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Cheniere Corpus Christi

Cheniere Corpus Christi Holdings, LLC (“CCH”) is a Delaware limited liability company formed in September 2014 by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy infrastructure company primarily engaged in LNG-related businesses, to develop, construct, operate, maintain and own natural gas liquefaction and export facilities (the “Liquefaction Facilities”) and a 23-mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with several interstate and intrastate natural gas pipelines (the “Corpus Christi Pipeline” and together with the Liquefaction Facilities, the “Liquefaction Project”) near Corpus Christi, Texas, through our subsidiaries Corpus Christi Liquefaction, LLC (“CCL”) and Cheniere Corpus Christi Pipeline, L.P. (“CCP”), respectively.

Company profile

Employees
Incorporated
Location
Fiscal year end
Industry (SIC)
SEC CIK
Subsidiaries
Cheniere Corpus Christi Pipeline, L.P. • Corpus Christi Liquefaction, LLC • Corpus Christi Pipeline GP, LLC ...

Calendar

4 Aug 21
25 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 122M 122M 122M 122M 122M 122M
Cash burn (monthly) 86.67M (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 333.45M n/a n/a n/a n/a n/a
Cash remaining -211.45M n/a n/a n/a n/a n/a
Runway (months of cash) -2.4 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Financial report summary

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Risks
  • Our existing level of cash resources, operating cash flow and significant debt could cause us to have inadequate liquidity and could materially and adversely affect our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • We have not always been profitable historically, and we have not historically had positive operating cash flow. We may not be able to achieve sustained profitability or generate positive operating cash flow in the future.
  • The COVID-19 global pandemic and volatility in the energy markets may materially and adversely affect our business, financial condition, operating results, cash flow, liquidity and prospects.
  • Our ability to generate cash is substantially dependent upon the performance by customers under long-term contracts that we have entered into, and we could be materially and adversely affected if any significant customer fails to perform its contractual obligations for any reason.
  • Outbreaks of infectious diseases, such as the outbreak of COVID-19, at our facilities could adversely affect our operations.
  • Each of our customer contracts is subject to termination under certain circumstances.
  • Our use of hedging arrangements may adversely affect our future operating results or liquidity.
  • The regulatory and other provisions of the Dodd-Frank Act and the rules adopted thereunder and other regulations could adversely affect our ability to hedge risks associated with our business and our operating results and cash flows.
  • Our ability to complete construction of the Liquefaction Project depends on our ability to obtain sufficient equity funding to cover the remaining capital costs. If we are unable to obtain sufficient equity funding, we may experience delays in completing, or we may not be able to complete, construction of the Liquefaction Project.
  • Cost overruns and delays in the completion of Train 3 or any future Trains, as well as difficulties in obtaining sufficient financing to pay for such costs and delays, could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • We are dependent on Bechtel and other contractors for the successful completion of the Liquefaction Project.
  • We have historically not had any revenues or positive cash flows. Our ability to achieve profitability and generate positive operating cash flow in the future is subject to significant uncertainty.
  • We are relying on estimates for the future capacity ratings and performance capabilities of the Liquefaction Project, and these estimates may prove to be inaccurate.
  • If third-party pipelines and other facilities interconnected to our pipeline and facilities are or become unavailable to transport natural gas, this could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • Delays in the completion of Train 3 could lead to reduced revenues or termination of one or more of the SPAs by our customers.
  • Our Corpus Christi Pipeline and its FERC gas tariffs are subject to FERC regulation.
  • Pipeline safety integrity programs and repairs may impose significant costs and liabilities on us.
  • Our business could be materially and adversely affected if we lose the right to situate the Corpus Christi Pipeline on property owned by third parties.
  • Hurricanes or other disasters could result in an interruption of our operations, a delay in the completion of our Liquefaction Project, damage to our Liquefaction Project and increased insurance costs, all of which could adversely affect us.
  • We may not be successful in fully implementing our proposed business strategy to provide liquefaction capabilities at the Liquefaction Project.
  • We may not complete construction or operate our proposed LNG facility or all of our Trains or any additional LNG facilities or Trains beyond those currently planned, which could limit our growth prospects.
  • We may enter into certain arrangements to share the use and operations of our facilities with adjacent projects, which would require us to meet certain conditions under the indentures governing each of our senior notes (the “CCH Indentures”). Despite the protection provided by the CCH Indentures, the nature of such sharing arrangements is not currently known and may limit our operational flexibility, use of land and/or facilities and the ability of the security trustee under the Common Security and Account Agreement to take certain enforcement actions against the security interest in substantially all of our assets and the assets of our current and any future guarantors.
  • We may not be able to purchase or receive physical delivery of sufficient natural gas to satisfy our delivery obligations under the SPAs, which could have a material adverse effect on us.
  • A major health and safety incident relating to our business could be costly in terms of potential liabilities and reputational damages.
  • We are entirely dependent on Cheniere, including employees of Cheniere and its subsidiaries, for key personnel, and a loss of key personnel could have a material adverse effect on our business.
  • We have numerous contractual and commercial relationships, and conflicts of interest, with Cheniere and its affiliates.
  • We face competition based upon the international market price for LNG.
  • Cyclical or other changes in the demand for and price of LNG and natural gas may adversely affect our LNG business and the performance of our customers and could have a material adverse effect on our business, contracts, financial condition, operating results, cash flows, liquidity and prospects.
  • Failure of exported LNG to be a competitive source of energy for international markets could adversely affect our customers and could materially and adversely affect our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • We may not be able to secure firm pipeline transportation capacity on economic terms that is sufficient to meet our feed gas transportation requirements, which could have a material adverse effect on us.
  • Various economic and political factors could negatively affect the development, construction and operation of the Liquefaction Project, which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • There may be impediments to the transport of LNG, such as shortages of LNG vessels worldwide or operational impacts on LNG shipping, including maritime transportation routes, which could have a material adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
  • Terrorist attacks, cyber incidents or military campaigns may adversely impact our business.
  • Existing and future environmental and similar laws and governmental regulations could result in increased compliance costs or additional operating costs or construction costs and restrictions.
  • Our lack of diversification could have an adverse effect on our business, contracts, financial condition, operating results, cash flow, liquidity and prospects.
Management Discussion
  • ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
  • This quarterly report contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical or present facts or conditions, included herein or incorporated herein by reference are “forward-looking statements.” Included among “forward-looking statements” are, among other things:
  • •any other statements that relate to non-historical or future information.
Content analysis
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New words: accumulated, British, climate, conducting, Corporate, CR, degree, eliminated, Emission, environmental, ESG, Fahrenheit, Inclusive, leadership, life, NaN, pound, proactive, scenario, thermal, transparency, trillion, water
Removed: approximate, lower

Proxies

No filings