Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 333-215435 |
Entity Registrant Name | Cheniere Corpus Christi Holdings, LLC |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 47-1929160 |
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 | None |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001693317 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 94 | 80 | ||
Accounts and other receivables | 74 | 58 | ||
Accounts receivable—affiliate | 50 | 57 | ||
Advances to affiliate | 93 | 115 | ||
Inventory | 67 | 69 | ||
Derivative assets | 96 | 74 | ||
Derivative assets—related party | 4 | 3 | ||
Other current assets | 12 | 15 | ||
Total current assets | 490 | 471 | ||
Property, plant and equipment, net | 12,513 | 12,507 | ||
Debt issuance and deferred financing costs, net | 13 | 15 | ||
Non-current derivative assets | 199 | 61 | ||
Non-current derivative assets—related party | 2 | 2 | ||
Other non-current assets, net | 53 | 56 | ||
Total assets | 13,270 | 13,112 | ||
Current liabilities | ||||
Accounts payable | 8 | 7 | ||
Accrued liabilities | 244 | 370 | ||
Accrued liabilities—related party | 7 | 3 | ||
Current debt | 141 | 0 | ||
Due to affiliates | 18 | 27 | ||
Derivative liabilities | 191 | 46 | ||
Other current liabilities | 1 | 0 | ||
Other current liabilities—affiliate | 1 | 1 | ||
Total current liabilities | 611 | 454 | ||
Long-term debt, net | 10,099 | 10,093 | ||
Non-current derivative liabilities | 184 | 135 | ||
Other non-current liabilities | 9 | 11 | ||
Other non-current liabilities—affiliate | 0 | 1 | ||
Member’s equity | 2,367 | 2,418 | $ 2,010 | $ 2,081 |
Total liabilities and member’s equity | $ 13,270 | $ 13,112 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenues | |||
Revenues | $ 533 | $ 106 | |
Revenues from contracts with customers | 533 | 105 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 49 | 59 | |
Cost of sales—affiliate | 6 | 0 | |
Cost of sales—related party | 23 | 10 | |
Operating and maintenance expense | 89 | 32 | |
Operating and maintenance expense—affiliate | 20 | 5 | |
General and administrative expense | 2 | 2 | |
General and administrative expense—affiliate | 5 | 1 | |
Depreciation and amortization expense | 84 | 22 | |
Total operating costs and expenses | 278 | 131 | |
Income (loss) from operations | 255 | (25) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (99) | (12) | |
Interest rate derivative loss, net | (208) | (35) | |
Other income, net | 1 | 1 | |
Total other expense | (306) | (46) | |
Net loss | (51) | (71) | |
LNG [Member] | |||
Revenues | |||
Revenues | 343 | 13 | |
Revenues from contracts with customers | [1] | 343 | 12 |
LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | $ 190 | $ 93 | |
[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 Memb
Consolidated Statements of Member's Equity - USD ($) $ in Millions | Total | Cheniere CCH HoldCo I, LLC [Member] |
Member's equity, beginning of period at Dec. 31, 2018 | $ 2,081 | $ 2,081 |
Net loss | (71) | (71) |
Member's equity, end of period at Mar. 31, 2019 | 2,010 | 2,010 |
Member's equity, beginning of period at Dec. 31, 2019 | 2,418 | 2,418 |
Net loss | (51) | (51) |
Member's equity, end of period at Mar. 31, 2020 | $ 2,367 | $ 2,367 |
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 loss | $ (51) | $ (71) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 84 | 22 |
Amortization of discount and debt issuance costs | 5 | 1 |
Total losses on derivatives, net | 37 | 26 |
Total losses (gains) on derivatives, net—related party | (1) | 2 |
Net cash provided by (used for) settlement of derivative instruments | (3) | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16) | (16) |
Accounts receivable—affiliate | 7 | (44) |
Advances to affiliate | 22 | (27) |
Inventory | 2 | (29) |
Accounts payable and accrued liabilities | 16 | 98 |
Accrued liabilities—related party | 5 | 5 |
Due to affiliates | (3) | 1 |
Other, net | (9) | 8 |
Other, net—affiliate | (1) | 0 |
Net cash provided by (used in) operating activities | 94 | (22) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (220) | (370) |
Other | (1) | (2) |
Net cash used in investing activities | (221) | (372) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 141 | 692 |
Repayments of debt | 0 | (369) |
Net cash provided by financing activities | 141 | 323 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14 | (71) |
Cash, cash equivalents and restricted cash—beginning of period | 80 | 289 |
Cash, cash equivalents and restricted cash—end of period | $ 94 | $ 218 |
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 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 94 | 80 | ||
Total cash, cash equivalents and restricted cash | $ 94 | $ 80 | $ 218 | $ 289 |
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 We are operating and constructing a natural gas liquefaction and export facility (the “Liquefaction Facilities”) and operating a 23 -mile natural gas supply pipeline that interconnects the Corpus Christi LNG terminal with several interstate and intrastate natural gas pipelines (the “ Corpus Christi Pipeline ” and together with the Liquefaction Facilities, the “ Liquefaction Project ”) near Corpus Christi, Texas, through our subsidiaries CCL and CCP, respectively. We are currently operating two Trains and are constructing one additional Train for a total production capacity of approximately 15 mtpa of LNG. The Liquefaction Project , once fully constructed, will contain three LNG storage tanks and two marine berths. Basis of Presentation The accompanying unaudited Consolidated Financial Statements of CCH 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. In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. 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 a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. 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. |
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 $94 million and $80 million of current restricted cash, respectively. Pursuant to the accounts agreement entered into with the collateral trustee for the benefit of our debt holders, we are 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 Trade receivable $ 56 $ 44 Other accounts receivable 18 14 Total accounts and other receivables $ 74 $ 58 |
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 $ 3 $ 7 LNG 4 6 Materials and other 60 56 Total inventory $ 67 $ 69 |
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 $ 10,028 $ 10,027 LNG site and related costs 276 276 LNG terminal construction-in-process 2,512 2,425 Accumulated depreciation (316 ) (232 ) Total LNG terminal costs, net 12,500 12,496 Fixed assets Fixed assets 22 19 Accumulated depreciation (9 ) (8 ) Total fixed assets, net 13 11 Property, plant and equipment, net $ 12,513 $ 12,507 Depreciation expense was $84 million and $22 million during the three months ended March 31, 2020 and 2019 , respectively. We realized offsets to LNG terminal costs of $74 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 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 the following derivative instruments that are reported at fair value: • interest rate swaps (“CCH Interest Rate Derivatives”) to hedge the exposure to volatility in a portion of the floating-rate interest payments on our amended and restated credit facility (the “CCH Credit Facility”) and to hedge against changes in interest rates that could impact anticipated future issuance of debt, which is anticipated by the end of 2020 (“CCH Interest Rate Forward Start Derivatives” and, collectively with the CCH Interest Rate Derivatives, the “Interest Rate Derivatives”) and • 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 Operations 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 , derivative assets—related party , non-current derivative assets , non-current derivative assets—related party , 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 CCH Interest Rate Derivatives liability $ — $ (197 ) $ — $ (197 ) $ — $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives liability — (92 ) — (92 ) — (8 ) — (8 ) Liquefaction Supply Derivatives asset 2 11 202 215 3 10 35 48 We value our Interest Rate Derivatives using an income-based approach, utilizing observable inputs to the valuation model including interest rate curves, risk adjusted discount rates, credit spreads and other relevant data. 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 $202 Market approach incorporating present value techniques Henry Hub basis spread $(0.619) - $0.050 / (0.065) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 48% - 144% / 96% (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Spread contemplates U.S. dollar-denominated pricing. Increases or decreases in basis or pricing spreads, 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 , including those with related parties, during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance, beginning of period $ 35 $ (4 ) Realized and mark-to-market gains: Included in cost of sales 164 3 Purchases and settlements: Purchases 1 1 Settlements 3 3 Transfers out of Level 3 (1) (1 ) (1 ) Balance, end of period $ 202 $ 2 Change in unrealized gains relating to instruments still held at end of period $ 164 $ 3 (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. Interest Rate Derivatives As of March 31, 2020 , we had the following Interest Rate Derivatives outstanding: Notional Amounts March 31, 2020 December 31, 2019 Effective Date Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.7 billion $4.5 billion May 20, 2015 May 31, 2022 2.30% One-month LIBOR CCH Interest Rate Forward Start Derivatives $750 million $750 million September 30, 2020 December 31, 2030 2.06% Three-month LIBOR The following table shows the fair value and location of our Interest Rate Derivatives on our Consolidated Balance Sheets (in millions): March 31, 2020 December 31, 2019 CCH Interest Rate Derivatives CCH Interest Rate Forward Start Derivatives Total CCH Interest Rate Derivatives CCH Interest Rate Forward Start Derivatives Total Consolidated Balance Sheet Location Derivative liabilities $ (92 ) $ (92 ) $ (184 ) $ (32 ) $ (8 ) $ (40 ) Non-current derivative liabilities (105 ) — (105 ) (49 ) — (49 ) Total derivative liabilities $ (197 ) $ (92 ) $ (289 ) $ (81 ) $ (8 ) $ (89 ) The following table shows the changes in the fair value and settlements of our Interest Rate Derivatives recorded in interest rate derivative loss, net on our Consolidated Statements of Operations during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 CCH Interest Rate Derivatives loss $ (123 ) $ (35 ) CCH Interest Rate Forward Start Derivatives loss (85 ) — Liquefaction Supply Derivatives CCL 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 conditions precedent. The forward notional for our Liquefaction Supply Derivatives was approximately 