Cheniere Energy’s outstanding debt
Cheniere Energy’s (LNG) total outstanding debt by the end of the second quarter was $20.8 billion, which was $4.2 billion higher than its total debt outstanding in 2015. This includes $13.9 billion of debt on Cheniere Energy Partners’ (CQP) balance sheet.
Cheniere Energy Partners’ subsidiary, SPL (Sabine Pass Liquefaction), was upgraded to investment grade by Standard & Poor’s. As a result, SPL issued $1.5 billion in senior secured notes in September 2016 to repay borrowing under the credit facilities. Sabine Pass LNG (liquefied natural gas) has to repay $1.7 billion of debt maturing in November 2016. However, Cheniere Energy and its subsidiary have no debt maturities 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 and negative cash flow. Over the long term, Cheniere Energy expects to service its debt from cash flow generated through long-term contracts.