Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-16383 | |
Entity Registrant Name | CHENIERE ENERGY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4352386 | |
Entity Address, Address Line One | 700 Milam Street | |
Entity Address, Address Line Two | Suite 1900 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 375-5000 | |
Title of 12(b) Security | Common Stock, $ 0.003 par value | |
Trading Symbol | LNG | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 252,252,909 | |
Entity Central Index Key | 0000003570 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 2,039 | [1] | $ 2,474 |
Restricted cash | 505 | [1] | 520 |
Accounts and other receivables, net | 646 | 491 | |
Inventory | 207 | 312 | |
Derivative assets | 284 | 323 | |
Other current assets | 146 | 92 | |
Total current assets | 3,827 | 4,212 | |
Property, plant and equipment, net | 29,950 | 29,673 | |
Operating lease assets, net | 520 | 439 | |
Non-current derivative assets | 589 | 174 | |
Goodwill | 77 | 77 | |
Deferred tax assets | 337 | 529 | |
Other non-current assets, net | 546 | 388 | |
Total assets | 35,846 | [1] | 35,492 |
Current liabilities | |||
Accounts payable | 26 | 66 | |
Accrued liabilities | 735 | 1,281 | |
Current debt | 237 | 0 | |
Deferred revenue | 23 | 161 | |
Current operating lease liabilities | 179 | 236 | |
Derivative liabilities | 239 | 117 | |
Other current liabilities | 25 | 13 | |
Total current liabilities | 1,464 | 1,874 | |
Long-term debt, net | 30,807 | 30,774 | |
Non-current operating lease liabilities | 347 | 189 | |
Non-current finance lease liabilities | 58 | 58 | |
Non-current derivative liabilities | 161 | 151 | |
Other non-current liabilities | 13 | 11 | |
Commitments and Contingencies | |||
Stockholders’ equity | |||
Preferred stock, $0.0001 par value, 5.0 million shares authorized, none issued | 0 | 0 | |
Issued: 272.9 million shares at June 30, 2020 and 270.7 million shares at December 31, 2019 | |||
Outstanding: 252.2 million shares at June 30, 2020 and 253.6 million shares at December 31, 2019 | 1 | 1 | |
Treasury stock: 20.7 million shares and 17.1 million shares at June 30, 2020 and December 31, 2019, respectively, at cost | (870) | (674) | |
Additional paid-in-capital | 4,227 | 4,167 | |
Accumulated deficit | (2,936) | (3,508) | |
Total stockholders’ equity (deficit) | 422 | (14) | |
Non-controlling interest | 2,574 | 2,449 | |
Total equity | 2,996 | 2,435 | |
Total liabilities and stockholders’ equity | $ 35,846 | [1] | $ 35,492 |
[1] | Amounts presented include balances held by our consolidated variable interest entity (“VIE”), Cheniere Partners, as further discussed in Note 8— Non-controlling Interest and Variable Interest Entity. As of June 30, 2020 , total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion , respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash. |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parentheticals - USD ($) shares in Millions, $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets | $ 35,846 | [1] | $ 35,492 |
Cash and cash equivalents | 2,039 | [1] | 2,474 |
Restricted cash | $ 505 | [1] | $ 520 |
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 | |
Preferred Stock, Shares Authorized | 5 | 5 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Common Stock, Par Value Per Share | $ 0.003 | $ 0.003 | |
Common stock, Shares Authorized | 480 | 480 | |
Common Stock, Shares, Issued | 272.9 | 270.7 | |
Common Stock, Shares, Outstanding | 252.2 | 253.6 | |
Treasury Stock, Shares | 20.7 | 17.1 | |
Cheniere Partners [Member] | |||
Assets | $ 18,914 | $ 19,120 | |
Liabilities | 18,115 | 18,602 | |
Cash and cash equivalents | 1,341 | 1,781 | |
Restricted cash | $ 167 | $ 181 | |
[1] | Amounts presented include balances held by our consolidated variable interest entity (“VIE”), Cheniere Partners, as further discussed in Note 8— Non-controlling Interest and Variable Interest Entity. As of June 30, 2020 , total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion , respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Revenues | |||||
Revenues | $ 2,402 | $ 2,292 | $ 5,111 | $ 4,553 | |
Revenues from contracts with customers | 2,424 | 2,168 | 4,917 | 4,316 | |
Operating costs and expenses | |||||
Cost of sales (excluding items shown separately below) | 803 | 1,277 | 1,527 | 2,491 | |
Operating and maintenance expense | 355 | 295 | 671 | 516 | |
Development expense | 1 | 3 | 5 | 4 | |
Selling, general and administrative expense | 73 | 77 | 154 | 150 | |
Depreciation and amortization expense | 233 | 204 | 466 | 348 | |
Impairment expense and loss on disposal of assets | 0 | 4 | 5 | 6 | |
Total operating costs and expenses | 1,465 | 1,860 | 2,828 | 3,515 | |
Income from operations | 937 | 432 | 2,283 | 1,038 | |
Other income (expense) | |||||
Interest expense, net of capitalized interest | (407) | (372) | (819) | (619) | |
Loss on modification or extinguishment of debt | (43) | 0 | (44) | 0 | |
Interest rate derivative loss, net | (25) | (74) | (233) | (109) | |
Other income, net | 5 | 16 | 14 | 32 | |
Total other expense | (470) | (430) | (1,082) | (696) | |
Income before income taxes and non-controlling interest | 467 | 2 | 1,201 | 342 | |
Income tax provision | (63) | 0 | (194) | (3) | |
Net income | 404 | 2 | 1,007 | 339 | |
Less: net income attributable to non-controlling interest | 207 | 116 | 435 | 312 | |
Net income (loss) attributable to common stockholders | $ 197 | $ (114) | $ 572 | $ 27 | |
Net income (loss) per share attributable to common stockholders—basic | [1] | $ 0.78 | $ (0.44) | $ 2.27 | $ 0.11 |
Net income (loss) per share attributable to common stockholders—diluted | [1] | $ 0.78 | $ (0.44) | $ 2.26 | $ 0.11 |
Weighted average number of common shares outstanding—basic | 252.1 | 257.4 | 252.6 | 257.3 | |
Weighted average number of common shares outstanding—diluted | 252.4 | 257.4 | 253.3 | 258.6 | |
LNG [Member] | |||||
Revenues | |||||
Revenues | $ 2,295 | $ 2,173 | $ 4,863 | $ 4,316 | |
Revenues from contracts with customers | [2] | 2,340 | 2,080 | 4,744 | 4,147 |
Regasification [Member] | |||||
Revenues | |||||
Revenues from contracts with customers | 68 | 67 | 135 | 133 | |
Other [Member] | |||||
Revenues | |||||
Revenues | 39 | 52 | 113 | 104 | |
Revenues from contracts with customers | $ 16 | $ 21 | $ 38 | $ 36 | |
[1] | Earnings per share in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented. | ||||
[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. LNG revenues during the three and six months ended June 30, 2020 included $708 million and $761 million , respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery , of which $458 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $53 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Non-controlling Interest |
Common Stock, Shares, Outstanding, Beginning of Period at Dec. 31, 2018 | 257,000,000 | |||||
Treasury Stock, Shares, Beginning of Period at Dec. 31, 2018 | 12,800,000 | |||||
Stockholders' Equity, Beginning of Period at Dec. 31, 2018 | $ 1,929 | $ 1 | $ (406) | $ 4,035 | $ (4,156) | $ 2,455 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of restricted stock units and performance stock units, shares | 600,000 | 0 | ||||
Vesting of restricted stock units and performance stock units | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Share-based compensation | 28 | $ 0 | $ 0 | 28 | 0 | 0 |
Issued shares withheld from employees related to share-based compensation, at cost, shares, common stock | (200,000) | |||||
Issued shares withheld from employees related to share-based compensation, at cost, shares, treasury shares | 200,000 | |||||
Issued shares withheld from employees related to share-based compensation, at cost | (12) | $ 0 | $ (12) | 0 | 0 | 0 |
Net income attributable to non-controlling interest | 196 | 0 | 0 | 0 | 0 | 196 |
Distributions and dividends to non-controlling interest | (144) | 0 | 0 | 0 | 0 | (144) |
Net income | 141 | $ 0 | $ 0 | 0 | 141 | 0 |
Common Stock, Shares, Outstanding, End of Period at Mar. 31, 2019 | 257,400,000 | |||||
Treasury Stock, Shares, End of Period at Mar. 31, 2019 | 13,000,000 | |||||
Stockholders' Equity, End of Period at Mar. 31, 2019 | 2,138 | $ 1 | $ (418) | 4,063 | (4,015) | 2,507 |
Common Stock, Shares, Outstanding, Beginning of Period at Dec. 31, 2018 | 257,000,000 | |||||
Treasury Stock, Shares, Beginning of Period at Dec. 31, 2018 | 12,800,000 | |||||
Stockholders' Equity, Beginning of Period at Dec. 31, 2018 | $ 1,929 | $ 1 | $ (406) | 4,035 | (4,156) | 2,455 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares repurchased, at cost, shares | 44,600 | |||||
Net income attributable to non-controlling interest | $ 312 | |||||
Net income | 27 | |||||
Common Stock, Shares, Outstanding, End of Period at Jun. 30, 2019 | 257,500,000 | |||||
Treasury Stock, Shares, End of Period at Jun. 30, 2019 | 13,000,000 | |||||
Stockholders' Equity, End of Period at Jun. 30, 2019 | 2,023 | $ 1 | $ (423) | 4,097 | (4,129) | 2,477 |
Common Stock, Shares, Outstanding, Beginning of Period at Mar. 31, 2019 | 257,400,000 | |||||
Treasury Stock, Shares, Beginning of Period at Mar. 31, 2019 | 13,000,000 | |||||
Stockholders' Equity, Beginning of Period at Mar. 31, 2019 | 2,138 | $ 1 | $ (418) | 4,063 | (4,015) | 2,507 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of restricted stock units and performance stock units, shares | 100,000 | 0 | ||||
Vesting of restricted stock units and performance stock units | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Share-based compensation | 33 | $ 0 | $ 0 | 33 | 0 | 0 |
Issued shares withheld from employees related to share-based compensation, at cost, shares, common stock | 0 | |||||
Issued shares withheld from employees related to share-based compensation, at cost, shares, treasury shares | 0 | |||||
Issued shares withheld from employees related to share-based compensation, at cost | $ (2) | $ 0 | $ (2) | 0 | 0 | 0 |
Shares repurchased, at cost, shares | 44,600 | 0 | 0 | |||
Shares repurchased, at cost | $ (3) | $ 0 | $ (3) | 0 | 0 | 0 |
Net income attributable to non-controlling interest | 116 | 0 | 0 | 0 | 0 | 116 |
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 1 | 0 | 0 | 1 | 0 | 0 |
Distributions and dividends to non-controlling interest | (146) | 0 | 0 | 0 | 0 | (146) |
Net income | (114) | $ 0 | $ 0 | 0 | (114) | 0 |
Common Stock, Shares, Outstanding, End of Period at Jun. 30, 2019 | 257,500,000 | |||||
Treasury Stock, Shares, End of Period at Jun. 30, 2019 | 13,000,000 | |||||
Stockholders' Equity, End of Period at Jun. 30, 2019 | $ 2,023 | $ 1 | $ (423) | 4,097 | (4,129) | 2,477 |
Common Stock, Shares, Outstanding, Beginning of Period at Dec. 31, 2019 | 253,600,000 | 253,600,000 | ||||
Treasury Stock, Shares, Beginning of Period at Dec. 31, 2019 | 17,100,000 | 17,100,000 | ||||
Stockholders' Equity, Beginning of Period at Dec. 31, 2019 | $ 2,435 | $ 1 | $ (674) | 4,167 | (3,508) | 2,449 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of restricted stock units and performance stock units, shares | 2,100,000 | 0 | ||||
Vesting of restricted stock units and performance stock units | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Share-based compensation | 29 | $ 0 | $ 0 | 29 | 0 | 0 |
Issued shares withheld from employees related to share-based compensation, at cost, shares, common stock | (700,000) | |||||
Issued shares withheld from employees related to share-based compensation, at cost, shares, treasury shares | 700,000 | |||||
Issued shares withheld from employees related to share-based compensation, at cost | (39) | $ 0 | $ (39) | 0 | 0 | 0 |
Shares repurchased, at cost, shares | (2,900,000) | 2,900,000 | ||||
Shares repurchased, at cost | (155) | $ 0 | $ (155) | 0 | 0 | 0 |
Net income attributable to non-controlling interest | 228 | 0 | 0 | 0 | 0 | 228 |
Distributions and dividends to non-controlling interest | (154) | 0 | 0 | 0 | 0 | (154) |
Net income | 375 | $ 0 | $ 0 | 0 | 375 | 0 |
Common Stock, Shares, Outstanding, End of Period at Mar. 31, 2020 | 252,100,000 | |||||
Treasury Stock, Shares, End of Period at Mar. 31, 2020 | 20,700,000 | |||||
Stockholders' Equity, End of Period at Mar. 31, 2020 | $ 2,719 | $ 1 | $ (868) | 4,196 | (3,133) | 2,523 |
Common Stock, Shares, Outstanding, Beginning of Period at Dec. 31, 2019 | 253,600,000 | 253,600,000 | ||||
Treasury Stock, Shares, Beginning of Period at Dec. 31, 2019 | 17,100,000 | 17,100,000 | ||||
Stockholders' Equity, Beginning of Period at Dec. 31, 2019 | $ 2,435 | $ 1 | $ (674) | 4,167 | (3,508) | 2,449 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares repurchased, at cost, shares | 2,875,376 | |||||
Net income attributable to non-controlling interest | $ 435 | |||||
Net income | $ 572 | |||||
Common Stock, Shares, Outstanding, End of Period at Jun. 30, 2020 | 252,200,000 | 252,200,000 | ||||
Treasury Stock, Shares, End of Period at Jun. 30, 2020 | 20,700,000 | 20,700,000 | ||||
Stockholders' Equity, End of Period at Jun. 30, 2020 | $ 2,996 | $ 1 | $ (870) | 4,227 | (2,936) | 2,574 |
Common Stock, Shares, Outstanding, Beginning of Period at Mar. 31, 2020 | 252,100,000 | |||||
Treasury Stock, Shares, Beginning of Period at Mar. 31, 2020 | 20,700,000 | |||||
Stockholders' Equity, Beginning of Period at Mar. 31, 2020 | 2,719 | $ 1 | $ (868) | 4,196 | (3,133) | 2,523 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Vesting of restricted stock units and performance stock units, shares | 100,000 | 0 | ||||
Vesting of restricted stock units and performance stock units | 0 | $ 0 | $ 0 | 0 | 0 | 0 |
Share-based compensation | 31 | $ 0 | $ 0 | 31 | 0 | 0 |
Issued shares withheld from employees related to share-based compensation, at cost, shares, common stock | 0 | |||||
Issued shares withheld from employees related to share-based compensation, at cost, shares, treasury shares | 0 | |||||
Issued shares withheld from employees related to share-based compensation, at cost | $ (2) | $ 0 | $ (2) | 0 | 0 | 0 |
Shares repurchased, at cost, shares | 0 | |||||
Net income attributable to non-controlling interest | $ 207 | 0 | 0 | 0 | 0 | 207 |
Distributions and dividends to non-controlling interest | (156) | 0 | 0 | 0 | 0 | (156) |
Net income | $ 197 | $ 0 | $ 0 | 0 | 197 | 0 |
Common Stock, Shares, Outstanding, End of Period at Jun. 30, 2020 | 252,200,000 | 252,200,000 | ||||
Treasury Stock, Shares, End of Period at Jun. 30, 2020 | 20,700,000 | 20,700,000 | ||||
Stockholders' Equity, End of Period at Jun. 30, 2020 | $ 2,996 | $ 1 | $ (870) | $ 4,227 | $ (2,936) | $ 2,574 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 1,007 | $ 339 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 466 | 348 |
Share-based compensation expense | 57 | 61 |
Non-cash interest expense | 34 | 93 |
Amortization of debt issuance costs, premium and discount | 70 | 44 |
Non-cash operating lease costs | 166 | 158 |
Loss on modification or extinguishment of debt | 44 | 0 |
Total gains on derivatives, net | (361) | (147) |
Net cash provided by settlement of derivative instruments | 117 | 62 |
Impairment expense and loss on disposal of assets | 5 | 6 |
Impairment or loss on equity method investments | 1 | 2 |
Deferred taxes | 192 | 0 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables, net | (155) | 59 |
Inventory | 104 | 33 |
Other current assets | (37) | (46) |
Accounts payable and accrued liabilities | (369) | (80) |
Deferred revenue | (138) | (2) |
Operating lease liabilities | (145) | (163) |
Other, net | (30) | (7) |
Net cash provided by operating activities | 1,028 | 760 |
Cash flows from investing activities | ||
Property, plant and equipment, net | (983) | (1,508) |
Investment in equity method investment | (100) | (34) |
Other | (7) | 0 |
Net cash used in investing activities | (1,090) | (1,542) |
Cash flows from financing activities | ||
Proceeds from issuances of debt | 2,597 | 2,021 |
Repayments of debt | (2,380) | (630) |
Debt issuance and other financing costs | (59) | (20) |
Debt extinguishment costs | (40) | 0 |
Distributions and dividends to non-controlling interest | (310) | (290) |
Payments related to tax withholdings for share-based compensation | (41) | (14) |
Repurchase of common stock | (155) | (3) |
Other | 0 | 2 |
Net cash provided by (used in) financing activities | (388) | 1,066 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (450) | 284 |
Cash, cash equivalents and restricted cash—beginning of period | 2,994 | 3,156 |
Cash, cash equivalents and restricted cash—end of period | $ 2,544 | $ 3,440 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Balances per Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Balances per Consolidated Balance Sheets: | |||||
Cash and cash equivalents | $ 2,039 | [1] | $ 2,474 | ||
Restricted cash | 505 | [1] | 520 | ||
Total cash, cash equivalents and restricted cash | $ 2,544 | $ 2,994 | $ 3,440 | $ 3,156 | |
[1] | Amounts presented include balances held by our consolidated variable interest entity (“VIE”), Cheniere Partners, as further discussed in Note 8— Non-controlling Interest and Variable Interest Entity. As of June 30, 2020 , total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion , respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 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 two natural gas liquefaction and export facilities at Sabine Pass and Corpus Christi. The Sabine Pass LNG terminal is located in Cameron Parish, Louisiana, on the Sabine-Neches Waterway less than four miles from the Gulf Coast. Cheniere Partners, through its subsidiary SPL, is currently operating five natural gas liquefaction Trains and is constructing one additional Train for a total production capacity of approximately 30 mtpa of LNG (the “SPL Project”) at the Sabine Pass LNG terminal. The Sabine Pass LNG terminal has operational regasification facilities owned by Cheniere Partners’ subsidiary, SPLNG, that include pre-existing infrastructure of five LNG storage tanks, two marine berths and vaporizers and an additional marine berth that is under construction. Cheniere Partners also owns a 94 -mile pipeline that interconnects the Sabine Pass LNG terminal with a number of large interstate pipelines (the “Creole Trail Pipeline”) through its subsidiary, CTPL. As of June 30, 2020 , we owned 100% of the general partner interest and 48.6% of the limited partner interest in Cheniere Partners. The Corpus Christi LNG terminal is located near Corpus Christi, Texas and is operated and constructed by our subsidiary, CCL. We are currently operating two Trains and one additional Train is undergoing commissioning for a total production capacity of approximately 15 mtpa of LNG. We also operate 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 Trains, the “CCL Project”) through our subsidiary, CCP. The CCL Project , once fully constructed, will contain three LNG storage tanks and two marine berths. Additionally, separate from the CCH Group, we are developing an expansion of the Corpus Christi LNG terminal adjacent to the CCL Project (“Corpus Christi Stage 3”) through our subsidiary CCL Stage III , for up to seven midscale Trains with an expected total production capacity of approximately 10 mtpa of LNG. We received approval from FERC in November 2019 to site, construct and operate the expansion project. We remain focused on operational excellence and customer satisfaction. Increasing demand of LNG has allowed us to expand our liquefaction infrastructure in a financially disciplined manner. We hold significant land positions at both the Sabine Pass LNG terminal and the Corpus Christi LNG terminal which provide opportunity for further liquefaction capacity expansion. The development of these sites or other projects, including infrastructure projects in support of natural gas supply and LNG demand, will require, among other things, acceptable commercial and financing arrangements before we make a final investment decision (“FID”) . Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cheniere 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 fiscal 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 and six months ended June 30, 2020 are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2020 . 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2020 and December 31, 2019 , restricted cash consisted of the following (in millions): June 30, December 31, 2020 2019 Current restricted cash SPL Project $ 167 $ 181 CCL Project 101 80 Cash held by our subsidiaries restricted to Cheniere 237 259 Total current restricted cash $ 505 $ 520 Pursuant to the accounts agreements entered into with the collateral trustees for the benefit of SPL’s debt holders and CCH’s debt holders, SPL and CCH are required to deposit all cash received into reserve accounts controlled by the collateral trustees. The usage or withdrawal of such cash is restricted to the payment of liabilities related to the SPL Project and the CCL Project (collectively, the “Liquefaction Projects”) and other restricted payments. The majority of the cash held by our subsidiaries restricted to Cheniere relates to advance funding for operation and construction needs of the Liquefaction Projects. |
