Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33366 | |
Entity Registrant Name | Cheniere Energy Partners, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5913059 | |
Entity Address, Address Line One | 700 Milam Street | |
Entity Address, Address Line Two | Suite 1900 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 375-5000 | |
Title of 12(b) Security | Common Units Representing Limited Partner Interests | |
Trading Symbol | CQP | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001383650 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Common Units [Member] | ||
Entity Information [Line Items] | ||
Entity Units, Units Outstanding | 348,631,292 | |
Subordinated Units [Member] | ||
Entity Information [Line Items] | ||
Entity Units, Units Outstanding | 135,383,831 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 1,734 | $ 1,781 |
Restricted cash | 109 | 181 |
Accounts and other receivables | 259 | 297 |
Accounts receivable—affiliate | 38 | 105 |
Advances to affiliate | 146 | 158 |
Inventory | 98 | 116 |
Derivative assets | 13 | 17 |
Other current assets | 49 | 51 |
Other current assets—affiliate | 2 | 1 |
Total current assets | 2,448 | 2,707 |
Property, plant and equipment, net | 16,476 | 16,368 |
Operating lease assets, net | 92 | 94 |
Debt issuance costs, net | 20 | 15 |
Non-current derivative assets | 41 | 32 |
Other non-current assets, net | 156 | 168 |
Total assets | 19,233 | 19,384 |
Current liabilities | ||
Accounts payable | 8 | 40 |
Accrued liabilities | 569 | 709 |
Current debt | 1,996 | 0 |
Due to affiliates | 30 | 46 |
Deferred revenue | 94 | 155 |
Deferred revenue—affiliate | 0 | 1 |
Current operating lease liabilities | 6 | 6 |
Derivative liabilities | 12 | 9 |
Total current liabilities | 2,715 | 966 |
Long-term debt, net | 15,591 | 17,579 |
Non-current operating lease liabilities | 85 | 87 |
Non-current derivative liabilities | 2 | 16 |
Other non-current liabilities | 1 | 1 |
Other non-current liabilities—affiliate | 19 | 20 |
Partners’ equity | ||
Common unitholders’ interest (348.6 million units issued and outstanding at March 31, 2020 and December 31, 2019) | 1,879 | 1,792 |
Subordinated unitholders’ interest (135.4 million units issued and outstanding at March 31, 2020 and December 31, 2019) | (962) | (996) |
General partner’s interest (2% interest with 9.9 million units issued and outstanding at March 31, 2020 and December 31, 2019) | (97) | (81) |
Total partners’ equity | 820 | 715 |
Total liabilities and partners’ equity | $ 19,233 | $ 19,384 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - shares shares in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
General Partners' Capital Account, Units Issued | 9.9 | 9.9 |
General Partners' Capital Account, Units Outstanding | 9.9 | 9.9 |
Common Units [Member] | ||
Limited Partners' Capital Account, Units Issued | 348.6 | 348.6 |
Limited Partners' Capital Account, Units Outstanding | 348.6 | 348.6 |
Subordinated Units [Member] | ||
Limited Partners' Capital Account, Units Issued | 135.4 | 135.4 |
Limited Partners' Capital Account, Units Outstanding | 135.4 | 135.4 |
Cheniere Energy Partners, LP [Member] | ||
General Partner Ownership Interest Percentage | 2.00% | 2.00% |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Revenues | $ 1,718 | $ 1,749 | |
Revenues from contracts with customers | 1,718 | 1,748 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 699 | 879 | |
Operating and maintenance expense | 152 | 138 | |
Operating and maintenance expense—affiliate | 33 | 29 | |
General and administrative expense | 2 | 3 | |
General and administrative expense—affiliate | 25 | 21 | |
Depreciation and amortization expense | 138 | 114 | |
Impairment expense and loss on disposal of assets | 5 | 2 | |
Total operating costs and expenses | 1,054 | 1,186 | |
Income from operations | 664 | 563 | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (234) | (187) | |
Loss on modification or extinguishment of debt | (1) | 0 | |
Other income, net | 6 | 9 | |
Total other expense | (229) | (178) | |
Net income | $ 435 | $ 385 | |
Basic and diluted net income per common unit | $ 0.84 | $ 0.75 | |
Weighted average number of common units outstanding used for basic and diluted net income per common unit calculation | 348.6 | 348.6 | |
LNG [Member] | |||
Revenues | |||
Revenues | $ 1,449 | $ 1,367 | |
Revenues from contracts with customers | [1] | 1,449 | 1,366 |
LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 188 | 305 | |
Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 67 | 66 | |
Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | $ 14 | $ 11 | |
[1] | LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. If contractually the customer cannot make up unexercised quantities in future periods, our performance obligation with respect to declined volumes is satisfied, and revenue associated with any unexercised quantities is generally recognized upon notice of customer cancellation. |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Units [Member] | Subordinated Units [Member] | General Partner [Member] |
Units, Outstanding, beginning of period at Dec. 31, 2018 | 348.6 | 135.4 | ||
Partners' equity, beginning of period at Dec. 31, 2018 | $ 800 | $ 1,806 | $ (990) | $ (16) |
General partner units, Outstanding, beginning of period at Dec. 31, 2018 | 9.9 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Net income | 385 | 272 | 105 | $ 8 |
Distributions | $ (206) | $ (80) | (18) | |
Units, Outstanding, end of period at Mar. 31, 2019 | 348.6 | 135.4 | ||
Partners' equity, end of period at Mar. 31, 2019 | 881 | $ 1,872 | $ (965) | $ (26) |
General partner units, Outstanding, end of period at Mar. 31, 2019 | 9.9 | |||
Units, Outstanding, beginning of period at Dec. 31, 2019 | 348.6 | 135.4 | ||
Partners' equity, beginning of period at Dec. 31, 2019 | $ 715 | $ 1,792 | $ (996) | $ (81) |
General partner units, Outstanding, beginning of period at Dec. 31, 2019 | 9.9 | 9.9 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Net income | $ 435 | 307 | 119 | $ 9 |
Distributions | $ (220) | $ (85) | (25) | |
Units, Outstanding, end of period at Mar. 31, 2020 | 348.6 | 135.4 | ||
Partners' equity, end of period at Mar. 31, 2020 | $ 820 | $ 1,879 | $ (962) | $ (97) |
General partner units, Outstanding, end of period at Mar. 31, 2020 | 9.9 | 9.9 |
Consolidated Statements of Pa_2
Consolidated Statements of Partners' Equity Parentheticals - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common Units [Member] | ||
Distributions Paid, Per Unit | $ 0.63 | $ 0.59 |
Subordinated Units [Member] | ||
Distributions Paid, Per Unit | $ 0.63 | $ 0.59 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 435 | $ 385 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 138 | 114 |
Amortization of debt issuance costs, premium and discount | 9 | 6 |
Loss on modification or extinguishment of debt | 1 | 0 |
Total gains on derivatives, net | (21) | (77) |
Net cash provided by settlement of derivative instruments | 5 | 5 |
Impairment expense and loss on disposal of assets | 5 | 2 |
Other | 3 | 2 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 38 | 105 |
Accounts receivable—affiliate | 67 | 1 |
Advances to affiliate | 17 | (26) |
Inventory | 19 | (9) |
Accounts payable and accrued liabilities | (100) | (131) |
Due to affiliates | (13) | (14) |
Deferred revenue | (61) | (10) |
Other, net | (3) | (7) |
Other, net—affiliate | (4) | (2) |
Net cash provided by operating activities | 535 | 344 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (317) | (283) |
Other | 0 | (1) |
Net cash used in investing activities | (317) | (284) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | (7) | 0 |
Distributions to owners | (330) | (304) |
Net cash used in financing activities | (337) | (304) |
Net decrease in cash, cash equivalents and restricted cash | (119) | (244) |
Cash, cash equivalents and restricted cash—beginning of period | 1,962 | 1,541 |
Cash, cash equivalents and restricted cash—end of period | $ 1,843 | $ 1,297 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Balances per Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Balances per Consolidated Balance Sheets: | ||||
Cash and cash equivalents | $ 1,734 | $ 1,781 | ||
Restricted cash | 109 | 181 | ||
Total cash, cash equivalents and restricted cash | $ 1,843 | $ 1,962 | $ 1,297 | $ 1,541 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION The Sabine Pass LNG terminal is located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Through our subsidiary, SPL, we are currently operating five natural gas liquefaction Trains and are constructing one additional Train for a total production capacity of approximately 30 mtpa of LNG (the “Liquefaction Project”) at the Sabine Pass LNG terminal. Through our subsidiary, SPLNG, we own and operate regasification facilities at the Sabine Pass LNG terminal, which includes pre-existing infrastructure of five LNG storage tanks, two marine berths and vaporizers. We also own a 94 -mile pipeline through our subsidiary, CTPL, that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines (the “Creole Trail Pipeline”) . Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cheniere Partners have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the year ended December 31, 2019 . Results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2020 . We are not subject to either federal or state income tax, as our partners are taxed individually on their allocable share of our taxable income. Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The optional expedients were available to be used upon issuance of this guidance but we have not yet applied the guidance because we have not yet modified any of our existing contracts for reference rate reform. Once we apply an optional expedient to a modified contract and adopt this standard, the guidance will be applied to all subsequent applicable contract modifications until December 31, 2022, at which time the optional expedients are no longer available. |
Unitholders' Equity
Unitholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Partners' Capital Notes [Abstract] | |
Unitholders' Equity | UNITHOLDERS’ EQUITY The common units and subordinated units represent limited partner interests in us. The holders of the units are entitled to participate in partnership distributions and exercise the rights and privileges available to limited partners under our partnership agreement. Our partnership agreement requires that, within 45 days after the end of each quarter, we distribute all of our available cash (as defined in our partnership agreement). Generally, our available cash is our cash on hand at the end of a quarter less the amount of any reserves established by our general partner. All distributions paid to date have been made from accumulated operating surplus as defined in the partnership agreement. The holders of common units have the right to receive initial quarterly distributions of $0.425 per common unit, plus any arrearages thereon, before any distribution is made to the holders of the subordinated units. The holders of subordinated units will receive distributions only to the extent we have available cash above the initial quarterly distribution requirement for our common unitholders and general partner and certain reserves. Subordinated units will convert into common units on a one-for-one basis when we meet financial tests specified in the partnership agreement. Although common and subordinated unitholders are not obligated to fund losses of the Partnership, their capital accounts, which would be considered in allocating the net assets of the Partnership were it to be liquidated, continue to share in losses. The general partner interest is entitled to at least 2% of all distributions made by us. In addition, the general partner holds incentive distribution rights (“IDRs”) , which allow the general partner to receive a higher percentage of quarterly distributions of available cash from operating surplus after the initial quarterly distributions have been achieved and as additional target levels are met, but may transfer these rights separately from its general partner interest. The higher percentages range from 15% to 50% , inclusive of the general partner interest. As of March 31, 2020 , Cheniere, Blackstone CQP Holdco LP ( “Blackstone CQP Holdco” ) and the public owned a 48.6% , 41.2% and 8.2% interest in us, respectively. Cheniere’s ownership percentage includes its subordinated units and Blackstone CQP Holdco ’s ownership percentage excludes any common units that may be deemed to be beneficially owned by Blackstone Group, an affiliate of Blackstone CQP Holdco |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
Restricted Cash [Abstract] | |
Restricted Cash | RESTRICTED CASH Restricted cash consists of funds that are contractually or legally restricted as to usage or withdrawal and have been presented separately from cash and cash equivalents on our Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019 , we had $109 million and $181 million of current restricted cash, respectively. Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of SPL’s debt holders, SPL is required to deposit all cash received into reserve accounts controlled by the collateral trustee. The usage or withdrawal of such cash is restricted to the payment of liabilities related to the Liquefaction Project |
Accounts and Other Receivables