3,395 TBtu and 3,153 TBtu as of March 31, 2020 and December 31, 2019 , respectively, of which 106 TBtu and 120 TBtu, respectively, were for a natural gas supply contract CCL 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 $ 96 $ 74 Derivative assets—related party 4 3 Non-current derivative assets 199 61 Non-current derivative assets—related party 2 2 Total derivative assets 301 140 Derivative liabilities (7 ) (6 ) Non-current derivative liabilities (79 ) (86 ) Total derivative liabilities (86 ) (92 ) Derivative asset, net $ 215 $ 48 (1) Does not include collateral posted with counterparties by us of $5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of both March 31, 2020 and December 31, 2019 . The following table shows the changes in the fair value, settlements and location of our Liquefaction Supply Derivatives recorded on our Consolidated Statements of Operations during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, Consolidated Statements of Operations Location (1) 2020 2019 Liquefaction Supply Derivatives gain LNG revenues $ — $ 1 Liquefaction Supply Derivatives gain Cost of sales 171 8 Liquefaction Supply Derivatives gain (loss) Cost of sales—related party 1 (2 ) (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 CCH Interest Rate Derivatives $ (197 ) $ — $ (197 ) CCH Interest Rate Forward Start Derivatives (92 ) — (92 ) Liquefaction Supply Derivatives 314 (13 ) 301 Liquefaction Supply Derivatives (89 ) 3 (86 ) As of December 31, 2019 CCH Interest Rate Derivatives $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives (8 ) — (8 ) Liquefaction Supply Derivatives 145 (5 ) 140 Liquefaction Supply Derivatives (98 ) 6 (92 ) |
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 and other asset conveyances to third parties to support LNG terminal $ 19 $ 19 Operating lease assets 7 7 Tax-related payments and receivables 3 3 Information technology service prepayments 3 3 Advances made under EPC and non-EPC contracts — 14 Other 21 10 Total other non-current assets, net $ 53 $ 56 |
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 $ 99 $ 8 Accrued natural gas purchases 86 132 Liquefaction Project costs 38 192 Other 21 38 Total accrued liabilities $ 244 $ 370 |
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 7.000% Senior Secured Notes due 2024 (“2024 CCH Senior Notes”) $ 1,250 $ 1,250 5.875% Senior Secured Notes due 2025 (“2025 CCH Senior Notes”) 1,500 1,500 5.125% Senior Secured Notes due 2027 (“2027 CCH Senior Notes”) 1,500 1,500 4.80% Senior Secured Notes due 2039 (“4.80% CCH Senior Notes”) 727 727 3.925% Senior Secured Notes due 2039 (“3.925% CCH Senior Notes”) 475 475 3.700% Senior Secured Notes due 2029 (“2029 CCH Senior Notes”) 1,500 1,500 CCH Credit Facility 3,283 3,283 Unamortized debt issuance costs (136 ) (142 ) Total long-term debt, net 10,099 10,093 Current debt $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) 141 — Total debt, net $ 10,240 $ 10,093 Credit Facilities Below is a summary of our credit facilities outstanding as of March 31, 2020 (in millions): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,404 $ 350 Incremental commitments 1,566 850 Less: Outstanding balance 3,283 141 Commitments terminated 6,687 — Letters of credit issued — 399 Available commitment $ — $ 660 Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 2.74% 2.77% Maturity date June 30, 2024 June 29, 2023 Restrictive Debt Covenants As of March 31, 2020 , we were in compliance with all covenants related to our debt agreements. Interest Expense Total interest expense consisted of the following (in millions): Three Months Ended March 31, 2020 2019 Total interest cost $ 129 $ 133 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction (30 ) (121 ) Total interest expense, net $ 99 $ 12 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 Estimated Carrying Estimated Senior notes (1) $ 5,750 $ 5,043 $ 5,750 $ 6,329 4.80% CCH Senior Notes (2) 727 594 727 830 3.925% CCH Senior Notes (2) 475 350 475 495 Credit facilities (3) 3,424 3,424 3,283 3,283 (1) Includes 2024 CCH Senior Notes, 2025 CCH Senior Notes, 2027 CCH Senior Notes and 2029 CCH 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 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 CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
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) $ 343 $ 12 LNG revenues—affiliate 190 93 Total revenues from customers 533 105 Net derivative gains (2) — 1 Total revenues $ 533 $ 106 (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 6—Derivative Instruments for additional information about our derivatives. Contract Assets and Liabilities The following table shows our contract assets, which are classified as other non-current assets, net on our Consolidated Balance Sheets (in millions): March 31, December 31, 2020 2019 Contract assets $ 12 $ — Contract assets represent our right to consideration for transferring goods or services to the customer under the terms of a sales contract when the associated consideration is not yet due. 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 $ 33.4 11 $ 33.6 11 LNG revenues—affiliate 1.0 13 1.0 13 Total revenues $ 34.4 $ 34.6 (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. 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. 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 36% and 100% during the three months ended March 31, 2020 and 2019 , respectively, of our LNG revenues were related to variable consideration received from customers. All of our LNG revenues—affiliate were related to variable consideration received from customers during 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 Operations 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 $ 190 $ 93 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 6 — Cost of sales—related party Natural Gas Supply Agreement 23 10 Operating and maintenance expense—affiliate Services Agreements 20 5 General and administrative expense—affiliate Services Agreements 5 1 We had $18 million and $27 million due to affiliates as of March 31, 2020 and December 31, 2019 , respectively, under agreements with affiliates, as described below. Cheniere Marketing Agreements CCL has a fixed price SPA with Cheniere Marketing (the “Cheniere Marketing Base SPA”) with a term of 20 years which allows Cheniere Marketing to purchase, at its option, (1) up to a cumulative total of 150 TBtu of LNG within the commissioning periods for Trains 1 through 3 and (2) any excess LNG produced by the Liquefaction Facilities that is not committed to customers under third-party SPAs. Under the Cheniere Marketing Base SPA , Cheniere Marketing may, without charge, elect to suspend deliveries of cargoes (other than commissioning cargoes) scheduled for any month under the applicable annual delivery program by providing specified notice in advance. Additionally, CCL has: (1) a fixed price SPA with an approximate term of 23 years with Cheniere Marketing which allows them to purchase volumes of approximately 15 TBtu per annum of LNG and (2) an SPA for 0.85 mtpa of LNG with a term of up to seven years associated with the integrated production marketing gas supply agreement between CCL and EOG Resources, Inc. As of March 31, 2020 and December 31, 2019 , CCL had $50 million and $57 million of accounts receivable—affiliate, respectively, under these agreements. Services Agreements Gas and Power Supply Services Agreement (“G&P Agreement”) CCL has a G&P Agreement with Cheniere Energy Shared Services, Inc. (“Shared Services”), a wholly owned subsidiary of Cheniere, pursuant to which Shared Services will manage the gas and power procurement requirements of CCL. The services include, among other services, exercising the day-to-day management of CCL’s natural gas and power supply requirements, negotiating agreements on CCL’s behalf and providing other administrative services. Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities , for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. Operation and Maintenance Agreements (“O&M Agreements”) CCL has an O&M Agreement (“CCL O&M Agreement”) with Cheniere LNG O&M Services, LLC (“O&M Services”), a wholly owned subsidiary of Cheniere, pursuant to which CCL receives all of the necessary services required to construct, operate and maintain the Liquefaction Facilities . The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, administering various agreements, information technology services and other services required to operate and maintain the Liquefaction Facilities . Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of operating expenses. After substantial completion of each Train of the Liquefaction Facilities , for services performed while the Liquefaction Facilities is operational, CCL will pay, in addition to the reimbursement of operating expenses, a fixed monthly fee of $125,000 (indexed for inflation) for services with respect to such Train. CCP has an O&M Agreement (“CCP O&M Agreement”) with O&M Services pursuant to which CCP receives all of the necessary services required to construct, operate and maintain the Corpus Christi Pipeline . The services to be provided include, among other services, preparing and maintaining staffing plans, identifying and arranging for procurement of equipment and materials, overseeing contractors, information technology services and other services required to operate and maintain the Corpus Christi Pipeline . CCP is required to reimburse O&M Services for all operating expenses incurred on behalf of CCP. Management Services Agreements (“MSAs”) CCL has a MSA with Shared Services pursuant to which Shared Services manages the construction and operation of the Liquefaction Facilities , excluding those matters provided for under the G&P Agreement and the CCL O&M Agreement. The services include, among other services, exercising the day-to-day management of CCL’s affairs and business, managing CCL’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Liquefaction Facilities and obtaining insurance. Prior to the substantial completion of each Train of the Liquefaction Facilities , no monthly fee payment is required except for reimbursement of expenses. After substantial completion of each Train, CCL will pay, in addition to the reimbursement of related expenses, a monthly fee equal to 3% of the capital expenditures incurred in the previous month and a fixed monthly fee of $375,000 for services with respect to such Train. CCP has a MSA with Shared Services pursuant to which Shared Services manages CCP’s operations and business, excluding those matters provided for under the CCP O&M Agreement. The services include, among other services, exercising the day-to-day management of CCP’s affairs and business, managing CCP’s regulatory matters, preparing status reports, providing contract administration services for all contracts