Why Cheniere Energy’s Balance Sheet Looks Alarming



Cheniere Energy’s outstanding debt

Cheniere Energy’s (LNG) debt has continued to grow. Its total outstanding debt was $21.9 billion at the end of 2016, which is ~$5.3 billion higher than its total debt outstanding in 2015. This total includes ~$14.5 billion of debt sitting on subsidiary Cheniere Energy Partners’ (CQP) balance sheet.

Cheniere Energy recently announced the issuance of $1.5 billion in senior secured notes to repay 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 flow. Over the long term, Cheniere Energy expects to service its debt from cash flow generated through long-term contracts.

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