Accounts and Other Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLES As of March 31, 2020 and December 31, 2019 , accounts and other receivables consisted of the following (in millions): March 31, December 31, 2020 2019 SPL trade receivable $ 248 $ 283 Other accounts receivable 11 14 Total accounts and other receivables $ 259 $ 297 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of March 31, 2020 and December 31, 2019 , inventory consisted of the following (in millions): March 31, December 31, 2020 2019 Natural gas $ 11 $ 9 LNG 7 27 Materials and other 80 80 Total inventory $ 98 $ 116 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT As of March 31, 2020 and December 31, 2019 , property, plant and equipment, net consisted of the following (in millions): March 31, December 31, 2020 2019 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 16,917 $ 16,894 LNG terminal construction-in-process 1,495 1,275 Accumulated depreciation (1,943 ) (1,807 ) Total LNG terminal costs, net 16,469 16,362 Fixed assets Fixed assets 29 27 Accumulated depreciation (22 ) (21 ) Total fixed assets, net 7 6 Property, plant and equipment, net $ 16,476 $ 16,368 Depreciation expense was $137 million and $113 million during the three months ended March 31, 2020 and 2019 , respectively. We realized offsets to LNG terminal costs of $48 million during the three months ended March 31, 2019 that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Trains of the Liquefaction Project , during the testing phase for its construction. We did no t realize any offsets to LNG terminal costs during the three months ended March 31, 2020 . |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS We have entered into commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Project (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (collectively, the “Liquefaction Supply Derivatives”) . We recognize our derivative instruments as either assets or liabilities and measure those instruments at fair value. None of our derivative instruments are designated as cash flow or fair value hedging instruments, and changes in fair value are recorded within our Consolidated Statements of Income to the extent not utilized for the commissioning process. The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in millions). Fair Value Measurements as of March 31, 2020 December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset (liability) $ (1 ) $ (8 ) $ 49 $ 40 $ 3 $ (3 ) $ 24 $ 24 We value our Liquefaction Supply Derivatives using a market-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. The fair value of our Physical Liquefaction Supply Derivatives is predominantly driven by observable and unobservable market commodity prices and, as applicable to our natural gas supply contracts, our assessment of the associated events deriving fair value, including evaluating whether the respective market is available as pipeline infrastructure is developed. The fair value of our Physical Liquefaction Supply Derivatives incorporates risk premiums related to the satisfaction of conditions precedent, such as completion and placement into service of relevant pipeline infrastructure to accommodate marketable physical gas flow. As of March 31, 2020 and December 31, 2019 , some of our Physical Liquefaction Supply Derivatives existed within markets for which the pipeline infrastructure was under development to accommodate marketable physical gas flow. We include a portion of our Physical Liquefaction Supply Derivatives as Level 3 within the valuation hierarchy as the fair value is developed through the use of internal models which incorporate significant unobservable inputs. In instances where observable data is unavailable, consideration is given to the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks, such as future prices of energy units for unobservable periods, liquidity, volatility and contract duration. The Level 3 fair value measurements of natural gas positions within our Physical Liquefaction Supply Derivatives could be materially impacted by a significant change in certain natural gas prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of March 31, 2020 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $49 Market approach incorporating present value techniques Henry Hub basis spread $(0.380) - $0.054 / 0.007 (1) Unobservable inputs were weighted by the relative fair value of the instruments. Increases or decreases in basis, in isolation, would decrease or increase, respectively, the fair value of our Physical Liquefaction Supply Derivatives . The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance, beginning of period $ 24 $ (25 ) Realized and mark-to-market gains: Included in cost of sales 25 9 Purchases and settlements: Purchases 1 — Settlements (3 ) 45 Transfers out of Level 3 (1) 2 — Balance, end of period $ 49 $ 29 Change in unrealized gains relating to instruments still held at end of period $ 25 $ 9 (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. Derivative assets and liabilities arising from our derivative contracts with the same counterparty are reported on a net basis, as all counterparty derivative contracts provide for the unconditional right of set-off in the event of default. The use of derivative instruments exposes us to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments in instances when our derivative instruments are in an asset position. Additionally, counterparties are at risk that we will be unable to meet our commitments in instances where our derivative instruments are in a liability position. We incorporate both our own nonperformance risk and the respective counterparty’s nonperformance risk in fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of any applicable credit enhancements, such as collateral postings, set-off rights and guarantees. Liquefaction Supply Derivatives SPL has entered into primarily index-based physical natural gas supply contracts and associated economic hedges to purchase natural gas for the commissioning and operation of the Liquefaction Project. The remaining terms of the physical natural gas supply contracts range up to 10 years , some of which commence upon the satisfaction of certain events or states of affairs. The notional natural gas position of our Liquefaction Supply Derivatives was approximately 5,231 TBtu and 3,663 TBtu as of March 31, 2020 and December 31, 2019 , respectively, of which 91 TBtu and zero TBtu, respectively, were for a natural gas supply contract that SPL has with a related party. The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of (1) Consolidated Balance Sheet Location March 31, 2020 December 31, 2019 Derivative assets $ 13 $ 17 Non-current derivative assets 41 32 Total derivative assets 54 49 Derivative liabilities (12 ) (9 ) Non-current derivative liabilities (2 ) (16 ) Total derivative liabilities (14 ) (25 ) Derivative asset, net $ 40 $ 24 (1) Does not include collateral posted with counterparties by us of $6 million and $2 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 , respectively. Includes a natural gas supply contract that SPL has with a related party, which had a fair value of zero as of March 31, 2020 . The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Income during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, Consolidated Statement of Income Location (1) 2020 2019 Liquefaction Supply Derivatives gain LNG revenues $ — $ 1 Liquefaction Supply Derivatives gain Cost of sales 21 76 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. Consolidated Balance Sheet Presentation Our derivative instruments are presented on a net basis on our Consolidated Balance Sheets as described above. The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting Derivative Assets (Liabilities) As of March 31, 2020 Liquefaction Supply Derivatives $ 56 $ (2 ) $ 54 Liquefaction Supply Derivatives (15 ) 1 (14 ) As of December 31, 2019 Liquefaction Supply Derivatives $ 51 $ (2 ) $ 49 Liquefaction Supply Derivatives (27 ) 2 (25 ) |
Other Non-Current Assets
Other Non-Current Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS As of March 31, 2020 and December 31, 2019 , other non-current assets, net consisted of the following (in millions): March 31, December 31, 2020 2019 Advances made to municipalities for water system enhancements $ 86 $ 87 Advances and other asset conveyances to third parties to support LNG terminal 35 35 Tax-related prepayments and receivables 17 17 Information technology service prepayments 5 6 Advances made under EPC and non-EPC contracts 7 15 Other 6 8 Total other non-current assets, net $ 156 $ 168 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES As of March 31, 2020 and December 31, 2019 , accrued liabilities consisted of the following (in millions): March 31, December 31, 2020 2019 Interest costs and related debt fees $ 251 $ 241 Accrued natural gas purchases 224 325 LNG terminal and related pipeline costs 81 135 Other accrued liabilities 13 8 Total accrued liabilities $ 569 $ 709 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of March 31, 2020 and December 31, 2019 , our debt consisted of the following (in millions): March 31, December 31, 2020 2019 Long-term debt: SPL 5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”) $ — $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”) 1,350 1,350 5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) 800 800 $1.2 billion SPL Working Capital Facility executed in 2020 (“2020 SPL Working Capital Facility”) — — Cheniere Partners 5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) 1,500 1,500 5.625% Senior Notes due 2026 (“2026 CQP Senior Notes”) 1,100 1,100 4.500% Senior Notes due 2029 (“2029 CQP Senior Notes”) 1,500 1,500 CQP Credit Facilities executed in 2019 (“2019 CQP Credit Facilities”) — — Unamortized premium, discount and debt issuance costs, net (159 ) (171 ) Total long-term debt, net 15,591 17,579 Current debt: 2021 SPL Senior Notes 2,000 — $1.2 billion SPL Working Capital Facility executed in 2015 (“2015 SPL Working Capital Facility”) — — Unamortized premium, discount and debt issuance costs, net (4 ) — Total current debt 1,996 — Total debt, net $ 17,587 $ 17,579 2020 Material Debt Activities 2020 SPL Working Capital Facility In March 2020, SPL entered into the 2020 SPL Working Capital Facility with aggregate commitments of $1.2 billion , which replaced the 2015 SPL Working Capital Facility . The 2020 SPL Working Capital Facility is intended to be used for loans to SPL (“SPL Revolving Loans”) , swing line loans to SPL (“SPL Swing Line Loans”) and the issuance of letters of credit on behalf of SPL, primarily for (1) the refinancing of the 2015 SPL Working Capital Facility , (2) fees and expenses related to the 2020 SPL Working Capital Facility , (3) SPL’s gas purchase obligations and (4) SPL and certain of its future subsidiaries’ general corporate purposes. SPL may, from time to time, request increases in the commitments under the 2020 SPL Working Capital Facility of up to $800 million . Loans under the 2020 SPL Working Capital Facility accrue interest at a variable rate per annum equal to LIBOR or the base rate (equal to the highest of the senior facility agent’s published prime rate, the federal funds rate, as published by the Federal Reserve Bank of New York, plus 0.50% and one month LIBOR plus 0.50% ), plus the applicable margin. The applicable margin for LIBOR loans under the 2020 SPL Working Capital Facility is 1.125% to 1.750% per annum (depending on the then-current rating of SPL), and the applicable margin for base rate loans under the 2020 SPL Working Capital Facility is 0.125% to 0.750% per annum (depending on the then-current rating of SPL). Interest on LIBOR loans is due and payable at the end of each applicable LIBOR period, and interest on base rate loans is due and payable at the end of each fiscal quarter. SPL pays a commitment fee equal to an annual rate of 0.1% to 0.3% (depending on the then-current rating of SPL), which accrues on the daily amount of the total commitment less the sum of (1) the outstanding principal amount of SPL Revolving Loans , (2) letters of credit issued and (3) the outstanding principal amount of SPL Swing Line Loans . If draws are made upon a letter of credit issued under the 2020 SPL Working Capital Facility and SPL does not elect for such draw to be deemed an SPL LC Loan (an “ SPL LC Draw ”), SPL is required to pay the full amount of the SPL LC Draw on or prior to noon eastern time on the business day of the SPL LC Draw. An SPL LC Draw accrues interest at the base rate plus the applicable margin. As of March 31, 2020 , no SPL LC Draws had been made upon any letters of credit issued under the 2020 SPL Working Capital Facility . The 2020 SPL Working Capital Facility matures on March 19, 2025, but may be extended with consent of the lenders. The 2020 SPL Working Capital Facility provides for mandatory prepayments under customary circumstances. The 2020 SPL Working Capital Facility contains customary conditions precedent for extensions of credit, as well as customary affirmative and negative covenants. SPL is restricted from making certain distributions under agreements governing its indebtedness generally until, among other requirements, satisfaction of a 12-month forward-looking and backward-looking 1.25 :1.00 debt service reserve ratio test. The obligations of SPL under the 2020 SPL Working Capital Facility are secured by substantially all of the assets of SPL as well as a pledge of all of the membership interests in SPL and certain future subsidiaries of SPL on a pari passu basis by a first priority lien with the SPL Senior Notes. Credit Facilities Below is a summary of our credit facilities outstanding as of March 31, 2020 (in millions): 2020 SPL Working Capital Facility 2019 CQP Credit Facilities Original facility size $ 1,200 $ 1,500 Less: Outstanding balance — — Commitments prepaid or terminated — 750 Letters of credit issued 414 — Available commitment $ 786 $ 750 Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% LIBOR plus 1.25% - 2.125% or base rate plus 0.25% - 1.125% Weighted average interest rate of outstanding balance n/a n/a Maturity date March 19, 2025 May 29, 2024 Restrictive Debt Covenants As of March 31, 2020 , we and SPL were in compliance with all covenants related to our respective debt agreements. Interest Expense Total interest expense consisted of the following (in millions): Three Months Ended March 31, 2020 2019 Total interest cost $ 254 $ 235 Capitalized interest (20 ) (48 ) Total interest expense, net $ 234 $ 187 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): March 31, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior notes (1) $ 16,950 $ 15,762 $ 16,950 $ 18,320 2037 SPL Senior Notes (2) 800 709 800 934 Credit facilities (3) — — — — (1) Includes the SPL Senior Notes except the 2037 SPL Senior Notes and the CQP Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. (3) Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility and 2019 CQP Credit Facilities |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | REVENUES FROM CONTRACTS WITH CUSTOMERS The following table represents a disaggregation of revenue earned from contracts with customers during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 LNG revenues (1) $ 1,449 $ 1,366 LNG revenues—affiliate 188 305 Regasification revenues 67 66 Other revenues 14 11 Total revenues from customers 1,718 1,748 Net derivative gains (2) — 1 Total revenues $ 1,718 $ 1,749 (1) LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. If contractually the customer cannot make up unexercised quantities in future periods, our performance obligation with respect to declined volumes is satisfied, and revenue associated with any unexercised quantities is generally recognized upon notice of customer cancellation. (2) See Note 7—Derivative Instruments for additional information about our derivatives. Deferred Revenue Reconciliation The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Consolidated Balance Sheets (in millions): Three Months Ended March 31, 2020 Deferred revenues, beginning of period $ 155 Cash received but not yet recognized 94 Revenue recognized from prior period deferral (155 ) Deferred revenues, end of period $ 94 Transaction Price Allocated to Future Performance Obligations Because many of our sales contracts have long-term durations, we are contractually entitled to significant future consideration which we have not yet recognized as revenue. The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues (2) $ 54.2 10 $ 55.0 10 Regasification revenues 2.3 5 2.4 5 Total revenues $ 56.5 $ 57.4 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. (2) Includes future consideration from agreement contractually assigned to SPL from Cheniere Marketing. We have elected the following exemptions which omit certain potential future sources of revenue from the table above: (1) We omit from the table above all performance obligations that are part of a contract that has an original expected duration of one year or less. (2) The table above excludes substantially all variable consideration under our SPAs and TUAs. We omit from the table above all variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation when that performance obligation qualifies as a series. The amount of revenue from variable fees that is not included in the transaction price will vary based on the future prices of Henry Hub throughout the contract terms, to the extent customers elect to take delivery of their LNG, and adjustments to the consumer price index. Certain of our contracts contain additional variable consideration based on the outcome of contingent events and the movement of various indexes. We have not included such variable consideration in the transaction price to the extent the consideration is considered constrained due to the uncertainty of ultimate pricing and receipt. Approximately 44% and 58% of our LNG revenues from contracts with a duration of over one year during the three months ended March 31, 2020 and 2019 , respectively, were related to variable consideration received from customers. During each of the three months ended March 31, 2020 and 2019 , approximately 3% of our regasification revenues were related to variable consideration received from customers. All of our LNG revenues—affiliate were related to variable consideration received from customers during each of the three months ended March 31, 2020 and 2019 . We have entered into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching a final investment decision on a certain liquefaction Train, obtaining financing or achieving substantial completion of a Train and any related facilities. These contracts are considered completed contracts for revenue recognition purposes and are included in the transaction price above when the conditions are considered probable of being met. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Below is a summary of our related party transactions as reported on our Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 LNG revenues—affiliate Cheniere Marketing Agreements $ 182 $ 305 Contracts for Sale and Purchase of Natural Gas and LNG 6 — Total LNG revenues—affiliate 188 305 Operating and maintenance expense—affiliate Services Agreements 33 29 General and administrative expense—affiliate Services Agreements 25 21 As of March 31, 2020 and December 31, 2019 , we had $38 million and $105 million , respectively, of accounts receivable—affiliate, under the agreements described below. Terminal Use Agreement SPL obtained approximately 2 Bcf/d of regasification capacity and other liquefaction support services under a TUA with SPLNG as a result of an assignment in July 2012 by Cheniere Investments of its rights, title and interest under its TUA with SPLNG. SPL is obligated to make monthly capacity payments to SPLNG aggregating approximately $250 million per year (the “TUA Fees”) , continuing until at least May 2036. In connection with this TUA , SPL is required to pay for a portion of the cost (primarily LNG inventory) to maintain the cryogenic readiness of the regasification facilities at the Sabine Pass LNG terminal, which is recorded as operating and maintenance expense on our Consolidated Statements of Income . Cheniere Marketing Agreements Cheniere Marketing SPA Cheniere Marketing has an SPA (“Base SPA”) with SPL to purchase, at Cheniere Marketing’s option, any LNG produced by SPL in excess of that required for other customers at a price of 115% of Henry Hub plus $3.00 per MMBtu of LNG. In May 2019, SPL and Cheniere Marketing entered into an amendment to the Base SPA to remove certain conditions related to the sale of LNG from Trains 5 and 6 of the Liquefaction Project and provide that cargoes rejected by Cheniere Marketing under the Base SPA can be sold by SPL to Cheniere Marketing at a contract price equal to a portion of the estimated net profits from the sale of such cargo. Cheniere Marketing Master SPA SPL has an agreement with Cheniere Marketing that allows the parties to sell and purchase LNG with each other by executing and delivering confirmations under this agreement. SPL executed a confirmation with Cheniere Marketing that obligated Cheniere Marketing in certain circumstances to buy LNG cargoes produced during the period while Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) had control of, and was commissioning, Train 5 of the Liquefaction Project . Cheniere Marketing Letter Agreements In December 2019, SPL and Cheniere Marketing entered into a letter agreement for the sale of up to 43 cargoes scheduled for delivery in 2020 at a price of 115% of Henry Hub plus $1.67 per MMBtu. Services Agreements As of March 31, 2020 and December 31, 2019 , we had $146 million and $158 million of advances to affiliates, respectively, under the services agreements described below. The non-reimbursement amounts incurred under these agreements are recorded in general and administrative expense—affiliate. Cheniere Partners Services Agreement We have a services agreement with Cheniere Terminals, a subsidiary of Cheniere, pursuant to which Cheniere Terminals is entitled to a quarterly non-accountable overhead reimbursement charge of $3 million (adjusted for inflation) for the provision of various general and administrative services for our benefit. In addition, Cheniere Terminals is entitled to reimbursement for all audit, tax, legal and finance fees incurred by Cheniere Terminals that are necessary to perform the services under the agreement. Cheniere Investments Information Technology Services Agreement Cheniere Investments has an information technology services agreement with Cheniere, pursuant to which Cheniere Investments’ subsidiaries receive certain information technology services. On a quarterly basis, the various entities receiving the benefit are invoiced by Cheniere Investments according to the cost allocation percentages set forth in the agreement. In addition, Cheniere is entitled to reimbursement for all costs incurred by Cheniere that are necessary to perform the services under the agreement. SPLNG O&M Agreement SPLNG has a long-term operation and maintenance agreement (the “SPLNG O&M Agreement”) with Cheniere Investments pursuant to which SPLNG receives all necessary services required to operate and maintain the Sabine Pass LNG receiving terminal. SPLNG pays a fixed monthly fee of $130,000 (indexed for inflation) under the SPLNG O&M Agreement and the cost of a bonus equal to 50% of the salary component of labor costs in certain circumstances to be agreed upon between SPLNG and Cheniere Investments at the beginning of each operating year. In addition, SPLNG is required to reimburse Cheniere Investments for its operating expenses, which consist primarily of labor expenses. Cheniere Investments provides the services required under the SPLNG O&M Agreement pursuant to a secondment agreement with a wholly owned subsidiary of Cheniere. All payments received by Cheniere Investments under the SPLNG O&M Agreement are required to be remitted to such subsidiary. SPLNG MSA SPLNG has a long-term management services agreement (the “SPLNG MSA”) with Cheniere Terminals, pursuant to which Cheniere Terminals manages the operation of the Sabine Pass LNG receiving terminal, excluding those matters provided for under the SPLNG O&M Agreement . SPLNG pays a monthly fixed fee of $520,000 (indexed for inflation) under the SPLNG MSA . SPL O&M Agreement SPL has an operation and maintenance agreement (the “SPL O&M Agreement”) with Cheniere Investments pursuant to which SPL receives all of the necessary services required to construct, operate and maintain the Liquefaction Project . Before each Train of the Liquefaction Project is operational, the services to be provided include, among other services, obtaining governmental approvals on behalf of SPL, preparing an operating plan for certain periods, obtaining insurance, preparing staffing plans and preparing status reports. After each Train is operational, the services include all necessary services required to operate and maintain the Train. Prior to the substantial completion of each Train of the Liquefaction Project , in addition to reimbursement of operating expenses, SPL is required to pay a monthly fee equal to 0.6% of the capital expenditures incurred in the previous month. After substantial completion of each Train, for services performed while the Train is operational, SPL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $83,333 (indexed for inflation) for services with respect to the Train. Cheniere Investments provides the services required under the SPL O&M Agreement pursuant to a secondment agreement with a wholly owned subsidiary of Cheniere. All payments received by Cheniere Investments under the SPL O&M Agreement are required to be remitted to such subsidiary. SPL MSA SPL has a management services agreement (the “SPL MSA”) with Cheniere Terminals pursuant to which Cheniere Terminals manages the construction and operation of the Liquefaction Project , excluding those matters provided for under the SPL O&M Agreement . The services include, among other services, exercising the day-to-day management of SPL’s affairs and business, managing SPL’s regulatory matters, managing bank and brokerage accounts and financial books and records of SPL’s business and operations, entering into financial derivatives on SPL’s behalf and providing contract administration services for all contracts associated with the Liquefaction Project . Prior to the substantial completion of each Train of the Liquefaction Project , SPL pays a monthly fee equal to 2.4% of the capital expenditures incurred in the previous month. After substantial completion of each Train, SPL will pay a fixed monthly fee of $541,667 (indexed for inflation) for services with respect to such Train. CTPL O&M Agreement CTPL has an amended long-term operation and maintenance agreement (the “CTPL O&M Agreement”) with Cheniere Investments pursuant to which CTPL receives all necessary services required to operate and maintain the Creole Trail Pipeline . CTPL is required to reimburse Cheniere Investments for its operating expenses, which consist primarily of labor expenses. Cheniere Investments provides the services required under the CTPL O&M Agreement pursuant to a secondment agreement with a wholly owned subsidiary of Cheniere. All payments received by Cheniere Investments under the CTPL O&M Agreement are required to be remitted to such subsidiary. Natural Gas Supply Agreement SPL has entered into a natural gas supply contract to obtain feed gas for the operation of the Liquefaction Project with a related party in the ordinary course of business. The term of the agreement is for five years, which can commence no earlier than November 1, 2021 and no later than November 1, 2022, following the achievement of contractually-defined conditions precedent. SPL did no t have any deliveries under this contract during the three months ended March 31, 2020 and 2019 . Agreement to Fund SPLNG’s Cooperative Endeavor Agreements SPLNG has executed Cooperative Endeavor Agreements (“CEAs”) with various Cameron Parish, Louisiana taxing authorities that allowed them to collect certain annual property tax payments from SPLNG from 2007 through 2016. This initiative represented an aggregate commitment of $25 million over 10 years in order to aid in their reconstruction efforts following Hurricane Rita. In exchange for SPLNG’s advance payments of annual ad valorem taxes, Cameron Parish may grant SPLNG a dollar-for-dollar credit against future ad valorem taxes to be levied against the Sabine Pass LNG terminal as early as 2019. Beginning in September 2007, SPLNG entered into various agreements with Cheniere Marketing, pursuant to which Cheniere Marketing would pay SPLNG additional TUA revenues equal to any and all amounts payable by SPLNG to the Cameron Parish taxing authorities under the CEAs . In exchange for such amounts received as TUA revenues from Cheniere Marketing, SPLNG will make payments to Cheniere Marketing equal to ad valorem tax levied on our LNG terminal in the year the Cameron Parish dollar-for-dollar credit is applied. On a consolidated basis, these advance tax payments were recorded to other non-current assets, and payments from Cheniere Marketing that SPLNG utilized to make the ad valorem tax payments were recorded as obligations. We had $3 million and $2 million in due to affiliates and $19 million and $20 million of other non-current liabilities—affiliate resulting from these payments received from Cheniere Marketing as of March 31, 2020 and December 31, 2019 , respectively. Contracts for Sale and Purchase of Natural Gas and LNG SPLNG is able to sell and purchase natural gas and LNG under agreements with Cheniere Marketing . Under these agreements, SPLNG purchases natural gas or LNG from Cheniere Marketing at a sales price equal to the actual purchase price paid by Cheniere Marketing to suppliers of the natural gas or LNG, plus any third-party costs incurred by Cheniere Marketing with respect to the receipt, purchase and delivery of natural gas or LNG to the Sabine Pass LNG terminal. SPL has an agreement with CCL that allows them to sell and purchase natural gas from each other. Natural gas purchased under this agreement is initially recorded as inventory and then to cost of sales—affiliate upon its sale, except for purchases related to commissioning activities which are capitalized as LNG terminal construction-in-process. Natural gas sold under this agreement is recorded as LNG revenues—affiliate. Terminal Marine Services Agreement In connection with its tug boat lease, Tug Services entered into an agreement with Cheniere Terminals to provide its LNG cargo vessels with tug boat and marine services at the Sabine Pass LNG terminal. The agreement also provides that Tug Services shall contingently pay Cheniere Terminals a portion of its future revenues. Accordingly, Tug Services distributed $1 million in each of the three months ended March 31, 2020 and 2019 to Cheniere Terminals, which is recognized as part of the distributions to our general partner interest holders on our Consolidated Statements of Partners’ Equity. LNG Terminal Export Agreement SPLNG and Cheniere Marketing have an LNG terminal export agreement that provides Cheniere Marketing the ability to export LNG from the Sabine Pass LNG terminal. SPLNG did no t record any revenues associated with this agreement during the three months ended March 31, 2020 and 2019 . State Tax Sharing Agreements SPLNG has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which SPLNG and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, SPLNG will pay to Cheniere an amount equal to the state and local tax that SPLNG would be required to pay if its state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from SPLNG under this agreement; therefore, Cheniere has not demanded any such payments from SPLNG. The agreement is effective for tax returns due on or after January 1, 2008. SPL has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which SPL and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, SPL will pay to Cheniere an amount equal to the state and local tax that SPL would be required to pay if SPL’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from SPL under this agreement; therefore, Cheniere has not demanded any such payments from SPL. The agreement is effective for tax returns due on or after August 2012. CTPL has a state tax sharing agreement with Cheniere. Under this agreement, Cheniere has agreed to prepare and file all state and local tax returns which CTPL and Cheniere are required to file on a combined basis and to timely pay the combined state and local tax liability. If Cheniere, in its sole discretion, demands payment, CTPL will pay to Cheniere an amount equal to the state and local tax that CTPL would be required to pay if CTPL’s state and local tax liability were calculated on a separate company basis. There have been no state and local taxes paid by Cheniere for which Cheniere could have demanded payment from CTPL under this agreement; therefore, Cheniere has not demanded any such payments from CTPL. The agreement is effective for tax returns due on or after May 2013. |