associated with the Corpus Christi Pipeline and obtaining insurance. CCP is required to reimburse Shared Services for the aggregate of all costs and expenses incurred in the course of performing the services under the MSA. Natural Gas Supply Agreement CCL has entered into a natural gas supply contract to obtain feed gas for the operation of the Liquefaction Project through March 2022 with a related party in the ordinary course of business. CCL recorded $23 million and $10 million in cost of sales—related party under this contract during the three months ended March 31, 2020 and 2019 , respectively. Of this amount, $7 million and $3 million was included in accrued liabilities—related party as of March 31, 2020 and December 31, 2019 , respectively. CCL also has recorded derivative assets—related party of $4 million and $3 million and non-current derivative assets—related party of $2 million as of both March 31, 2020 and December 31, 2019 , respectively, related to this contract. Agreements with Midship Pipeline CCL has entered into a transportation precedent agreement and a negotiated rate agreement with Midship Pipeline Company, LLC (“Midship Pipeline”) to secure firm pipeline transportation capacity for a period of 10 years following commencement of the approximately 200 -mile natural gas pipeline project which Midship Pipeline is constructing. In March 2020, we along with CCL, entered into a guaranty agreement whereby we will absolutely and irrevocably guarantee CCL’s obligation under the transportation precedent agreement with Midship Pipeline. Natural Gas Transportation Agreement Cheniere Corpus Christi Liquefaction Stage III, LLC , a wholly owned subsidiary of Cheniere, has a transportation precedent agreement with CCP to secure firm pipeline transportation capacity for the transportation of natural gas feedstock to the expansion of the Corpus Christi LNG terminal it is constructing adjacent to the Liquefaction Project. The agreement will have a primary term of 20 years from the service commencement date with right to extend the term for two successive five -year terms. Contracts for Sale and Purchase of Natural Gas and LNG CCL has an agreement with Sabine Pass Liquefaction, LLC that allows them to sell and purchase natural gas with 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. CCL also has an agreement with Midship Pipeline that allows them to sell and purchase natural gas with each other. CCL did no t have any transactions under this agreement during the three months ended March 31, 2020 and 2019 . Land Agreements Lease Agreements CCL has agreements with Cheniere Land Holdings, LLC (“Cheniere Land Holdings”), a wholly owned subsidiary of Cheniere, to lease the land owned by Cheniere Land Holdings for the Liquefaction Facilities . The total annual lease payment is $1 million , and the terms of the agreements range from three to five years . Easement Agreements CCL has agreements with Cheniere Land Holdings which grant CCL easements on land owned by Cheniere Land Holdings for the Liquefaction Facilities . The total annual payment for easement agreements is $0.1 million , excluding any previously paid one-time payments, and the terms of the agreements range from three to five years . Dredge Material Disposal Agreement CCL has a dredge material disposal agreement with Cheniere Land Holdings that terminates in 2042 which grants CCL permission to use land owned by Cheniere Land Holdings for the deposit of dredge material from the construction and maintenance of the Liquefaction Facilities . Under the terms of the agreement, CCL will pay Cheniere Land Holdings $0.50 per cubic yard of dredge material deposits up to 5.0 million cubic yards and $4.62 per cubic yard for any quantities above that. Tug Hosting Agreement In February 2017, CCL entered into a tug hosting agreement with Corpus Christi Tug Services, LLC (“Tug Services”), a wholly owned subsidiary of Cheniere, to provide certain marine structures, support services and access necessary at the Liquefaction Facilities for Tug Services to provide its customers with tug boat and marine services. Tug Services is required to reimburse CCL for any third party costs incurred by CCL in connection with providing the goods and services. State Tax Sharing Agreements CCL 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 CCL 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, CCL will pay to Cheniere an amount equal to the state and local tax that CCL would be required to pay if CCL’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 CCL under this agreement; therefore, Cheniere has not demanded any such payments from CCL. The agreement is effective for tax returns due on or after May 2015. CCP 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 CCP 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, CCP will pay to Cheniere an amount equal to the state and local tax that CCP would be required to pay if CCP’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 CCP under this agreement; therefore, Cheniere has not demanded any such payments from CCP. The agreement is effective for tax returns due on or after May 2015. Equity Contribution Agreements Equity Contribution Agreement In May 2018, we amended and restated the existing equity contribution agreement with Cheniere (the “Equity Contribution Agreement”) pursuant to which Cheniere agreed to provide cash contributions up to approximately $1.1 billion , not including $2.0 billion previously contributed under the original equity contribution agreement. As of March 31, 2020 , we have received $558 million in contributions under the Equity Contribution Agreement and Cheniere has posted $365 million of letters of credit on our behalf. Cheniere is only required to make additional contributions under the Equity Contribution Agreement after the commitments under the CCH Credit Facility have been reduced to zero and to the extent cash flows from operations of the Liquefaction Project are unavailable for Liquefaction Project costs. Early Works Equity Contribution Agreement In conjunction with the amendment and restatement of the Equity Contribution Agreement, we terminated the early works equity contribution agreement with Cheniere entered into in December 2017. Prior to termination in May 2018, we had received $250 million |
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 52% —% 42% 38% Customer B 15% —% —% —% Customer C 12% —% —% 39% Customer D 12% —% —% —% Customer E —% —% 18% —% Customer F —% —% 16% —% |
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 $ 24 $ — The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) was $41 million and $221 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 CCH Senior Notes are jointly and severally guaranteed by our subsidiaries, CCL, CCP and CCP GP (each a “Guarantor” and collectively, the “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) the designation of the Guarantor as an “unrestricted subsidiary” in accordance with the indentures governing each of the CCH Senior Notes (the “ CCH Indentures ”), (3) upon the legal defeasance or covenant defeasance or discharge of obligations under the CCH Indentures and (4) the release and discharge of the Guarantors pursuant to the Common Security and Account Agreement. See Note 9—Debt for additional information regarding the CCH Senior Notes . The following is condensed consolidating financial information for CCH (“Parent Issuer”) and the Guarantors . We did not have any non-guarantor subsidiaries as of March 31, 2020 . Condensed Consolidating Balance Sheet March 31, 2020 (in millions) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 80 14 — 94 Accounts and other receivables — 74 — 74 Accounts receivable—affiliate — 50 — 50 Advances to affiliate — 93 — 93 Inventory — 67 — 67 Derivative assets — 96 — 96 Derivative assets—related party — 4 — 4 Other current assets — 12 — 12 Total current assets 80 410 — 490 Property, plant and equipment, net 1,351 11,162 — 12,513 Debt issuance and deferred financing costs, net 13 — — 13 Non-current derivative assets — 199 — 199 Non-current derivative assets—related party — 2 — 2 Investments in subsidiaries 11,316 — (11,316 ) — Other non-current assets, net 1 52 — 53 Total assets $ 12,761 $ 11,825 $ (11,316 ) $ 13,270 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ — $ 8 $ — $ 8 Accrued liabilities 100 144 — 244 Accrued liabilities—related party — 7 — 7 Current debt 141 — — 141 Due to affiliates — 18 — 18 Derivative liabilities 184 7 — 191 Other current liabilities — 1 — 1 Other current liabilities—affiliate — 1 — 1 Total current liabilities 425 186 — 611 Long-term debt, net 10,099 — — 10,099 Non-current derivative liabilities 105 79 — 184 Other non-current liabilities — 9 — 9 Member’s equity 2,132 11,551 (11,316 ) 2,367 Total liabilities and member’s equity $ 12,761 $ 11,825 $ (11,316 ) $ 13,270 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 69 11 — 80 Accounts and other receivables — 58 — 58 Accounts receivable—affiliate — 57 — 57 Advances to affiliate — 115 — 115 Inventory — 69 — 69 Derivative assets — 74 — 74 Derivative assets—related party — 3 — 3 Other current assets — 15 — 15 Total current assets 69 402 — 471 Property, plant and equipment, net 1,331 11,176 — 12,507 Debt issuance and deferred financing costs, net 15 — — 15 Non-current derivative assets — 61 — 61 Non-current derivative assets—related party — 2 — 2 Investments in subsidiaries 11,224 — (11,224 ) — Other non-current assets, net — 56 — 56 Total assets $ 12,639 $ 11,697 $ (11,224 ) $ 13,112 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ — $ 7 $ — $ 7 Accrued liabilities 9 361 — 370 Accrued liabilities—related party — 3 — 3 Due to affiliates 1 26 — 27 Derivative liabilities 40 6 — 46 Other current liabilities—affiliate — 1 — 1 Total current liabilities 50 404 — 454 Long-term debt, net 10,093 — — 10,093 Non-current derivative liabilities 49 86 — 135 Other non-current liabilities — 11 — 11 Other non-current liabilities—affiliate — 1 — 1 Member’s equity 2,447 11,195 (11,224 ) 2,418 Total liabilities and member’s equity $ 12,639 $ 11,697 $ (11,224 ) $ 13,112 Condensed Consolidating Statement of Operations Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 343 $ — $ 343 LNG revenues—affiliate — 190 — 190 Total revenues — 533 — 533 Operating costs and expenses Cost of sales (excluding items shown separately below) — 49 — 49 Cost of sales—affiliate — 6 — 6 Cost of sales—related party — 23 — 23 Operating and maintenance expense — 89 — 89 Operating and maintenance expense—affiliate — 20 — 20 General and administrative expense 1 1 — 2 General and administrative expense—affiliate — 5 — 5 Depreciation and amortization expense 9 75 — 84 Total operating costs and expenses 10 268 — 278 Income (loss) from operations (10 ) 265 — 255 Other income (expense) Interest expense, net of capitalized