Accounts and Other Receivables
Accounts and Other Receivables | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Accounts and Other Receivables | ACCOUNTS AND OTHER RECEIVABLES As of June 30, 2020 and December 31, 2019 , accounts and other receivables, net consisted of the following (in millions): June 30, December 31, 2020 2019 Trade receivables SPL and CCL $ 467 $ 328 Cheniere Marketing 41 113 Other accounts receivable 138 50 Total accounts and other receivables, net $ 646 $ 491 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of June 30, 2020 and December 31, 2019 , inventory consisted of the following (in millions): June 30, December 31, 2020 2019 Natural gas $ 18 $ 16 LNG 24 67 LNG in-transit 21 93 Materials and other 144 136 Total inventory $ 207 $ 312 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT As of June 30, 2020 and December 31, 2019 , property, plant and equipment, net consisted of the following (in millions): June 30, December 31, 2020 2019 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 27,453 $ 27,305 LNG site and related costs 322 322 LNG terminal construction-in-process 4,484 3,903 Accumulated depreciation (2,494 ) (2,049 ) Total LNG terminal costs, net 29,765 29,481 Fixed assets and other Computer and office equipment 24 23 Furniture and fixtures 19 22 Computer software 114 110 Leasehold improvements 43 42 Land 59 59 Other 25 21 Accumulated depreciation (154 ) (141 ) Total fixed assets and other, net 130 136 Assets under finance lease Tug vessels 60 60 Accumulated depreciation (5 ) (4 ) Total assets under finance lease, net 55 56 Property, plant and equipment, net $ 29,950 $ 29,673 Depreciation expense was $231 million and $203 million during the three months ended June 30, 2020 and 2019 , respectively, and $463 million and $346 million during the six months ended June 30, 2020 and 2019 , respectively. We realized offsets to LNG terminal costs of $202 million during the six months ended June 30, 2019 that were related to the sale of commissioning cargoes because these amounts were earned or loaded prior to the start of commercial operations of the respective Trains of the Liquefaction Projects , during the testing phase for its construction. We did no t realize any offsets to LNG terminal costs during the three and six months ended June 30, 2020 and the three months ended June 30, 2019 . |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 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 CCH’s 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 by CCH (“CCH Interest Rate Forward Start Derivatives” and, collectively with the CCH Interest Rate Derivatives, the “Interest Rate Derivatives”) ; • commodity derivatives consisting of natural gas supply contracts for the commissioning and operation of the Liquefaction Projects and potential future development of Corpus Christi Stage 3 (“Physical Liquefaction Supply Derivatives”) and associated economic hedges (collectively, the “Liquefaction Supply Derivatives”) ; • financial derivatives to hedge the exposure to the commodity markets in which we have contractual arrangements to purchase or sell physical LNG (“LNG Trading Derivatives”) ; and • foreign currency exchange (“FX”) contracts to hedge exposure to currency risk associated with both LNG Trading Derivatives and operations in countries outside of the United States (“FX 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 June 30, 2020 and December 31, 2019 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in millions): Fair Value Measurements as of June 30, 2020 December 31, 2019 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total CCH Interest Rate Derivatives liability $ — $ (191 ) $ — $ (191 ) $ — $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives liability — (102 ) — (102 ) — (8 ) — (8 ) Liquefaction Supply Derivatives asset (liability) 11 (1 ) 590 600 5 6 138 149 LNG Trading Derivatives asset (liability) (2 ) 153 — 151 — 165 — 165 FX Derivatives asset — 15 — 15 — 4 — 4 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 LNG Trading Derivatives and our Liquefaction Supply Derivatives using a market or option-based approach incorporating present value techniques, as needed, using observable commodity price curves, when available, and other relevant data. We value our FX Derivatives with a market approach using observable FX rates 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 June 30, 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 and international LNG prices. The following table includes quantitative information for the unobservable inputs for our Level 3 Physical Liquefaction Supply Derivatives as of June 30, 2020 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $590 Market approach incorporating present value techniques Henry Hub basis spread $(0.546) - $0.172 / $(0.023) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 46% - 171% / 126% (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 during the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 674 $ 31 $ 138 $ (29 ) Realized and mark-to-market gains: Included in cost of sales (84 ) 7 452 23 Purchases and settlements: Purchases (4 ) 50 (3 ) 50 Settlements 1 1 (1 ) 45 Transfers into Level 3, net (1) 3 — 4 — Balance, end of period $ 590 $ 89 $ 590 $ 89 Change in unrealized gains (losses) relating to instruments still held at end of period $ (84 ) $ 7 $ 452 $ 23 (1) Transferred into Level 3 as a result of unobservable market, or out of Level 3 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 June 30, 2020 , we had the following Interest Rate Derivatives outstanding: Notional Amounts June 30, 2020 December 31, 2019 Term Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.7 billion $4.5 billion May 31, 2022 (1) 2.30% One-month LIBOR CCH Interest Rate Forward Start Derivatives $250 million $250 million September 30, 2020 (2) 2.05% Three-month LIBOR CCH Interest Rate Forward Start Derivatives $500 million $500 million December 31, 2020 (2) 2.06% Three-month LIBOR (1) Represents the maturity date. (2) Represents the effective date. These forward start derivatives have terms of 10 years with a mandatory termination date consistent with the effective date. The following table shows the fair value and location of the Interest Rate Derivatives on our Consolidated Balance Sheets (in millions): June 30, 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 Sheets Location Derivative liabilities $ (100 ) $ (102 ) $ (202 ) $ (32 ) $ (8 ) $ (40 ) Non-current derivative liabilities (91 ) — (91 ) (49 ) — (49 ) Total derivative liabilities $ (191 ) $ (102 ) $ (293 ) $ (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 and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 CCH Interest Rate Derivatives loss $ (15 ) $ (67 ) $ (138 ) $ (102 ) CCH Interest Rate Forward Start Derivatives loss (10 ) (7 ) (95 ) (7 ) Commodity Derivatives SPL, CCL and CCL Stage III have entered into physical natural gas supply contracts and associated economic hedges to purchase natural gas for the commissioning and operation of the Liquefaction Projects and potential future development of Corpus Christi Stage 3, respectively, which are primarily indexed to the natural gas market and international LNG indices. The remaining terms of the index-based physical natural gas supply contracts range up to approximately 15 years , some of which commence upon the satisfaction of certain events or states of affairs. We have entered into, and may from time to time enter into, financial LNG Trading Derivatives in the form of swaps, forwards, options or futures to economically hedge exposure to the commodity markets in which we have contractual arrangements to purchase or sell physical LNG. We have entered into LNG Trading Derivatives to secure a fixed price position to minimize future cash flow variability associated with LNG purchase and sale transactions. The following table shows the fair value and location of our Liquefaction Supply Derivatives and LNG Trading Derivatives (collectively, “Commodity Derivatives”) on our Consolidated Balance Sheets (in millions, except notional amount): June 30, 2020 December 31, 2019 Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Consolidated Balance Sheets Location Derivative assets $ 133 $ 138 $ 271 $ 93 $ 225 $ 318 Non-current derivative assets 564 23 587 174 — 174 Total derivative assets 697 161 858 267 225 492 Derivative liabilities (27 ) (10 ) (37 ) (16 ) (60 ) (76 ) Non-current derivative liabilities (70 ) — (70 ) (102 ) — (102 ) Total derivative liabilities (97 ) (10 ) (107 ) (118 ) (60 ) (178 ) Derivative asset, net $ 600 $ 151 $ 751 $ 149 $ 165 $ 314 Notional amount, net (in TBtu) (3) 10,264 19 9,177 4 (1) Does not include collateral posted with counterparties by us of $2 million and $7 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. Includes derivative assets of $5 million and $3 million as of June 30, 2020 and December 31, 2019 , respectively, and non-current assets of $2 million as of both June 30, 2020 and December 31, 2019 for natural gas supply contracts that SPL and CCL have with related parties. (2) Does not include collateral posted with counterparties by us of $17 million and $5 million deposited for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. (3) Includes 182 TBtu and 120 TBtu as of June 30, 2020 and December 31, 2019 , respectively, for natural gas supply contracts that SPL and CCL have with related parties. The following table shows the changes in the fair value, settlements and location of our Commodity Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019 (in millions): Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 LNG Trading Derivatives gain (loss) LNG revenues $ (34 ) $ 94 $ 106 $ 158 LNG Trading Derivatives gain (loss) Cost of sales 34 (51 ) — (51 ) Liquefaction Supply Derivatives gain (loss) (2) LNG revenues (13 ) (1 ) (14 ) 1 Liquefaction Supply Derivatives gain (loss) (2)(3) Cost of sales (62 ) 57 475 139 (1) 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. (2) Does not include the realized value associated with derivative instruments that settle through physical delivery. (3) CCL recorded $25 million and $24 million in cost of sales under a natural gas supply contract with a related party during the three months ended June 30, 2020 and 2019 , respectively, including $1 million of Liquefaction Supply Derivatives gain and $1 million of Liquefaction Supply Derivatives loss, respectively. During the six months ended June 30, 2020 and 2019 , CCL recorded $48 million and $36 million in cost of sales under a natural gas supply contract with a related party, respectively, including $2 million of Liquefaction Supply Derivatives gain and $3 million of Liquefaction Supply Derivatives loss, respectively. As of June 30, 2020 and December 31, 2019 , $8 million and $3 million , respectively, were included in accrued liabilities related to this contract. FX Derivatives Cheniere Marketing has entered into FX Derivatives to protect against the volatility in future cash flows attributable to changes in international currency exchange rates. The FX Derivatives economically hedge the foreign currency exposure arising from cash flows expended for both physical and financial LNG transactions. The following table shows the fair value and location of our FX Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of Consolidated Balance Sheets Location June 30, 2020 December 31, 2019 FX Derivatives Derivative assets $ 13 $ 5 FX Derivatives Non-current derivative assets 2 — FX Derivatives Derivative liabilities — (1 ) The total notional amount of our FX Derivatives was $146 million and $827 million as of June 30, 2020 and December 31, 2019 , respectively. The following table shows the changes in the fair value, settlements and location of our FX Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, Consolidated Statements of Operations Location 2020 2019 2020 2019 FX Derivatives gain LNG revenues $ 2 $ — $ 27 $ 9 Consolidated Balance Sheets 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 June 30, 2020 CCH Interest Rate Derivatives $ (191 ) $ — $ (191 ) CCH Interest Rate Forward Start Derivatives (102 ) — (102 ) Liquefaction Supply Derivatives 715 (18 ) 697 Liquefaction Supply Derivatives (102 ) 5 (97 ) LNG Trading Derivatives 163 (2 ) 161 LNG Trading Derivatives (21 ) 11 (10 ) FX Derivatives 22 (7 ) 15 As of December 31, 2019 CCH Interest Rate Derivatives $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives (8 ) — (8 ) Liquefaction Supply Derivatives 281 (14 ) 267 Liquefaction Supply Derivatives (126 ) 8 (118 ) LNG Trading Derivatives 229 (4 ) 225 LNG Trading Derivatives (60 ) — (60 ) FX Derivatives 9 (4 ) 5 FX Derivatives (6 ) 5 (1 ) |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS As of June 30, 2020 and December 31, 2019 , other non-current assets, net consisted of the following (in millions): June 30, December 31, 2020 2019 Advances made to municipalities for water system enhancements $ 86 $ 87 Advances and other asset conveyances to third parties to support LNG terminals 61 55 Advances made under EPC and non-EPC contracts 6 29 Equity method investments 206 108 Debt issuance costs and debt discount, net 86 45 Tax-related payments and receivables 20 20 Contract assets, net 58 18 Other 23 26 Total other non-current assets, net $ 546 $ 388 Equity Method Investments Our equity method investments consist of interests in privately-held companies. In 2017, we acquired an equity interest in Midship Holdings, LLC (“Midship Holdings”), which manages the business and affairs of Midship Pipeline Company, LLC (“Midship Pipeline”), which we account for as an equity method investment. See Note 8—Other Non-Current Assets of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the fiscal year ended December 31, 2019 for further information. Our investment in Midship Holdings, net of impairment losses, was $205 million and $105 million at June 30, 2020 and December 31, 2019 , respectively. Cheniere LNG O&M Services, LLC (“O&M Services”), our wholly owned subsidiary, provides the development, construction, operation and maintenance services associated with the Midship Project pursuant to agreements in which O&M Services receives an agreed upon fee and reimbursement of costs incurred. O&M Services recorded $3 million during both the three months ended June 30, 2020 and 2019 and $6 million and $7 million in the six months ended June 30, 2020 and 2019 , respectively, of other revenues and $2 million and $3 million of accounts receivable as of June 30, 2020 and December 31, 2019 , respectively, for services provided to Midship Pipeline under these agreements. CCL has entered into a transportation precedent agreement and a negotiated rate agreement with Midship Pipeline to secure firm pipeline transportation capacity for a period of 10 years commencing May 2020. CCL recorded $2 million in operating and maintenance expense during both the three and six months ended June 30, 2020 and $1 million of accounts payable as of June 30, 2020 under this agreement. In March 2020, CCH and CCL entered into a guaranty agreement whereby CCH absolutely and irrevocably guarantees CCL’s obligation under the transportation precedent agreement with Midship Pipeline. |
Non-Controlling Interest and Va
Non-Controlling Interest and Variable Interest Entity | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest and Variable Interest Entity [Abstract] | |
Non-Controlling Interest and Variable Interest Entity | NON-CONTROLLING INTEREST AND VARIABLE INTEREST ENTITY We own a 48.6% limited partner interest in Cheniere Partners in the form of 104.5 million common units and 135.4 million subordinated units, with the remaining non-controlling interest held by Blackstone CQP Holdco LP ( “Blackstone CQP Holdco” ) and the public. We also own 100% of the general partner interest and the incentive distribution rights in Cheniere Partners. Cheniere Partners is accounted for as a consolidated variable interest entity. See Note 9—Non-Controlling Interest and Variable Interest Entity of our Notes to Consolidated Financial Statements in our annual report on Form 10-K for the fiscal year ended December 31, 2019 for further information. The following table presents the summarized assets and liabilities (in millions) of Cheniere Partners, our consolidated VIE, which are included in our Consolidated Balance Sheets. The assets in the table below may only be used to settle obligations of Cheniere Partners. In addition, there is no recourse to us for the consolidated VIE’s liabilities. The assets and liabilities in the table below include third-party assets and liabilities of Cheniere Partners only and exclude intercompany balances that eliminate in consolidation. June 30, December 31, 2020 2019 ASSETS Current assets Cash and cash equivalents $ 1,341 $ 1,781 Restricted cash 167 181 Accounts and other receivables, net 291 297 Other current assets 221 184 Total current assets 2,020 2,443 Property, plant and equipment, net 16,584 16,368 Other non-current assets, net 310 309 Total assets $ 18,914 $ 19,120 LIABILITIES Current liabilities Accrued liabilities $ 410 $ 709 Other current liabilities 47 210 Total current liabilities 457 919 Long-term debt, net 17,566 17,579 Other non-current liabilities 92 104 Total liabilities $ 18,115 $ 18,602 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | ACCRUED LIABILITIES As of June 30, 2020 and December 31, 2019 , accrued liabilities consisted of the following (in millions): June 30, December 31, 2020 2019 Interest costs and related debt fees $ 249 $ 293 Accrued natural gas purchases 202 460 LNG terminals and related pipeline costs 108 327 Compensation and benefits 57 115 Accrued LNG inventory 11 6 Other accrued liabilities 108 80 Total accrued liabilities $ 735 $ 1,281 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of June 30, 2020 and December 31, 2019 , our debt consisted of the following (in millions): June 30, December 31, 2020 2019 Long-term debt: SPL 5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”) $ — $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”) 1,350 1,350 4.500% Senior Secured Notes due 2030 (“2030 SPL Senior Notes”) 2,000 — 5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) 800 800 $1.2 billion SPL Working Capital Facility executed in 2020 (“2020 SPL Working Capital Facility”) — — Cheniere Partners 5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) 1,500 1,500 5.625% Senior Notes due 2026 (“2026 CQP Senior Notes”) 1,100 1,100 4.500% Senior Notes due 2029 (“2029 CQP Senior Notes”) 1,500 1,500 CQP Credit Facilities executed in 2019 (“2019 CQP Credit Facilities”) — — CCH 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 3.700% Senior Secured Notes due 2029 (“2029 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 CCH Credit Facility 3,283 3,283 CCH HoldCo II 11.0% Convertible Senior Secured Notes due 2025 (“2025 CCH HoldCo II Convertible Senior Notes”) 1,278 1,578 Cheniere 4.875% Convertible Unsecured Notes due 2021 (“2021 Cheniere Convertible Unsecured Notes”) 1,216 1,278 4.25% Convertible Senior Notes due 2045 (“2045 Cheniere Convertible Senior Notes”) 625 625 $1.25 billion Cheniere Revolving Credit Facility (“Cheniere Revolving Credit Facility”) 375 — $2.62 billion Cheniere Term Loan Credit Agreement (“Cheniere Term Loan Facility”) — — Unamortized premium, discount and debt issuance costs, net (672 ) (692 ) Total long-term debt, net 30,807 30,774 Current debt: 2021 Cheniere Convertible Unsecured Notes 93 — $1.2 billion SPL Working Capital Facility executed in 2015 (“2015 SPL Working Capital Facility”) — — $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) 141 — Cheniere Marketing trade finance facilities 6 — Unamortized premium, discount and debt issuance costs, net (3 ) — Total current debt 237 — Total debt, net $ 31,044 $ 30,774 2020 Material Debt Activities Cheniere Term Loan Facility In June 2020, we entered into the $2.62 billion delayed draw Cheniere Term Loan Facility , which was subsequently increased to $2.695 billion in July 2020. In July 2020, borrowings under the Cheniere Term Loan Facility were used to (1) redeem the remaining outstanding principal amount of the 2025 CCH HoldCo II Convertible Senior Notes , subsequent to the $300 million redemption in March 2020, pursuant to the amended and restated note purchase agreement for the 2025 CCH HoldCo II Convertible Senior Notes which allowed CCH HoldCo II to redeem the outstanding notes with cash at a price of $1,080 per $1,000 principal amount, (2) repurchase $844 million in aggregate principal amount of outstanding 2021 Cheniere Convertible Unsecured Notes at individually negotiated prices from a small number of investors and (3) pay the related fees and expenses. The remaining borrowings under the Cheniere Term Loan Facility are expected to be used to repay and/or repurchase a portion of the remaining principal amount of the 2021 Cheniere Convertible Unsecured Notes and for the payment of related fees and expenses. Loans under the Cheniere Term Loan Facility accrue interest at a variable rate per annum equal to LIBOR or the base rate plus the applicable margin. The applicable margin for LIBOR and base rate loans range from (1) 2.00% to 2.75% and 1.00% to 1.75% per annum, respectively, in the first year (2) 2.50% to 3.25% and 1.50% to 2.25% per annum, respectively, in the second year and (3) 3.00% to 3.75% and 2.00% to 2.75% per annum, respectively, in the third year until maturity, in each case, based on the credit ratings then in effect assigned to loans under the Cheniere Term Loan Facility . Interest on LIBOR loans is due and payable at the end of each LIBOR period, and interest on base rate loans is due and payable at the end of each calendar quarter. We will pay a commitment fee equal to 30% of the margin for LIBOR loans multiplied by the average daily amount of undrawn commitments. If the Cheniere Term Loan Facility is still outstanding on the first anniversary of the Closing Date, as defined by the credit agreement, we will pay duration fees in an amount equal to 0.25% of the aggregate amount of commitments as of July 10, 2020, which was the date the loans were first borrowed under the Cheniere Term Loan Facility (the “Payment Date”). Furthermore, if the Cheniere Term Loan Facility is still outstanding on the second anniversary of the Closing Date, as defined by the credit agreement, we will pay 0.50% of the aggregate amount of commitments as of the Payment Date. Annual administrative fees must also be paid to the administrative agent for the Cheniere Term Loan Facility . The Cheniere Term Loan Facility matures on June 18, 2023. Subject to customary exceptions, we are required to make mandatory prepayments with respect to the Cheniere Term Loan Facility using the net proceeds of certain events on a pro rata basis and on terms consistent with required prepayments under the Cheniere Revolving Credit Facility . Loans under the Cheniere Term Loan Facility may be voluntarily prepaid, in whole or in part, at any time, without premium or penalty. Borrowings under the Cheniere Term Loan Facility are subject to customary conditions precedent. The Cheniere Term Loan Facility includes representations, warranties, affirmative and negative covenants and events of default customary for companies like us with lenders of the type participating in the Cheniere Term Loan Facility and consistent with the equivalent provisions contained in the Cheniere Revolving Credit Facility . The Cheniere Term Loan Facility is secured by a first priority security interest (subject to permitted liens and other customary exceptions) on a pari passu basis with the Cheniere Revolving Credit Facility in substantially all of our assets and equity interests in direct subsidiaries (other than certain excluded subsidiaries). Upon redemption of the 2025 CCH HoldCo II Convertible Senior Notes in July 2020, the equity interests in CCH HoldCo II were pledged as collateral to secure the obligations under the Cheniere Revolving Credit Facility and the Cheniere Term Loan Facility . 