Net Income per Common Unit
Net Income per Common Unit | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Common Unit | NET INCOME PER COMMON UNIT Net income per common unit for a given period is based on the distributions that will be made to the unitholders with respect to the period plus an allocation of undistributed net income based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. Distributions paid by us are presented on the Consolidated Statements of Partners’ Equity. On April 27, 2020 , we declared a $0.64 distribution per common unit and subordinated unit and the related distribution to our general partner and IDR holders to be paid on May 15, 2020 to unitholders of record as of May 7, 2020 for the period from January 1, 2020 to March 31, 2020 . The two-class method dictates that net income for a period be reduced by the amount of available cash that will be distributed with respect to that period and that any residual amount representing undistributed net income to be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income as if all of the net income for the period had been distributed in accordance with the partnership agreement. Undistributed income is allocated to participating securities based on the distribution waterfall for available cash specified in the partnership agreement. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units and other participating securities on a pro rata basis based on provisions of the partnership agreement. Distributions are treated as distributed earnings in the computation of earnings per common unit even though cash distributions are not necessarily derived from current or prior period earnings. The following table provides a reconciliation of net income and the allocation of net income to the common units, the subordinated units, the general partner units and IDRs for purposes of computing basic and diluted net income per unit (in millions, except per unit data). Limited Partner Units Total Common Units Subordinated Units General Partner Units IDR Three Months Ended March 31, 2020 Net income $ 435 Declared distributions 336 223 87 6 20 Assumed allocation of undistributed net income (1) $ 99 70 27 2 — Assumed allocation of net income $ 293 $ 114 $ 8 $ 20 Weighted average units outstanding 348.6 135.4 Basic and diluted net income per unit $ 0.84 $ 0.84 Three Months Ended March 31, 2019 Net income $ 385 Declared distributions 310 210 81 6 13 Assumed allocation of undistributed net income (1) $ 75 52 21 2 — Assumed allocation of net income $ 262 $ 102 $ 8 $ 13 Weighted average units outstanding 348.6 135.4 Basic and diluted net income per unit $ 0.75 $ 0.75 (1) Under our partnership agreement, the IDR s participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDR s from participating in undistributed net income. |
Customer Concentration
Customer Concentration | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | CUSTOMER CONCENTRATION The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Three Months Ended March 31, March 31, December 31, 2020 2019 2020 2019 Customer A 28% 31% 21% 21% Customer B 15% 19% 14% 13% Customer C 15% 19% 28% 22% Customer D 16% 22% 14% 13% Customer E * —% * 13% Customer F 11% —% 14% 14% * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION The following table provides supplemental disclosure of cash flow information (in millions): Three Months Ended March 31, 2020 2019 Cash paid during the period for interest, net of amounts capitalized $ 211 $ 185 The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) was $219 million and $330 million as of March 31, 2020 and 2019 , respectively. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | SUPPLEMENTAL GUARANTOR INFORMATION Our CQP Senior Notes are jointly and severally guaranteed by each of our subsidiaries other than SPL (the “Guarantors”) and, subject to certain conditions governing its guarantee, Sabine Pass LP (collectively with SPL, the “Non-Guarantors”). These guarantees are full and unconditional, subject to certain customary release provisions including (1) the sale, exchange, disposition or transfer (by merger, consolidation or otherwise) of the capital stock or all or substantially all of the assets of the Guarantors, (2) upon the liquidation or dissolution of a Guarantor, (3) following the release of a Guarantor from its guarantee obligations and (4) upon the legal defeasance or satisfaction and discharge of obligations under the indenture governing the CQP Senior Notes . See Note 10—Debt in this quarterly report and Note 11—Debt of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the year ended December 31, 2019 for additional information regarding the CQP Senior Notes . The following is condensed consolidating financial information for Cheniere Partners (“Parent Issuer”), the Guarantors on a combined basis and the Non-Guarantors on a combined basis. We have accounted for investments in subsidiaries using the equity method. Condensed Consolidating Balance Sheet March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 1,731 $ 3 $ — $ — $ 1,734 Restricted cash — — 109 — 109 Accounts and other receivables — 3 256 — 259 Accounts receivable—affiliate — 24 38 (24 ) 38 Advances to affiliate — 128 122 (104 ) 146 Inventory — 13 85 — 98 Derivative assets — — 13 — 13 Other current assets — 14 35 — 49 Other current assets—affiliate — 2 21 (21 ) 2 Total current assets 1,731 187 679 (149 ) 2,448 Property, plant and equipment, net 79 2,451 13,972 (26 ) 16,476 Operating lease assets, net — 88 20 (16 ) 92 Debt issuance costs, net 9 — 11 — 20 Non-current derivative assets — — 41 — 41 Investments in subsidiaries 3,168 718 — (3,886 ) — Other non-current assets, net — 18 138 — 156 Total assets $ 4,987 $ 3,462 $ 14,861 $ (4,077 ) $ 19,233 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 3 $ 5 $ — $ 8 Accrued liabilities 108 20 441 — 569 Current debt — — 1,996 — 1,996 Due to affiliates 3 120 35 (128 ) 30 Deferred revenue — 22 72 — 94 Deferred revenue—affiliate — 21 — (21 ) — Current operating lease liabilities — 6 — — 6 Derivative liabilities — — 12 — 12 Total current liabilities 111 192 2,561 (149 ) 2,715 Long-term debt, net 4,056 — 11,535 — 15,591 Non-current operating lease liabilities — 81 4 — 85 Non-current derivative liabilities — — 2 — 2 Other non-current liabilities — 1 — — 1 Other non-current liabilities—affiliate — 20 15 (16 ) 19 Partners’ equity 820 3,168 744 (3,912 ) 820 Total liabilities and partners’ equity $ 4,987 $ 3,462 $ 14,861 $ (4,077 ) $ 19,233 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 1,778 $ 3 $ — $ — $ 1,781 Restricted cash — — 181 — 181 Accounts and other receivables — 5 292 — 297 Accounts receivable—affiliate — 43 104 (42 ) 105 Advances to affiliate — 145 133 (120 ) 158 Inventory — 13 103 — 116 Derivative assets — — 17 — 17 Other current assets — 15 36 — 51 Other current assets—affiliate — 1 22 (22 ) 1 Total current assets 1,778 225 888 (184 ) 2,707 Property, plant and equipment, net 79 2,454 13,861 (26 ) 16,368 Operating lease assets, net — 88 21 (15 ) 94 Debt issuance costs, net 9 — 6 — 15 Non-current derivative assets — — 32 — 32 Investments in subsidiaries 2,963 508 — (3,471 ) — Other non-current assets, net — 24 144 — 168 Total assets $ 4,829 $ 3,299 $ 14,952 $ (3,696 ) $ 19,384 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 2 $ 38 $ — $ 40 Accrued liabilities 56 24 629 — 709 Due to affiliates 3 155 49 (161 ) 46 Deferred revenue — 23 132 — 155 Deferred revenue—affiliate — 22 — (21 ) 1 Current operating lease liabilities — 6 — — 6 Derivative liabilities — — 9 — 9 Total current liabilities 59 232 857 (182 ) 966 Long-term debt, net 4,055 — 13,524 — 17,579 Non-current operating lease liabilities — 82 5 — 87 Non-current derivative liabilities — — 16 — 16 Other non-current liabilities — 1 — — 1 Other non-current liabilities—affiliate — 21 16 (17 ) 20 Partners’ equity 715 2,963 534 (3,497 ) 715 Total liabilities and partners’ equity $ 4,829 $ 3,299 $ 14,952 $ (3,696 ) $ 19,384 Condensed Consolidating Statement of Income Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,449 $ — $ 1,449 LNG revenues—affiliate — — 188 — 188 Regasification revenues — 67 — — 67 Regasification revenues—affiliate — 67 — (67 ) — Other revenues — 14 — — 14 Other revenues—affiliate — 62 — (62 ) — Total revenues — 210 1,637 (129 ) 1,718 Operating costs and expenses Cost of sales (excluding items shown separately below) — — 699 — 699 Cost of sales—affiliate — — 12 (12 ) — Operating and maintenance expense — 13 139 — 152 Operating and maintenance expense—affiliate — 33 113 (113 ) 33 General and administrative expense 1 — 1 — 2 General and administrative expense—affiliate 4 7 18 (4 ) 25 Depreciation and amortization expense 1 20 117 — 138 Impairment expense and loss on disposal of assets — 5 — — 5 Total operating costs and expenses 6 78 1,099 (129 ) 1,054 Income (loss) from operations (6 ) 132 538 — 664 Other income (expense) Interest expense, net of capitalized interest (54 ) (2 ) (178 ) — (234 ) Loss on modification or extinguishment of debt — — (1 ) — (1 ) Equity earnings of subsidiaries 490 360 — (850 ) — Other income, net 5 — 1 — 6 Total other income (expense) 441 358 (178 ) (850 ) (229 ) Net income $ 435 $ 490 $ 360 $ (850 ) $ 435 Condensed Consolidating Statement of Income Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,367 $ — $ 1,367 LNG revenues—affiliate — — 305 — 305 Regasification revenues — 66 — — 66 Regasification revenues—affiliate — 66 — (66 ) — Other revenues — 11 — — 11 Other revenues—affiliate — 59 — (59 ) — Total revenues — 202 1,672 (125 ) 1,749 Operating costs and expenses Cost of sales (excluding items shown separately below) — — 879 — 879 Cost of sales—affiliate — — 9 (9 ) — Operating and maintenance expense — 28 110 — 138 Operating and maintenance expense—affiliate — 33 107 (111 ) 29 General and administrative expense 1 1 1 — 3 General and administrative expense—affiliate 3 6 15 (3 ) 21 Depreciation and amortization expense 1 17 96 — 114 Impairment expense and loss on disposal of assets — — 2 — 2 Total operating costs and expenses 5 85 1,219 (123 ) 1,186 Income (loss) from operations (5 ) 117 453 (2 ) 563 Other income (expense) Interest expense, net of capitalized interest (36 ) (1 ) (150 ) — (187 ) Equity earnings of subsidiaries 422 308 — (730 ) — Other income, net 4 — 5 — 9 Total other income (expense) 390 307 (145 ) (730 ) (178 ) Net income $ 385 $ 424 $ 308 $ (732 ) $ 385 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 490 $ 521 $ 374 $ (850 ) $ 535 Cash flows from investing activities Property, plant and equipment, net — (24 ) (293 ) — (317 ) Investments in subsidiaries (286 ) (225 ) — 511 — Return of capital 79 11 — (90 ) — Net cash used in investing activities (207 ) (238 ) (293 ) 421 (317 ) Cash flows from financing activities Debt issuance and other financing costs — — (7 ) — (7 ) Distributions to parent — (568 ) (371 ) 939 — Contributions from parent — 285 225 (510 ) — Distributions to owners (330 ) — — — (330 ) Net cash used in financing activities (330 ) (283 ) (153 ) 429 (337 ) Net decrease in cash, cash equivalents and restricted cash (47 ) — (72 ) — (119 ) Cash, cash equivalents and restricted cash—beginning of period 1,778 3 181 — 1,962 Cash, cash equivalents and restricted cash—end of period $ 1,731 $ 3 $ 109 $ — $ 1,843 Balances per Condensed Consolidating Balance Sheet: March 31, 2020 Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash and cash equivalents $ 1,731 $ 3 $ — $ — $ 1,734 Restricted cash — — 109 — 109 Total cash, cash equivalents and restricted cash $ 1,731 $ 3 $ 109 $ — $ 1,843 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 404 $ 364 $ 213 $ (637 ) $ 344 Cash flows from investing activities Property, plant and equipment, net — (5 ) (280 ) 2 (283 ) Investments in subsidiaries (218 ) (164 ) — 382 — Other — — (1 ) — (1 ) Net cash used in investing activities (218 ) (169 ) (281 ) 384 (284 ) Cash flows from financing activities Distributions to parent — (404 ) (231 ) 635 — Contributions from parent — 218 164 (382 ) — Distributions to owners (304 ) — — — (304 ) Net cash used in financing activities (304 ) (186 ) (67 ) 253 (304 ) Net increase (decrease) in cash, cash equivalents and restricted cash (118 ) 9 (135 ) — (244 ) Cash, cash equivalents and restricted cash—beginning of period 779 6 756 — 1,541 Cash, cash equivalents and restricted cash—end of period $ 661 $ 15 $ 621 $ — $ 1,297 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cheniere Partners have been prepared in accordance with GAAP for interim financial information and with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our annual report on Form 10-K for the year ended December 31, 2019 . |
Income Taxes, Policy | We are not subject to either federal or state income tax, as our partners are taxed individually on their allocable share of our taxable income. |
Recent Accounting Standards | Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This guidance primarily provides temporary optional expedients which simplify the accounting for contract modifications to existing debt agreements expected to arise from the market transition from LIBOR to alternative reference rates. The optional expedients were available to be used upon issuance of this guidance but we have not yet applied the guidance because we have not yet modified any of our existing contracts for reference rate reform. Once we apply an optional expedient to a modified contract and adopt this standard, the guidance will be applied to all subsequent applicable contract modifications until December 31, 2022, at which time the optional expedients are no longer available. |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | As of March 31, 2020 and December 31, 2019 , accounts and other receivables consisted of the following (in millions): March 31, December 31, 2020 2019 SPL trade receivable $ 248 $ 283 Other accounts receivable 11 14 Total accounts and other receivables $ 259 $ 297 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2020 and December 31, 2019 , inventory consisted of the following (in millions): March 31, December 31, 2020 2019 Natural gas $ 11 $ 9 LNG 7 27 Materials and other 80 80 Total inventory $ 98 $ 116 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of March 31, 2020 and December 31, 2019 , property, plant and equipment, net consisted of the following (in millions): March 31, December 31, 2020 2019 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 16,917 $ 16,894 LNG terminal construction-in-process 1,495 1,275 Accumulated depreciation (1,943 ) (1,807 ) Total LNG terminal costs, net 16,469 16,362 Fixed assets Fixed assets 29 27 Accumulated depreciation (22 ) (21 ) Total fixed assets, net 7 6 Property, plant and equipment, net $ 16,476 $ 16,368 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value of Derivative Assets and Liabilities | The following table shows the fair value of our derivative instruments that are required to be measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in millions). Fair Value Measurements as of March 31, 2020 December 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Liquefaction Supply Derivatives asset (liability) $ (1 ) $ (8 ) $ 49 $ 40 $ 3 $ (3 ) $ 24 $ 24 |
