Skip to main content DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. | Shale Experts
Loading...
Pm

DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Dec 26, 2011 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 1
    Cheniere Energy December 2011
  2. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 2
    Cheniere Cheniere is engaged in the development and operation of LNG terminals and pipelines and marketing of LNG and natural gas Sabine Pass LNG Terminal became operational in 2008 and cost 1.6B, send-out capacity is 4.0 Bcf/d,…
  3. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 3
    Cheniere Expansion Project: Adding Liquefaction Capabilities at Sabine Pass LNG Terminal Transforming terminal into bi-directional import / export facility Proposed liquefaction project at the Sabine Pass LNG Terminal is being…
  4. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 4
    LNG Export Service at Sabine Pass will Provide Opportunity to Arbitrage Henry Hub vs. Oil Worldwide LNG prices predominantly based on oil prices = 11 - 23 / MMBtu LNG Contract Price Indexation % 11% 15% at 100/bbl 11.00 15.00 at…
  5. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 5
    Global Petroleum Demand Stationary Sources FSU FSU 0.9 0.9 MM MM b/d b/d Europe Europe 5 Bcf/d 5 Bcf/d US US && Canada Canada 2.9 2.9 MM MM b/d b/d 2.2 2.2 MM b/d MM b/d 17 Bcf/d 17 Bcf/d 13 13 Bcf/d Bcf/d Mid…
  6. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 6
    Proposed Liquefaction Project: Brownfield Development Utilizing Existing Assets Current Facility 853 acres in Cameron Parish, LA 40 ft ship channel 3.7 miles from coast 2 berths; 4 dedicated tugs Existing operational 5 LNG…
  7. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 7
    First Phase of the Project: Advancing Towards Making a Final Investment Decision Significant milestones achieved for the first phase of the project- progress for two liquefaction trains Milestone Target Date DOE export…
  8. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 8
    Sale and Purchase Agreements (SPAs): Reached contract target for the first phase of the project Commercial contracts for target annual quantity of 7.0 mtpa BG Gulf Coast LNG Gas Natural Fenosa Annual Contract Quantity 182,500,000…
  9. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 9
    Commercial Structure: Estimated Terms of Additional LNG SPA Contracts Continuing discussions with interested parties for trains 3 and 4 Summary of Estimated Terms for Additional LNG SPA Contracts: Fixed Fee: 3.00/MMBtu for trains 3…
  10. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 10
    EPC Contract Signed for First Phase Entered into lump sum, turnkey contract with Bechtel for trains 1 & 2 Total project cost for two trains expected to be 4.5B to 5.0B before financing costs EPC Contract cost is 3.9B, subject only…
  11. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 11
    ConocoPhillips-Bechtel Global LNG Collaboration Collaboration projects onstream ahead of schedule and exceeded expectations Proven Designs 1969 1999 2006 2007 2012 Source: ConocoPhillips, Bechtel Note: Past results not a…
  12. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 12
    Regulatory Process Update DOE authorization received, FERC authorization remaining FERC: Authorization to Construct DOE: Authorization to Export Base site permitted 9 9 Filed two applications in 8/2010 & 9/2010 NEPA pre-filing…
  13. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 13
    Summary Proposed Financial Structure Cheniere to initiate financial commitment process Expecting to fund capital costs with combination of debt and equity NYSE Amex US Stock Symbol: LNG 86.8% through LP Interest NYSE Amex US 2%…
  14. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 14
    Estimated Financial Impact - Liquefaction Project (Annualized) Cheniere expected to benefit from distributions received through its CQP ownership and management contracts, and fees paid to Creole Trail Pipeline Contracted…
  15. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 15
    CHENIERE ENERGY Financial
  16. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 16
    Organizational Structure NYSE Amex US: LNG 205 mm 2.25% Convertible Senior Unsecured Notes due 2012 100% Ownership Interest Creole Trail Pipeline Cheniere LNG, Inc. Other Pipeline Projects 100% Ownership Interest 298 mm…
  17. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 17
    Estimated CQP Distributable Cash Flows Annualized estimates pre-Liquefaction Project Future cash receipts expected from Liquefaction Project Receipts* ( in MM) TUAs Chevron and Total 253 Other Services 16 Total Cash Receipts 269…