2030 SPL Senior Notes In May 2020, SPL issued an aggregate principal amount of $2.0 billion of the 2030 SPL Senior Notes . The proceeds of the notes, along with cash on hand, were used to redeem all of SPL’s outstanding 2021 SPL Senior Notes , resulting in the recognition of debt extinguishment costs of $43 million for the three and six months ended June 30, 2020 relating to the payment of early redemption fees and write off of unamortized debt premium and issuance costs. The 2030 SPL Senior Notes mature on May 15, 2030 and accrue interest at a fixed rate of 4.500% per annum, which is payable semi-annually in cash in arrears. The 2030 SPL Senior Notes are governed by the same base indenture (the “SPL Indenture”) as all other series of the SPL senior notes (collectively, the “SPL Senior Notes”) , except for the 2037 SPL Senior Notes , and are further governed by the Eighth Supplemental Indenture and the Eleventh Supplemental Indenture (together with the SPL Indenture , the “2030 SPL Notes Indenture”). The 2030 SPL Notes Indenture contains customary terms and events of default and certain covenants that, among other things, limit SPL’s ability and the ability of SPL’s restricted subsidiaries to incur additional indebtedness or issue preferred stock, make certain investments or pay dividends or distributions, transfer assets, including capital stock of SPL’s restricted subsidiaries, restrict dividends or other payments by restricted subsidiaries, incur liens, sell assets, enter into transactions with affiliates and consolidate, merge or sell, lease or otherwise dispose of all or substantially all of SPL’s assets and enter into certain LNG sales contracts. The 2030 SPL Senior Notes are SPL’s senior secured obligation, ranking equally in right of payment with its other existing and future unsubordinated debt and senior to any of its future subordinated debt. At any time prior to November 15, 2029, SPL may redeem all or a part of the 2030 SPL Senior Notes at a redemption price equal to the ‘make-whole’ price set forth in the Eleventh Supplemental Indenture, plus accrued and unpaid interest, if any, to the date of redemption. SPL may also, at any time on or after November 15, 2029, redeem the 2030 SPL Senior Notes , in whole or in part, at a redemption price equal to 100% of the principal amount of the 2030 SPL Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to the date of redemption. In connection with the closing of the 2030 SPL Senior Notes offering, SPL entered into a registration rights agreement (the “SPL Registration Rights Agreement”) . Under the SPL Registration Rights Agreement , SPL and any future guarantors of the 2030 SPL Senior Notes , have agreed to file with the SEC and cause to become effective a registration statement relating to an offer to exchange any and all of the 2030 SPL Senior Notes for a like aggregate principal amount of debt securities of SPL with terms identical in all material respects to the 2030 SPL Senior Notes sought to be exchanged (other than with respect to restrictions on transfer or to any increase in annual interest rate) within 360 days after the notes issuance date of May 8, 2020. Under specified circumstances, SPL has agreed to cause to become effective a shelf registration statement relating to resales of the 2030 SPL Senior Notes . SPL will be obligated to pay additional interest on the 2030 SPL Senior Notes if it fails to comply with its obligations to register the 2030 SPL Senior Notes within the specified time period. 2020 SPL Working Capital Facility In March 2020, SPL entered into the 2020 SPL Working Capital Facility with aggregate commitments of $1.2 billion , which replaced the 2015 SPL Working Capital Facility . The 2020 SPL Working Capital Facility is intended to be used for loans to SPL (“SPL Revolving Loans”) , swing line loans to SPL (“SPL Swing Line Loans”) and the issuance of letters of credit on behalf of SPL, primarily for (1) the refinancing of the 2015 SPL Working Capital Facility , (2) fees and expenses related to the 2020 SPL Working Capital Facility , (3) SPL and its future subsidiaries’ gas purchase obligations and (4) SPL and certain of its future subsidiaries’ general corporate purposes. SPL may, from time to time, request increases in the commitments under the 2020 SPL Working Capital Facility of up to $800 million . Loans under the 2020 SPL Working Capital Facility accrue interest at a variable rate per annum equal to LIBOR or the base rate (equal to the highest of the senior facility agent’s published prime rate, the federal funds rate, as published by the Federal Reserve Bank of New York, plus 0.50% and one month LIBOR plus 1% ), plus the applicable margin. The applicable margin for LIBOR loans under the 2020 SPL Working Capital Facility is 1.125% to 1.750% per annum (depending on the then-current rating of SPL), and the applicable margin for base rate loans under the 2020 SPL Working Capital Facility is 0.125% to 0.750% per annum (depending on the then-current rating of SPL). Interest on LIBOR loans is due and payable at the end of each applicable LIBOR period, and interest on base rate loans is due and payable at the end of each fiscal quarter. Interest on loans deemed to be made in connection with a draw upon a letter of credit is due and payable on the date the loan becomes due. SPL pays a commitment fee equal to an annual rate of 0.1% to 0.3% (depending on the then-current rating of SPL), which accrues on the daily amount of the total commitment less the sum of (1) the outstanding principal amount of SPL Revolving Loans , (2) letters of credit issued and (3) the outstanding principal amount of SPL Swing Line Loans . If draws are made upon a letter of credit issued under the 2020 SPL Working Capital Facility and SPL does not elect for such draw to be deemed an SPL LC Loan (an “ SPL LC Draw ”), SPL is required to pay the full amount of the SPL LC Draw on or prior to noon eastern time on the business day of the SPL LC Draw. An SPL LC Draw accrues interest at the base rate plus the applicable margin. As of June 30, 2020 , no SPL LC Draws had been made upon any letters of credit issued under the 2020 SPL Working Capital Facility . The 2020 SPL Working Capital Facility matures on March 19, 2025, but may be extended with consent of the lenders. The 2020 SPL Working Capital Facility provides for mandatory prepayments under customary circumstances. The 2020 SPL Working Capital Facility contains customary conditions precedent for extensions of credit, as well as customary affirmative and negative covenants. SPL is restricted from making certain distributions under agreements governing its indebtedness generally until, among other requirements, satisfaction of a 12-month forward-looking and backward-looking 1.25 :1.00 debt service reserve ratio test. The obligations of SPL under the 2020 SPL Working Capital Facility are secured by substantially all of the assets of SPL as well as a pledge of all of the membership interests in SPL and certain future subsidiaries of SPL on a pari passu basis by a first priority lien with the SPL Senior Notes. Credit Facilities Below is a summary of our credit facilities outstanding as of June 30, 2020 (in millions): 2020 SPL Working Capital Facility 2019 CQP Credit Facilities CCH Credit Facility CCH Working Capital Facility Cheniere Revolving Credit Facility Cheniere Term Loan Facility (1) Original facility size $ 1,200 $ 1,500 $ 8,404 $ 350 $ 750 $ 2,620 Incremental commitments — — 1,566 850 500 — Less: Outstanding balance — — 3,283 141 375 — Commitments prepaid or terminated — 750 6,687 — — — Letters of credit issued 409 — — 392 313 — Available commitment $ 791 $ 750 $ — $ 667 $ 562 $ 2,620 Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% LIBOR plus 1.25% - 2.125% or base rate plus 0.25% - 1.125% LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% LIBOR plus 1.75% - 2.50% or base rate plus 0.75% - 1.50% (2) Weighted average interest rate of outstanding balance n/a n/a 1.93% 1.43% 1.93% n/a Maturity date March 19, 2025 May 29, 2024 June 30, 2024 June 29, 2023 December 13, 2022 June 18, 2023 (1) In July 2020, we received incremental commitments of $75 million and borrowed $2,323 million under the Cheniere Term Loan Facility , which reduced the available commitment to $372 million following these transactions. (2) LIBOR plus (1) 2.00% to 2.75% per annum in the first year, (2) 2.50% to 3.25% per annum in the second year and (3) 3.00% to 3.75% per annum in the third year until maturity, or base rate plus (1) 1.00% to 1.75% per annum in the first year, (2) 1.50% to 2.25% per annum in the second year and (3) 2.00% to 2.75% per annum in the third year until maturity. Convertible Notes Below is a summary of our convertible notes outstanding as of June 30, 2020 (in millions): 2021 Cheniere Convertible Unsecured Notes (1) 2025 CCH HoldCo II Convertible Senior Notes 2045 Cheniere Convertible Senior Notes Aggregate original principal $ 1,000 $ 1,000 $ 625 Add: interest paid-in-kind 309 578 — Less: aggregate principal redeemed — (300 ) — Aggregate remaining principal $ 1,309 $ 1,278 $ 625 Debt component, net of discount and debt issuance costs $ 1,271 $ 1,264 $ 316 Equity component $ 211 $ — $ 194 Interest payment method Paid-in-kind Paid-in-kind / cash (2) Cash Conversion by us (3) — (4) (5) Conversion by holders (3) (6) (4) (7) Conversion basis Cash and/or stock Cash and/or stock Cash and/or stock Conversion value in excess of principal $ — n/a $ — Maturity date May 28, 2021 May 13, 2025 March 15, 2045 Contractual interest rate 4.875 % 11.0 % 4.25 % Effective interest rate (8) 8.1 % 15.6 % 9.4 % Remaining debt discount and debt issuance costs amortization period (9) 0.9 years 0.3 years 24.7 years (1) In July 2020, we subsequently repurchased $844 million in aggregate principal amount of outstanding notes at individually negotiated prices from a small number of investors. The aggregate remaining principal after this repurchase was $465 million , which exceeded the remaining commitments under the Cheniere Term Loan Facility by $93 million . As such, $93 million has been reflected as current debt on our Consolidated Balance Sheet as of June 30, 2020 . (2) Prior to the substantial completion of Train 2 of the CCL Project in August 2019, interest was paid entirely in kind. Following substantial completion, the interest has been paid in cash; however, a portion of the interest may, in the future, be paid in kind under certain specified circumstances. (3) Conversion is subject to various limitations and conditions. (4) Convertible into cash or stock at our option on or after March 1, 2020 until September 2, 2020, and into stock upon conversion notice by us or note holders after September 2, 2020, provided that our market capitalization is not less than $10.0 billion (“Eligible Conversion Date”). The conversion price for stock is the lower of (1) a 10% discount to the average of the daily volume-weighted average price (“VWAP”) of our common stock for the 90 trading day period prior to the date notice is provided, and (2) a 10% discount to the closing price of our common stock on the trading day preceding the date notice is provided. The conversion price for cash is $1,080 per $1,000 principal amount of the notes. We redeemed an aggregate outstanding principal amount of $300 million in March 2020 and redeemed the remaining outstanding principal amount in July 2020, both with cash. (5) Redeemable at any time after March 15, 2020 at a redemption price payable in cash equal to the accreted amount of the 2045 Cheniere Convertible Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to such redemption date. (6) Initially convertible at $93.64 (subject to adjustment upon the occurrence of certain specified events), provided that the closing price of our common stock is greater than or equal to the conversion price on the conversion date. (7) Prior to December 15, 2044, convertible only under certain circumstances as specified in the indenture; thereafter, holders may convert their notes regardless of these circumstances. The conversion rate will initially equal 7.2265 shares of our common stock per $1,000 principal amount of the 2045 Cheniere Convertible Senior Notes, which corresponds to an initial conversion price of approximately $138.38 per share of our common stock (subject to adjustment upon the occurrence of certain specified events). (8) Rate to accrete the discounted carrying value of the convertible notes to the face value over the remaining amortization period. (9) We amortize any debt discount and debt issuance costs using the effective interest over the period through contractual maturity except for the 2025 CCH HoldCo II Convertible Senior Notes , which are amortized through the date they are first convertible by holders into our common stock. Restrictive Debt Covenants As of June 30, 2020 , each of our issuers was in compliance with all covenants related to their respective debt agreements. Interest Expense Total interest expense, net of capitalized interest, including interest expense related to our convertible notes, consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest cost on convertible notes: Interest per contractual rate $ 57 $ 64 $ 120 $ 126 Amortization of debt discount 20 9 34 19 Amortization of debt issuance costs 4 3 7 6 Total interest cost related to convertible notes 81 76 161 151 Interest cost on debt and finance leases excluding convertible notes 388 382 779 755 Total interest cost 469 458 940 906 Capitalized interest (62 ) (86 ) (121 ) (287 ) Total interest expense, net of capitalized interest $ 407 $ 372 $ 819 $ 619 Fair Value Disclosures The following table shows the carrying amount and estimated fair value of our debt (in millions): June 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Senior notes (1) $ 22,700 $ 24,698 $ 22,700 $ 24,650 2037 SPL Senior Notes (2) 800 948 800 934 4.80% CCH Senior Notes (2) 727 841 727 830 3.925% CCH Senior Notes (2) 475 502 475 495 Credit facilities (3) 3,805 3,805 3,283 3,283 2021 Cheniere Convertible Unsecured Notes (2) 1,309 1,332 1,278 1,312 2025 CCH HoldCo II Convertible Senior Notes (2) 1,278 1,495 1,578 1,807 2045 Cheniere Convertible Senior Notes (4) 625 394 625 498 (1) Includes (1) the SPL Senior Notes except the 2037 SPL Senior Notes , (2) all series of the CQP senior notes including the 2025 CQP Senior Notes , 2026 CQP Senior Notes and 2029 CQP Senior Notes and (3) the CCH senior notes sold on a private placement basis in reliance on Section 4(a)(2) of the Securities Act and Rule 144A and Regulation S thereunder including the 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 our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. (3) Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility , 2019 CQP Credit Facilities , CCH Credit Facility , CCH Working Capital Facility , Cheniere Revolving Credit Facility , Cheniere Term Loan Facility and Cheniere Marketing trade finance facilities . 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. (4) |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES Our leased assets consist primarily of (1) LNG vessel time charters (“vessel charters”), (2) tug vessels, (3) office space and facilities and (4) land sites, all of which are classified as operating leases except for our tug vessels at the Corpus Christi LNG terminal, which are classified as finance leases. The following table shows the classification and location of our right-of-use asset s and lease liabilities on our Consolidated Balance Sheets (in millions): Consolidated Balance Sheets Location June 30, 2020 December 31, 2019 Right-of-use assets—Operating Operating lease assets, net $ 520 $ 439 Right-of-use assets—Financing Property, plant and equipment, net 55 56 Total right-of-use assets $ 575 $ 495 Current operating lease liabilities Current operating lease liabilities $ 179 $ 236 Current finance lease liabilities Other current liabilities 1 1 Non-current operating lease liabilities Non-current operating lease liabilities 347 189 Non-current finance lease liabilities Non-current finance lease liabilities 58 58 Total lease liabilities $ 585 $ 484 The following table shows the classification and location of our lease cost on our Consolidated Statements of Operations (in millions): Consolidated Statements of Operations Location Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost (1) Operating costs and expenses (2) $ 98 $ 140 $ 239 $ 277 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 1 1 2 2 Interest on lease liabilities Interest expense, net of capitalized interest 3 3 5 5 Total lease cost $ 102 $ 144 $ 246 $ 284 (1) Includes short-term lease costs of $16 million and $46 million during the three months ended June 30, 2020 and 2019 , respectively, and $51 million and $93 million during the six months ended June 30, 2020 and 2019 , respectively. Also includes variable lease costs paid to the lessor of $4 million and $8 million during the three months ended June 30, 2020 and 2019 , respectively, and $9 million and $13 million during the six months ended June 30, 2020 and 2019 , respectively. (2) Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease. Future annual minimum lease payments for operating and finance leases as of June 30, 2020 are as follows (in millions): Years Ending December 31, Operating Leases (1) Finance Leases 2020 $ 135 $ 5 2021 121 10 2022 85 10 2023 71 10 2024 71 10 Thereafter 221 136 Total lease payments 704 181 Less: Interest (178 ) (122 ) Present value of lease liabilities $ 526 $ 59 (1) Does not include $1.7 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of June 30, 2020 but will commence in future period primarily in the next two years and have fixed minimum lease terms of up to seven years . The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases: June 30, 2020 December 31, 2019 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (in years) 8.6 18.2 8.4 18.7 Weighted-average discount rate (1) 7.4% 16.2% 5.2% 16.2% (1) The finance leases commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets. The following table includes other quantitative information for our operating and finance leases (in millions): Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 157 $ 174 Operating cash flows from finance leases 5 5 Right-of-use assets obtained in exchange for new operating lease liabilities 246 106 LNG Vessel Subcharters From time to time, we sublease certain LNG vessels under charter to third parties while retaining our existing obligation to the original lessor. As of June 30, 2020 and December 31, 2019 , we had $1 million and $9 million in future minimum sublease payments to be received from LNG vessel subcharters, respectively, which will be recognized entirely within 2020. We recognized $23 million and $31 million of sublease income, including $8 million and $5 million of variable lease payments, during the three months ended June 30, 2020 and 2019 , respectively, in other revenues on our Consolidated Statements of Operations. We recognized $75 million and $68 million of sublease income, including $23 million and $10 million of variable lease payments, during the six months ended June 30, 2020 and 2019 , respectively, in other revenues on our Consolidated Statements of Operations. