Cheniere Energy’s outstanding debt
Cheniere Energy’s (LNG) total outstanding debt by the end of the second quarter was $19.5 billion, which is ~$3.0 billion higher than the total debt outstanding in 2Q15.
Cheniere Energy’s current outstanding debt includes $13.2 billion of debt sitting on Cheniere Energy Partners’s (CQP) balance sheet. Cheniere Energy Partners is Cheniere Energy’s subsidary.
Cheniere Energy issued ~$2.8 billion in senior secured notes in 2Q16 to repay borrowing under the credit facilities at Sabine Pass and Corpus Christi. Sabine Pass LNG must repay $1.7 billion of debt maturing in November 2016. However, Cheniere Energy and its subsidiary has no debt maturity until 2020 following these repayments.
Cheniere Energy’s high leverage has remained a major concern for its investors for quite some time, considering its huge outstanding debt, growth plans, and negative cash flows. Over the long term, Cheniere Energy expects to service its debt from cash flow generated through long-term contracts.