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Cheniere Energy’s Balance Sheet before Its 4Q16 Earnings

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Cheniere Energy’s outstanding debt

Cheniere Energy’s (LNG) total outstanding debt by the end of the second quarter was $20.8 billion. Its debt was ~$4.2 billion higher than the total outstanding debt in 2015. It includes ~$14.0 billion in debt sitting on Cheniere Energy Partners’ (CQP) balance sheet.

Recently, Cheniere Energy announced the issuance of $1.5 billion worth of senior secured notes to prepay borrowing under the Cheniere Corpus Christi Holdings credit facilities. Cheniere Energy’s high leverage has remained a major concern for its investors for quite some time considering its huge outstanding debt and low cash flows. Over the long term, Cheniere Energy expects to service its debt from cash flows generated through long-term contracts.

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