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 LNG revenues (1) $ 2,340 $ 2,080 $ 4,744 $ 4,147 Regasification revenues 68 67 135 133 Other revenues 16 21 38 36 Total revenues from customers 2,424 2,168 4,917 4,316 Net derivative gains (losses) (2) (45 ) 93 119 169 Other (3) 23 31 75 68 Total revenues $ 2,402 $ 2,292 $ 5,111 $ 4,553 (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. LNG revenues during the three and six months ended June 30, 2020 included $708 million and $761 million , respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery , of which $458 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $53 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. (2) See Note 6—Derivative Instruments for additional information about our derivatives. (3) Includes revenues from LNG vessel subcharters. See Note 11—Leases for additional information about our subleases. Contract Assets and Liabilities The following table shows our contract assets, net, which are classified as other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2020 2019 Contract assets, net $ 58 $ 18 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. Changes in contract assets during the six months ended June 30, 2020 were primarily attributable to revenue recognized due to the delivery of LNG under certain SPAs for which the associated consideration was not yet due. The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Consolidated Balance Sheets (in millions): Six Months Ended June 30, 2020 Deferred revenues, beginning of period $ 161 Cash received but not yet recognized 23 Revenue recognized from prior period deferral (161 ) Deferred revenues, end of period $ 23 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 June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 103.7 10 $ 106.4 11 Regasification revenues 2.3 5 2.4 5 Total revenues $ 106.0 $ 108.8 (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 delivery duration of one year or less. (2) The table above excludes substantially all variable consideration under our SPAs and TUAs. We omit from the table above all variable consideration that is allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation when that performance obligation qualifies as a series. The amount of revenue from variable fees that is not included in the transaction price will vary based on the future prices of Henry Hub throughout the contract terms, to the extent customers elect to take delivery of their LNG, and adjustments to the consumer price index. Certain of our contracts contain additional variable consideration based on the outcome of contingent events and the movement of various indexes. We have not included such variable consideration in the transaction price to the extent the consideration is considered constrained due to the uncertainty of ultimate pricing and receipt. Approximately 26% and 52% of our LNG revenues from contracts included in the table above during the three months ended June 30, 2020 and 2019 , respectively, and approximately 34% and 55% of our LNG revenues from contracts included in the table above during the six months ended June 30, 2020 and 2019 , respectively, were related to variable consideration received from customers. During each of the three and six months ended June 30, 2020 and 2019 , approximately 3% of our regasification revenues were related to variable consideration received from customers. We may enter into contracts to sell LNG that are conditioned upon one or both of the parties achieving certain milestones such as reaching FID 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We recorded an income tax provision of $63 million and zero during the three months ended June 30, 2020 and 2019 , respectively, and an income tax provision of $194 million and $3 million during the six months ended June 30, 2020 and 2019 , respectively. The effective tax rate for the three and six months ended June 30, 2020 was 13.5% and 16.2% , respectively, which were lower than the 21% federal statutory rate primarily due to income allocated to non-controlling interest that is not taxable to Cheniere. The effective tax rate decreased for the three months ended June 30, 2020 from the six months ended June 30, 2020 due to an additional tax expense of $38 million recorded during the first quarter related to a one-time discrete event related to an internal tax restructuring. The effective tax rate for the three and six months ended June 30, 2019 was 0% and 0.9% , which are lower than the 21% federal statutory rate primarily due to maintaining a valuation allowance against our federal and state net deferred tax assets. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We have granted restricted stock shares, restricted stock units, performance stock units and phantom units to employees and non-employee directors under the 2011 Incentive Plan, as amended (the “2011 Plan”) , the 2015 Employee Inducement Incentive Plan and the 2020 Incentive Plan that was approved by our shareholders in May 2020. For the six months ended June 30, 2020 , we granted 1.2 million restricted stock units and 0.3 million performance stock units at target performance under the 2011 Plan to certain employees. Additionally, 0.2 million incremental shares of our common stock were issued based on performance results from previously-granted performance stock unit awards. Restricted stock units are stock awards that vest over a service period of three years and entitle the holder to receive shares of our common stock upon vesting, subject to restrictions on transfer and to a risk of forfeiture if the recipient terminates employment with us prior to the lapse of the restrictions. Performance stock units provide for cliff vesting after a period of three years with payouts based on metrics dependent upon market and performance achieved over the period from January 1, 2020 through December 31, 2022 compared to pre-established performance targets. The settlement amounts of the awards are based on market and performance metrics which include cumulative distributable cash flow per share, and in certain circumstances, absolute total shareholder return (“ATSR”) of our common stock. Where applicable, the compensation for performance stock units is based on fair value assigned to the market metric of ATSR using a Monte Carlo model upon grant, which remains constant through the vesting period, and a performance metric, which will vary due to changing estimates regarding the expected achievement of the performance metric of cumulative distributable cash flow per share. The number of shares that may be earned at the end of the vesting period ranges from 0% up to 300% of the target award amount. Both restricted stock units and performance stock units will be settled in Cheniere common stock (on a one-for-one basis) and are classified as equity awards. Total share-based compensation consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Share-based compensation costs, pre-tax: Equity awards $ 31 $ 32 $ 60 $ 61 Liability awards 1 2 1 5 Total share-based compensation 32 34 61 66 Capitalized share-based compensation (3 ) (1 ) (4 ) (5 ) Total share-based compensation expense $ 29 $ 33 $ 57 $ 61 Tax benefit associated with share-based compensation expense $ 1 $ — $ 19 $ 1 |
Net Income (Loss) Per Share Att
Net Income (Loss) Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share Attributable to Common Stockholders | NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Basic net income (loss) per share attributable to common stockholders (“EPS”) excludes dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects potential dilution and is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period increased by the number of additional common shares that would have been outstanding if the potential common shares had been issued. The dilutive effect of unvested stock is calculated using the treasury-stock method and the dilutive effect of convertible securities is calculated using the if-converted method. The following table reconciles basic and diluted weighted average common shares outstanding for the three and six months ended June 30, 2020 and 2019 (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Weighted average common shares outstanding: Basic 252.1 257.4 252.6 257.3 Dilutive unvested stock 0.3 — 0.7 1.3 Diluted 252.4 257.4 253.3 258.6 Basic net income (loss) per share attributable to common stockholders $ 0.78 $ (0.44 ) $ 2.27 $ 0.11 Diluted net income (loss) per share attributable to common stockholders $ 0.78 $ (0.44 ) $ 2.26 $ 0.11 Potentially dilutive securities that were not included in the diluted net income (loss) per share computations because their effects would have been anti-dilutive were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Unvested stock (1) 2.8 3.8 2.5 3.8 Convertible notes 2021 Cheniere Convertible Unsecured Notes (2) — 13.3 — 13.3 2025 CCH HoldCo II Convertible Senior Notes (3) — — — — 2045 Cheniere Convertible Senior Notes 4.5 4.5 4.5 4.5 Total potentially dilutive common shares 7.3 21.6 7.0 21.6 (1) Does not include 0.7 million shares for each of the three and six months ended June 30, 2020 and 0.6 million shares for each of the three and six months ended June 30, 2019 , respectively, of unvested stock because the performance conditions had not yet been satisfied as of the respective dates. (2) Since we have the intent and ability to settle the remaining outstanding principal amount of the 2021 Cheniere Convertible Unsecured Notes in cash and the excess conversion premium (the “conversion spread”) in either cash or shares, the treasury stock method was applied for calculating any potential dilutive effect of the conversion spread on net income per share for the three and six months ended June 30, 2020 . However, since the average market price of our common stock did not exceed the conversion price of our 2021 Cheniere Convertible Unsecured Notes , the conversion spread was excluded from the computation of diluted net income per share for the three and six months ended June 30, 2020 . (3) Since we had the intent and ability to settle the principal amount and the premium upon redemption of the 2025 CCH HoldCo II Convertible Senior Notes in cash, as previously described in Note 10—Debt , the 2025 CCH HoldCo II Convertible Senior Notes were not included in the computation of net income per share for the three and six months ended June 30, 2020 . There were no shares related to the conversion of the 2025 CCH HoldCo II Convertible Senior Notes included in the computation of diluted net income (loss) per share for the three and six months ended June 30, 2019 , because the substantive non-market based contingencies underlying the eligible conversion date were not met as of June 30, 2019 . |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Share Repurchase Program | SHARE REPURCHASE PROGRAM On June 3, 2019, we announced that our Board of Directors (“Board”) authorized a 3 -year, $1.0 billion share repurchase program. The following table presents information with respect to repurchases of common stock during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aggregate common stock repurchased — 44,600 2,875,376 44,600 Weighted average price paid per share $ — $ 68.30 $ 53.88 $ 68.30 Total amount paid (in millions) $ — $ 3 $ 155 $ 3 As of June 30, 2020 , we had up to $596 million of the share repurchase program available. Under the share repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the SEC and other applicable legal requirements. The timing and amount of any shares of our common stock that are repurchased under the share repurchase program will be determined by our management based on market conditions and other factors. The share repurchase program does not obligate us to acquire any particular amount of common stock, and may be modified, suspended or discontinued at any time or from time to time at our discretion. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES We have various contractual obligations which are recorded as liabilities in our Consolidated Financial Statements. Other items, such as certain purchase commitments and other executed contracts which do not meet the definition of a liability as of June 30, 2020 , are not recognized as liabilities but require disclosures in our Consolidated Financial Statements. Environmental and Regulatory Matters Our LNG terminals and pipelines are subject to extensive regulation under federal, state and local statutes, rules, regulations and laws. These laws require that we engage in consultations with appropriate federal and state agencies and that we obtain and maintain applicable permits and other authorizations. Failure to comply with such laws could result in legal proceedings, which may include substantial penalties. We believe that, based on currently known information, compliance with these laws and regulations will not have a material adverse effect on our results of operations, financial condition or cash flows. Legal Proceedings We are, and may in the future be, involved as a party to various legal proceedings, which are incidental to the ordinary course of business. We regularly analyze current information and, as necessary, provide accruals for probable liabilities on the eventual disposition of these matters. While the results of these litigation matters and claims cannot be predicted with certainty, we believe the reasonably possible losses from such matters, individually and in the aggregate, are not material. Additionally, we believe the probable final outcome of such matters will not have a material adverse effect on our consolidated results of operations, financial position or cash flows. |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 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, net and contract assets, net balances of 10% or greater of total accounts receivable, net and contract assets, net from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2020 2019 2020 2019 2020 2019 Customer A 15% 17% 15% 18% * 12% Customer B 12% 11% 10% 11% * * Customer C 10% 11% * 12% 11% 13% Customer D * 12% * 13% * * Customer E * * * * 10% * * Less than 10% |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 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): Six Months Ended June 30, 2020 2019 Cash paid during the period for interest on debt, net of amounts capitalized $ 750 $ 271 Cash paid for income taxes 1 20 The balance in property, plant and equipment, net funded with accounts payable and accrued liabilities was $222 million and $958 million as of June 30, 2020 and 2019 , respectively. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation The accompanying unaudited Consolidated Financial Statements of Cheniere 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 fiscal year ended December 31, 2019. In our opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation, have been included. |
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. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restricted Cash [Abstract] | |
Schedule of Restricted Cash | As of June 30, 2020 and December 31, 2019 , restricted cash consisted of the following (in millions): June 30, December 31, 2020 2019 Current restricted cash SPL Project $ 167 $ 181 CCL Project 101 80 Cash held by our subsidiaries restricted to Cheniere 237 259 Total current restricted cash $ 505 $ 520 |
Accounts and Other Receivables
Accounts and Other Receivables (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts and Other Receivables | As of June 30, 2020 and December 31, 2019 , accounts and other receivables, net consisted of the following (in millions): June 30, December 31, 2020 2019 Trade receivables SPL and CCL $ 467 $ 328 Cheniere Marketing 41 113 Other accounts receivable 138 50 Total accounts and other receivables, net $ 646 $ 491 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of June 30, 2020 and December 31, 2019 , inventory consisted of the following (in millions): June 30, December 31, 2020 2019 Natural gas $ 18 $ 16 LNG 24 67 LNG in-transit 21 93 Materials and other 144 136 Total inventory $ 207 $ 312 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | As of June 30, 2020 and December 31, 2019 , property, plant and equipment, net consisted of the following (in millions): June 30, December 31, 2020 2019 LNG terminal costs LNG terminal and interconnecting pipeline facilities $ 27,453 $ 27,305 LNG site and related costs 322 322 LNG terminal construction-in-process 4,484 3,903 Accumulated depreciation (2,494 ) (2,049 ) Total LNG terminal costs, net 29,765 29,481 Fixed assets and other Computer and office equipment 24 23 Furniture and fixtures 19 22 Computer software 114 110 Leasehold improvements 43 42 Land 59 59 Other 25 21 Accumulated depreciation (154 ) (141 ) Total fixed assets and other, net 130 136 Assets under finance lease Tug vessels 60 60 Accumulated depreciation (5 ) (4 ) Total assets under finance lease, net 55 56 Property, plant and equipment, net $ 29,950 $ 29,673 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2020 and December 31, 2019 , which are classified as derivative assets , non-current derivative assets , derivative liabilities or non-current derivative liabilities in our Consolidated Balance Sheets (in millions): Fair Value Measurements as of June 30, 2020 December 31, 2019 Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs Total CCH Interest Rate Derivatives liability $ — $ (191 ) $ — $ (191 ) $ — $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives liability — (102 ) — (102 ) — (8 ) — (8 ) Liquefaction Supply Derivatives asset (liability) 11 (1 ) 590 600 5 6 138 149 LNG Trading Derivatives asset (liability) (2 ) 153 — 151 — 165 — 165 FX Derivatives asset — 15 — 15 — 4 — 4 |
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 June 30, 2020 : Net Fair Value Asset (in millions) Valuation Approach Significant Unobservable Input Range of Significant Unobservable Inputs / Weighted Average (1) Physical Liquefaction Supply Derivatives $590 Market approach incorporating present value techniques Henry Hub basis spread $(0.546) - $0.172 / $(0.023) Option pricing model International LNG pricing spread, relative to Henry Hub (2) 46% - 171% / 126% (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 during the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 674 $ 31 $ 138 $ (29 ) Realized and mark-to-market gains: Included in cost of sales (84 ) 7 452 23 Purchases and settlements: Purchases (4 ) 50 (3 ) 50 Settlements 1 1 (1 ) 45 Transfers into Level 3, net (1) 3 — 4 — Balance, end of period $ 590 $ 89 $ 590 $ 89 Change in unrealized gains (losses) relating to instruments still held at end of period $ (84 ) $ 7 $ 452 $ 23 (1) Transferred into Level 3 as a result of unobservable market, or out of Level 3 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 June 30, 2020 CCH Interest Rate Derivatives $ (191 ) $ — $ (191 ) CCH Interest Rate Forward Start Derivatives (102 ) — (102 ) Liquefaction Supply Derivatives 715 (18 ) 697 Liquefaction Supply Derivatives (102 ) 5 (97 ) LNG Trading Derivatives 163 (2 ) 161 LNG Trading Derivatives (21 ) 11 (10 ) FX Derivatives 22 (7 ) 15 As of December 31, 2019 CCH Interest Rate Derivatives $ (81 ) $ — $ (81 ) CCH Interest Rate Forward Start Derivatives (8 ) — (8 ) Liquefaction Supply Derivatives 281 (14 ) 267 Liquefaction Supply Derivatives (126 ) 8 (118 ) LNG Trading Derivatives 229 (4 ) 225 LNG Trading Derivatives (60 ) — (60 ) FX Derivatives 9 (4 ) 5 FX Derivatives (6 ) 5 (1 ) |