interest (99 ) — — (99 ) Interest rate derivative loss, net (208 ) — — (208 ) Other income, net 1 — — 1 Total other expense (306 ) — — (306 ) Net income (loss) $ (316 ) $ 265 $ — $ (51 ) Condensed Consolidating Statement of Operations Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 13 $ — $ 13 LNG revenues—affiliate — 93 — 93 Total revenues — 106 — 106 Operating costs and expenses Cost of sales (excluding items shown separately below) — 59 — 59 Cost of sales—related party — 10 — 10 Operating and maintenance expense — 32 — 32 Operating and maintenance expense—affiliate — 5 — 5 General and administrative expense 1 1 — 2 General and administrative expense—affiliate — 1 — 1 Depreciation and amortization expense 1 21 — 22 Total operating costs and expenses 2 129 — 131 Loss from operations (2 ) (23 ) — (25 ) Other income (expense) Interest expense, net of capitalized interest (12 ) — — (12 ) Interest rate derivative loss, net (35 ) — — (35 ) Other income, net 1 — — 1 Total other expense (46 ) — — (46 ) Net loss $ (48 ) $ (23 ) $ — $ (71 ) Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 159 $ 125 $ (190 ) $ 94 Cash flows from investing activities Property, plant and equipment, net (7 ) (213 ) — (220 ) Investments in subsidiaries (664 ) — 664 — Distributions received from affiliates 382 — (382 ) — Other — (1 ) — (1 ) Net cash used in investing activities (289 ) (214 ) 282 (221 ) Cash flows from financing activities Proceeds from issuances of debt 141 — — 141 Capital contributions — 664 (664 ) — Distributions — (572 ) 572 — Net cash provided by financing activities 141 92 (92 ) 141 Net increase in cash, cash equivalents and restricted cash 11 3 — 14 Cash, cash equivalents and restricted cash—beginning of period 69 11 — 80 Cash, cash equivalents and restricted cash—end of period $ 80 $ 14 $ — $ 94 Balances per Condensed Consolidating Balance Sheet: March 31, 2020 Parent Issuer Guarantors Eliminations Consolidated Cash and cash equivalents $ — $ — $ — $ — Restricted cash 80 14 — 94 Total cash, cash equivalents and restricted cash $ 80 $ 14 $ — $ 94 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ — $ (19 ) $ (3 ) $ (22 ) Cash flows from investing activities Property, plant and equipment, net (55 ) (315 ) — (370 ) Investments in subsidiaries (561 ) — 561 — Distributions received from affiliates 219 — (219 ) — Other — (2 ) — (2 ) Net cash used in investing activities (397 ) (317 ) 342 (372 ) Cash flows from financing activities Proceeds from issuances of debt 692 — — 692 Repayments of debt (369 ) — — (369 ) Capital contributions — 561 (561 ) — Distributions — (222 ) 222 — Net cash provided by financing activities 323 339 (339 ) 323 Net increase (decrease) in cash, cash equivalents and restricted cash (74 ) 3 — (71 ) Cash, cash equivalents and restricted cash—beginning of period 282 7 — 289 Cash, cash equivalents and restricted cash—end of period $ 208 $ 10 $ — $ 218 |
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 CCH 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. In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. |
Income Taxes, Policy | We are a disregarded entity for federal and state income tax purposes. Our taxable income or loss, which may vary substantially from the net income or loss reported on our Consolidated Statements of Operations, is included in the consolidated federal income tax return of Cheniere. Accordingly, no provision or liability for federal or state income taxes is included in the accompanying Consolidated Financial Statements. |
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 Trade receivable $ 56 $ 44 Other accounts receivable 18 14 Total accounts and other receivables $ 74 $ 58 |
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 $ 3 $ 7 LNG 4 6 Materials and other 60 56 Total inventory $ 67 $ 69 |
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 $ 10,028 $ 10,027 LNG site and related costs 276 276 LNG terminal construction-in-process 2,512 2,425 Accumulated depreciation (316 ) (232 ) Total LNG terminal costs, net 12,500 12,496 Fixed assets Fixed assets 22 19 Accumulated depreciation (9 ) (8 ) Total fixed assets, net 13 11 Property, plant and equipment, net $ 12,513 $ 12,507 |
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 , derivative assets—related party , non-current derivative assets , non-current derivative assets—related party , 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 CCH Interest Rate Derivatives liability $ — $ (197 ) $ — $ (197 ) $ — $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives liability — (92 ) — (92 ) — (8 ) — (8 ) Liquefaction Supply Derivatives asset 2 11 202 215 3 10 35 48 |
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 $202 Market approach incorporating present value techniques Henry Hub basis spread $(0.619) - $0.050 / (0.065) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 48% - 144% / 96% (1) Unobservable inputs were weighted by the relative fair value of the instruments. (2) Spread contemplates U.S. dollar-denominated pricing. |
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 , including those with related parties, during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 Balance, beginning of period $ 35 $ (4 ) Realized and mark-to-market gains: Included in cost of sales 164 3 Purchases and settlements: Purchases 1 1 Settlements 3 3 Transfers out of Level 3 (1) (1 ) (1 ) Balance, end of period $ 202 $ 2 Change in unrealized gains relating to instruments still held at end of period $ 164 $ 3 (1) Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
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 CCH Interest Rate Derivatives $ (197 ) $ — $ (197 ) CCH Interest Rate Forward Start Derivatives (92 ) — (92 ) Liquefaction Supply Derivatives 314 (13 ) 301 Liquefaction Supply Derivatives (89 ) 3 (86 ) As of December 31, 2019 CCH Interest Rate Derivatives $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives (8 ) — (8 ) Liquefaction Supply Derivatives 145 (5 ) 140 Liquefaction Supply Derivatives (98 ) 6 (92 ) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of March 31, 2020 , we had the following Interest Rate Derivatives outstanding: Notional Amounts March 31, 2020 December 31, 2019 Effective Date Maturity Date Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.7 billion $4.5 billion May 20, 2015 May 31, 2022 2.30% One-month LIBOR CCH Interest Rate Forward Start Derivatives $750 million $750 million September 30, 2020 December 31, 2030 2.06% Three-month LIBOR |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of our Interest Rate Derivatives on our Consolidated Balance Sheets (in millions): March 31, 2020 December 31, 2019 CCH Interest Rate Derivatives CCH Interest Rate Forward Start Derivatives Total CCH Interest Rate Derivatives CCH Interest Rate Forward Start Derivatives Total Consolidated Balance Sheet Location Derivative liabilities $ (92 ) $ (92 ) $ (184 ) $ (32 ) $ (8 ) $ (40 ) Non-current derivative liabilities (105 ) — (105 ) (49 ) — (49 ) Total derivative liabilities $ (197 ) $ (92 ) $ (289 ) $ (81 ) $ (8 ) $ (89 ) |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value and settlements of our Interest Rate Derivatives recorded in interest rate derivative loss, net on our Consolidated Statements of Operations during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 2019 CCH Interest Rate Derivatives loss $ (123 ) $ (35 ) CCH Interest Rate Forward Start Derivatives loss (85 ) — |
Liquefaction Supply Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
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 $ 96 $ 74 Derivative assets—related party 4 3 Non-current derivative assets 199 61 Non-current derivative assets—related party 2 2 Total derivative assets 301 140 Derivative liabilities (7 ) (6 ) Non-current derivative liabilities (79 ) (86 ) Total derivative liabilities (86 ) (92 ) Derivative asset, net $ 215 $ 48 (1) Does not include collateral posted with counterparties by us of $5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of both March 31, 2020 and December 31, 2019 . |
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 Operations during the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, Consolidated Statements of Operations Location (1) 2020 2019 Liquefaction Supply Derivatives gain LNG revenues $ — $ 1 Liquefaction Supply Derivatives gain Cost of sales 171 8 Liquefaction Supply Derivatives gain (loss) Cost of sales—related party 1 (2 ) (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 and other asset conveyances to third parties to support LNG terminal $ 19 $ 19 Operating lease assets 7 7 Tax-related payments and receivables 3 3 Information technology service prepayments 3 3 Advances made under EPC and non-EPC contracts — 14 Other 21 10 Total other non-current assets, net $ 53 $ 56 |
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 $ 99 $ 8 Accrued natural gas purchases 86 132 Liquefaction Project costs 38 192 Other 21 38 Total accrued liabilities $ 244 $ 370 |
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 7.000% Senior Secured Notes due 2024 (“2024 CCH Senior Notes”) $ 1,250 $ 1,250 5.875% Senior Secured Notes due 2025 (“2025 CCH Senior Notes”) 1,500 1,500 5.125% Senior Secured Notes due 2027 (“2027 CCH Senior Notes”) 1,500 1,500 4.80% Senior Secured Notes due 2039 (“4.80% CCH Senior Notes”) 727 727 3.925% Senior Secured Notes due 2039 (“3.925% CCH Senior Notes”) 475 475 3.700% Senior Secured Notes due 2029 (“2029 CCH Senior Notes”) 1,500 1,500 CCH Credit Facility 3,283 3,283 Unamortized debt issuance costs (136 ) (142 ) Total long-term debt, net 10,099 10,093 Current debt $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) 141 — Total debt, net $ 10,240 $ 10,093 |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of March 31, 2020 (in millions): CCH Credit Facility CCH Working Capital Facility Original facility size $ 8,404 $ 350 Incremental commitments 1,566 850 Less: Outstanding balance 3,283 141 Commitments terminated 6,687 — Letters of credit issued — 399 Available commitment $ — $ 660 Interest rate on available balance LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% Weighted average interest rate of outstanding balance 2.74% 2.77% Maturity date June 30, 2024 June 29, 2023 |
Schedule of Interest Expense | Total interest expense consisted of the following (in millions): Three Months Ended March 31, 2020 2019 Total interest cost $ 129 $ 133 Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction (30 ) (121 ) Total interest expense, net $ 99 $ 12 |
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 Estimated Carrying Estimated Senior notes (1) $ 5,750 $ 5,043 $ 5,750 $ 6,329 4.80% CCH Senior Notes (2) 727 594 727 830 3.925% CCH Senior Notes (2) 475 350 475 495 Credit facilities (3) 3,424 3,424 3,283 3,283 (1) Includes 2024 CCH Senior Notes, 2025 CCH Senior Notes, 2027 CCH Senior Notes and 2029 CCH 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 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 CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