Fair Value Measurement Inputs and Valuation Techniques | The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of March 31, 2020 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $49 Market approach incorporating present value techniques Henry Hub basis spread $(0.380) - $0.054 / 0.007 (1) Unobservable inputs were weighted by the relative fair value of the instruments. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table shows the changes in the fair value of our Level 3 Physical Liquefaction Supply Derivatives during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance, beginning of period $ 24 $ (25 ) Realized and mark-to-market gains: Included in cost of sales 25 9 Purchases and settlements: Purchases 1 — Settlements (3 ) 45 Transfers out of Level 3 (1) 2 — Balance, end of period $ 49 $ 29 Change in unrealized gains relating to instruments still held at end of period $ 25 $ 9 (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our Liquefaction Supply Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of (1) Consolidated Balance Sheet Location March 31, 2020 December 31, 2019 Derivative assets $ 13 $ 17 Non-current derivative assets 41 32 Total derivative assets 54 49 Derivative liabilities (12 ) (9 ) Non-current derivative liabilities (2 ) (16 ) Total derivative liabilities (14 ) (25 ) Derivative asset, net $ 40 $ 24 (1) Does not include collateral posted with counterparties by us of $6 million and $2 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 , respectively. Includes a natural gas supply contract that SPL has with a related party, which had a fair value of zero as of March 31, 2020 . |
Derivative Net Presentation on Consolidated Balance Sheets | The following table shows the fair value of our derivatives outstanding on a gross and net basis (in millions): Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts Presented in the Consolidated Balance Sheets Offsetting Derivative Assets (Liabilities) As of March 31, 2020 Liquefaction Supply Derivatives $ 56 $ (2 ) $ 54 Liquefaction Supply Derivatives (15 ) 1 (14 ) As of December 31, 2019 Liquefaction Supply Derivatives $ 51 $ (2 ) $ 49 Liquefaction Supply Derivatives (27 ) 2 (25 ) |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Income during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, Consolidated Statement of Income Location (1) 2020 2019 Liquefaction Supply Derivatives gain LNG revenues $ — $ 1 Liquefaction Supply Derivatives gain Cost of sales 21 76 (1) Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | As of March 31, 2020 and December 31, 2019 , other non-current assets, net consisted of the following (in millions): March 31, December 31, 2020 2019 Advances made to municipalities for water system enhancements $ 86 $ 87 Advances and other asset conveyances to third parties to support LNG terminal 35 35 Tax-related prepayments and receivables 17 17 Information technology service prepayments 5 6 Advances made under EPC and non-EPC contracts 7 15 Other 6 8 Total other non-current assets, net $ 156 $ 168 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | As of March 31, 2020 and December 31, 2019 , accrued liabilities consisted of the following (in millions): March 31, December 31, 2020 2019 Interest costs and related debt fees $ 251 $ 241 Accrued natural gas purchases 224 325 LNG terminal and related pipeline costs 81 135 Other accrued liabilities 13 8 Total accrued liabilities $ 569 $ 709 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | As of March 31, 2020 and December 31, 2019 , our debt consisted of the following (in millions): March 31, December 31, 2020 2019 Long-term debt: SPL 5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”) $ — $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”) 1,350 1,350 5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) 800 800 $1.2 billion SPL Working Capital Facility executed in 2020 (“2020 SPL Working Capital Facility”) — — Cheniere Partners 5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) 1,500 1,500 5.625% Senior Notes due 2026 (“2026 CQP Senior Notes”) 1,100 1,100 4.500% Senior Notes due 2029 (“2029 CQP Senior Notes”) 1,500 1,500 CQP Credit Facilities executed in 2019 (“2019 CQP Credit Facilities”) — — Unamortized premium, discount and debt issuance costs, net (159 ) (171 ) Total long-term debt, net 15,591 17,579 Current debt: 2021 SPL Senior Notes 2,000 — $1.2 billion SPL Working Capital Facility executed in 2015 (“2015 SPL Working Capital Facility”) — — Unamortized premium, discount and debt issuance costs, net (4 ) — Total current debt 1,996 — Total debt, net $ 17,587 $ 17,579 |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of March 31, 2020 (in millions): 2020 SPL Working Capital Facility 2019 CQP Credit Facilities Original facility size $ 1,200 $ 1,500 Less: Outstanding balance — — Commitments prepaid or terminated — 750 Letters of credit issued 414 — Available commitment $ 786 $ 750 Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% LIBOR plus 1.25% - 2.125% or base rate plus 0.25% - 1.125% Weighted average interest rate of outstanding balance n/a n/a Maturity date March 19, 2025 May 29, 2024 |
Schedule of Interest Expense | Total interest expense consisted of the following (in millions): Three Months Ended March 31, 2020 2019 Total interest cost $ 254 $ 235 Capitalized interest (20 ) (48 ) Total interest expense, net $ 234 $ 187 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table shows the carrying amount and estimated fair value of our debt (in millions): March 31, 2020 December 31, 2019 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Senior notes (1) $ 16,950 $ 15,762 $ 16,950 $ 18,320 2037 SPL Senior Notes (2) 800 709 800 934 Credit facilities (3) — — — — (1) Includes the SPL Senior Notes except the 2037 SPL Senior Notes and the CQP Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. (2) The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. (3) Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility and 2019 CQP Credit Facilities |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table represents a disaggregation of revenue earned from contracts with customers during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 LNG revenues (1) $ 1,449 $ 1,366 LNG revenues—affiliate 188 305 Regasification revenues 67 66 Other revenues 14 11 Total revenues from customers 1,718 1,748 Net derivative gains (2) — 1 Total revenues $ 1,718 $ 1,749 (1) LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. If contractually the customer cannot make up unexercised quantities in future periods, our performance obligation with respect to declined volumes is satisfied, and revenue associated with any unexercised quantities is generally recognized upon notice of customer cancellation. (2) See Note 7—Derivative Instruments for additional information about our derivatives. |
Contract Balances Reconciliation | The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Consolidated Balance Sheets (in millions): Three Months Ended March 31, 2020 Deferred revenues, beginning of period $ 155 Cash received but not yet recognized 94 Revenue recognized from prior period deferral (155 ) Deferred revenues, end of period $ 94 |
Transaction Price Allocated to Future Performance Obligations | The following table discloses the aggregate amount of the transaction price that is allocated to performance obligations that have not yet been satisfied as of March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Unsatisfied Weighted Average Recognition Timing (years) (1) Unsatisfied Weighted Average Recognition Timing (years) (1) LNG revenues (2) $ 54.2 10 $ 55.0 10 Regasification revenues 2.3 5 2.4 5 Total revenues $ 56.5 $ 57.4 (1) The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. (2) Includes future consideration from agreement contractually assigned to SPL from Cheniere Marketing. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Below is a summary of our related party transactions as reported on our Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 LNG revenues—affiliate Cheniere Marketing Agreements $ 182 $ 305 Contracts for Sale and Purchase of Natural Gas and LNG 6 — Total LNG revenues—affiliate 188 305 Operating and maintenance expense—affiliate Services Agreements 33 29 General and administrative expense—affiliate Services Agreements 25 21 |
Net Income per Common Unit (Tab
Net Income per Common Unit (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Common Unit | The following table provides a reconciliation of net income and the allocation of net income to the common units, the subordinated units, the general partner units and IDRs for purposes of computing basic and diluted net income per unit (in millions, except per unit data). Limited Partner Units Total Common Units Subordinated Units General Partner Units IDR Three Months Ended March 31, 2020 Net income $ 435 Declared distributions 336 223 87 6 20 Assumed allocation of undistributed net income (1) $ 99 70 27 2 — Assumed allocation of net income $ 293 $ 114 $ 8 $ 20 Weighted average units outstanding 348.6 135.4 Basic and diluted net income per unit $ 0.84 $ 0.84 Three Months Ended March 31, 2019 Net income $ 385 Declared distributions 310 210 81 6 13 Assumed allocation of undistributed net income (1) $ 75 52 21 2 — Assumed allocation of net income $ 262 $ 102 $ 8 $ 13 Weighted average units outstanding 348.6 135.4 Basic and diluted net income per unit $ 0.75 $ 0.75 (1) Under our partnership agreement, the IDR s participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDR s from participating in undistributed net income. |
Customer Concentration (Tables)
Customer Concentration (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of Revenue and Accounts Receivable by Major Customers | The following table shows customers with revenues of 10% or greater of total revenues from external customers and customers with accounts receivable balances of 10% or greater of total accounts receivable from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable from External Customers Three Months Ended March 31, March 31, December 31, 2020 2019 2020 2019 Customer A 28% 31% 21% 21% Customer B 15% 19% 14% 13% Customer C 15% 19% 28% 22% Customer D 16% 22% 14% 13% Customer E * —% * 13% Customer F 11% —% 14% 14% * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Three Months Ended March 31, 2020 2019 Cash paid during the period for interest, net of amounts capitalized $ 211 $ 185 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheet March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 1,731 $ 3 $ — $ — $ 1,734 Restricted cash — — 109 — 109 Accounts and other receivables — 3 256 — 259 Accounts receivable—affiliate — 24 38 (24 ) 38 Advances to affiliate — 128 122 (104 ) 146 Inventory — 13 85 — 98 Derivative assets — — 13 — 13 Other current assets — 14 35 — 49 Other current assets—affiliate — 2 21 (21 ) 2 Total current assets 1,731 187 679 (149 ) 2,448 Property, plant and equipment, net 79 2,451 13,972 (26 ) 16,476 Operating lease assets, net — 88 20 (16 ) 92 Debt issuance costs, net 9 — 11 — 20 Non-current derivative assets — — 41 — 41 Investments in subsidiaries 3,168 718 — (3,886 ) — Other non-current assets, net — 18 138 — 156 Total assets $ 4,987 $ 3,462 $ 14,861 $ (4,077 ) $ 19,233 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 3 $ 5 $ — $ 8 Accrued liabilities 108 20 441 — 569 Current debt — — 1,996 — 1,996 Due to affiliates 3 120 35 (128 ) 30 Deferred revenue — 22 72 — 94 Deferred revenue—affiliate — 21 — (21 ) — Current operating lease liabilities — 6 — — 6 Derivative liabilities — — 12 — 12 Total current liabilities 111 192 2,561 (149 ) 2,715 Long-term debt, net 4,056 — 11,535 — 15,591 Non-current operating lease liabilities — 81 4 — 85 Non-current derivative liabilities — — 2 — 2 Other non-current liabilities — 1 — — 1 Other non-current liabilities—affiliate — 20 15 (16 ) 19 Partners’ equity 820 3,168 744 (3,912 ) 820 Total liabilities and partners’ equity $ 4,987 $ 3,462 $ 14,861 $ (4,077 ) $ 19,233 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ 1,778 $ 3 $ — $ — $ 1,781 Restricted cash — — 181 — 181 Accounts and other receivables — 5 292 — 297 Accounts receivable—affiliate — 43 104 (42 ) 105 Advances to affiliate — 145 133 (120 ) 158 Inventory — 13 103 — 116 Derivative assets — — 17 — 17 Other current assets — 15 36 — 51 Other current assets—affiliate — 1 22 (22 ) 1 Total current assets 1,778 225 888 (184 ) 2,707 Property, plant and equipment, net 79 2,454 13,861 (26 ) 16,368 Operating lease assets, net — 88 21 (15 ) 94 Debt issuance costs, net 9 — 6 — 15 Non-current derivative assets — — 32 — 32 Investments in subsidiaries 2,963 508 — (3,471 ) — Other non-current assets, net — 24 144 — 168 Total assets $ 4,829 $ 3,299 $ 14,952 $ (3,696 ) $ 19,384 LIABILITIES AND PARTNERS’ EQUITY Current liabilities Accounts payable $ — $ 2 $ 38 $ — $ 40 Accrued liabilities 56 24 629 — 709 Due to affiliates 3 155 49 (161 ) 46 Deferred revenue — 23 132 — 155 Deferred revenue—affiliate — 22 — (21 ) 1 Current operating lease liabilities — 6 — — 6 Derivative liabilities — — 9 — 9 Total current liabilities 59 232 857 (182 ) 966 Long-term debt, net 4,055 — 13,524 — 17,579 Non-current operating lease liabilities — 82 5 — 87 Non-current derivative liabilities — — 16 — 16 Other non-current liabilities — 1 — — 1 Other non-current liabilities—affiliate — 21 16 (17 ) 20 Partners’ equity 715 2,963 534 (3,497 ) 715 Total liabilities and partners’ equity $ 4,829 $ 3,299 $ 14,952 $ (3,696 ) $ 19,384 |