Interest Rate Derivatives [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2020 , we had the following Interest Rate Derivatives outstanding: Notional Amounts June 30, 2020 December 31, 2019 Term Weighted Average Fixed Interest Rate Paid Variable Interest Rate Received CCH Interest Rate Derivatives $4.7 billion $4.5 billion May 31, 2022 (1) 2.30% One-month LIBOR CCH Interest Rate Forward Start Derivatives $250 million $250 million September 30, 2020 (2) 2.05% Three-month LIBOR CCH Interest Rate Forward Start Derivatives $500 million $500 million December 31, 2020 (2) 2.06% Three-month LIBOR (1) Represents the maturity date. (2) Represents the effective date. These forward start derivatives have terms of 10 years with a mandatory termination date consistent with the effective date. |
Fair Value of Derivative Instruments by Balance Sheet Location | The following table shows the fair value and location of the Interest Rate Derivatives on our Consolidated Balance Sheets (in millions): June 30, 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 Sheets Location Derivative liabilities $ (100 ) $ (102 ) $ (202 ) $ (32 ) $ (8 ) $ (40 ) Non-current derivative liabilities (91 ) — (91 ) (49 ) — (49 ) Total derivative liabilities $ (191 ) $ (102 ) $ (293 ) $ (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 and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 CCH Interest Rate Derivatives loss $ (15 ) $ (67 ) $ (138 ) $ (102 ) CCH Interest Rate Forward Start Derivatives loss (10 ) (7 ) (95 ) (7 ) |
Commodity 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 and LNG Trading Derivatives (collectively, “Commodity Derivatives”) on our Consolidated Balance Sheets (in millions, except notional amount): June 30, 2020 December 31, 2019 Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Liquefaction Supply Derivatives (1) LNG Trading Derivatives (2) Total Consolidated Balance Sheets Location Derivative assets $ 133 $ 138 $ 271 $ 93 $ 225 $ 318 Non-current derivative assets 564 23 587 174 — 174 Total derivative assets 697 161 858 267 225 492 Derivative liabilities (27 ) (10 ) (37 ) (16 ) (60 ) (76 ) Non-current derivative liabilities (70 ) — (70 ) (102 ) — (102 ) Total derivative liabilities (97 ) (10 ) (107 ) (118 ) (60 ) (178 ) Derivative asset, net $ 600 $ 151 $ 751 $ 149 $ 165 $ 314 Notional amount, net (in TBtu) (3) 10,264 19 9,177 4 (1) Does not include collateral posted with counterparties by us of $2 million and $7 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. Includes derivative assets of $5 million and $3 million as of June 30, 2020 and December 31, 2019 , respectively, and non-current assets of $2 million as of both June 30, 2020 and December 31, 2019 for natural gas supply contracts that SPL and CCL have with related parties. (2) Does not include collateral posted with counterparties by us of $17 million and $5 million deposited for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. (3) Includes 182 TBtu and 120 TBtu as of June 30, 2020 and December 31, 2019 , respectively, for natural gas supply contracts that SPL and CCL have with related parties. |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value, settlements and location of our Commodity Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019 (in millions): Consolidated Statements of Operations Location (1) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 LNG Trading Derivatives gain (loss) LNG revenues $ (34 ) $ 94 $ 106 $ 158 LNG Trading Derivatives gain (loss) Cost of sales 34 (51 ) — (51 ) Liquefaction Supply Derivatives gain (loss) (2) LNG revenues (13 ) (1 ) (14 ) 1 Liquefaction Supply Derivatives gain (loss) (2)(3) Cost of sales (62 ) 57 475 139 (1) 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. (2) Does not include the realized value associated with derivative instruments that settle through physical delivery. (3) CCL recorded $25 million and $24 million in cost of sales under a natural gas supply contract with a related party during the three months ended June 30, 2020 and 2019 , respectively, including $1 million of Liquefaction Supply Derivatives gain and $1 million of Liquefaction Supply Derivatives loss, respectively. During the six months ended June 30, 2020 and 2019 , CCL recorded $48 million and $36 million in cost of sales under a natural gas supply contract with a related party, respectively, including $2 million of Liquefaction Supply Derivatives gain and $3 million of Liquefaction Supply Derivatives loss, respectively. As of June 30, 2020 and December 31, 2019 , $8 million and $3 million , respectively, were included in accrued liabilities related to this contract. |
FX 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 FX Derivatives on our Consolidated Balance Sheets (in millions): Fair Value Measurements as of Consolidated Balance Sheets Location June 30, 2020 December 31, 2019 FX Derivatives Derivative assets $ 13 $ 5 FX Derivatives Non-current derivative assets 2 — FX Derivatives Derivative liabilities — (1 ) |
Derivative Instruments, Gain (Loss) | The following table shows the changes in the fair value, settlements and location of our FX Derivatives recorded on our Consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, Consolidated Statements of Operations Location 2020 2019 2020 2019 FX Derivatives gain LNG revenues $ 2 $ — $ 27 $ 9 |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | As of June 30, 2020 and December 31, 2019 , other non-current assets, net consisted of the following (in millions): June 30, December 31, 2020 2019 Advances made to municipalities for water system enhancements $ 86 $ 87 Advances and other asset conveyances to third parties to support LNG terminals 61 55 Advances made under EPC and non-EPC contracts 6 29 Equity method investments 206 108 Debt issuance costs and debt discount, net 86 45 Tax-related payments and receivables 20 20 Contract assets, net 58 18 Other 23 26 Total other non-current assets, net $ 546 $ 388 |
Non-Controlling Interest and _2
Non-Controlling Interest and Variable Interest Entity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Cheniere Partners [Member] | |
Noncontrolling Interest and Variable Interest Entity [Line Items] | |
Condensed Balance Sheet of Cheniere Partners | The following table presents the summarized assets and liabilities (in millions) of Cheniere Partners, our consolidated VIE, which are included in our Consolidated Balance Sheets. The assets in the table below may only be used to settle obligations of Cheniere Partners. In addition, there is no recourse to us for the consolidated VIE’s liabilities. The assets and liabilities in the table below include third-party assets and liabilities of Cheniere Partners only and exclude intercompany balances that eliminate in consolidation. June 30, December 31, 2020 2019 ASSETS Current assets Cash and cash equivalents $ 1,341 $ 1,781 Restricted cash 167 181 Accounts and other receivables, net 291 297 Other current assets 221 184 Total current assets 2,020 2,443 Property, plant and equipment, net 16,584 16,368 Other non-current assets, net 310 309 Total assets $ 18,914 $ 19,120 LIABILITIES Current liabilities Accrued liabilities $ 410 $ 709 Other current liabilities 47 210 Total current liabilities 457 919 Long-term debt, net 17,566 17,579 Other non-current liabilities 92 104 Total liabilities $ 18,115 $ 18,602 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | As of June 30, 2020 and December 31, 2019 , accrued liabilities consisted of the following (in millions): June 30, December 31, 2020 2019 Interest costs and related debt fees $ 249 $ 293 Accrued natural gas purchases 202 460 LNG terminals and related pipeline costs 108 327 Compensation and benefits 57 115 Accrued LNG inventory 11 6 Other accrued liabilities 108 80 Total accrued liabilities $ 735 $ 1,281 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | As of June 30, 2020 and December 31, 2019 , our debt consisted of the following (in millions): June 30, December 31, 2020 2019 Long-term debt: SPL 5.625% Senior Secured Notes due 2021 (“2021 SPL Senior Notes”) $ — $ 2,000 6.25% Senior Secured Notes due 2022 (“2022 SPL Senior Notes”) 1,000 1,000 5.625% Senior Secured Notes due 2023 (“2023 SPL Senior Notes”) 1,500 1,500 5.75% Senior Secured Notes due 2024 (“2024 SPL Senior Notes”) 2,000 2,000 5.625% Senior Secured Notes due 2025 (“2025 SPL Senior Notes”) 2,000 2,000 5.875% Senior Secured Notes due 2026 (“2026 SPL Senior Notes”) 1,500 1,500 5.00% Senior Secured Notes due 2027 (“2027 SPL Senior Notes”) 1,500 1,500 4.200% Senior Secured Notes due 2028 (“2028 SPL Senior Notes”) 1,350 1,350 4.500% Senior Secured Notes due 2030 (“2030 SPL Senior Notes”) 2,000 — 5.00% Senior Secured Notes due 2037 (“2037 SPL Senior Notes”) 800 800 $1.2 billion SPL Working Capital Facility executed in 2020 (“2020 SPL Working Capital Facility”) — — Cheniere Partners 5.250% Senior Notes due 2025 (“2025 CQP Senior Notes”) 1,500 1,500 5.625% Senior Notes due 2026 (“2026 CQP Senior Notes”) 1,100 1,100 4.500% Senior Notes due 2029 (“2029 CQP Senior Notes”) 1,500 1,500 CQP Credit Facilities executed in 2019 (“2019 CQP Credit Facilities”) — — CCH 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 3.700% Senior Secured Notes due 2029 (“2029 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 CCH Credit Facility 3,283 3,283 CCH HoldCo II 11.0% Convertible Senior Secured Notes due 2025 (“2025 CCH HoldCo II Convertible Senior Notes”) 1,278 1,578 Cheniere 4.875% Convertible Unsecured Notes due 2021 (“2021 Cheniere Convertible Unsecured Notes”) 1,216 1,278 4.25% Convertible Senior Notes due 2045 (“2045 Cheniere Convertible Senior Notes”) 625 625 $1.25 billion Cheniere Revolving Credit Facility (“Cheniere Revolving Credit Facility”) 375 — $2.62 billion Cheniere Term Loan Credit Agreement (“Cheniere Term Loan Facility”) — — Unamortized premium, discount and debt issuance costs, net (672 ) (692 ) Total long-term debt, net 30,807 30,774 Current debt: 2021 Cheniere Convertible Unsecured Notes 93 — $1.2 billion SPL Working Capital Facility executed in 2015 (“2015 SPL Working Capital Facility”) — — $1.2 billion CCH Working Capital Facility (“CCH Working Capital Facility”) 141 — Cheniere Marketing trade finance facilities 6 — Unamortized premium, discount and debt issuance costs, net (3 ) — Total current debt 237 — Total debt, net $ 31,044 $ 30,774 |
Schedule of Line of Credit Facilities | Below is a summary of our credit facilities outstanding as of June 30, 2020 (in millions): 2020 SPL Working Capital Facility 2019 CQP Credit Facilities CCH Credit Facility CCH Working Capital Facility Cheniere Revolving Credit Facility Cheniere Term Loan Facility (1) Original facility size $ 1,200 $ 1,500 $ 8,404 $ 350 $ 750 $ 2,620 Incremental commitments — — 1,566 850 500 — Less: Outstanding balance — — 3,283 141 375 — Commitments prepaid or terminated — 750 6,687 — — — Letters of credit issued 409 — — 392 313 — Available commitment $ 791 $ 750 $ — $ 667 $ 562 $ 2,620 Interest rate on available balance LIBOR plus 1.125% - 1.750% or base rate plus 0.125% - 0.750% LIBOR plus 1.25% - 2.125% or base rate plus 0.25% - 1.125% LIBOR plus 1.75% or base rate plus 0.75% LIBOR plus 1.25% - 1.75% or base rate plus 0.25% - 0.75% LIBOR plus 1.75% - 2.50% or base rate plus 0.75% - 1.50% (2) Weighted average interest rate of outstanding balance n/a n/a 1.93% 1.43% 1.93% n/a Maturity date March 19, 2025 May 29, 2024 June 30, 2024 June 29, 2023 December 13, 2022 June 18, 2023 (1) In July 2020, we received incremental commitments of $75 million and borrowed $2,323 million under the Cheniere Term Loan Facility , which reduced the available commitment to $372 million following these transactions. (2) LIBOR plus (1) 2.00% to 2.75% per annum in the first year, (2) 2.50% to 3.25% per annum in the second year and (3) 3.00% to 3.75% per annum in the third year until maturity, or base rate plus (1) 1.00% to 1.75% per annum in the first year, (2) 1.50% to 2.25% per annum in the second year and (3) 2.00% to 2.75% per annum in the third year until maturity. |
Schedule of Convertible Debt | Below is a summary of our convertible notes outstanding as of June 30, 2020 (in millions): 2021 Cheniere Convertible Unsecured Notes (1) 2025 CCH HoldCo II Convertible Senior Notes 2045 Cheniere Convertible Senior Notes Aggregate original principal $ 1,000 $ 1,000 $ 625 Add: interest paid-in-kind 309 578 — Less: aggregate principal redeemed — (300 ) — Aggregate remaining principal $ 1,309 $ 1,278 $ 625 Debt component, net of discount and debt issuance costs $ 1,271 $ 1,264 $ 316 Equity component $ 211 $ — $ 194 Interest payment method Paid-in-kind Paid-in-kind / cash (2) Cash Conversion by us (3) — (4) (5) Conversion by holders (3) (6) (4) (7) Conversion basis Cash and/or stock Cash and/or stock Cash and/or stock Conversion value in excess of principal $ — n/a $ — Maturity date May 28, 2021 May 13, 2025 March 15, 2045 Contractual interest rate 4.875 % 11.0 % 4.25 % Effective interest rate (8) 8.1 % 15.6 % 9.4 % Remaining debt discount and debt issuance costs amortization period (9) 0.9 years 0.3 years 24.7 years (1) In July 2020, we subsequently repurchased $844 million in aggregate principal amount of outstanding notes at individually negotiated prices from a small number of investors. The aggregate remaining principal after this repurchase was $465 million , which exceeded the remaining commitments under the Cheniere Term Loan Facility by $93 million . As such, $93 million has been reflected as current debt on our Consolidated Balance Sheet as of June 30, 2020 . (2) Prior to the substantial completion of Train 2 of the CCL Project in August 2019, interest was paid entirely in kind. Following substantial completion, the interest has been paid in cash; however, a portion of the interest may, in the future, be paid in kind under certain specified circumstances. (3) Conversion is subject to various limitations and conditions. (4) Convertible into cash or stock at our option on or after March 1, 2020 until September 2, 2020, and into stock upon conversion notice by us or note holders after September 2, 2020, provided that our market capitalization is not less than $10.0 billion (“Eligible Conversion Date”). The conversion price for stock is the lower of (1) a 10% discount to the average of the daily volume-weighted average price (“VWAP”) of our common stock for the 90 trading day period prior to the date notice is provided, and (2) a 10% discount to the closing price of our common stock on the trading day preceding the date notice is provided. The conversion price for cash is $1,080 per $1,000 principal amount of the notes. We redeemed an aggregate outstanding principal amount of $300 million in March 2020 and redeemed the remaining outstanding principal amount in July 2020, both with cash. (5) Redeemable at any time after March 15, 2020 at a redemption price payable in cash equal to the accreted amount of the 2045 Cheniere Convertible Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to such redemption date. (6) Initially convertible at $93.64 (subject to adjustment upon the occurrence of certain specified events), provided that the closing price of our common stock is greater than or equal to the conversion price on the conversion date. (7) Prior to December 15, 2044, convertible only under certain circumstances as specified in the indenture; thereafter, holders may convert their notes regardless of these circumstances. The conversion rate will initially equal 7.2265 shares of our common stock per $1,000 principal amount of the 2045 Cheniere Convertible Senior Notes, which corresponds to an initial conversion price of approximately $138.38 per share of our common stock (subject to adjustment upon the occurrence of certain specified events). (8) Rate to accrete the discounted carrying value of the convertible notes to the face value over the remaining amortization period. (9) We amortize any debt discount and debt issuance costs using the effective interest over the period through contractual maturity except for the 2025 CCH HoldCo II Convertible Senior Notes , which are amortized through the date they are first convertible by holders into our common stock. |
Schedule of Interest Expense | Total interest expense, net of capitalized interest, including interest expense related to our convertible notes, consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest cost on convertible notes: Interest per contractual rate $ 57 $ 64 $ 120 $ 126 Amortization of debt discount 20 9 34 19 Amortization of debt issuance costs 4 3 7 6 Total interest cost related to convertible notes 81 76 161 151 Interest cost on debt and finance leases excluding convertible notes 388 382 779 755 Total interest cost 469 458 940 906 Capitalized interest (62 ) (86 ) (121 ) (287 ) Total interest expense, net of capitalized interest $ 407 $ 372 $ 819 $ 619 |
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): June 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Senior notes (1) $ 22,700 $ 24,698 $ 22,700 $ 24,650 2037 SPL Senior Notes (2) 800 948 800 934 4.80% CCH Senior Notes (2) 727 841 727 830 3.925% CCH Senior Notes (2) 475 502 475 495 Credit facilities (3) 3,805 3,805 3,283 3,283 2021 Cheniere Convertible Unsecured Notes (2) 1,309 1,332 1,278 1,312 2025 CCH HoldCo II Convertible Senior Notes (2) 1,278 1,495 1,578 1,807 2045 Cheniere Convertible Senior Notes (4) 625 394 625 498 (1) Includes (1) the SPL Senior Notes except the 2037 SPL Senior Notes , (2) all series of the CQP senior notes including the 2025 CQP Senior Notes , 2026 CQP Senior Notes and 2029 CQP Senior Notes and (3) the CCH senior notes sold on a private placement basis in reliance on Section 4(a)(2) of the Securities Act and Rule 144A and Regulation S thereunder including the 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 our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. (3) Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility , 2019 CQP Credit Facilities , CCH Credit Facility , CCH Working Capital Facility , Cheniere Revolving Credit Facility , Cheniere Term Loan Facility and Cheniere Marketing trade finance facilities . 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. (4) The Level 1 estimated fair value was based on unadjusted quoted prices in active markets for identical liabilities that we had the ability to access at the measurement date. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Leases, Balance Sheet Location | The following table shows the classification and location of our right-of-use asset s and lease liabilities on our Consolidated Balance Sheets (in millions): Consolidated Balance Sheets Location June 30, 2020 December 31, 2019 Right-of-use assets—Operating Operating lease assets, net $ 520 $ 439 Right-of-use assets—Financing Property, plant and equipment, net 55 56 Total right-of-use assets $ 575 $ 495 Current operating lease liabilities Current operating lease liabilities $ 179 $ 236 Current finance lease liabilities Other current liabilities 1 1 Non-current operating lease liabilities Non-current operating lease liabilities 347 189 Non-current finance lease liabilities Non-current finance lease liabilities 58 58 Total lease liabilities $ 585 $ 484 |
Schedule of Lease Cost, Income Statement Location | The following table shows the classification and location of our lease cost on our Consolidated Statements of Operations (in millions): Consolidated Statements of Operations Location Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease cost (1) Operating costs and expenses (2) $ 98 $ 140 $ 239 $ 277 Finance lease cost: Amortization of right-of-use assets Depreciation and amortization expense 1 1 2 2 Interest on lease liabilities Interest expense, net of capitalized interest 3 3 5 5 Total lease cost $ 102 $ 144 $ 246 $ 284 (1) Includes short-term lease costs of $16 million and $46 million during the three months ended June 30, 2020 and 2019 , respectively, and $51 million and $93 million during the six months ended June 30, 2020 and 2019 , respectively. Also includes variable lease costs paid to the lessor of $4 million and $8 million during the three months ended June 30, 2020 and 2019 , respectively, and $9 million and $13 million during the six months ended June 30, 2020 and 2019 , respectively. (2) Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease. |
Schedule of Maturity of Lease Liabilities | Future annual minimum lease payments for operating and finance leases as of June 30, 2020 are as follows (in millions): Years Ending December 31, Operating Leases (1) Finance Leases 2020 $ 135 $ 5 2021 121 10 2022 85 10 2023 71 10 2024 71 10 Thereafter 221 136 Total lease payments 704 181 Less: Interest (178 ) (122 ) Present value of lease liabilities $ 526 $ 59 (1) Does not include $1.7 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of June 30, 2020 but will commence in future period primarily in the next two years and have fixed minimum lease terms of up to seven years . |