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) $ 343 $ 12 LNG revenues—affiliate 190 93 Total revenues from customers 533 105 Net derivative gains (2) — 1 Total revenues $ 533 $ 106 (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 6—Derivative Instruments for additional information about our derivatives. |
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 $ 33.4 11 $ 33.6 11 LNG revenues—affiliate 1.0 13 1.0 13 Total revenues $ 34.4 $ 34.6 (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. |
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 Operations 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 $ 190 $ 93 Cost of sales—affiliate Contracts for Sale and Purchase of Natural Gas and LNG 6 — Cost of sales—related party Natural Gas Supply Agreement 23 10 Operating and maintenance expense—affiliate Services Agreements 20 5 General and administrative expense—affiliate Services Agreements 5 1 |
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 52% —% 42% 38% Customer B 15% —% —% —% Customer C 12% —% —% 39% Customer D 12% —% —% —% Customer E —% —% 18% —% Customer F —% —% 16% —% |
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 $ 24 $ — |
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 Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 80 14 — 94 Accounts and other receivables — 74 — 74 Accounts receivable—affiliate — 50 — 50 Advances to affiliate — 93 — 93 Inventory — 67 — 67 Derivative assets — 96 — 96 Derivative assets—related party — 4 — 4 Other current assets — 12 — 12 Total current assets 80 410 — 490 Property, plant and equipment, net 1,351 11,162 — 12,513 Debt issuance and deferred financing costs, net 13 — — 13 Non-current derivative assets — 199 — 199 Non-current derivative assets—related party — 2 — 2 Investments in subsidiaries 11,316 — (11,316 ) — Other non-current assets, net 1 52 — 53 Total assets $ 12,761 $ 11,825 $ (11,316 ) $ 13,270 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ — $ 8 $ — $ 8 Accrued liabilities 100 144 — 244 Accrued liabilities—related party — 7 — 7 Current debt 141 — — 141 Due to affiliates — 18 — 18 Derivative liabilities 184 7 — 191 Other current liabilities — 1 — 1 Other current liabilities—affiliate — 1 — 1 Total current liabilities 425 186 — 611 Long-term debt, net 10,099 — — 10,099 Non-current derivative liabilities 105 79 — 184 Other non-current liabilities — 9 — 9 Member’s equity 2,132 11,551 (11,316 ) 2,367 Total liabilities and member’s equity $ 12,761 $ 11,825 $ (11,316 ) $ 13,270 Condensed Consolidating Balance Sheet December 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ — $ — Restricted cash 69 11 — 80 Accounts and other receivables — 58 — 58 Accounts receivable—affiliate — 57 — 57 Advances to affiliate — 115 — 115 Inventory — 69 — 69 Derivative assets — 74 — 74 Derivative assets—related party — 3 — 3 Other current assets — 15 — 15 Total current assets 69 402 — 471 Property, plant and equipment, net 1,331 11,176 — 12,507 Debt issuance and deferred financing costs, net 15 — — 15 Non-current derivative assets — 61 — 61 Non-current derivative assets—related party — 2 — 2 Investments in subsidiaries 11,224 — (11,224 ) — Other non-current assets, net — 56 — 56 Total assets $ 12,639 $ 11,697 $ (11,224 ) $ 13,112 LIABILITIES AND MEMBER’S EQUITY Current liabilities Accounts payable $ — $ 7 $ — $ 7 Accrued liabilities 9 361 — 370 Accrued liabilities—related party — 3 — 3 Due to affiliates 1 26 — 27 Derivative liabilities 40 6 — 46 Other current liabilities—affiliate — 1 — 1 Total current liabilities 50 404 — 454 Long-term debt, net 10,093 — — 10,093 Non-current derivative liabilities 49 86 — 135 Other non-current liabilities — 11 — 11 Other non-current liabilities—affiliate — 1 — 1 Member’s equity 2,447 11,195 (11,224 ) 2,418 Total liabilities and member’s equity $ 12,639 $ 11,697 $ (11,224 ) $ 13,112 |
Condensed Consolidating Statements of Operations | Condensed Consolidating Statement of Operations Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 343 $ — $ 343 LNG revenues—affiliate — 190 — 190 Total revenues — 533 — 533 Operating costs and expenses Cost of sales (excluding items shown separately below) — 49 — 49 Cost of sales—affiliate — 6 — 6 Cost of sales—related party — 23 — 23 Operating and maintenance expense — 89 — 89 Operating and maintenance expense—affiliate — 20 — 20 General and administrative expense 1 1 — 2 General and administrative expense—affiliate — 5 — 5 Depreciation and amortization expense 9 75 — 84 Total operating costs and expenses 10 268 — 278 Income (loss) from operations (10 ) 265 — 255 Other income (expense) Interest expense, net of capitalized interest (99 ) — — (99 ) Interest rate derivative loss, net (208 ) — — (208 ) Other income, net 1 — — 1 Total other expense (306 ) — — (306 ) Net income (loss) $ (316 ) $ 265 $ — $ (51 ) Condensed Consolidating Statement of Operations Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated Revenues LNG revenues $ — $ 13 $ — $ 13 LNG revenues—affiliate — 93 — 93 Total revenues — 106 — 106 Operating costs and expenses Cost of sales (excluding items shown separately below) — 59 — 59 Cost of sales—related party — 10 — 10 Operating and maintenance expense — 32 — 32 Operating and maintenance expense—affiliate — 5 — 5 General and administrative expense 1 1 — 2 General and administrative expense—affiliate — 1 — 1 Depreciation and amortization expense 1 21 — 22 Total operating costs and expenses 2 129 — 131 Loss from operations (2 ) (23 ) — (25 ) Other income (expense) Interest expense, net of capitalized interest (12 ) — — (12 ) Interest rate derivative loss, net (35 ) — — (35 ) Other income, net 1 — — 1 Total other expense (46 ) — — (46 ) Net loss $ (48 ) $ (23 ) $ — $ (71 ) |
Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2020 (in millions) Parent Issuer Guarantors Eliminations Consolidated Cash flows provided by operating activities $ 159 $ 125 $ (190 ) $ 94 Cash flows from investing activities Property, plant and equipment, net (7 ) (213 ) — (220 ) Investments in subsidiaries (664 ) — 664 — Distributions received from affiliates 382 — (382 ) — Other — (1 ) — (1 ) Net cash used in investing activities (289 ) (214 ) 282 (221 ) Cash flows from financing activities Proceeds from issuances of debt 141 — — 141 Capital contributions — 664 (664 ) — Distributions — (572 ) 572 — Net cash provided by financing activities 141 92 (92 ) 141 Net increase in cash, cash equivalents and restricted cash 11 3 — 14 Cash, cash equivalents and restricted cash—beginning of period 69 11 — 80 Cash, cash equivalents and restricted cash—end of period $ 80 $ 14 $ — $ 94 Balances per Condensed Consolidating Balance Sheet: March 31, 2020 Parent Issuer Guarantors Eliminations Consolidated Cash and cash equivalents $ — $ — $ — $ — Restricted cash 80 14 — 94 Total cash, cash equivalents and restricted cash $ 80 $ 14 $ — $ 94 Condensed Consolidating Statement of Cash Flows Three Months Ended March 31, 2019 (in millions) Parent Issuer Guarantors Eliminations Consolidated Cash flows used in operating activities $ — $ (19 ) $ (3 ) $ (22 ) Cash flows from investing activities Property, plant and equipment, net (55 ) (315 ) — (370 ) Investments in subsidiaries (561 ) — 561 — Distributions received from affiliates 219 — (219 ) — Other — (2 ) — (2 ) Net cash used in investing activities (397 ) (317 ) 342 (372 ) Cash flows from financing activities Proceeds from issuances of debt 692 — — 692 Repayments of debt (369 ) — — (369 ) Capital contributions — 561 (561 ) — Distributions — (222 ) 222 — Net cash provided by financing activities 323 339 (339 ) 323 Net increase (decrease) in cash, cash equivalents and restricted cash (74 ) 3 — (71 ) Cash, cash equivalents and restricted cash—beginning of period 282 7 — 289 Cash, cash equivalents and restricted cash—end of period $ 208 $ 10 $ — $ 218 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2020unitmiitemmilliontonnes / yrtrains | |
Corpus Christi Pipeline [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Length Of Natural Gas Pipeline | mi | 23 |
Corpus Christi LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation [Line Items] | |
Number of Liquefaction LNG Trains Operating | 2 |
Number of Liquefaction LNG Trains Constructing | 1 |
Total Production Capability | milliontonnes / yr | 15 |
Number of LNG Storage Tanks | unit | 3 |
Number of Marine Berths | item | 2 |
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 | $ 94 | $ 80 |
CCL Project [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Current restricted cash | $ 94 | $ 80 |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade receivable | $ 56 | $ 44 |
Other accounts receivable | 18 | 14 |
Total accounts and other receivables | $ 74 | $ 58 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Inventory | $ 67 | $ 69 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 3 | 7 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 4 | 6 |
Materials and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 60 | $ 56 |
Property, Plant and Equipment -
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 | $ 12,513 | $ 12,507 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (316) | (232) |
Property, plant and equipment, net | 12,500 | 12,496 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,028 | 10,027 |
LNG site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 276 | 276 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,512 | 2,425 |
Fixed assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 22 | 19 |
Accumulated depreciation | (9) | (8) |
Property, plant and equipment, net | $ 13 | $ 11 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 84 | $ 22 |
Offsets to LNG terminal costs | $ 0 | $ 74 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - CCL [Member] - tbtu | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Natural Gas Supply Agreement [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 106 | 120 |
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 | 3,395 | 3,153 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
CCH Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (197) | $ (81) |
CCH Interest Rate Derivatives [Member] | 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 | 0 | 0 |
CCH Interest Rate Derivatives [Member] | 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 | (197) | (81) |
CCH Interest Rate Derivatives [Member] | 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 | 0 | 0 |
CCH Interest Rate Forward Start Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (92) | (8) |
CCH Interest Rate Forward Start Derivatives [Member] | 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 | 0 | 0 |
