“Trains”), each with an expected nominal production capacity of approximately 4.5 million tonnes per annum (“mtpa”) of LNG, at the Sabine Pass LNG terminal adjacent to the existing regasification facilities (the “Sabine Pass Liquefaction Project”).

The Trains are in various stages of development, with construction of the first Train complete and the commissioning process underway. Train 1 has begun producing LNG, and the first LNG commissioning cargo is expected to be exported late February / March.  Commissioning for Train 2 is expected to commence in the upcoming months. The remaining Trains are expected to commence commissioning on a staggered basis thereafter.

  • Construction on Trains 1 and 2 began in August 2012, and as of December 31, 2015, the overall project completion percentage for Trains 1 and 2 was approximately 97.4%, which is ahead of the contractual schedule. Based on the recently updated construction and commissioning schedule,Cheniere Partners expects to export the first LNG commissioning cargo in late February or March 2016.
  • Construction on Trains 3 and 4 began in May 2013, and as of December 31, 2015, the overall project completion percentage for Trains 3 and 4 was approximately 79.5%, which is ahead of the contractual schedule. Cheniere Partners expects Trains 3 and 4 to become operational in 2017.
  • Construction on Train 5 began in June 2015, and as of December 31, 2015, the overall project completion percentage for Train 5 was approximately 14.9%, which is ahead of the contractual schedule. Engineering, procurement and construction were approximately 41.9%, 20.5% and 0.1% complete, respectively. Cheniere Partners expects Train 5 to become operational in 2019.
  • Train 6 is currently under development, with all necessary regulatory approvals in place. Cheniere Partners expects to make a final investment decision and commence construction on Train 6 upon, among other things, entering into acceptable commercial arrangements and obtaining adequate financing.

Corpus Christi LNG Terminal

We are developing up to three Trains, each with an expected nominal production capacity of approximately 4.5 mtpa of LNG, near Corpus Christi, Texas (the “CCL Project”).

The Trains are in various stages of development:

  • Construction on Trains 1 and 2 began in May 2015, and as of December 31, 2015, the overall project completion percentage for Trains 1 and 2 was approximately 29.2%, which is ahead of the contractual schedule. Engineering, procurement and construction were approximately 93.6%, 41.9% and 2.2% complete, respectively. We expect Trains 1 and 2 to become operational in late 2018 and mid-2019, respectively.
  • Train 3 is under development, with all necessary regulatory approvals in place. We have entered into an LNG Sale and Purchase Agreement (“SPA”) for approximately 0.8 mtpa of LNG volumes that commence with Train 3 and expect to commence construction upon entering into additional SPAs and obtaining adequate financing.

Additionally, we are developing Trains 4 and 5 adjacent to the CCL Project. We have initiated the regulatory process by filing the National Environmental Policy Act pre-filing request with the Federal Energy Regulatory Commission (“FERC”), and requesting authorization from the U.S. Department of Energy (“DOE”) to export LNG to non-Free-Trade Agreement (“FTA”) countries. We have received authorization from the DOE to export LNG to FTA countries.(Original Source)

Shares of Cheniere Energy closed yesterday at $29.26. LNG has a 1-year high of $82.32 and a 1-year low of $22.80. The stock’s 50-day moving average is $30.21 and its 200-day moving average is $46.04.

On the ratings front, LNG has been the subject of a number of recent research reports. In a report issued on January 14, BTIG analyst William Frohnhoefer maintained a Buy rating on LNG, with a price target of $100, which implies an upside of 241.8% from current levels. Separately, on January 13, Citigroup’s Faisel Khan upgraded the stock to Buy and has a price target of $47.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, William Frohnhoefer and Faisel Khan have a total average return of -29.8% and 7.2% respectively. Frohnhoefer has a success rate of 9.3% and is ranked #3610 out of 3640 analysts, while Khan has a success rate of 65.2% and is ranked #511.

Cheniere Energy Inc is engaged in LNG-related businesses. It owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P.