Lease, Other Quantitative Information | The following table shows the weighted-average remaining lease term and the weighted-average discount rate for our operating leases and finance leases: June 30, 2020 December 31, 2019 Operating Leases Finance Leases Operating Leases Finance Leases Weighted-average remaining lease term (in years) 8.6 18.2 8.4 18.7 Weighted-average discount rate (1) 7.4% 16.2% 5.2% 16.2% (1) The finance leases commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets. The following table includes other quantitative information for our operating and finance leases (in millions): Six Months Ended June 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 157 $ 174 Operating cash flows from finance leases 5 5 Right-of-use assets obtained in exchange for new operating lease liabilities 246 106 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2020 and 2019 (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 LNG revenues (1) $ 2,340 $ 2,080 $ 4,744 $ 4,147 Regasification revenues 68 67 135 133 Other revenues 16 21 38 36 Total revenues from customers 2,424 2,168 4,917 4,316 Net derivative gains (losses) (2) (45 ) 93 119 169 Other (3) 23 31 75 68 Total revenues $ 2,402 $ 2,292 $ 5,111 $ 4,553 (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. LNG revenues during the three and six months ended June 30, 2020 included $708 million and $761 million , respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery , of which $458 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $53 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. (2) See Note 6—Derivative Instruments for additional information about our derivatives. (3) Includes revenues from LNG vessel subcharters. See Note 11—Leases for additional information about our subleases. |
Contract Assets | The following table shows our contract assets, net, which are classified as other non-current assets, net on our Consolidated Balance Sheets (in millions): June 30, December 31, 2020 2019 Contract assets, net $ 58 $ 18 |
Contract Liabilities | The following table reflects the changes in our contract liabilities, which we classify as deferred revenue on our Consolidated Balance Sheets (in millions): Six Months Ended June 30, 2020 Deferred revenues, beginning of period $ 161 Cash received but not yet recognized 23 Revenue recognized from prior period deferral (161 ) Deferred revenues, end of period $ 23 |
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 June 30, 2020 and December 31, 2019 : June 30, 2020 December 31, 2019 Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) Unsatisfied Transaction Price (in billions) Weighted Average Recognition Timing (years) (1) LNG revenues $ 103.7 10 $ 106.4 11 Regasification revenues 2.3 5 2.4 5 Total revenues $ 106.0 $ 108.8 (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. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense, Net | Total share-based compensation consisted of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Share-based compensation costs, pre-tax: Equity awards $ 31 $ 32 $ 60 $ 61 Liability awards 1 2 1 5 Total share-based compensation 32 34 61 66 Capitalized share-based compensation (3 ) (1 ) (4 ) (5 ) Total share-based compensation expense $ 29 $ 33 $ 57 $ 61 Tax benefit associated with share-based compensation expense $ 1 $ — $ 19 $ 1 |
Net Income (Loss) Per Share A_2
Net Income (Loss) Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles basic and diluted weighted average common shares outstanding for the three and six months ended June 30, 2020 and 2019 (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Weighted average common shares outstanding: Basic 252.1 257.4 252.6 257.3 Dilutive unvested stock 0.3 — 0.7 1.3 Diluted 252.4 257.4 253.3 258.6 Basic net income (loss) per share attributable to common stockholders $ 0.78 $ (0.44 ) $ 2.27 $ 0.11 Diluted net income (loss) per share attributable to common stockholders $ 0.78 $ (0.44 ) $ 2.26 $ 0.11 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Potentially dilutive securities that were not included in the diluted net income (loss) per share computations because their effects would have been anti-dilutive were as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Unvested stock (1) 2.8 3.8 2.5 3.8 Convertible notes 2021 Cheniere Convertible Unsecured Notes (2) — 13.3 — 13.3 2025 CCH HoldCo II Convertible Senior Notes (3) — — — — 2045 Cheniere Convertible Senior Notes 4.5 4.5 4.5 4.5 Total potentially dilutive common shares 7.3 21.6 7.0 21.6 (1) Does not include 0.7 million shares for each of the three and six months ended June 30, 2020 and 0.6 million shares for each of the three and six months ended June 30, 2019 , respectively, of unvested stock because the performance conditions had not yet been satisfied as of the respective dates. (2) Since we have the intent and ability to settle the remaining outstanding principal amount of the 2021 Cheniere Convertible Unsecured Notes in cash and the excess conversion premium (the “conversion spread”) in either cash or shares, the treasury stock method was applied for calculating any potential dilutive effect of the conversion spread on net income per share for the three and six months ended June 30, 2020 . However, since the average market price of our common stock did not exceed the conversion price of our 2021 Cheniere Convertible Unsecured Notes , the conversion spread was excluded from the computation of diluted net income per share for the three and six months ended June 30, 2020 . (3) Since we had the intent and ability to settle the principal amount and the premium upon redemption of the 2025 CCH HoldCo II Convertible Senior Notes in cash, as previously described in Note 10—Debt , the 2025 CCH HoldCo II Convertible Senior Notes were not included in the computation of net income per share for the three and six months ended June 30, 2020 . There were no shares related to the conversion of the 2025 CCH HoldCo II Convertible Senior Notes included in the computation of diluted net income (loss) per share for the three and six months ended June 30, 2019 , because the substantive non-market based contingencies underlying the eligible conversion date were not met as of June 30, 2019 . |
Share Repurchase Program (Table
Share Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Share Repurchases Under the Share Repurchase Program | The following table presents information with respect to repurchases of common stock during the three and six months ended June 30, 2020 and 2019 : Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Aggregate common stock repurchased — 44,600 2,875,376 44,600 Weighted average price paid per share $ — $ 68.30 $ 53.88 $ 68.30 Total amount paid (in millions) $ — $ 3 $ 155 $ 3 |
Customer Concentration (Tables)
Customer Concentration (Tables) | 6 Months Ended |
Jun. 30, 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, net and contract assets, net balances of 10% or greater of total accounts receivable, net and contract assets, net from external customers: Percentage of Total Revenues from External Customers Percentage of Accounts Receivable, Net and Contract Assets, Net from External Customers Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2020 2019 2020 2019 2020 2019 Customer A 15% 17% 15% 18% * 12% Customer B 12% 11% 10% 11% * * Customer C 10% 11% * 12% 11% 13% Customer D * 12% * 13% * * Customer E * * * * 10% * * Less than 10% |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental disclosure of cash flow information (in millions): Six Months Ended June 30, 2020 2019 Cash paid during the period for interest on debt, net of amounts capitalized $ 750 $ 271 Cash paid for income taxes 1 20 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2020unitmiitemmilliontonnes / yrtrains | |
Nature of Operations and Basis of Presentation | |
Number Of Natural Gas Liquefaction And Export Facilities | unit | 2 |
Sabine Pass LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation | |
Total Production Capability | milliontonnes / yr | 30 |
Number of LNG Storage Tanks | unit | 5 |
Number of Marine Berths Operating | item | 2 |
Number of Marine Berths Constructing | item | 1 |
Corpus Christi LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation | |
Number of Liquefaction LNG Trains Operating | trains | 2 |
Number of Liquefaction LNG Trains Constructing | trains | 1 |
Total Production Capability | milliontonnes / yr | 15 |
Number of LNG Storage Tanks | milliontonnes / yr | 3 |
Number of Marine Berths Operating | milliontonnes / yr | 2 |
Corpus Christi Pipeline [Member] | |
Nature of Operations and Basis of Presentation | |
Length of Natural Gas Pipeline | mi | 23 |
Corpus Christi LNG Terminal Expansion [Member] | |
Nature of Operations and Basis of Presentation | |
Total Production Capability | milliontonnes / yr | 10 |
Corpus Christi LNG Terminal Expansion [Member] | Maximum [Member] | |
Nature of Operations and Basis of Presentation | |
Number of Liquefaction LNG Trains | trains | 7 |
Cheniere Partners [Member] | |
Nature of Operations and Basis of Presentation | |
General Partner ownership percentage | 100.00% |
Limited Partner ownership percentage | 48.60% |
Cheniere Partners [Member] | Sabine Pass LNG Terminal [Member] | |
Nature of Operations and Basis of Presentation | |
Number of Liquefaction LNG Trains Operating | trains | 5 |
Number of Liquefaction LNG Trains Constructing | trains | 1 |
Cheniere Partners [Member] | Creole Trail Pipeline [Member] | |
Nature of Operations and Basis of Presentation | |
Length of Natural Gas Pipeline | mi | 94 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 505 | [1] | $ 520 |
SPL Project [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 167 | 181 | |
CCL Project [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 101 | 80 | |
Cash held by our subsidiaries restricted to Cheniere [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 237 | $ 259 | |
[1] | Amounts presented include balances held by our consolidated variable interest entity (“VIE”), Cheniere Partners, as further discussed in Note 8— Non-controlling Interest and Variable Interest Entity. As of June 30, 2020 , total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion , respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash. |
Accounts and Other Receivable_2
Accounts and Other Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts and Other Receivables [Line Items] | ||
Other accounts receivable | $ 138 | $ 50 |
Total accounts and other receivables, net | 646 | 491 |
SPL and CCL | ||
Accounts and Other Receivables [Line Items] | ||
Trade receivables | 467 | 328 |
Cheniere Marketing | ||
Accounts and Other Receivables [Line Items] | ||
Trade receivables | $ 41 | $ 113 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Inventory | $ 207 | $ 312 |
Natural gas [Member] | ||
Inventory [Line Items] | ||
Inventory | 18 | 16 |
LNG [Member] | ||
Inventory [Line Items] | ||
Inventory | 24 | 67 |
LNG in-transit [Member] | ||
Inventory [Line Items] | ||
Inventory | 21 | 93 |
Materials and other [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 144 | $ 136 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 29,950 | $ 29,673 |
LNG terminal costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (2,494) | (2,049) |
Property, plant and equipment, net | 29,765 | 29,481 |
LNG terminal and interconnecting pipeline facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 27,453 | 27,305 |
LNG site and related costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 322 | 322 |
LNG terminal construction-in-process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,484 | 3,903 |
Fixed assets and other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | (154) | (141) |
Property, plant and equipment, net | 130 | 136 |
Computer and office equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 24 | 23 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 19 | 22 |
Computer software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 114 | 110 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 43 | 42 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 59 | 59 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 25 | 21 |
Tug vessels under finance lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 60 | 60 |
Accumulated depreciation | (5) | (4) |
Property, plant and equipment, net | $ 55 | $ 56 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 231 | $ 203 | $ 463 | $ 346 |
Offsets to LNG terminal costs | $ 0 | $ 0 | $ 0 | $ 202 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Physical Liquefaction Supply Derivatives [Member] | Maximum [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Term of Contract | 15 years | |
FX Derivatives [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional Amount | $ 146 | $ 827 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 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 | $ (191) | $ (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 | (191) | (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 | (102) | (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 | (102) | (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 | 600 | 149 |
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 | 11 | 5 |
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 | (1) | 6 |
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 | 590 | 138 |
LNG Trading Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 151 | 165 |
LNG Trading 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) | 0 |
LNG Trading 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 | 153 | 165 |
LNG Trading 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 |
FX Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 15 | 4 |
FX 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 |
FX 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 | 15 | 4 |
FX 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 |
Derivative Instruments - Fair_2
Derivative Instruments - Fair Value Inputs - Quantitative Information (Details) - Physical Liquefaction Supply Derivatives [Member] - Fair Value, Inputs, Level 3 [Member] | 6 Months Ended | |
Jun. 30, 2020USD ($) | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Net Fair Value Asset | $ 590,000,000 | |
Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Significant Unobservable Inputs Range | (0.546) | [1] |
Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Significant Unobservable Inputs Range | 0.172 | [1] |
Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Significant Unobservable Inputs Range | $ (0.023) | [1] |
Valuation Technique, Option Pricing Model [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 46.00% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 171.00% | [1],[2] |
Valuation Technique, Option Pricing Model [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Tecniques [Line Items] | ||
Fair Value Inputs Basis Spread Percentage | 126.00% | [1],[2] |
[1] | Unobservable inputs were weighted by the relative fair value of the instruments. | |
[2] | Spread contemplates U.S. dollar-denominated pricing. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Level 3 Derivatives Activity (Details) - Physical Liquefaction Supply Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Balance, beginning of period | $ 674 | $ 31 | $ 138 | $ (29) | |
Realized and mark-to-market gains: | |||||
Included in cost of sales | (84) | 7 | 452 | 23 | |
Purchases and settlements: | |||||
Purchases | (4) | 50 | (3) | 50 | |
Settlements | 1 | 1 | (1) | 45 | |
Transfers into Level 3, net | [1] | 3 | 0 | 4 | 0 |
Balance, end of period | 590 | 89 | 590 | 89 | |
Change in unrealized gains (losses) relating to instruments still held at end of period | $ (84) | $ 7 | $ 452 | $ 23 | |
[1] | Transferred into Level 3 as a result of unobservable market, or out of Level 3 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 | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
CCH Interest Rate Derivatives [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 4,700 | $ 4,500 | |
Maturity Date | [1] | May 31, 2022 | |
Weighted Average Fixed Interest Rate Paid | 2.30% | ||
CCH Interest Rate Derivatives Tranche One [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 250 | 250 | |
Effective Date | [2] | Sep. 30, 2020 | |
Weighted Average Fixed Interest Rate Paid | 2.05% | ||
CCH Interest Rate Derivatives Tranche Two [Member] | |||
Derivative [Line Items] | |||
Derivative, Notional Amount | $ 500 | $ 500 | |
Effective Date | [2] | Dec. 31, 2020 | |
Weighted Average Fixed Interest Rate Paid | 2.06% | ||
Derivative, Term of Contract | 10 years | ||
[1] | Represents the maturity date. | ||
[2] | Represents the effective date. These forward start derivatives have terms of 10 years with a mandatory termination date consistent with the effective date. |
Derivative Instruments - Fair_3
Derivative Instruments - Fair Value of Derivative Instruments by Balance Sheet Location (Details) $ in Millions | Jun. 30, 2020USD ($)tbtu | Dec. 31, 2019USD ($)tbtu | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 284 | $ 323 | |
Non-current derivative assets | 589 | 174 | |
Derivative liabilities | (239) | (117) | |
Non-current derivative liabilities | (161) | (151) | |
Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (293) | (89) | |
Interest Rate Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (202) | (40) | |
Interest Rate Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (91) | (49) | |
CCH Interest Rate Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (191) | (81) | |
CCH Interest Rate Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (100) | (32) | |
CCH Interest Rate Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (91) | (49) | |
CCH Interest Rate Forward Start Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | (102) | (8) | |
CCH Interest Rate Forward Start Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (102) | (8) | |
CCH Interest Rate Forward Start Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | 0 | 0 | |
Commodity Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 858 | 492 | |
Total derivative liabilities | (107) | (178) | |
Derivative asset (liability), net | 751 | 314 | |
Commodity Derivatives [Member] | Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 271 | 318 | |
Commodity Derivatives [Member] | Noncurrent Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | 587 | 174 | |
Commodity Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | (37) | (76) | |
Commodity Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | (70) | (102) | |
Liquefaction Supply Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | 697 | 267 |
Total derivative liabilities | [1] | (97) | (118) |
Derivative asset (liability), net | [1] | $ 600 | $ 149 |
Derivative, Nonmonetary Notional Amount | tbtu | [2] | 10,264 | 9,177 |
Derivative, collateral posted by us | $ 2 | $ 7 | |
Liquefaction Supply Derivatives [Member] | Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [1] | 133 | 93 |
Liquefaction Supply Derivatives [Member] | Noncurrent Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [1] | 564 | 174 |
Liquefaction Supply Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [1] | (27) | (16) |
Liquefaction Supply Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [1] | (70) | (102) |
LNG Trading Derivatives [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [3] | 161 | 225 |
Total derivative liabilities | [3] | (10) | (60) |
Derivative asset (liability), net | [3] | $ 151 | $ 165 |
Derivative, Nonmonetary Notional Amount | tbtu | [2] | 19 | 4 |
Derivative, collateral posted by us | $ 17 | $ 5 | |
LNG Trading Derivatives [Member] | Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | [3] | 138 | 225 |
LNG Trading Derivatives [Member] | Noncurrent Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | [3] | 23 | 0 |
LNG Trading Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | [3] | (10) | (60) |
LNG Trading Derivatives [Member] | Non-current Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative liabilities | [3] | 0 | 0 |
FX Derivatives [Member] | Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 13 | 5 | |
FX Derivatives [Member] | Noncurrent Derivative Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Non-current derivative assets | 2 | 0 | |
FX Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 0 | (1) | |
SPL and CCL | Natural Gas Supply Agreement [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 5 | 3 | |
Non-current derivative assets | $ 2 | $ 2 | |
Derivative, Nonmonetary Notional Amount | tbtu | 182 | 120 | |
[1] | Does not include collateral posted with counterparties by us of $2 million and $7 million for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. Includes derivative assets of $5 million and $3 million as of June 30, 2020 and December 31, 2019 , respectively, and non-current assets of $2 million as of both June 30, 2020 and December 31, 2019 for natural gas supply contracts that SPL and CCL have with related parties. | ||
[2] | Includes 182 TBtu and 120 TBtu as of June 30, 2020 and December 31, 2019 , respectively, for natural gas supply contracts that SPL and CCL have with related parties. | ||