CCH Interest Rate Forward Start Derivatives [Member] | 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 | (92) | (8) |
CCH Interest Rate Forward Start Derivatives [Member] | 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 | 0 | 0 |
Liquefaction Supply Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 215 | 48 |
Liquefaction Supply Derivatives [Member] | 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 | 2 | 3 |
Liquefaction Supply Derivatives [Member] | 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 | $ 11 | 10 |
Liquefaction Supply Derivatives [Member] | 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 | $ 35 |
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 | $ 202,000,000 | |
Minimum [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ (0.619) | [1] |
Minimum [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 48.00% | [1],[2] |
Maximum [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ 0.050 | [1] |
Maximum [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 144.00% | [1],[2] |
Weighted Average [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread | $ (0.065) | [1] |
Weighted Average [Member] | Valuation Technique, Option Pricing Model [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 96.00% | [1],[2] |
[1] | (1) Unobservable inputs were weighted by the relative fair value of the instruments. | |
[2] | (2) Spread contemplates U.S. dollar-denominated pricing. |
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 | $ 35 | $ (4) | |
Realized and mark-to-market gains: | |||
Included in cost of sales | 164 | 3 | |
Purchases and settlements: | |||
Purchases | 1 | 1 | |
Settlements | 3 | 3 | |
Transfers out of Level 3 | [1] | (1) | (1) |
Balance, end of period | 202 | 2 | |
Change in unrealized losses relating to instruments still held at end of period | $ 164 | $ 3 | |
[1] | Transferred to Level 2 as a result of observable market for the underlying natural gas purchase agreements. |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
CCH Interest Rate Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 4,700 | $ 4,500 |
Effective Date | May 20, 2015 | |
Maturity Date | May 31, 2022 | |
Weighted Average Fixed Interest Rate Paid | 2.30% | |
CCH Interest Rate Forward Start Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative Notional Amount | $ 750 | $ 750 |
Effective Date | Sep. 30, 2020 | |
Maturity Date | Dec. 31, 2030 | |
Weighted Average Fixed Interest Rate Paid | 2.06% |
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 | $ 96 | $ 74 | |
Derivative assets—related party | 4 | 3 | |
Non-current derivative assets | 199 | 61 | |
Non-current derivative assets—related party | 2 | 2 | |
Derivative liabilities | (191) | (46) | |
Non-current derivative liabilities | (184) | (135) | |
Total Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (289) | (89) | |
Total Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (184) | (40) | |
Total Interest Rate Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (105) | (49) | |
CCH Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (197) | (81) | |
CCH Interest Rate Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (92) | (32) | |
CCH Interest Rate Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (105) | (49) | |
CCH Interest Rate Forward Start Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (92) | (8) | |
CCH Interest Rate Forward Start Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (92) | (8) | |
CCH Interest Rate Forward Start Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | 0 | 0 | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 301 | 140 |
Total derivative liabilities | [1] | (86) | (92) |
Derivative asset (liability), net | [1] | 215 | 48 |
Derivative, collateral posted by us | 5 | (5) | |
Liquefaction Supply Derivatives [Member] | Derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 96 | 74 |
Liquefaction Supply Derivatives [Member] | Derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets—related party | [1] | 4 | 3 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [1] | 199 | 61 |
Liquefaction Supply Derivatives [Member] | Non-current derivative assets—related party | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets—related party | [1] | 2 | 2 |
Liquefaction Supply Derivatives [Member] | Derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | (7) | (6) |
Liquefaction Supply Derivatives [Member] | Non-current derivative liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [1] | $ (79) | $ (86) |
[1] | Does not include collateral posted with counterparties by us of $5 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of both March 31, 2020 and December 31, 2019 . |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Derivative gain (loss), net [Member] | CCH Interest Rate Derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | $ (123) | $ (35) | |
Derivative gain (loss), net [Member] | CCH Interest Rate Forward Start Derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | (85) | 0 | |
LNG Revenues [Member] | Liquefaction Supply Derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | [1] | 0 | 1 |
Cost of Sales [Member] | Liquefaction Supply Derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | [1] | 171 | 8 |
Cost of sales—related party [Member] | Liquefaction Supply Derivatives [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative gain (loss), net | [1] | $ 1 | $ (2) |
[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 - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Interest Rate Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | $ (197) | $ (81) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (197) | (81) |
CCH Interest Rate Forward Start Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (92) | (8) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (92) | (8) |
Liquefaction Supply Derivative Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 314 | 145 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (13) | (5) |
Derivative Assets (Liabilities), at Fair Value, Net | 301 | 140 |
Liquefaction Supply Derivative Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (89) | (98) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 3 | 6 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (86) | $ (92) |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Advances and other asset conveyances to third parties to support LNG terminal | $ 19 | $ 19 |
Operating lease assets | 7 | 7 |
Tax-related payments and receivables | 3 | 3 |
Information technology service prepayments | 3 | 3 |
Advances made under EPC and non-EPC contracts | 0 | 14 |
Other | 21 | 10 |
Total other non-current assets, net | $ 53 | $ 56 |
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 | $ 99 | $ 8 |
Accrued natural gas purchases | 86 | 132 |
Liquefaction Project costs | 38 | 192 |
Other | 21 | 38 |
Total accrued liabilities | $ 244 | $ 370 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (136,000,000) | $ (142,000,000) |
Long-term Debt, Net | 10,099,000,000 | 10,093,000,000 |
Current debt | 141,000,000 | 0 |
Total Debt, Net | 10,240,000,000 | 10,093,000,000 |
2024 CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,250,000,000 | 1,250,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |
2025 CCH 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 CCH 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 | 5.125% | |
4.80% CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 727,000,000 | 727,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | |
3.925% CCH Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 475,000,000 | 475,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.925% | |
2029 Corpus Christi Holdings 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 | 3.70% | |
CCH Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 3,283,000,000 | 3,283,000,000 |
CCH Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Current debt | 141,000,000 | $ 0 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||
Outstanding balance, current | $ 141 | $ 0 |
CCH Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | 8,404 | |
Incremental commitments | 1,566 | |
Outstanding balance | 3,283 | 3,283 |
Commitments terminated | 6,687 | |
Letters of credit issued | 0 | |
Available commitment | $ 0 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Weighted average interest rate of outstanding balance | 2.74% | |
Maturity Date | Jun. 30, 2024 | |
CCH Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |
CCH Credit Facility [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |
CCH Working Capital Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Original facility size | $ 350 | |
Incremental commitments | 850 | |
Outstanding balance, current | 141 | $ 0 |
Commitments terminated | 0 | |
Letters of credit issued | 399 | |
Available commitment | $ 660 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR or the base rate | |
Weighted average interest rate of outstanding balance | 2.77% | |
Maturity Date | Jun. 29, 2023 | |
CCH 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 | 1.25% | |
CCH Working Capital Facility [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | |
CCH 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% | |
CCH Working Capital Facility [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
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 | $ 129 | $ 133 |
Capitalized interest, including amounts capitalized as an Allowance for Funds Used During Construction | (30) | (121) |
Total interest expense, net | $ 99 | $ 12 |
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] | |||
Debt, Carrying Value | $ 10,240 | $ 10,093 | |
Senior notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [1] | 5,750 | 5,750 |
Senior notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [1] | 5,043 | 6,329 |
4.80% CCH Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 727 | 727 |
4.80% CCH Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [2] | 594 | 830 |
3.925% CCH Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [2] | 475 | 475 |
3.925% CCH Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable, Fair Value Disclosure | [2] | 350 | 495 |
Credit facilities [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt, Carrying Value | [3] | 3,424 | 3,283 |
Credit facilities [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Lines of Credit, Fair Value Disclosure | [3] | $ 3,424 | $ 3,283 |
[1] | Includes 2024 CCH Senior Notes, 2025 CCH Senior Notes, 2027 CCH Senior Notes and 2029 CCH 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 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 CCH Credit Facility and CCH Working Capital Facility . The Level 3 estimated fair value approximates the principal amount because the interest rates are variable and reflective of market rates and the debt may be repaid, in full or in part, at any time without penalty. |
