Replies to post #58 on Cheniere Energy Partners LP. (CQP)

[Timothy Smith]

Overview of Recent Significant Events

In July 2012, we closed on a $3.6 billion senior secured credit facility that will be used to fund a portion of the costs of developing, constructing and placing into service LNG trains 1 and 2 of the Liquefaction Project. We also received from Cheniere Energy, Inc. the remaining $333 million of its $500 million equity commitment in our Class B Units.

In August 2012, Blackstone CQP Holdco LP ("Blackstone") purchased its initial $500 million of Class B Units from us, and we issued a full notice to proceed to Bechtel to construct LNG trains 1 and 2 of the Liquefaction Project. As of October 31, 2012, Blackstone purchased $800 million additional Class B Units for an aggregate investment of $1.3 billion.

In September 2012, we sold 8.0 million common units in an underwritten public offering at a price of $25.07 per common unit for net cash proceeds of approximately $194 million.

In October 2012, Sabine Pass LNG, L.P. ("Sabine Pass LNG") repurchased approximately 97% of the outstanding $550 million 7.25% Senior Secured Notes due 2013 through a tender offer. The repurchase was funded from an equity contribution from Cheniere Partners and from newly issued $420 million 6.50% Senior Secured Notes due in 2020.

[big-yank]

Tom Ward now under intense scrutiny as the class action wolves zero in on Sandridge and management/board misalignment with shareholder interests.

CHK trending down to $17 where I might take another bite.

Cheniere is trading at bargain basement prices. Interesting to note that LNG & CQP do not trade up or down in a linear relationship, at least partially explained by the different posture on dividends.