Condensed Consolidating Statements of Income | Condensed Consolidating Statement of Income Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,449 $ — $ 1,449 LNG revenues—affiliate — — 188 — 188 Regasification revenues — 67 — — 67 Regasification revenues—affiliate — 67 — (67 ) — Other revenues — 14 — — 14 Other revenues—affiliate — 62 — (62 ) — Total revenues — 210 1,637 (129 ) 1,718 Operating costs and expenses Cost of sales (excluding items shown separately below) — — 699 — 699 Cost of sales—affiliate — — 12 (12 ) — Operating and maintenance expense — 13 139 — 152 Operating and maintenance expense—affiliate — 33 113 (113 ) 33 General and administrative expense 1 — 1 — 2 General and administrative expense—affiliate 4 7 18 (4 ) 25 Depreciation and amortization expense 1 20 117 — 138 Impairment expense and loss on disposal of assets — 5 — — 5 Total operating costs and expenses 6 78 1,099 (129 ) 1,054 Income (loss) from operations (6 ) 132 538 — 664 Other income (expense) Interest expense, net of capitalized interest (54 ) (2 ) (178 ) — (234 ) Loss on modification or extinguishment of debt — — (1 ) — (1 ) Equity earnings of subsidiaries 490 360 — (850 ) — Other income, net 5 — 1 — 6 Total other income (expense) 441 358 (178 ) (850 ) (229 ) Net income $ 435 $ 490 $ 360 $ (850 ) $ 435 Condensed Consolidating Statement of Income Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ — $ 1,367 $ — $ 1,367 LNG revenues—affiliate — — 305 — 305 Regasification revenues — 66 — — 66 Regasification revenues—affiliate — 66 — (66 ) — Other revenues — 11 — — 11 Other revenues—affiliate — 59 — (59 ) — Total revenues — 202 1,672 (125 ) 1,749 Operating costs and expenses Cost of sales (excluding items shown separately below) — — 879 — 879 Cost of sales—affiliate — — 9 (9 ) — Operating and maintenance expense — 28 110 — 138 Operating and maintenance expense—affiliate — 33 107 (111 ) 29 General and administrative expense 1 1 1 — 3 General and administrative expense—affiliate 3 6 15 (3 ) 21 Depreciation and amortization expense 1 17 96 — 114 Impairment expense and loss on disposal of assets — — 2 — 2 Total operating costs and expenses 5 85 1,219 (123 ) 1,186 Income (loss) from operations (5 ) 117 453 (2 ) 563 Other income (expense) Interest expense, net of capitalized interest (36 ) (1 ) (150 ) — (187 ) Equity earnings of subsidiaries 422 308 — (730 ) — Other income, net 4 — 5 — 9 Total other income (expense) 390 307 (145 ) (730 ) (178 ) Net income $ 385 $ 424 $ 308 $ (732 ) $ 385 |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 490 $ 521 $ 374 $ (850 ) $ 535 Cash flows from investing activities Property, plant and equipment, net — (24 ) (293 ) — (317 ) Investments in subsidiaries (286 ) (225 ) — 511 — Return of capital 79 11 — (90 ) — Net cash used in investing activities (207 ) (238 ) (293 ) 421 (317 ) Cash flows from financing activities Debt issuance and other financing costs — — (7 ) — (7 ) Distributions to parent — (568 ) (371 ) 939 — Contributions from parent — 285 225 (510 ) — Distributions to owners (330 ) — — — (330 ) Net cash used in financing activities (330 ) (283 ) (153 ) 429 (337 ) Net decrease in cash, cash equivalents and restricted cash (47 ) — (72 ) — (119 ) Cash, cash equivalents and restricted cash—beginning of period 1,778 3 181 — 1,962 Cash, cash equivalents and restricted cash—end of period $ 1,731 $ 3 $ 109 $ — $ 1,843 Balances per Condensed Consolidating Balance Sheet: March 31, 2020 Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash and cash equivalents $ 1,731 $ 3 $ — $ — $ 1,734 Restricted cash — — 109 — 109 Total cash, cash equivalents and restricted cash $ 1,731 $ 3 $ 109 $ — $ 1,843 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Non-Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 404 $ 364 $ 213 $ (637 ) $ 344 Cash flows from investing activities Property, plant and equipment, net — (5 ) (280 ) 2 (283 ) Investments in subsidiaries (218 ) (164 ) — 382 — Other — — (1 ) — (1 ) Net cash used in investing activities (218 ) (169 ) (281 ) 384 (284 ) Cash flows from financing activities Distributions to parent — (404 ) (231 ) 635 — Contributions from parent — 218 164 (382 ) — Distributions to owners (304 ) — — — (304 ) Net cash used in financing activities (304 ) (186 ) (67 ) 253 (304 ) Net increase (decrease) in cash, cash equivalents and restricted cash (118 ) 9 (135 ) — (244 ) Cash, cash equivalents and restricted cash—beginning of period 779 6 756 — 1,541 Cash, cash equivalents and restricted cash—end of period $ 661 $ 15 $ 621 $ — $ 1,297 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020unitmiitemmilliontonnes / yrtrains | |
Sabine Pass LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Liquefaction LNG Trains Operating | 5 |
Number of Liquefaction LNG Trains Constructing | 1 |
Total Production Capability | milliontonnes / yr | 30 |
Number Of LNG Storage Tanks | unit | 5 |
Number of marine berths | item | 2 |
Creole Trail Pipeline [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Length of Natural Gas Pipeline | mi | 94 |
Unitholders' Equity (Details)
Unitholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Maximum [Member] | |
Other Ownership Interests [Line Items] | |
Number of days after quarter end distribution is paid | 45 days |
Common Units [Member] | |
Other Ownership Interests [Line Items] | |
Initial Quarterly Distributions Per Limited Partnership Unit Outstanding | $ 0.425 |
General Partner [Member] | Minimum [Member] | |
Other Ownership Interests [Line Items] | |
Distributions entitled by General Partner, Percentage | 2.00% |
Incentive Distribution, Quarterly Distribution Additional Target Percentage | 15.00% |
General Partner [Member] | Maximum [Member] | |
Other Ownership Interests [Line Items] | |
Incentive Distribution, Quarterly Distribution Additional Target Percentage | 50.00% |
Cheniere [Member] | Cheniere Energy Partners, LP [Member] | |
Other Ownership Interests [Line Items] | |
Limited Partner Ownership Percentage | 48.60% |
Blackstone [Member] | Cheniere Energy Partners, LP [Member] | |
Other Ownership Interests [Line Items] | |
Limited Partner Ownership Percentage | 41.20% |
Public [Member] | Cheniere Energy Partners, LP [Member] | |
Other Ownership Interests [Line Items] | |
Limited Partner Ownership Percentage | 8.20% |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 109 | $ 181 |
SPL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 109 | $ 181 |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
SPL trade receivable | $ 248 | $ 283 |
Other accounts receivable | 11 | 14 |
Total accounts and other receivables | $ 259 | $ 297 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Inventory | $ 98 | $ 116 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 11 | 9 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 7 | 27 |
Materials and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 80 | $ 80 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 137 | $ 113 |
Offsets to LNG terminal costs | $ 0 | $ 48 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 16,476 | $ 16,368 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (1,943) | (1,807) |
Property, plant and equipment, net | 16,469 | 16,362 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,917 | 16,894 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,495 | 1,275 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 29 | 27 |
Accumulated depreciation | (22) | (21) |
Property, plant and equipment, net | $ 7 | $ 6 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - tbtu | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 10 years | |
Liquefaction Supply Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5,231 | 3,663 |
Natural Gas Supply Agreement [Member] | SPL [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 91 | 0 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 40 | $ 24 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (1) | 3 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (8) | (3) |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 49 | $ 24 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 3 Months Ended | |
Mar. 31, 2020USD ($) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Fair Value Asset | $ 49,000,000 | |
Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Input Range | (0.380) | [1] |
Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Input Range | 0.054 | [1] |
Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Significant Unobservable Input Range | $ 0.007 | [1] |
[1] | Unobservable inputs were weighted by the relative fair value of the instruments. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, beginning of period | $ 24 | $ (25) | |
Realized and mark-to-market gains: | |||
Included in cost of sales | 25 | 9 | |
Purchases and settlements: | |||
Purchases | 1 | 0 | |
Settlements | (3) | (45) | |
Transfers out of Level 3 | [1] | 2 | 0 |
Balance, end of period | 49 | 29 | |
Change in unrealized gains relating to instruments still held at end of period | $ 25 | $ 9 | |
[1] | Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 13 | $ 17 | |
Non-current derivative assets | 41 | 32 | |
Derivative liabilities | (12) | (9) | |
Non-current derivative liabilities | (2) | (16) | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 54 | 49 |
Total derivative liabilities | [1] | (14) | (25) |
Derivative asset (liability), net | [1] | 40 | 24 |
Derivative, collateral posted by us | 6 | 2 | |
Liquefaction Supply Derivatives [Member] | Derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 13 | 17 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [1] | 41 | 32 |
Liquefaction Supply Derivatives [Member] | Derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | (12) | (9) |
Liquefaction Supply Derivatives [Member] | Non-current derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [1] | (2) | $ (16) |
Natural Gas Supply Agreement [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset (liability), net | $ 0 | ||
[1] | Does not include collateral posted with counterparties by us of $6 million and $2 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019 , respectively. Includes a natural gas supply contract that SPL has with a related party, which had a fair value of zero as of March 31, 2020 . |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
LNG revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain, net | [1] | $ 0 | $ 1 |
Cost of sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain, net | [1] | $ 21 | $ 76 |
[1] | Does not include the realized value associated with derivative instruments that settle through physical delivery. Fair value fluctuations associated with commodity derivative activities are classified and presented consistently with the item economically hedged and the nature and intent of the derivative instrument. |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Presentation Table (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | $ 56 | $ 51 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheet | (2) | (2) |
Derivative Assets (Liabilities), at Fair Value, Net | 54 | 49 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (15) | (27) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheet | 1 | 2 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (14) | $ (25) |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Advances made to municipalities for water system enhancements | $ 86 | $ 87 |
Advances and other asset conveyances to third parties to support LNG terminal | 35 | 35 |
Tax-related prepayments and receivables | 17 | 17 |
Information technology service prepayments | 5 | 6 |
Advances made under EPC and non-EPC contracts | 7 | 15 |
Other | 6 | 8 |
Other non-current assets, net | $ 156 | $ 168 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Interest costs and related debt fees | $ 251 | $ 241 |
Accrued natural gas purchases | 224 | 325 |
LNG terminal and related pipeline costs | 81 | 135 |
Other accrued liabilities | 13 | 8 |
Total accrued liabilities | $ 569 | $ 709 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt, Net | $ 15,591,000,000 | $ 17,579,000,000 |
Current debt | 1,996,000,000 | 0 |
Total Debt, Net | 17,587,000,000 | 17,579,000,000 |
2021 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 2,000,000,000 |
Current debt | $ 2,000,000,000 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2022 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,000,000,000 | 1,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |
2023 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2024 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |
2025 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2026 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | |
2027 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
2028 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,350,000,000 | 1,350,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
2037 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 800,000,000 | 800,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
2020 SPL Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000 | |
2025 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |
2026 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,100,000,000 | 1,100,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2029 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
2019 CQP Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium, discount and debt issuance costs, net | (159,000,000) | (171,000,000) |
Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Current debt | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000,000 | |
Current Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium, discount and debt issuance costs, net | $ (4,000,000) | $ 0 |
Debt - Material Debt Activities
Debt - Material Debt Activities (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)Rate | |
2020 SPL Working Capital Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 1,200,000 |
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate |
2020 SPL Working Capital Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.125% |
2020 SPL Working Capital Facility [Member] | Minimum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.125% |
2020 SPL Working Capital Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
2020 SPL Working Capital Facility [Member] | Maximum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ | $ 1,200,000,000 |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate Determination Federal Funds Rate [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate Determination LIBOR [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Commitment Fee Percentage | 0.10% |
Debt Instrument, Debt Service Reserve Ratio | 1.25 |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.125% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Minimum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.125% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility Additional Permitted Increase | $ | $ 800,000,000 |
Line of Credit Facility, Commitment Fee Percentage | 0.30% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Maximum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
SPL [Member] | Letter of Credit [Member] | Drawn Portion [Member] | |
Line of Credit Facility [Line Items] | |
Long-term Line of Credit | $ | $ 0 |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
2020 SPL Working Capital Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | $ 1,200 | |
Outstanding balance | 0 | $ 0 |
Commitments prepaid or terminated | 0 | |
Letters of credit issued | 414 | |
Available commitment | $ 786 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | |
Debt Instrument, Maturity Date | Mar. 19, 2025 | |
2020 SPL Working Capital Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |
2020 SPL Working Capital Facility [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | |
2020 SPL Working Capital Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
2020 SPL Working Capital Facility [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
2019 CQP Credit Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | $ 1,500 | |
Outstanding balance | 0 | $ 0 |
Commitments prepaid or terminated | 750 | |
Letters of credit issued | 0 | |
Available commitment | $ 750 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | |
Debt Instrument, Maturity Date | May 29, 2024 | |
2019 CQP Credit Facilities [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
2019 CQP Credit Facilities [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
2019 CQP Credit Facilities [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | |
2019 CQP Credit Facilities [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.125% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Total interest cost | $ 254 | $ 235 |
Capitalized interest | (20) | (48) |
Total interest expense, net | $ 234 | $ 187 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | $ 17,587 | $ 17,579 | |
Senior notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [1] | 16,950 | 16,950 |
Senior notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [1] | 15,762 | 18,320 |
2037 SPL Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 800 | 800 |
2037 SPL Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | 709 | 934 |
Credit facilities [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [3] | 0 | 0 |
Credit facilities [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Lines of Credit, Fair Value Disclosure | [3] | $ 0 | $ 0 |
[1] | Includes the SPL Senior Notes except the 2037 SPL Senior Notes and the CQP Senior Notes . The Level 2 estimated fair value was based on quotes obtained from broker-dealers or market makers of these senior notes and other similar instruments. | ||
[2] | The Level 3 estimated fair value was calculated based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, including our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. | ||
[3] | Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility and 2019 CQP Credit Facilities |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
LNG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 44.00% | 58.00% |
Regasification [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 3.00% | 3.00% |
LNG—affiliate [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, Variable Consideration Received From Customers, Percentage | 100.00% | 100.00% |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 1,718 | $ 1,748 | |
Net derivative gains (losses) | [1] | 0 | 1 |
Total revenues | 1,718 | 1,749 | |
LNG [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | [2] | 1,449 | 1,366 |
Total revenues | 1,449 | 1,367 | |
LNG—affiliate [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 188 | 305 | |
Regasification [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | 67 | 66 | |
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 14 | $ 11 | |
[1] | See Note 7—Derivative Instruments for additional information about our derivatives. | ||
[2] | LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. If contractually the customer cannot make up unexercised quantities in future periods, our performance obligation with respect to declined volumes is satisfied, and revenue associated with any unexercised quantities is generally recognized upon notice of customer cancellation. |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Schedule of Deferred Revenue Reconciliation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Deferred revenues, beginning of period | $ 155 |
Cash received but not yet recognized | 94 |
Revenue recognized from prior period deferral | (155) |
Deferred revenues, end of period | $ 94 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 57.4 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | LNG [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | [1] | $ 55 | |
Weighted Average Recognition Timing | [1],[2] | 10 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Regasification [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 2.4 | ||
Weighted Average Recognition Timing | [2] | 5 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 56.5 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | LNG [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | [1] | $ 54.2 | |
Weighted Average Recognition Timing | [1],[2] | 10 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | Regasification [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 2.3 | ||
Weighted Average Recognition Timing | [2] | 5 years | |
[1] | Includes future consideration from agreement contractually assigned to SPL from Cheniere Marketing. | ||
[2] | The weighted average recognition timing represents an estimate of the number of years during which we shall have recognized half of the unsatisfied transaction price. |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
LNG revenues—affiliate | $ 188 | $ 305 |
Operating and maintenance expense—affiliate | 33 | 29 |
General and administrative expense—affiliate | 25 | 21 |
Cheniere Marketing Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
LNG revenues—affiliate | 182 | 305 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | ||
Related Party Transaction [Line Items] | ||
LNG revenues—affiliate | 6 | 0 |
Service Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance expense—affiliate | 33 | 29 |
General and administrative expense—affiliate | $ 25 | $ 21 |
Related Party Transactions - LN
Related Party Transactions - LNG Terminal Capacity Agreements (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)bcf / dCargo | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ 38,000,000 | $ 105,000,000 |
Terminal Use Agreement [Member] | SPLNG [Member] | SPL [Member] | ||
Related Party Transaction [Line Items] | ||
Regasification Capacity | bcf / d | 2 | |
Related Party Transaction, Committed Annual Fee | $ 250,000,000 | |
Cheniere Marketing SPA [Member] | Cheniere Marketing [Member] | SPL [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | |
LNG Volume, Purchase Price Per MMBtu | $ 3 | |
2020 Letter Agreement [Member] | Cheniere Marketing [Member] | SPL [Member] | ||
Related Party Transaction [Line Items] | ||
LNG Volume, Purchase Price Percentage of Henry Hub | 115.00% | |
LNG Volume, Purchase Price Per MMBtu | $ 1.67 | |
2020 Letter Agreement [Member] | Cheniere Marketing [Member] | SPL [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Cargoes | Cargo | 43 |
Related Party Transactions - Se
Related Party Transactions - Service Agreements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Advances to Affiliate Current | $ 146,000,000 | $ 158,000,000 |
Service Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Advances to Affiliate Current | 146,000,000 | $ 158,000,000 |
Cheniere Partners Services Agreement [Member] | Cheniere Terminals [Member] | ||
Related Party Transaction [Line Items] | ||
Quarterly non-accountable overhead reimbursement charge | $ 3,000,000 | |
Operation and Maintenance Agreement [Member] | Cheniere Investments [Member] | SPL [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 0.60% | |
Related Party Transaction, Committed Monthly Fee | $ 83,333 | |
Operation and Maintenance Agreement [Member] | Cheniere Investments [Member] | SPLNG [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Committed Monthly Fee | $ 130,000 | |
Related Party Transaction, Bonus Percentage of Salary Entitled Upon Meeting Certain Criteria | 50.00% | |
Management Services Agreement [Member] | Cheniere Terminals [Member] | SPL [Member] | ||
Related Party Transaction [Line Items] | ||
Monthly fee as a percentage of capital expenditures incurred in the previous month | 2.40% | |
Related Party Transaction, Committed Monthly Fee | $ 541,667 | |
Management Services Agreement [Member] | Cheniere Terminals [Member] | SPLNG [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Committed Monthly Fee | $ 520,000 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 30,000,000 | $ 46,000,000 | |
Other non-current liabilities—affiliate | 19,000,000 | 20,000,000 | |
LNG revenues—affiliate | 188,000,000 | $ 305,000,000 | |
Natural Gas Supply Agreement [Member] | SPL [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—related party | 0 | 0 | |
Cooperative Endeavor Agreements [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate commitment under the Agreement | $ 25,000,000 | ||
Tax Initiative Agreement Term | 10 years | ||
Cooperative Endeavor Agreements [Member] | Cheniere Marketing [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 3,000,000 | 2,000,000 | |
Other non-current liabilities—affiliate | 19,000,000 | $ 20,000,000 | |
Terminal Marine Services Agreement [Member] | Cheniere Terminals [Member] | Tug Services [Member] | |||
Related Party Transaction [Line Items] | |||
General Partner Distributions | 1,000,000 | 1,000,000 | |
LNG Terminal Export Agreement [Member] | Cheniere Marketing [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
LNG revenues—affiliate | 0 | $ 0 | |
Tax Sharing Agreement [Member] | Cheniere [Member] | SPLNG [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | 0 | ||
Tax Sharing Agreement [Member] | Cheniere [Member] | SPL [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | 0 | ||
Tax Sharing Agreement [Member] | Cheniere [Member] | CTPL [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | $ 0 |
Net Income per Common Unit - Na
Net Income per Common Unit - Narrative (Details) - Subsequent Event [Member] | Apr. 27, 2020$ / shares |
Common Units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.64 |
Subordinated Units [Member] | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.64 |
Net Income per Common Unit - Sc
Net Income per Common Unit - Schedule of Net Income per Unit and Allocation of Distribution (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 435 | $ 385 | |
Declared distributions | 336 | 310 | |
Assumed allocation of undistributed net income | [1] | $ 99 | $ 75 |
Weighted average units outstanding | 348.6 | 348.6 | |
Basic and diluted net income per unit | $ 0.84 | $ 0.75 | |
Common Units [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 307 | $ 272 | |
Declared distributions | 223 | 210 | |
Assumed allocation of undistributed net income | [1] | 70 | 52 |
Assumed allocation of net income | $ 293 | $ 262 | |
Weighted average units outstanding | 348.6 | 348.6 | |
Basic and diluted net income per unit | $ 0.84 | $ 0.75 | |
Subordinated Units [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 119 | $ 105 | |
Declared distributions | 87 | 81 | |
Assumed allocation of undistributed net income | [1] | 27 | 21 |
Assumed allocation of net income | $ 114 | $ 102 | |
Weighted average units outstanding | 135.4 | 135.4 | |
Basic and diluted net income per unit | $ 0.84 | $ 0.75 | |
General Partner [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income | $ 9 | $ 8 | |
Declared distributions | 6 | 6 | |
Assumed allocation of undistributed net income | [1] | 2 | 2 |
Assumed allocation of net income | 8 | 8 | |
IDR [Member] | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Declared distributions | 20 | 13 | |
Assumed allocation of undistributed net income | [1] | 0 | 0 |
Assumed allocation of net income | $ 20 | $ 13 | |
[1] | Under our partnership agreement, the IDR s participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDR s from participating in undistributed net income. |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Customer A [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 28.00% | 31.00% |
Customer A [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 21.00% | 21.00% |
Customer B [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 19.00% |
Customer B [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 13.00% |
Customer C [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 19.00% |
Customer C [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 28.00% | 22.00% |
Customer D [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 16.00% | 22.00% |
Customer D [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 13.00% |
Customer E [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | |
Customer E [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 13.00% | |
Customer F [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 0.00% |
Customer F [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 14.00% | 14.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid during the period for interest, net of amounts capitalized | $ 211 | $ 185 |
Balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) | $ 219 | $ 330 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 1,734 | $ 1,781 | ||
Restricted cash | 109 | 181 | ||
Accounts and other receivables | 259 | 297 | ||
Accounts receivable—affiliate | 38 | 105 | ||
Advances to affiliate | 146 | 158 | ||
Inventory | 98 | 116 | ||
Derivative assets | 13 | 17 | ||
Other current assets | 49 | 51 | ||
Other current assets—affiliate | 2 | 1 | ||
Total current assets | 2,448 | 2,707 | ||
Property, plant and equipment, net | 16,476 | 16,368 | ||
Operating lease assets, net | 92 | 94 | ||
Debt issuance costs, net | 20 | 15 | ||
Non-current derivative assets | 41 | 32 | ||
Investments in subsidiaries | 0 | 0 | ||
Other non-current assets, net | 156 | 168 | ||
Total assets | 19,233 | 19,384 | ||
Current liabilities | ||||
Accounts payable | 8 | 40 | ||
Accrued liabilities | 569 | 709 | ||
Current debt | 1,996 | 0 | ||
Due to affiliates | 30 | 46 | ||
Deferred revenue | 94 | 155 | ||
Deferred revenue—affiliate | 0 | 1 | ||
Current operating lease liabilities | 6 | 6 | ||
Derivative liabilities | 12 | 9 | ||
Total current liabilities | 2,715 | 966 | ||
Long-term debt, net | 15,591 | 17,579 | ||
Non-current operating lease liabilities | 85 | 87 | ||
Non-current derivative liabilities | 2 | 16 | ||
Other non-current liabilities | 1 | 1 | ||
Other non-current liabilities—affiliate | 19 | 20 | ||
Partners’ equity | 820 | 715 | $ 881 | $ 800 |
Total liabilities and partners’ equity | 19,233 | 19,384 | ||
Parent Issuer [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 1,731 | 1,778 | ||
Restricted cash | 0 | 0 | ||
Accounts and other receivables | 0 | 0 | ||
Accounts receivable—affiliate | 0 | 0 | ||
Advances to affiliate | 0 | 0 | ||
Inventory | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Other current assets—affiliate | 0 | 0 | ||
Total current assets | 1,731 | 1,778 | ||
Property, plant and equipment, net | 79 | 79 | ||
Operating lease assets, net | 0 | 0 | ||
Debt issuance costs, net | 9 | 9 | ||
Non-current derivative assets | 0 | 0 | ||
Investments in subsidiaries | 3,168 | 2,963 | ||
Other non-current assets, net | 0 | 0 | ||
Total assets | 4,987 | 4,829 | ||
Current liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 108 | 56 | ||
Current debt | 0 | |||
Due to affiliates | 3 | 3 | ||
Deferred revenue | 0 | 0 | ||
Deferred revenue—affiliate | 0 | 0 | ||
Current operating lease liabilities | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Total current liabilities | 111 | 59 | ||
Long-term debt, net | 4,056 | 4,055 | ||
Non-current operating lease liabilities | 0 | 0 | ||
Non-current derivative liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Other non-current liabilities—affiliate | 0 | 0 | ||
Partners’ equity | 820 | 715 | ||
Total liabilities and partners’ equity | 4,987 | 4,829 | ||
Guarantors [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 3 | 3 | ||
Restricted cash | 0 | 0 | ||
Accounts and other receivables | 3 | 5 | ||
Accounts receivable—affiliate | 24 | 43 | ||
Advances to affiliate | 128 | 145 | ||
Inventory | 13 | 13 | ||
Derivative assets | 0 | 0 | ||
Other current assets | 14 | 15 | ||
Other current assets—affiliate | 2 | 1 | ||
Total current assets | 187 | 225 | ||
Property, plant and equipment, net | 2,451 | 2,454 | ||
Operating lease assets, net | 88 | 88 | ||
Debt issuance costs, net | 0 | 0 | ||
Non-current derivative assets | 0 | 0 | ||
Investments in subsidiaries | 718 | 508 | ||
Other non-current assets, net | 18 | 24 | ||