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 | 36.00% | 100.00% |
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 | $ 533 | $ 105 | |
Net derivative gains | [1] | 0 | 1 |
Revenues | 533 | 106 | |
LNG [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | [2] | 343 | 12 |
Revenues | 343 | 13 | |
LNG—affiliate [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues from contracts with customers | $ 190 | $ 93 | |
[1] | See Note 6—Derivative Instruments | ||
[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 - Contract Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 12 | $ 0 |
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 | $ 34.6 | ||
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 | $ 33.6 | ||
Weighted Average Recognition Timing | [1] | 11 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | LNG—affiliate [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 1 | ||
Weighted Average Recognition Timing | [1] | 13 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 | $ 34.4 | ||
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 | $ 33.4 | ||
Weighted Average Recognition Timing | [1] | 11 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | LNG—affiliate [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 1 | ||
Weighted Average Recognition Timing | [1] | 13 years | |
[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. |
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] | ||
Cost of sales—affiliate | $ 6 | $ 0 |
Cost of sales—related party | 23 | 10 |
Operating and maintenance expense—affiliate | 20 | 5 |
General and administrative expense—affiliate | 5 | 1 |
Cheniere Marketing Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
LNG revenues—affiliate | 190 | 93 |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of sales—affiliate | 6 | 0 |
Natural Gas Supply Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Cost of sales—related party | 23 | 10 |
Service Agreements [Member] | ||
Related Party Transaction [Line Items] | ||
Operating and maintenance expense—affiliate | 20 | 5 |
General and administrative expense—affiliate | $ 5 | $ 1 |
Related Party Transactions - LN
Related Party Transactions - LNG Sale and Purchase Agreements (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)tbtu | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ | $ 50 | $ 57 |
CCL [Member] | Cheniere Marketing Agreements [Member] | Cheniere Marketing [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts receivable—affiliate | $ | $ 50 | $ 57 |
CCL [Member] | Cheniere Marketing Base SPA [Member] | Cheniere Marketing [Member] | ||
Related Party Transaction [Line Items] | ||
SPA, Term of Agreement | 20 years | |
CCL [Member] | Cheniere Marketing Base SPA [Member] | Cheniere Marketing [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | 150 | |
CCL [Member] | Cheniere Marketing SPA [Member] | Cheniere Marketing [Member] | ||
Related Party Transaction [Line Items] | ||
SPA, Term of Agreement | 23 years | |
Contract Volumes | 15 | |
CCL [Member] | Cheniere Marketing EOG SPA [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
SPA, Term of Agreement | 7 years | |
CCL [Member] | Cheniere Marketing EOG SPA [Member] | Cheniere Marketing [Member] | ||
Related Party Transaction [Line Items] | ||
Contract Volumes | 0.85 |
Related Party Transactions - Se
Related Party Transactions - Service Agreements (Details) - CCL [Member] | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Gas and Power Supply Services Agreement [Member] | Shared Services [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 125,000 |
Operation and Maintenance Agreement [Member] | O&M Services [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | 125,000 |
Management Services Agreement [Member] | Shared Services [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Committed Monthly Fee | $ 375,000 |
Monthly fee as a percentage of capital expenditures incurred in the previous month | 3.00% |
Related Party Transactions - Na
Related Party Transactions - Natural Gas Supply Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Cost of sales—related party | $ 23 | $ 10 | |
Accrued liabilities—related party | 7 | $ 3 | |
Derivative assets—related party | 4 | 3 | |
Non-current derivative assets—related party | 2 | 2 | |
Natural Gas Supply Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—related party | 23 | 10 | |
CCL [Member] | Natural Gas Supply Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—related party | 23 | $ 10 | |
Accrued liabilities—related party | 7 | 3 | |
Derivative assets—related party | 4 | 3 | |
Non-current derivative assets—related party | $ 2 | $ 2 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)miyd3unit | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 18,000,000 | $ 27,000,000 | |
Cost of sales—related party | 23,000,000 | $ 10,000,000 | |
Contracts for Sale and Purchase of Natural Gas And LNG [Member] | Midship Pipeline [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of sales—related party | $ 0 | $ 0 | |
Natural Gas Transportation Agreement [Member] | Cheniere Corpus Christi Liquefaction Stage III, LLC [Member] | CCP [Member] | |||
Related Party Transaction [Line Items] | |||
Agreement Term | 20 years | ||
Related Party Agreement, Number Of Available Extensions | unit | 2 | ||
Related Party Agreement, Term Of Available Extension | 5 years | ||
Natural Gas Transportation Agreement [Member] | Midship Pipeline [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Agreement Term | 10 years | ||
Length Of Natural Gas Pipeline | mi | 200 | ||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Annual lease payment | $ 1,000,000 | ||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Lease Term | 3 years | ||
Lease Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Lease Term | 5 years | ||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Annual lease payment | $ 100,000 | ||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Minimum [Member] | |||
Related Party Transaction [Line Items] | |||
Agreement Term | 3 years | ||
Easement Agreements [Member] | Cheniere Land Holdings [Member] | CCL [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Agreement Term | 5 years | ||
Dredge Material Disposal Agreement [Member] | Cheniere Land Holdings [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Dredge Material Deposits, Price Per Cubic Yard Of Deposit | $ 0.50 | ||
Dredge Material Deposits, Deposit Threshold | yd3 | 5,000,000 | ||
Dredge Material Deposits, Price Per Cubic Yard Of Deposit After Exceeding Threshold | $ 4.62 | ||
Tax Sharing Agreement [Member] | Cheniere [Member] | CCL [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | 0 | ||
Tax Sharing Agreement [Member] | Cheniere [Member] | CCP [Member] | |||
Related Party Transaction [Line Items] | |||
Income Taxes Paid, Net | $ 0 |
Related Party Transactions - Eq
Related Party Transactions - Equity Contribution Agreements (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Capital contributions | $ 0 | $ 0 |
Cheniere [Member] | Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 558,000,000 | |
Cheniere [Member] | Previous Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 2,000,000,000 | |
Cheniere [Member] | Early Works Equity Contribution Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 250,000,000 | |
Maximum [Member] | Cheniere [Member] | Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Capital contributions | 1,100,000,000 | |
Cheniere Revolving Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Letters of credit issued | 365,000,000 | |
CCH Credit Facility [Member] | ||
Related Party Transaction [Line Items] | ||
Letters of credit issued | 0 | |
CCH Credit Facility [Member] | Cheniere [Member] | Equity Contributions Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related Party Agreement, Additional Contribution Requirement, Debt Instrument, Commitments Reduction Threshold | $ 0 |
Customer Concentration - Schedu
Customer Concentration - Schedule of Revenue and Accounts Receivable by Major Customers (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 | 52.00% | 0.00% |
Customer A [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 42.00% | 38.00% |
Customer B [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 15.00% | 0.00% |
Customer B [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer C [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 0.00% |
Customer C [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 39.00% |
Customer D [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 0.00% |
Customer D [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer E [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer E [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 18.00% | 0.00% |
Customer F [Member] | Total Revenues from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 0.00% |
Customer F [Member] | Accounts Receivable from External Customers [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 16.00% | 0.00% |
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 | $ 24 | $ 0 |
Balance in property, plant and equipment, net funded with accounts payable and accrued liabilities (including affiliate) | $ 41 | $ 221 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 94 | 80 | ||
Accounts and other receivables | 74 | 58 | ||
Accounts receivable—affiliate | 50 | 57 | ||
Advances to affiliate | 93 | 115 | ||
Inventory | 67 | 69 | ||
Derivative assets | 96 | 74 | ||
Derivative assets—related party | 4 | 3 | ||
Other current assets | 12 | 15 | ||
Total current assets | 490 | 471 | ||
Property, plant and equipment, net | 12,513 | 12,507 | ||
Debt issuance and deferred financing costs, net | 13 | 15 | ||
Non-current derivative assets | 199 | 61 | ||
Non-current derivative assets—related party | 2 | 2 | ||
Investments in subsidiaries | 0 | 0 | ||
Other non-current assets, net | 53 | 56 | ||
Total assets | 13,270 | 13,112 | ||
Current liabilities | ||||
Accounts payable | 8 | 7 | ||
Accrued liabilities | 244 | 370 | ||
Accrued liabilities—related party | 7 | 3 | ||
Current debt | 141 | 0 | ||
Due to affiliates | 18 | 27 | ||
Derivative liabilities | 191 | 46 | ||
Other current liabilities | 1 | 0 | ||
Other current liabilities—affiliate | 1 | 1 | ||
Total current liabilities | 611 | 454 | ||
Long-term debt, net | 10,099 | 10,093 | ||
Non-current derivative liabilities | 184 | 135 | ||
Other non-current liabilities | 9 | 11 | ||
Other non-current liabilities—affiliate | 0 | 1 | ||
Member’s equity | 2,367 | 2,418 | $ 2,010 | $ 2,081 |
Total liabilities and member’s equity | 13,270 | 13,112 | ||
Parent Issuer [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 80 | 69 | ||
Accounts and other receivables | 0 | 0 | ||
Accounts receivable—affiliate | 0 | 0 | ||
Advances to affiliate | 0 | 0 | ||
