Cheniere(LNG) - 2021 Q1 - Quarterly Report

Financial Performance - Net income attributable to common stockholders increased by $18 million to $393 million for the three months ended March 31, 2021, compared to $375 million in the same period of 2020 [158]. - Total revenues for the three months ended March 31, 2021, increased to $3,090 million, up from $2,709 million in the same period of 2020, representing a $381 million increase [160]. - LNG revenues specifically rose to $2,999 million, compared to $2,568 million in the prior year, marking an increase of $431 million [160]. - The cost of sales for the three months ended March 31, 2021, was $1,386 million, significantly higher than $724 million in the same period of 2020, reflecting an increase of $662 million [166]. - Total operating costs and expenses increased to $2,026 million from $1,363 million year-over-year, indicating a rise of $663 million [166]. - Interest expense, net of capitalized interest, decreased to $356 million from $412 million, a reduction of $56 million [168]. - The effective tax rate for the three months ended March 31, 2021, was 13.5%, down from 17.8% in the same period of 2020 [170]. - Net income attributable to non-controlling interest decreased to $178 million from $228 million, a decline of $50 million [171]. - As of March 31, 2021, the company had net cash provided by operating activities of $1,066 million, an increase of $492 million from $574 million in the same period of 2020 [246]. Project Developments - The company achieved substantial completion of Train 3 of the Corpus Christi LNG Project on March 26, 2021, contributing to a total production capacity of approximately 15 mtpa of LNG [150]. - The SPL Project is currently operating five Trains and is constructing a sixth Train expected to be substantially completed in the first half of 2022 [176]. - The company is developing an expansion of the Corpus Christi LNG terminal, expected to add up to seven midscale Trains with a total production capacity of approximately 10 mtpa of LNG [152]. - Overall project completion percentage for the SPL Project is 83.0%, with engineering at 99.6%, procurement at 99.9%, subcontract work at 64.9%, and construction at 61.7% [177]. - Corpus Christi Stage 3 is expected to have a total production capacity of approximately 10 mtpa of LNG [203]. Financing and Debt Management - The company completed a financing transaction in March 2021, issuing approximately $1.5 billion of 4.000% Senior Notes due 2031 to refinance existing debt [154]. - The company pre-paid $148 million of outstanding borrowings under its term loan facility during the three months ended March 31, 2021, aligning with its capital allocation priorities [154]. - SPL's total capital resources from borrowings and available commitments amount to $19.7 billion as of March 31, 2021 [189]. - Cheniere Partners' total capital resources from borrowings and available commitments amounted to $11.548 billion as of March 31, 2021 [213]. - The 2020 SPL Working Capital Facility has aggregate commitments of $1.2 billion, intended for refinancing and general corporate purposes, with $787 million of available commitments as of March 31, 2021 [194]. - The 2021 Cheniere Convertible Unsecured Notes have an aggregate principal amount of $1.0 billion, convertible at an initial rate of $93.64 [228]. - The 2045 Cheniere Convertible Senior Notes total $625 million, with an initial conversion price of approximately $138.38 per share [229]. - The Cheniere Term Loan Facility was increased to $2.695 billion, with $372 million available as of March 31, 2021, and $2.1 billion prepaid in September 2020 [234]. Contracts and Commitments - Approximately 85% of the total production capacity from the Sabine Pass and Corpus Christi Projects is contracted on a term basis, with an average remaining life of about 18 years [151]. - SPL has secured long-term export authorizations for up to 16 mtpa (approximately 803 Bcf/yr) of LNG from Trains 1 through 4, and 503.3 Bcf/yr (approximately 10 mtpa) from Trains 5 and 6, valid through December 31, 2050 [177]. - The annual fixed fee portion from third-party SPA customers for Trains 1 through 5 is approximately $2.9 billion, expected to increase to at least $3.3 billion upon the first commercial delivery of Train 6 [181]. - SPL has secured approximately 4,974 TBtu of natural gas feedstock through long-term and short-term supply contracts, with remaining terms up to 10 years [182]. - CCL has secured approximately 2,923 TBtu of natural gas feedstock through long-term supply contracts as of March 31, 2021 [209]. - CCL Stage III has secured approximately 2,361 TBtu of natural gas feedstock through long-term contracts, with terms up to approximately 15 years [210]. Operational Metrics - The company reported total volumes recognized in the current period of 442 TBtu for operational and 25 TBtu for commissioning during the three months ended March 31, 2021 [157]. - The Sabine Pass LNG terminal has an operational regasification capacity of approximately 4 Bcf/d and aggregate LNG storage capacity of approximately 17 Bcfe [184]. - The minimum annual fixed fee portion from third-party SPA customers increased to approximately $1.8 billion following the substantial completion of Train 3 on March 26, 2021 [207]. Risk Management - The company is exposed to interest rate risk and has entered into interest rate swaps to hedge against volatility in floating-rate interest payments [254].