Total assets | 3,462 | 3,299 | ||
Current liabilities | ||||
Accounts payable | 3 | 2 | ||
Accrued liabilities | 20 | 24 | ||
Current debt | 0 | |||
Due to affiliates | 120 | 155 | ||
Deferred revenue | 22 | 23 | ||
Deferred revenue—affiliate | 21 | 22 | ||
Current operating lease liabilities | 6 | 6 | ||
Derivative liabilities | 0 | 0 | ||
Total current liabilities | 192 | 232 | ||
Long-term debt, net | 0 | 0 | ||
Non-current operating lease liabilities | 81 | 82 | ||
Non-current derivative liabilities | 0 | 0 | ||
Other non-current liabilities | 1 | 1 | ||
Other non-current liabilities—affiliate | 20 | 21 | ||
Partners’ equity | 3,168 | 2,963 | ||
Total liabilities and partners’ equity | 3,462 | 3,299 | ||
Non-Guarantors [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 109 | 181 | ||
Accounts and other receivables | 256 | 292 | ||
Accounts receivable—affiliate | 38 | 104 | ||
Advances to affiliate | 122 | 133 | ||
Inventory | 85 | 103 | ||
Derivative assets | 13 | 17 | ||
Other current assets | 35 | 36 | ||
Other current assets—affiliate | 21 | 22 | ||
Total current assets | 679 | 888 | ||
Property, plant and equipment, net | 13,972 | 13,861 | ||
Operating lease assets, net | 20 | 21 | ||
Debt issuance costs, net | 11 | 6 | ||
Non-current derivative assets | 41 | 32 | ||
Investments in subsidiaries | 0 | 0 | ||
Other non-current assets, net | 138 | 144 | ||
Total assets | 14,861 | 14,952 | ||
Current liabilities | ||||
Accounts payable | 5 | 38 | ||
Accrued liabilities | 441 | 629 | ||
Current debt | 1,996 | |||
Due to affiliates | 35 | 49 | ||
Deferred revenue | 72 | 132 | ||
Deferred revenue—affiliate | 0 | 0 | ||
Current operating lease liabilities | 0 | 0 | ||
Derivative liabilities | 12 | 9 | ||
Total current liabilities | 2,561 | 857 | ||
Long-term debt, net | 11,535 | 13,524 | ||
Non-current operating lease liabilities | 4 | 5 | ||
Non-current derivative liabilities | 2 | 16 | ||
Other non-current liabilities | 0 | 0 | ||
Other non-current liabilities—affiliate | 15 | 16 | ||
Partners’ equity | 744 | 534 | ||
Total liabilities and partners’ equity | 14,861 | 14,952 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Accounts and other receivables | 0 | 0 | ||
Accounts receivable—affiliate | (24) | (42) | ||
Advances to affiliate | (104) | (120) | ||
Inventory | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Other current assets—affiliate | (21) | (22) | ||
Total current assets | (149) | (184) | ||
Property, plant and equipment, net | (26) | (26) | ||
Operating lease assets, net | (16) | (15) | ||
Debt issuance costs, net | 0 | 0 | ||
Non-current derivative assets | 0 | 0 | ||
Investments in subsidiaries | (3,886) | (3,471) | ||
Other non-current assets, net | 0 | 0 | ||
Total assets | (4,077) | (3,696) | ||
Current liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Current debt | 0 | |||
Due to affiliates | (128) | (161) | ||
Deferred revenue | 0 | 0 | ||
Deferred revenue—affiliate | (21) | (21) | ||
Current operating lease liabilities | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Total current liabilities | (149) | (182) | ||
Long-term debt, net | 0 | 0 | ||
Non-current operating lease liabilities | 0 | 0 | ||
Non-current derivative liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | 0 | ||
Other non-current liabilities—affiliate | (16) | (17) | ||
Partners’ equity | (3,912) | (3,497) | ||
Total liabilities and partners’ equity | $ (4,077) | $ (3,696) |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Revenues | $ 1,718 | $ 1,749 | |
Revenues from contracts with customers | 1,718 | 1,748 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 699 | 879 | |
Cost of sales—affiliate | 0 | 0 | |
Operating and maintenance expense | 152 | 138 | |
Operating and maintenance expense—affiliate | 33 | 29 | |
General and administrative expense | 2 | 3 | |
General and administrative expense—affiliate | 25 | 21 | |
Depreciation and amortization expense | 138 | 114 | |
Impairment expense and loss on disposal of assets | 5 | 2 | |
Total operating costs and expenses | 1,054 | 1,186 | |
Income from operations | 664 | 563 | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (234) | (187) | |
Loss on modification or extinguishment of debt | (1) | 0 | |
Equity earnings of subsidiaries | 0 | 0 | |
Other income, net | 6 | 9 | |
Total other expense | (229) | (178) | |
Net income | 435 | 385 | |
LNG [Member] | |||
Revenues | |||
Revenues | 1,449 | 1,367 | |
Revenues from contracts with customers | [1] | 1,449 | 1,366 |
LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 188 | 305 | |
Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 67 | 66 | |
Regasification—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | 14 | 11 | |
Other—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Parent Issuer [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 0 | 0 | |
Cost of sales—affiliate | 0 | 0 | |
Operating and maintenance expense | 0 | 0 | |
Operating and maintenance expense—affiliate | 0 | 0 | |
General and administrative expense | 1 | 1 | |
General and administrative expense—affiliate | 4 | 3 | |
Depreciation and amortization expense | 1 | 1 | |
Impairment expense and loss on disposal of assets | 0 | 0 | |
Total operating costs and expenses | 6 | 5 | |
Income from operations | (6) | (5) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (54) | (36) | |
Loss on modification or extinguishment of debt | 0 | ||
Equity earnings of subsidiaries | 490 | 422 | |
Other income, net | 5 | 4 | |
Total other expense | 441 | 390 | |
Net income | 435 | 385 | |
Parent Issuer [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Parent Issuer [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Parent Issuer [Member] | Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Parent Issuer [Member] | Regasification—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Parent Issuer [Member] | Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Parent Issuer [Member] | Other—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Guarantors [Member] | |||
Revenues | |||
Revenues | 210 | 202 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 0 | 0 | |
Cost of sales—affiliate | 0 | 0 | |
Operating and maintenance expense | 13 | 28 | |
Operating and maintenance expense—affiliate | 33 | 33 | |
General and administrative expense | 0 | 1 | |
General and administrative expense—affiliate | 7 | 6 | |
Depreciation and amortization expense | 20 | 17 | |
Impairment expense and loss on disposal of assets | 5 | 0 | |
Total operating costs and expenses | 78 | 85 | |
Income from operations | 132 | 117 | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (2) | (1) | |
Loss on modification or extinguishment of debt | 0 | ||
Equity earnings of subsidiaries | 360 | 308 | |
Other income, net | 0 | 0 | |
Total other expense | 358 | 307 | |
Net income | 490 | 424 | |
Guarantors [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Guarantors [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Guarantors [Member] | Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 67 | 66 | |
Guarantors [Member] | Regasification—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 67 | 66 | |
Guarantors [Member] | Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | 14 | 11 | |
Guarantors [Member] | Other—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 62 | 59 | |
Non-Guarantors [Member] | |||
Revenues | |||
Revenues | 1,637 | 1,672 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 699 | 879 | |
Cost of sales—affiliate | 12 | 9 | |
Operating and maintenance expense | 139 | 110 | |
Operating and maintenance expense—affiliate | 113 | 107 | |
General and administrative expense | 1 | 1 | |
General and administrative expense—affiliate | 18 | 15 | |
Depreciation and amortization expense | 117 | 96 | |
Impairment expense and loss on disposal of assets | 0 | 2 | |
Total operating costs and expenses | 1,099 | 1,219 | |
Income from operations | 538 | 453 | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (178) | (150) | |
Loss on modification or extinguishment of debt | (1) | ||
Equity earnings of subsidiaries | 0 | 0 | |
Other income, net | 1 | 5 | |
Total other expense | (178) | (145) | |
Net income | 360 | 308 | |
Non-Guarantors [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 1,449 | 1,367 | |
Non-Guarantors [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 188 | 305 | |
Non-Guarantors [Member] | Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Non-Guarantors [Member] | Regasification—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Non-Guarantors [Member] | Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Non-Guarantors [Member] | Other—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Eliminations [Member] | |||
Revenues | |||
Revenues | (129) | (125) | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 0 | 0 | |
Cost of sales—affiliate | (12) | (9) | |
Operating and maintenance expense | 0 | 0 | |
Operating and maintenance expense—affiliate | (113) | (111) | |
General and administrative expense | 0 | 0 | |
General and administrative expense—affiliate | (4) | (3) | |
Depreciation and amortization expense | 0 | 0 | |
Impairment expense and loss on disposal of assets | 0 | 0 | |
Total operating costs and expenses | (129) | (123) | |
Income from operations | 0 | (2) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | 0 | 0 | |
Loss on modification or extinguishment of debt | 0 | ||
Equity earnings of subsidiaries | (850) | (730) | |
Other income, net | 0 | 0 | |
Total other expense | (850) | (730) | |
Net income | (850) | (732) | |
Eliminations [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Eliminations [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Eliminations [Member] | Regasification [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Eliminations [Member] | Regasification—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | (67) | (66) | |
Eliminations [Member] | Other [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Eliminations [Member] | Other—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | $ (62) | $ (59) | |
[1] | LNG revenues include revenues for LNG cargoes in which our customers exercised their contractual right to not take delivery but remained obligated to pay fixed fees irrespective of such election. If contractually the customer cannot make up unexercised quantities in future periods, our performance obligation with respect to declined volumes is satisfied, and revenue associated with any unexercised quantities is generally recognized upon notice of customer cancellation. |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 535 | $ 344 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (317) | (283) |
Investments in subsidiaries | 0 | 0 |
Return of capital | 0 | |
Other | 0 | (1) |
Net cash used in investing activities | (317) | (284) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | (7) | 0 |
Distributions to parent | 0 | 0 |
Contributions from parent | 0 | 0 |
Distributions to owners | (330) | (304) |
Net cash used in financing activities | (337) | (304) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (119) | (244) |
Cash, cash equivalents and restricted cash—beginning of period | 1,962 | 1,541 |
Cash, cash equivalents and restricted cash—end of period | 1,843 | 1,297 |
Parent Issuer [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 490 | 404 |
Cash flows from investing activities | ||
Property, plant and equipment, net | 0 | 0 |
Investments in subsidiaries | (286) | (218) |
Return of capital | 79 | |
Other | 0 | |
Net cash used in investing activities | (207) | (218) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | 0 | |
Distributions to parent | 0 | 0 |
Contributions from parent | 0 | 0 |
Distributions to owners | (330) | (304) |
Net cash used in financing activities | (330) | (304) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (47) | (118) |
Cash, cash equivalents and restricted cash—beginning of period | 1,778 | 779 |
Cash, cash equivalents and restricted cash—end of period | 1,731 | 661 |
Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 521 | 364 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (24) | (5) |
Investments in subsidiaries | (225) | (164) |
Return of capital | 11 | |
Other | 0 | |
Net cash used in investing activities | (238) | (169) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | 0 | |
Distributions to parent | (568) | (404) |
Contributions from parent | 285 | 218 |
Distributions to owners | 0 | 0 |
Net cash used in financing activities | (283) | (186) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 9 |
Cash, cash equivalents and restricted cash—beginning of period | 3 | 6 |
Cash, cash equivalents and restricted cash—end of period | 3 | 15 |
Non-Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 374 | 213 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (293) | (280) |
Investments in subsidiaries | 0 | 0 |
Return of capital | 0 | |
Other | (1) | |
Net cash used in investing activities | (293) | (281) |
Cash flows from financing activities | ||
Debt issuance and other financing costs | (7) | |
Distributions to parent | (371) | (231) |
Contributions from parent | 225 | 164 |
Distributions to owners | 0 | 0 |
Net cash used in financing activities | (153) | (67) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (72) | (135) |
Cash, cash equivalents and restricted cash—beginning of period | 181 | 756 |
Cash, cash equivalents and restricted cash—end of period | 109 | 621 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | (850) | (637) |
Cash flows from investing activities | ||
Property, plant and equipment, net | 0 | 2 |
Investments in subsidiaries | 511 | 382 |
Return of capital | (90) | |
Other | 0 | |
Net cash used in investing activities | 421 | 384 |
Cash flows from financing activities | ||
Debt issuance and other financing costs | 0 | |
Distributions to parent | 939 | 635 |
Contributions from parent | (510) | (382) |
Distributions to owners | 0 | 0 |
Net cash used in financing activities | 429 | 253 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash—beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash—end of period | $ 0 | $ 0 |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information - Condensed Consolidating Cash Flows - Balances per Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Balances per Consolidated Balance Sheet: | ||||
Cash and cash equivalents | $ 1,734 | $ 1,781 | ||
Restricted cash | 109 | 181 | ||
Total cash, cash equivalents and restricted cash | 1,843 | 1,962 | $ 1,297 | $ 1,541 |
Parent Issuer [Member] | ||||
Balances per Consolidated Balance Sheet: | ||||
Cash and cash equivalents | 1,731 | 1,778 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents and restricted cash | 1,731 | 1,778 | 661 | 779 |
Guarantors [Member] | ||||
Balances per Consolidated Balance Sheet: | ||||
Cash and cash equivalents | 3 | 3 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents and restricted cash | 3 | 3 | 15 | 6 |
Non-Guarantors [Member] | ||||
Balances per Consolidated Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 109 | 181 | ||
Total cash, cash equivalents and restricted cash | 109 | 181 | 621 | 756 |
Eliminations [Member] | ||||
Balances per Consolidated Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents and restricted cash | $ 0 | $ 0 | $ 0 | $ 0 |