Inventory | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Derivative assets—related party | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 80 | 69 | ||
Property, plant and equipment, net | 1,351 | 1,331 | ||
Debt issuance and deferred financing costs, net | 13 | 15 | ||
Non-current derivative assets | 0 | 0 | ||
Non-current derivative assets—related party | 0 | 0 | ||
Investments in subsidiaries | 11,316 | 11,224 | ||
Other non-current assets, net | 1 | 0 | ||
Total assets | 12,761 | 12,639 | ||
Current liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 100 | 9 | ||
Accrued liabilities—related party | 0 | 0 | ||
Current debt | 141 | |||
Due to affiliates | 0 | 1 | ||
Derivative liabilities | 184 | 40 | ||
Other current liabilities | 0 | |||
Other current liabilities—affiliate | 0 | 0 | ||
Total current liabilities | 425 | 50 | ||
Long-term debt, net | 10,099 | 10,093 | ||
Non-current derivative liabilities | 105 | 49 | ||
Other non-current liabilities | 0 | 0 | ||
Other non-current liabilities—affiliate | 0 | |||
Member’s equity | 2,132 | 2,447 | ||
Total liabilities and member’s equity | 12,761 | 12,639 | ||
Guarantors [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 14 | 11 | ||
Accounts and other receivables | 74 | 58 | ||
Accounts receivable—affiliate | 50 | 57 | ||
Advances to affiliate | 93 | 115 | ||
Inventory | 67 | 69 | ||
Derivative assets | 96 | 74 | ||
Derivative assets—related party | 4 | 3 | ||
Other current assets | 12 | 15 | ||
Total current assets | 410 | 402 | ||
Property, plant and equipment, net | 11,162 | 11,176 | ||
Debt issuance and deferred financing costs, net | 0 | 0 | ||
Non-current derivative assets | 199 | 61 | ||
Non-current derivative assets—related party | 2 | 2 | ||
Investments in subsidiaries | 0 | 0 | ||
Other non-current assets, net | 52 | 56 | ||
Total assets | 11,825 | 11,697 | ||
Current liabilities | ||||
Accounts payable | 8 | 7 | ||
Accrued liabilities | 144 | 361 | ||
Accrued liabilities—related party | 7 | 3 | ||
Current debt | 0 | |||
Due to affiliates | 18 | 26 | ||
Derivative liabilities | 7 | 6 | ||
Other current liabilities | 1 | |||
Other current liabilities—affiliate | 1 | 1 | ||
Total current liabilities | 186 | 404 | ||
Long-term debt, net | 0 | 0 | ||
Non-current derivative liabilities | 79 | 86 | ||
Other non-current liabilities | 9 | 11 | ||
Other non-current liabilities—affiliate | 1 | |||
Member’s equity | 11,551 | 11,195 | ||
Total liabilities and member’s equity | 11,825 | 11,697 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | ||
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 | ||
Derivative assets—related party | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Debt issuance and deferred financing costs, net | 0 | 0 | ||
Non-current derivative assets | 0 | 0 | ||
Non-current derivative assets—related party | 0 | 0 | ||
Investments in subsidiaries | (11,316) | (11,224) | ||
Other non-current assets, net | 0 | 0 | ||
Total assets | (11,316) | (11,224) | ||
Current liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Accrued liabilities—related party | 0 | 0 | ||
Current debt | 0 | |||
Due to affiliates | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Other current liabilities | 0 | |||
Other current liabilities—affiliate | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net | 0 | 0 | ||
Non-current derivative liabilities | 0 | 0 | ||
Other non-current liabilities | 0 | |||
Other non-current liabilities—affiliate | 0 | |||
Member’s equity | (11,316) | (11,224) | ||
Total liabilities and member’s equity | $ (11,316) | $ (11,224) |
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 | $ 533 | $ 106 | |
Revenues from contracts with customers | 533 | 105 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 49 | 59 | |
Cost of sales—affiliate | 6 | 0 | |
Cost of sales—related party | 23 | 10 | |
Operating and maintenance expense | 89 | 32 | |
Operating and maintenance expense—affiliate | 20 | 5 | |
General and administrative expense | 2 | 2 | |
General and administrative expense—affiliate | 5 | 1 | |
Depreciation and amortization expense | 84 | 22 | |
Total operating costs and expenses | 278 | 131 | |
Income (loss) from operations | 255 | (25) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (99) | (12) | |
Interest rate derivative loss, net | (208) | (35) | |
Other income, net | 1 | 1 | |
Total other expense | (306) | (46) | |
Net loss | (51) | (71) | |
LNG [Member] | |||
Revenues | |||
Revenues | 343 | 13 | |
Revenues from contracts with customers | [1] | 343 | 12 |
LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 190 | 93 | |
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 | ||
Cost of sales—related party | 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 | 0 | 0 | |
Depreciation and amortization expense | 9 | 1 | |
Total operating costs and expenses | 10 | 2 | |
Income (loss) from operations | (10) | (2) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | (99) | (12) | |
Interest rate derivative loss, net | (208) | (35) | |
Other income, net | 1 | 1 | |
Total other expense | (306) | (46) | |
Net loss | (316) | (48) | |
Parent Issuer [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Parent Issuer [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 0 | 0 | |
Guarantors [Member] | |||
Revenues | |||
Revenues | 533 | 106 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 49 | 59 | |
Cost of sales—affiliate | 6 | ||
Cost of sales—related party | 23 | 10 | |
Operating and maintenance expense | 89 | 32 | |
Operating and maintenance expense—affiliate | 20 | 5 | |
General and administrative expense | 1 | 1 | |
General and administrative expense—affiliate | 5 | 1 | |
Depreciation and amortization expense | 75 | 21 | |
Total operating costs and expenses | 268 | 129 | |
Income (loss) from operations | 265 | (23) | |
Other income (expense) | |||
Interest expense, net of capitalized interest | 0 | 0 | |
Interest rate derivative loss, net | 0 | 0 | |
Other income, net | 0 | 0 | |
Total other expense | 0 | 0 | |
Net loss | 265 | (23) | |
Guarantors [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 343 | 13 | |
Guarantors [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | 190 | 93 | |
Eliminations [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Operating costs and expenses | |||
Cost of sales (excluding items shown separately below) | 0 | 0 | |
Cost of sales—affiliate | 0 | ||
Cost of sales—related party | 0 | 0 | |
Operating and maintenance expense | 0 | 0 | |
Operating and maintenance expense—affiliate | 0 | 0 | |
General and administrative expense | 0 | 0 | |
General and administrative expense—affiliate | 0 | 0 | |
Depreciation and amortization expense | 0 | 0 | |
Total operating costs and expenses | 0 | 0 | |
Income (loss) from operations | 0 | 0 | |
Other income (expense) | |||
Interest expense, net of capitalized interest | 0 | 0 | |
Interest rate derivative loss, net | 0 | 0 | |
Other income, net | 0 | 0 | |
Total other expense | 0 | 0 | |
Net loss | 0 | 0 | |
Eliminations [Member] | LNG [Member] | |||
Revenues | |||
Revenues | 0 | 0 | |
Eliminations [Member] | LNG—affiliate [Member] | |||
Revenues | |||
Revenues from contracts with customers | $ 0 | $ 0 | |
[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] | ||
Cash flows provided by (used in) operating activities | $ 94 | $ (22) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (220) | (370) |
Investments in subsidiaries | 0 | 0 |
Distributions received from affiliates | 0 | 0 |
Other | (1) | (2) |
Net cash used in investing activities | (221) | (372) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 141 | 692 |
Repayments of debt | 0 | (369) |
Capital contributions | 0 | 0 |
Distributions | 0 | 0 |
Net cash provided by financing activities | 141 | 323 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14 | (71) |
Cash, cash equivalents and restricted cash—beginning of period | 80 | 289 |
Cash, cash equivalents and restricted cash—end of period | 94 | 218 |
Parent Issuer [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | 159 | 0 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (7) | (55) |
Investments in subsidiaries | (664) | (561) |
Distributions received from affiliates | 382 | 219 |
Other | 0 | 0 |
Net cash used in investing activities | (289) | (397) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 141 | 692 |
Repayments of debt | (369) | |
Capital contributions | 0 | 0 |
Distributions | 0 | 0 |
Net cash provided by financing activities | 141 | 323 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 11 | (74) |
Cash, cash equivalents and restricted cash—beginning of period | 69 | 282 |
Cash, cash equivalents and restricted cash—end of period | 80 | 208 |
Guarantors [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | 125 | (19) |
Cash flows from investing activities | ||
Property, plant and equipment, net | (213) | (315) |
Investments in subsidiaries | 0 | 0 |
Distributions received from affiliates | 0 | 0 |
Other | (1) | (2) |
Net cash used in investing activities | (214) | (317) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 0 | 0 |
Repayments of debt | 0 | |
Capital contributions | 664 | 561 |
Distributions | (572) | (222) |
Net cash provided by financing activities | 92 | 339 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3 | 3 |
Cash, cash equivalents and restricted cash—beginning of period | 11 | 7 |
Cash, cash equivalents and restricted cash—end of period | 14 | 10 |
Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash flows provided by (used in) operating activities | (190) | (3) |
Cash flows from investing activities | ||
Property, plant and equipment, net | 0 | 0 |
Investments in subsidiaries | 664 | 561 |
Distributions received from affiliates | (382) | (219) |
Other | 0 | 0 |
Net cash used in investing activities | 282 | 342 |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 0 | 0 |
Repayments of debt | 0 | |
Capital contributions | (664) | (561) |
Distributions | 572 | 222 |
Net cash provided by financing activities | (92) | (339) |
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 Statements of 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 Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | $ 0 | $ 0 | ||
Restricted cash | 94 | 80 | ||
Total cash, cash equivalents and restricted cash | 94 | 80 | $ 218 | $ 289 |
Parent Issuer [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 80 | 69 | ||
Total cash, cash equivalents and restricted cash | 80 | 69 | 208 | 282 |
Guarantors [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 14 | 11 | ||
Total cash, cash equivalents and restricted cash | 14 | 11 | 10 | 7 |
Eliminations [Member] | ||||
Balances per Condensed Consolidating Balance Sheet: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Total cash, cash equivalents and restricted cash | $ 0 | $ 0 | $ 0 | $ 0 |