[3] | Does not include collateral posted with counterparties by us of $17 million and $5 million deposited for such contracts, which are included in other current assets in our Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019 , respectively. |
Derivative Instruments - Deriva
Derivative Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Accrued liabilities | $ 735 | $ 735 | $ 1,281 | |||
CCH Interest Rate Derivatives [Member] | Interest rate derivative loss, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | (15) | $ (67) | (138) | $ (102) | ||
CCH Interest Rate Forward Start Derivatives [Member] | Interest rate derivative loss, net [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | (10) | (7) | (95) | (7) | ||
LNG Trading Derivatives [Member] | LNG Revenues [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | [1] | (34) | 94 | 106 | 158 | |
LNG Trading Derivatives [Member] | Cost of Sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | [1] | 34 | (51) | 0 | (51) | |
Liquefaction Supply Derivatives [Member] | LNG Revenues [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | [1],[2] | (13) | (1) | (14) | 1 | |
Liquefaction Supply Derivatives [Member] | Cost of Sales [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | [1],[2],[3] | (62) | 57 | 475 | 139 | |
FX Derivatives [Member] | LNG Revenues [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | 2 | 0 | 27 | 9 | ||
CCL [Member] | Natural Gas Supply Agreement [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cost of sales | 25 | 24 | 48 | 36 | ||
Accrued liabilities | 8 | 8 | $ 3 | |||
CCL [Member] | Liquefaction Supply Derivatives [Member] | Natural Gas Supply Agreement [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative gain (loss), net | $ 1 | $ (1) | $ 2 | $ (3) | ||
[1] | 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. | |||||
[2] | Does not include the realized value associated with derivative instruments that settle through physical delivery. | |||||
[3] | CCL recorded $25 million and $24 million in cost of sales under a natural gas supply contract with a related party during the three months ended June 30, 2020 and 2019 , respectively, including $1 million of Liquefaction Supply Derivatives gain and $1 million of Liquefaction Supply Derivatives loss, respectively. During the six months ended June 30, 2020 and 2019 , CCL recorded $48 million and $36 million in cost of sales under a natural gas supply contract with a related party, respectively, including $2 million of Liquefaction Supply Derivatives gain and $3 million of Liquefaction Supply Derivatives loss, respectively. As of June 30, 2020 and December 31, 2019 , $8 million and $3 million , respectively, were included in accrued liabilities related to this contract. |
Derivative Instruments - Deri_2
Derivative Instruments - Derivative Net Presentation on Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
CCH Interest Rate Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | $ (191) | $ (81) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (191) | (81) |
CCH Interest Rate Forward Start Derivatives [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (102) | (8) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (102) | (8) |
Liquefaction Supply Derivatives Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 715 | 281 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (18) | (14) |
Derivative Assets (Liabilities), at Fair Value, Net | 697 | 267 |
Liquefaction Supply Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (102) | (126) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 5 | 8 |
Derivative Assets (Liabilities), at Fair Value, Net | (97) | (118) |
LNG Trading Derivatives Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 163 | 229 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (2) | (4) |
Derivative Assets (Liabilities), at Fair Value, Net | 161 | 225 |
LNG Trading Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (21) | (60) |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 11 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | (10) | (60) |
FX Derivatives Asset [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Gross Amounts Recognized | 22 | 9 |
Derivative Asset, Gross Amounts Offset in the Consolidated Balance Sheets | (7) | (4) |
Derivative Assets (Liabilities), at Fair Value, Net | $ 15 | 5 |
FX Derivatives Liability [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Gross Amounts Recognized | (6) | |
Derivative Liability, Gross Amounts Offset in the Consolidated Balance Sheets | 5 | |
Derivative Assets (Liabilities), at Fair Value, Net | $ (1) |
Other Non-Current Assets - Sche
Other Non-Current Assets - Schedule of Non-Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Advances made to municipalities for water system enhancements | $ 86 | $ 87 |
Advances and other asset conveyances to third parties to support LNG terminals | 61 | 55 |
Advances made under EPC and non-EPC contracts | 6 | 29 |
Equity method investments | 206 | 108 |
Debt issuance costs and debt discount, net | 86 | 45 |
Tax-related payments and receivables | 20 | 20 |
Contract assets, net | 58 | 18 |
Other | 23 | 26 |
Other non-current assets, net | $ 546 | $ 388 |
Other Non-Current Assets - Equi
Other Non-Current Assets - Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 206 | $ 206 | $ 108 | ||
Revenues | 2,402 | $ 2,292 | 5,111 | $ 4,553 | |
Accounts and other receivables, net | 646 | 646 | 491 | ||
Operating and maintenance expense | 355 | 295 | 671 | 516 | |
Accounts payable | 26 | 26 | 66 | ||
Midship Holdings LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | 205 | 205 | 105 | ||
Cheniere LNG O&M Services, LLC [Member] | Midship Pipeline [Member] | Service Agreements [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 3 | $ 3 | 6 | $ 7 | |
Accounts and other receivables, net | 2 | $ 2 | $ 3 | ||
CCL [Member] | Midship Pipeline [Member] | Natural Gas Transportation Agreement [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Long-term Purchase Commitment, Period | 10 years | ||||
Operating and maintenance expense | 2 | $ 2 | |||
Accounts payable | $ 1 | $ 1 |
Non-Controlling Interest and _3
Non-Controlling Interest and Variable Interest Entity (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
Noncontrolling Interest and Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 2,039 | [1] | $ 2,474 |
Restricted cash | 505 | [1] | 520 |
Accounts and other receivables, net | 646 | 491 | |
Other current assets | 146 | 92 | |
Total current assets | 3,827 | 4,212 | |
Property, plant and equipment, net | 29,950 | 29,673 | |
Other non-current assets, net | 546 | 388 | |
Total assets | 35,846 | [1] | 35,492 |
Accrued liabilities | 735 | 1,281 | |
Other current liabilities | 25 | 13 | |
Total current liabilities | 1,464 | 1,874 | |
Long-term debt, net | 30,807 | 30,774 | |
Other non-current liabilities | $ 13 | 11 | |
Cheniere Partners [Member] | |||
Noncontrolling Interest and Variable Interest Entity [Line Items] | |||
Limited Partner ownership percentage | 48.60% | ||
General Partner ownership percentage | 100.00% | ||
Common Units [Member] | Cheniere Partners [Member] | |||
Noncontrolling Interest and Variable Interest Entity [Line Items] | |||
Partners Capital Account, Units, Units Held | 104.5 | ||
Subordinated Units [Member] | Cheniere Partners [Member] | |||
Noncontrolling Interest and Variable Interest Entity [Line Items] | |||
Partners Capital Account, Units, Units Held | 135.4 | ||
Cheniere Partners [Member] | |||
Noncontrolling Interest and Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 1,341 | 1,781 | |
Restricted cash | 167 | 181 | |
Accounts and other receivables, net | 291 | 297 | |
Other current assets | 221 | 184 | |
Total current assets | 2,020 | 2,443 | |
Property, plant and equipment, net | 16,584 | 16,368 | |
Other non-current assets, net | 310 | 309 | |
Total assets | 18,914 | 19,120 | |
Accrued liabilities | 410 | 709 | |
Other current liabilities | 47 | 210 | |
Total current liabilities | 457 | 919 | |
Long-term debt, net | 17,566 | 17,579 | |
Other non-current liabilities | 92 | 104 | |
Total liabilities | $ 18,115 | $ 18,602 | |
[1] | Amounts presented include balances held by our consolidated variable interest entity (“VIE”), Cheniere Partners, as further discussed in Note 8— Non-controlling Interest and Variable Interest Entity. As of June 30, 2020 , total assets and liabilities of Cheniere Partners, which are included in our Consolidated Balance Sheets, were $18.9 billion and $18.1 billion , respectively, including $1.3 billion of cash and cash equivalents and $0.2 billion of restricted cash. |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Interest costs and related debt fees | $ 249 | $ 293 |
Accrued natural gas purchases | 202 | 460 |
LNG terminals and related pipeline costs | 108 | 327 |
Compensation and benefits | 57 | 115 |
Accrued LNG inventory | 11 | 6 |
Other accrued liabilities | 108 | 80 |
Total accrued liabilities | $ 735 | $ 1,281 |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-Term Debt, Net | $ 30,807,000,000 | $ 30,774,000,000 |
Current debt | 237,000,000 | 0 |
Total Debt, Net | 31,044,000,000 | 30,774,000,000 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium, discount and debt issuance costs, net | (672,000,000) | (692,000,000) |
2021 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 2,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2022 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,000,000,000 | 1,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |
2023 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2024 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |
2025 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000,000,000 | 2,000,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2026 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | |
2027 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
2028 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,350,000,000 | 1,350,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.20% | |
2030 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 2,000,000,000 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
2037 SPL Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 800,000,000 | 800,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
2020 SPL Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000,000 | |
2025 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |
2026 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,100,000,000 | 1,100,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | |
2029 CQP Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,500,000,000 | 1,500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | |
2019 CQP Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000,000 | |
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% | |
2029 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 | 3.70% | |
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% | |
CCH Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 3,283,000,000 | 3,283,000,000 |
2025 CCH Holdco II Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,278,000,000 | 1,578,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | |
2021 Cheniere Convertible Unsecured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,216,000,000 | 1,278,000,000 |
Current debt | $ 93,000,000 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |
2045 Cheniere Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 625,000,000 | 625,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Cheniere Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 375,000,000 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | |
Cheniere Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 2,620,000,000 | |
Current Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized premium, discount and debt issuance costs, net | (3,000,000) | 0 |
2015 SPL Working Capital Facility [Member] | ||
Debt Instrument [Line Items] | ||
Current debt | 0 | 0 |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000,000 | |
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 | |
Cheniere Marketing Trade Finance Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Current debt | $ 6,000,000 | $ 0 |
Debt - Material Debt Activities
Debt - Material Debt Activities (Details) - USD ($) | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 31, 2020 | May 31, 2020 |
Line of Credit Facility [Line Items] | |||||||
Gains (Losses) on Modification or Extinguishment of Debt | $ (43,000,000) | $ 0 | $ (44,000,000) | $ 0 | |||
Cheniere Term Loan Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line Of Credit Facility, Original Borrowing Capacity | 2,620,000,000 | 2,620,000,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,620,000,000 | $ 2,620,000,000 | |||||
Line of Credit Facility, Commitment Fee Percentage | 30.00% | ||||||
Cheniere Term Loan Facility [Member] | First Anniversary of Closing Date [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument Duration Fee | 0.25% | ||||||
Cheniere Term Loan Facility [Member] | Second Anniversary of Closing Date [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument Duration Fee | 0.50% | ||||||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||||||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||||
2030 SPL Senior Notes [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||||
2025 Convertible Senior Notes [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Repayments of Convertible Debt | $ 300,000,000 | $ 300,000,000 | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 11.00% | 11.00% | |||||
2020 SPL Working Capital Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line Of Credit Facility, Original Borrowing Capacity | $ 1,200,000,000 | $ 1,200,000,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000,000 | $ 1,200,000,000 | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||||||
2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
SPL [Member] | 2030 SPL Senior Notes [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Face Amount | $ 2,000,000,000 | ||||||
Gains (Losses) on Modification or Extinguishment of Debt | $ 43,000,000 | $ 43,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Debt Instrument Registration Period | 360 days | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000,000 | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.10% | ||||||
Debt Instrument, Debt Service Reserve Ratio | 1.25 | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Commitment Fee Percentage | 0.30% | ||||||
Line of Credit Facility Additional Permitted Increase | $ 800,000,000 | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate Determination Federal Funds Rate [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility [Member] | Base Rate Determination LIBOR [Member] | Base Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||||
SPL [Member] | 2020 SPL Working Capital Facility, Letter of Credit [Member] | Drawn Portion [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Long-term Line of Credit | $ 0 | $ 0 | |||||
Subsequent Event [Member] | Cheniere Term Loan Facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,695,000,000 | ||||||
Cash [Member] | Note Holders [Member] | 2025 Convertible Senior Notes [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Convertible, Conversion Price | $ 1,080 | $ 1,080 |
Debt - Credit Facilities Table
Debt - Credit Facilities Table (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | |||
Outstanding balance - current | $ 237 | $ 0 | |
2020 SPL Working Capital Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Original facility size | 1,200 | ||
Incremental commitments | 0 | ||
Outstanding balance | 0 | 0 | |
Commitments prepaid or terminated | 0 | ||
Letters of credit issued | 409 | ||
Available commitment | $ 791 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Maturity date | Mar. 19, 2025 | ||
2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||
2020 SPL Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.125% | ||
2020 SPL Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
2019 CQP Credit Facilities [Member] | |||
Line of Credit Facility [Line Items] | |||
Original facility size | $ 1,500 | ||
Incremental commitments | 0 | ||
Outstanding balance | 0 | 0 | |
Commitments prepaid or terminated | 750 | ||
Letters of credit issued | 0 | ||
Available commitment | $ 750 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Maturity date | May 29, 2024 | ||
2019 CQP Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
2019 CQP Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.125% | ||
2019 CQP Credit Facilities [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
2019 CQP Credit Facilities [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||
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 prepaid or terminated | 6,687 | ||
Letters of credit issued | 0 | ||
Available commitment | $ 0 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Weighted average interest rate on current debt | 1.93% | ||
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 prepaid or terminated | 0 | ||
Letters of credit issued | 392 | ||
Available commitment | $ 667 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Weighted average interest rate on current debt | 1.43% | ||
Maturity date | Jun. 29, 2023 | ||
CCH Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||
CCH Working Capital Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
CCH Working Capital Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
CCH Working Capital Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Cheniere Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Original facility size | $ 750 | ||
Incremental commitments | 500 | ||
Outstanding balance | 375 | 0 | |
Commitments prepaid or terminated | 0 | ||
Letters of credit issued | 313 | ||
Available commitment | $ 562 | ||
Debt Instrument, Description of Variable Rate Basis | LIBOR or base rate | ||
Weighted average interest rate on current debt | 1.93% | ||
Maturity date | Dec. 13, 2022 | ||
Cheniere Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Cheniere Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||
Cheniere Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Cheniere Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Cheniere Term Loan Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Original facility size | $ 2,620 | ||
Incremental commitments | 0 | ||
Outstanding balance | 0 | $ 0 | |
Commitments prepaid or terminated | 0 | ||
Letters of credit issued | 0 | ||
Available commitment | $ 2,620 | ||
Maturity date | Jun. 18, 2023 | ||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||
Cheniere Term Loan Facility [Member] | Year 1 [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Cheniere Term Loan Facility [Member] | Year 2 [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.75% | ||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Cheniere Term Loan Facility [Member] | Year 3 through maturity [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||
Subsequent Event [Member] | Cheniere Term Loan Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Incremental commitments | $ 75 | ||
Outstanding balance | 2,323 | ||
Available commitment | $ 372 |
Debt - Convertible Notes Table
Debt - Convertible Notes Table (Details) | Mar. 31, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)d$ / shares | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Interest paid-in-kind | $ 34,000,000 | $ 93,000,000 | ||||
Current debt | 237,000,000 | $ 0 | ||||
2021 Cheniere Convertible Unsecured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate original principal | 1,000,000,000 | |||||
Interest paid-in-kind | 309,000,000 | |||||
Aggregate principal redeemed | [1] | 0 | ||||
Aggregate Remaining Principal, Convertible Debt | [1] | 1,309,000,000 | ||||
Equity component | 211,000,000 | |||||
Conversion value in excess of principal | $ 0 | |||||
Maturity date | May 28, 2021 | |||||
Contractual interest rate | 4.875% | |||||
Effective interest rate | [2] | 8.10% | ||||
Remaining debt discount and debt issuance costs amortization period | [3] | 10 months 24 days | ||||
Current debt | $ 93,000,000 | $ 0 | ||||
2021 Cheniere Convertible Unsecured Notes [Member] | Note Holders [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 93.64 | |||||
2025 CCH Holdco II Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate original principal | $ 1,000,000,000 | |||||
Interest paid-in-kind | 578,000,000 | |||||
Aggregate principal redeemed | $ 300,000,000 | 300,000,000 | ||||
Aggregate Remaining Principal, Convertible Debt | 1,278,000,000 | |||||
Debt component, net of discount and debt issuance costs | 1,264,000,000 | |||||
Equity component | $ 0 | |||||
Maturity date | May 13, 2025 | |||||
Contractual interest rate | 11.00% | |||||
Effective interest rate | [2] | 15.60% | ||||
Remaining debt discount and debt issuance costs amortization period | [3] | 3 months 18 days | ||||
2025 CCH Holdco II Convertible Senior Notes [Member] | CCH Holdco II [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible,Threshold Market Capitalization | $ 10,000,000,000 | |||||
