SEC Comment Letter for Cheniere Energy Partners, L.P. (CQP) (CIK 0001383650) (CQP) — Feb 15, 2007
Cheniere Energy Partners, L.P. (CQP) (CIK 0001383650)
Date: Feb. 15, 2007 · CIK: 0001383650 · Accession: 0000000000-07-008025
AI Filing Summary & Sentiment
File numbers found in text: 333-139572
Referenced dates: January 19, 2007
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Mail Stop 3561 February 12, 2007 Don A. Turkleson, Chief Financial Officer Cheniere Energy Partners, L.P. 717 Texas Avenue, Suite 3100 Houston, TX 77002 Re: Cheniere Energy Partners, L.P. Amendment No. 1 to Registrati on Statement on Form S-1 Filed January 25, 2007 File No. 333-139572 Dear Mr. Turkleson: We have reviewed your filing and have th e following comments. Where indicated, we think you should revise your document in response to these comments. If you disagree, we will consider your explanation as to why our commen t is inapplicable or a revision is unnecessary. Please be as detailed as necessary in your explanation. In some of our comments, we may ask you to provide us with information so we may bette r understand your disclosure. After reviewing this information, we may raise additional comments. Dilution, page 46 1. Revise your dilution table to reflect the dist ribution to Cheniere Holdings highlighted on page 45. Conversely, update the table to re flect year end balances, given that the distribution occurred prior to year end. Security Ownership of Certain Benefi cial Owners and Management …, page 128 2. We note your response to comment 27 in our letter dated January 19, 2007. Please revise your disclosure to clearly identify the selling unitholder as an underwriter. Don A. Turkleson Cheniere Energy Partners, L.P. February 12, 2007 Page 2 Financial Statements, pages F-1 3. We note your responses to comments 32 and 34 in our letter dated January 19, 2007. Please provide a pro forma balance sheet and statement of operations that clearly reflect the change in capital structure, distribu tions that you have or intend to make to any current owners, how you allocate earnings or loss to the gene ral and limited partners and earnings per limited partnership unit (i.e. se parately for common units and subordinated units). Ensure that you provide a note to these pro forma fina ncial statements that clearly explains how you allocated earnings and computed earnings per limited partnership unit. Please see Regulation S-X Rule 11-01(a)(8). Also s ee SAB Topics 1:B.2 and 3. and Topic 4:F. 4. Please remember to update your audited financia l statements as appropriate. We note that you are required to have audited financial statements as of December 31, 2006 on or after February 15, 2007. We remind you to pr ovide updated consents as well. Note 1 – Organization, page F-7 5. We note your response to comment 31 in our letter dated January 19, 2007. Please expand your policy to include relevant information in your response that is not included in the principles of organization. Please clarify your disclosure to state, if true, the combined financial statements for these commonly contro lled entities are prepared consistent with consolidated financial statement principles that will be applied after this offering is completed. Specifically disclose the elimin ation of intercompany balances, profits or losses; the elimination of equity accounts wh ere parent-subsidiary relationships exist and other related accounting matters. Where this is not true please disclose the basis for these differences and the impact on your financial pos ition, results of operations and cash flows, if applicable. See paragraph 23 of ARB 51. Note 8 – Derivative Instruments, page F-13 6. Consistent with the revised disclosure in Sabine Pass LNG, L.P., please expand your accounting policy to disclose your effectivene ss testing and how the application of the cumulative dollar offset method results in diffe rent accounting treatments for the effective and ineffective portions of your cash flow hedge. * * * * * Don A. Turkleson Cheniere Energy Partners, L.P. February 12, 2007 Page 3 As appropriate, please amend your registration statement in response to these comments. You may wish to provide us with marked copies of the amendment to exped ite our review. Please furnish a cover letter with your amendment that ke ys your responses to ou r comments and provides any requested information. Detailed cover letters greatly facilitate our re view. Please understand that we may have additional comments after reviewing your amendment and responses to our comments. You may contact Brian McAllis ter, Accountant, at (202) 551-3341 or Michael Moran, Accounting Branch Chief, at (202) 551-3841, if you have questions regarding comments on the financial statements and related matters. Please contact Scott Anderegg, St aff Attorney, at (202) 551-3342, Ellie Quarles, Special Counsel, at ( 202) 551-3238, or me at (202) 551-3720 with any other questions. Sincerely, H. Christopher Owings Assistant Director cc: Geoffrey K. Walker, Esq. (713) 220-4285