  18. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 18
    CQP Ownership Cheniere (in mm) Energy, Inc. Public Total Common Units 12.0 19.0 31.0 Subordinated Units 135.4 - 135.4 General Partner 2% 3.4 - 3.4 150.8 19.0 169.8 Percent of total 88.8% 11.2% 100% Currently, CQP generates…
  19. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 19
    Estimated LNG Net Cash Flows* Annualized estimates pre-Liquefaction Project Existing LNG cash receipts (below) expected to increase from CQP Liquefaction Project - unit distributions, management fees and Creole Trail P/L tariffs…
  20. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 20
    Condensed Balance Sheets As of September 30, 2011 ( in MM) Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. (2) Unrestricted cash and equivalents - 131 131 - Restricted cash and…
  21. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 21
    CHENIERE ENERGY U.S. Natural Gas Markets
  22. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 22
    U.S. Natural Gas Consumption vs. Production Since 2005 U.S. production growth 4.9 Tcf vs. demand growth 2.6 Tcf Net imports declined 1.6 Tcf (-50%) over the period 1 Tcf production added each year since 2006 The U.S. is on pace to…
  23. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 23
    U.S. Proved Non-Producing Reserves (Tcf) Non-producing proved U.S. gas reserves +100% since 2003 to 98 Tcf Equivalent to 13 Bcf/d of LNG exports for 20+ years Over 3,000 gas wells drilled but not hooked up representing 8-10 Bcf/d…
  24. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 24
    U.S. Horizontal Rigs Emerging shale plays erase oil and gas drilling distinction Horizontal drilling +750% since 2005; pace of rig construction determines market capacity 1,200 HZ Rigs 1,000 800 600 400 Barnett Shale HZ…
  25. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 25
    Oil Production Drives Investment Decisions for Gas Expected liquids production from shale plays 3 million b/d by 2020 Associated natural gas 7 Bcf/d of costless supply Bcf/d Annual Production from Unconventional Reservoirs MMB/d 8…
  26. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 26
    Venting and Flaring The U.S. vented and flared 165 Bcf of natural gas in 2009 North Dakotas share amounted to 27 Bcf; +156% increase from 2007 There are New Bakkens emerging in liquids-rich shale plays (Eagle Ford, Niobrara,…
  27. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 27
    U.S. Natural Gas Resources (Tcf) Estimated U.S. reserves increased by 86% in last 3 years to 2,543 Tcf Represents 100+ years of natural gas resources 2,543 2,119 1,747 1,365 2008 2009 2010 2011 Other Shale Source:…
  28. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 28
    CHENIERE ENERGY LNG Fundamentals
  29. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 29
    Global LNG Market LNG Importers Price Indexation 2010 Total Global LNG Liquefaction Capacity 37 Bcf/d Oil Products 2010 Regional LNG Demand 30 Bcf/d Natural Gas Algeria - 2.7 JCC Norway - 0.6 Egypt - 1.6 USA - 0.2 Qatar - 9.3…
  30. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 30
    Firm Liquefaction Capacity Additions Bcf/d Nameplate Liquefaction Capacity 37 Bcf/d by YE 2010 3.0 44 Bcf/d by YE 2015 Middle East Gulf 2.5 Asia Pacific Atlantic Basin Gorgon T1 & Gassi Touil Papua New Guinea 2.0 Gorgon T2 &…
  31. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 31
    Market Call for LNG (Bcf/d) Average 2010 LNG demand of 30 Bcf/d at 10-year historical compound average growth rate of 7% per year equates to 42 Bcf/d of demand in 2015 Next wave of LNG supply expected to come from Australian and…
  32. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 32
    Attractive Oil Linked Market Prices Spread between oil linked and U.S. natural gas prices 913/MMBtu /MMBtu Regional Natural Gas & LNG Prices 12% 12% 15% 15% 20 of of Oil Oil Prices Prices 16 16.64 12 12.21 8 8.71 4…
  33. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 33
    CHENIERE ENERGY Appendix
  34. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 34
    North America Onshore Receiving Terminals Terminal Baseload Capacity Holder Sendout (MMcf/d) Canaport Canaport Canaport 1,000 Repsol Everett - Suez 700 Everett Cove Point 1,800 Everett BP, Statoil, Shell Elba Island 1,800…
  35. DECEMBER 2011 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 35
    CHENIERE ENERGY Cheniere Energy Contacts Katie Pipkin, Vice President Finance & Investor Relations (713) 375-5110 katie.pipkincheniere.com Christina Burke, Manager Investor Relations (713) 375-5104 christina.burkecheniere.com

From the store

Browse maps, data & reports in the Shale Experts store