Debt Instrument, Convertible, Percentage of Conversion 1, Discount to VWAP | 10.00% | |||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 90 | |||||
Debt Instrument Convertible Threshold Percentage Of Conversion | 10.00% | |||||
2025 CCH Holdco II Convertible Senior Notes [Member] | Cash [Member] | Note Holders [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 1,080 | |||||
2045 Cheniere Convertible Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate original principal | $ 625,000,000 | |||||
Interest paid-in-kind | 0 | |||||
Aggregate principal redeemed | 0 | |||||
Aggregate Remaining Principal, Convertible Debt | 625,000,000 | |||||
Debt component, net of discount and debt issuance costs | 316,000,000 | |||||
Equity component | 194,000,000 | |||||
Conversion value in excess of principal | $ 0 | |||||
Maturity date | Mar. 15, 2045 | |||||
Contractual interest rate | 4.25% | |||||
Effective interest rate | [2] | 9.40% | ||||
Remaining debt discount and debt issuance costs amortization period | [3] | 24 years 8 months 12 days | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 138.38 | |||||
Debt Instrument, Convertible, Conversion Ratio | 7.2265 | |||||
Subsequent Event [Member] | 2021 Cheniere Convertible Unsecured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal redeemed | $ 844,000,000 | |||||
Aggregate Remaining Principal, Convertible Debt | $ 465,000,000 | |||||
[1] | In July 2020, we subsequently repurchased $844 million in aggregate principal amount of outstanding notes at individually negotiated prices from a small number of investors. The aggregate remaining principal after this repurchase was $465 million , which exceeded the remaining commitments under the Cheniere Term Loan Facility by $93 million . As such, $93 million has been reflected as current debt on our Consolidated Balance Sheet as of June 30, 2020 . | |||||
[2] | Rate to accrete the discounted carrying value of the convertible notes to the face value over the remaining amortization period. | |||||
[3] | We amortize any debt discount and debt issuance costs using the effective interest over the period through contractual maturity except for the 2025 CCH HoldCo II Convertible Senior Notes , which are amortized through the date they are first convertible by holders into our common stock. |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | ||||
Total interest cost | $ 469 | $ 458 | $ 940 | $ 906 |
Capitalized interest | (62) | (86) | (121) | (287) |
Total interest expense, net of capitalized interest | 407 | 372 | 819 | 619 |
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest per contractual rate | 57 | 64 | 120 | 126 |
Amortization of debt discount | 20 | 9 | 34 | 19 |
Amortization of debt issuance costs | 4 | 3 | 7 | 6 |
Total interest cost | 81 | 76 | 161 | 151 |
Debt and Finance Leases Excluding Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Total interest cost | $ 388 | $ 382 | $ 779 | $ 755 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | $ 31,044 | $ 30,774 | |
Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [1] | 22,700 | 22,700 |
Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [1] | 24,698 | 24,650 |
2037 SPL Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 800 | 800 |
2037 SPL Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | 948 | 934 |
4.80% CCH Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 727 | 727 |
4.80% CCH Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | 841 | 830 |
3.925% CCH Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 475 | 475 |
3.925% CCH Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes, Estimated Fair Value | [2] | 502 | 495 |
Line of Credit [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [3] | 3,805 | 3,283 |
Line of Credit [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Lines of Credit, Fair Value Disclosure | [3] | 3,805 | 3,283 |
2021 Cheniere Convertible Unsecured Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 1,309 | 1,278 |
2021 Cheniere Convertible Unsecured Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible Debt, Estimated Fair Value | [2] | 1,332 | 1,312 |
2025 Convertible Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [2] | 1,278 | 1,578 |
2025 Convertible Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible Debt, Estimated Fair Value | [2] | 1,495 | 1,807 |
2045 Cheniere Convertible Senior Notes [Member] | Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying Amount, Debt | [4] | 625 | 625 |
2045 Cheniere Convertible Senior Notes [Member] | Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible Debt, Estimated Fair Value | [4] | $ 394 | $ 498 |
[1] | Includes (1) the SPL Senior Notes except the 2037 SPL Senior Notes , (2) all series of the CQP senior notes including the 2025 CQP Senior Notes , 2026 CQP Senior Notes and 2029 CQP Senior Notes and (3) the CCH senior notes sold on a private placement basis in reliance on Section 4(a)(2) of the Securities Act and Rule 144A and Regulation S thereunder including the 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 our stock price and interest rates based on debt issued by parties with comparable credit ratings to us and inputs that are not observable in the market. | ||
[3] | Includes 2015 SPL Working Capital Facility , 2020 SPL Working Capital Facility , 2019 CQP Credit Facilities , CCH Credit Facility , CCH Working Capital Facility , Cheniere Revolving Credit Facility , Cheniere Term Loan Facility and Cheniere Marketing trade finance facilities . 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. | ||
[4] | The Level 1 estimated fair value was based on unadjusted quoted prices in active markets for identical liabilities that we had the ability to access at the measurement date. |
Leases - Balance Sheet Location
Leases - Balance Sheet Location Table (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets—Operating | $ 520 | $ 439 |
Total right-of-use assets | 575 | 495 |
Current operating lease liabilities | 179 | 236 |
Non-current operating lease liabilities | 347 | 189 |
Non-current finance lease liabilities | 58 | 58 |
Total lease liabilities | 585 | 484 |
Operating lease assets, net [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets—Operating | 520 | 439 |
Property, plant and equipment, net [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets—Financing | 55 | 56 |
Current operating lease liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Current operating lease liabilities | 179 | 236 |
Other current liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Current finance lease liabilities | 1 | 1 |
Non-current operating lease liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Non-current operating lease liabilities | 347 | 189 |
Non-current finance lease liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Non-current finance lease liabilities | $ 58 | $ 58 |
Leases - Income Statement Locat
Leases - Income Statement Location Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Finance lease cost: | |||||
Total lease cost | $ 102 | $ 144 | $ 246 | $ 284 | |
Short-term lease cost | 16 | 46 | 51 | 93 | |
Variable lease cost | 4 | 8 | 9 | 13 | |
Operating costs and expenses [Member] | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease cost | [1],[2] | 98 | 140 | 239 | 277 |
Depreciation and amortization expense [Member] | |||||
Finance lease cost: | |||||
Amortization of right-of-use assets | 1 | 1 | 2 | 2 | |
Interest expense, net of capitalized interest [Member] | |||||
Finance lease cost: | |||||
Interest on lease liabilities | $ 3 | $ 3 | $ 5 | $ 5 | |
[1] | Includes short-term lease costs of $16 million and $46 million during the three months ended June 30, 2020 and 2019 , respectively, and $51 million and $93 million during the six months ended June 30, 2020 and 2019 , respectively. Also includes variable lease costs paid to the lessor of $4 million and $8 million during the three months ended June 30, 2020 and 2019 , respectively, and $9 million and $13 million during the six months ended June 30, 2020 and 2019 , respectively. | ||||
[2] | Presented in cost of sales, operating and maintenance expense or selling, general and administrative expense consistent with the nature of the asset under lease. |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Table (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($) | ||
Operating Leases, Future Minimum Payments | ||
2020 | $ 135 | [1] |
2021 | 121 | [1] |
2022 | 85 | [1] |
2023 | 71 | [1] |
2024 | 71 | [1] |
Thereafter | 221 | [1] |
Total lease payments | 704 | [1] |
Less: Interest | (178) | [1] |
Present value of lease liabilities | 526 | [1] |
Finance Leases, Future Minimum Payments | ||
2020 | 5 | |
2021 | 10 | |
2022 | 10 | |
2023 | 10 | |
2024 | 10 | |
Thereafter | 136 | |
Total lease payments | 181 | |
Less: Interest | (122) | |
Present value of lease liabilities | 59 | |
Operating Lease, Lease Not yet Commenced, Payments Due | $ 1,700 | |
Lessee, Operating Lease, Lease Not yet Commenced, Period Until Commencement | 2 years | |
Maximum [Member] | ||
Finance Leases, Future Minimum Payments | ||
Operating Leases, Lease Not yet Commenced, Term of Contract | 7 years | |
[1] | Does not include $1.7 billion of legally binding minimum lease payments primarily for vessel charters which were executed as of June 30, 2020 but will commence in future period primarily in the next two years and have fixed minimum lease terms of up to seven years . |
Leases - Other Quantitative Inf
Leases - Other Quantitative Information (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Operating Leases | ||||
Weighted-average remaining lease term | 8 years 7 months 6 days | 8 years 4 months 24 days | ||
Weighted-average discount rate | [1] | 7.40% | 5.20% | |
Finance Leases | ||||
Weighted-average remaining lease term | 18 years 2 months 12 days | 18 years 8 months 12 days | ||
Weighted-average discount rate | [1] | 16.20% | 16.20% | |
Operating cash flows from operating leases | $ 157 | $ 174 | ||
Operating cash flows from finance leases | 5 | 5 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 246 | $ 106 | ||
[1] | The finance leases commenced prior to the adoption of the current leasing standard under GAAP. In accordance with previous accounting guidance, the implied rate is based on the fair value of the underlying assets. |
Leases - Subleases (Details)
Leases - Subleases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Sublease Payments Receivable in 2020 | $ 1 | $ 1 | $ 9 | ||
Sublease Income, Total | 23 | $ 31 | 75 | $ 68 | |
Sublease Income, Variable | $ 8 | $ 5 | $ 23 | $ 10 |
Revenues from Contracts with _3
Revenues from Contracts with Customers - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
LNG [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 26.00% | 52.00% | 34.00% | 55.00% |
Regasification [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Variable Consideration Received From Customers, Percentage | 3.00% | 3.00% | 3.00% | 3.00% |
Revenues from Contracts with _4
Revenues from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | $ 2,424 | $ 2,168 | $ 4,917 | $ 4,316 | ||
Net derivative gains (losses) | [1] | (45) | 93 | 119 | 169 | |
Other revenues | [2] | 23 | 31 | 75 | 68 | |
Total revenues | 2,402 | 2,292 | 5,111 | 4,553 | ||
LNG [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | [3] | 2,340 | 2,080 | 4,744 | 4,147 | |
Total revenues | 2,295 | 2,173 | 4,863 | 4,316 | ||
Suspension Fees and LNG Cover Damages Revenue [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 708 | 761 | ||||
Suspension Fees and LNG Cover Damages Revenue [Member] | Subsequent Period [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 458 | [3] | 458 | |||
Suspension Fees and LNG Cover Damages Revenue [Member] | Current Period [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Accelerated Revenue From Contract With Customers | 53 | |||||
Regasification [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 68 | 67 | 135 | 133 | ||
Other [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenues from contracts with customers | 16 | 21 | 38 | 36 | ||
Total revenues | $ 39 | $ 52 | $ 113 | $ 104 | ||
[1] | See Note 6—Derivative Instruments for additional information about our derivatives. | |||||
[2] | Includes revenues from LNG vessel subcharters. See Note 11—Leases for additional information about our subleases. | |||||
[3] | 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. LNG revenues during the three and six months ended June 30, 2020 included $708 million and $761 million , respectively, in revenues associated with LNG cargoes for which customers have notified us that they will not take delivery , of which $458 million would have otherwise been recognized subsequent to June 30, 2020, if the cargoes were lifted pursuant to the delivery schedules with the customers. LNG revenues during the three months ended June 30, 2020 excluded $53 million that would have otherwise been recognized during the quarter if the cargoes were lifted pursuant to the delivery schedules with the customers. Revenue is generally recognized upon receipt of irrevocable notice that a customer will not take delivery because our customers have no contractual right to take delivery of such LNG cargo in future periods and our performance obligations with respect to such LNG cargo have been satisfied. |
Revenues from Contracts with _5
Revenues from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets, net | $ 58 | $ 18 |
Change In Contract With Customer, Liability [Roll Forward] | ||
Deferred revenues, beginning of period | 161 | |
Cash received but not yet recognized | 23 | |
Revenue recognized from prior period deferral | (161) | |
Deferred revenues, end of period | $ 23 |
Revenues from Contracts with _6
Revenues from Contracts with Customers - Schedule of Transaction Price Allocated to Future Performance Obligations (Details) - USD ($) $ in Billions | Jun. 30, 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 | $ 108.8 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 106 | ||
LNG [Member] | 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 | $ 106.4 | ||
Weighted Average Recognition Timing | [1] | 11 years | |
LNG [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 103.7 | ||
Weighted Average Recognition Timing | [1] | 10 years | |
Regasification [Member] | 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 | $ 2.4 | ||
Weighted Average Recognition Timing | [1] | 5 years | |
Regasification [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Unsatisfied Transaction Price | $ 2.3 | ||
Weighted Average Recognition Timing | [1] | 5 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. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 63 | $ 0 | $ 194 | $ 3 |
Effective Income Tax Rate | 13.50% | 0.00% | 16.20% | 0.90% |
U.S. corporate income tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income tax expense as a result of one-time discrete event | $ 38 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - 2011 Incentive Plan [Member] shares in Millions | 6 Months Ended |
Jun. 30, 2020shares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units Granted | 1.2 |
Share Based Compensation Arrangement By Share Based Payment Award, Award Vesting Period, Vests Ratably Over Service Period | 3 years |
Performance Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units Granted | 0.3 |
Award Vesting Period, Cliff Vesting | 3 years |
Performance Units [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Target Amount Earned Upon Vesting If Threshold Performance is Met | 0.00% |
Performance Units [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Target Amount Earned Upon Vesting If Threshold Performance is Met | 300.00% |
Common Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Units Granted | 0.2 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 32 | $ 34 | $ 61 | $ 66 |
Capitalized share-based compensation | (3) | (1) | (4) | (5) |
Total share-based compensation expense | 29 | 33 | 57 | 61 |
Tax benefit associated with share-based compensation expense | 1 | 0 | 19 | 1 |
Equity Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | 31 | 32 | 60 | 61 |
Liability Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation | $ 1 | $ 2 | $ 1 | $ 5 |
Net Income (Loss) Per Share A_3
Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Weighted Average Number of Common Shares Outstanding, Basic | 252.1 | 257.4 | 252.6 | 257.3 | |
Dilutive Unvested Stock | 0.3 | 0 | 0.7 | 1.3 | |
Weighted Average Number of Shares Outstanding, Diluted | 252.4 | 257.4 | 253.3 | 258.6 | |
Basic net income (loss) per share attributable to common stockholders | [1] | $ 0.78 | $ (0.44) | $ 2.27 | $ 0.11 |
Diluted net income (loss) per share attributable to common stockholders | [1] | $ 0.78 | $ (0.44) | $ 2.26 | $ 0.11 |
Antidilutive securities excluded from computation of earnings per share | 7.3 | 21.6 | 7 | 21.6 | |
Unvested stock [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | [2] | 2.8 | 3.8 | 2.5 | 3.8 |
2021 Cheniere Convertible Notes [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | [3] | 0 | 13.3 | 0 | 13.3 |
2025 CCH HoldCo II Convertible Notes [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | [4] | 0 | 0 | 0 | 0 |
2045 Cheniere Convertible Notes [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 4.5 | 4.5 | 4.5 | 4.5 | |
Restricted Stock With Unsatisfied Performance Conditions [Member] | |||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Antidilutive securities excluded from computation of earnings per share | 0.7 | 0.6 | 0.7 | 0.6 | |
[1] | Earnings per share in the table may not recalculate exactly due to rounding because it is calculated based on whole numbers, not the rounded numbers presented. | ||||
[2] | Does not include 0.7 million shares for each of the three and six months ended June 30, 2020 and 0.6 million shares for each of the three and six months ended June 30, 2019 , respectively, of unvested stock because the performance conditions had not yet been satisfied as of the respective dates. | ||||
[3] | Since we have the intent and ability to settle the remaining outstanding principal amount of the 2021 Cheniere Convertible Unsecured Notes in cash and the excess conversion premium (the “conversion spread”) in either cash or shares, the treasury stock method was applied for calculating any potential dilutive effect of the conversion spread on net income per share for the three and six months ended June 30, 2020 . However, since the average market price of our common stock did not exceed the conversion price of our 2021 Cheniere Convertible Unsecured Notes , the conversion spread was excluded from the computation of diluted net income per share for the three and six months ended June 30, 2020 . | ||||
[4] | Since we had the intent and ability to settle the principal amount and the premium upon redemption of the 2025 CCH HoldCo II Convertible Senior Notes in cash, as previously described in Note 10—Debt , the 2025 CCH HoldCo II Convertible Senior Notes were not included in the computation of net income per share for the three and six months ended June 30, 2020 . There were no shares related to the conversion of the 2025 CCH HoldCo II Convertible Senior Notes included in the computation of diluted net income (loss) per share for the three and six months ended June 30, 2019 , because the substantive non-market based contingencies underlying the eligible conversion date were not met as of June 30, 2019 . |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||||
Stock Repurchase Program, Period in Force | 3 years | |||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 1,000 | ||
Treasury Stock, Shares, Acquired | 0 | 44,600 | 2,875,376 | 44,600 |
Treasury Stock Acquired, Average Cost Per Share | $ 0 | $ 68.30 | $ 53.88 | $ 68.30 |
Payments for Repurchase of Common Stock | $ 0 | $ 3 | $ 155 | $ 3 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 596 | $ 596 |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Customer A [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 15.00% | 17.00% | 15.00% | 18.00% | |
Customer A [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | ||||
Customer B [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | 11.00% | 10.00% | 11.00% | |
Customer C [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 11.00% | 12.00% | ||
Customer C [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | 13.00% | |||
Customer D [Member] | Total Revenues from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 12.00% | 13.00% | |||
Customer E [Member] | Accounts Receivable, Net and Contract Assets, Net from External Customers [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration Risk, Percentage | 10.00% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid during the period for interest on debt, net of amounts capitalized | $ 750 | $ 271 |
Cash paid for income taxes | 1 | 20 |
Balance in property, plant and equipment, net funded with accounts payable and accrued liabilities | $ 222 | $ 958 |