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JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Jun 8, 2010 · 32 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. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 1
    Cheniere Energy, Inc. Corporate Presentation June 2010
  2. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 2
    Cheniere and CQP Restructure Marketing Arrangement
  3. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 3
    Cheniere and CQP Restructure Marketing Arrangement* Transaction Summary CMI assigned its 2.0 Bcf/d TUA with Sabine Pass LNG to direct subsidiary of CQP, Cheniere Energy Investments, LLC (Investments) Investments will make TUA…
  4. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 4
    Organizational Structure TUA Assignment and new VCRA NYSE Amex US: LNG 100% Ownership Interest Cheniere LNG Holdings, LLC Cheniere Marketing, LLC 88.6% LP Interest 100% of 2% GP Interest NYSE Amex US: CQP VCRA Public…
  5. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 5
    Estimated Future Cash Flows Cheniere Energy, Inc. ( in MM) Annualized* Receipts Distributions from CQP (Common/GP) 20 Management fees from CQP 8-19** Disbursements G&A, net Marketing 25-35 Pipeline & tug services 10 Other,…
  6. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 6
    Estimated Future Cash Flows Cheniere Energy Partners ( in MM) Annualized* Receipts TUA Customers 251 Fuel Retainage, Tugs, Other 7 Disbursements Operating Expenses 34 Management Fees 8 Debt Service 165 Distributable Cash…
  7. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 7
    Cheniere Business Segments Cheniere Cheniere Energy, Energy, Inc. Inc. (Cheniere) (Cheniere) Terminals Terminals Pipelines Pipelines Marketing Marketing (CMI) (CMI) Sabine Pass LNG (SPLNG) (90.6%)* Creole Trail P/L…
  8. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 8
    Sabine Pass LNG Cheniere Energy, Inc. 90.6% Aerial view of Sabine Pass LNG Vaporization 4.3 Bcf/d peak send-out Storage 5 tanks x 160,000 cm (16.9 Bcfe) Berthing / Unloading Two docks LNG carriers up to 266,000 cm Four…
  9. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 9
    Creole Trail Pipeline Cheniere Energy, Inc. 100% Provides optimal market access for LNG from the Sabine Pass terminal First 94 miles complete and in-service, additional 58 miles permitted Size: 2.0 Bcf/d Diameter: 42-inch…
  10. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 10
    Liquefaction Project
  11. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 11
    Expanding Operations Liquefaction Project* Compelling Proposition Sabine Pass to become bi-directional import/export facility Market fundamentals create opportunity to expand into exports Export services provide customers with an…
  12. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 12
    Market Fundamentals Drive Liquefaction Project The U.S. has become the largest producer of natural gas in the world and production costs rank among the lowest Productive capacity at 6.50/MMBtu could reach 95 Bcf/d by 2020 U.S.…
  13. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 13
    U.S. Unconventional Reserves Basins Proximate to Premium Markets and Major Pipelines Lower 48 Technically Recoverable Unconventional Reserves (Tcf) 1600 1,167 Tcf Shale 1200 CBM Tight Gas 800 366 Tcf US Proved 400 Reserves…
  14. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 14
    Sabine Pass LNG Proposed Liquefaction Project - Overview Leveraging existing assets Large acreage position (853 acres) Can readily accommodate 4 liquefaction trains (up to 2 Bcf/d capacity) Existing infrastructure 2 docks, 4…
  15. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 15
    Low Cost Liquefaction Facilities Proven Technology ConocoPhillips-Bechtel Global Liquefaction Collaboration Cost 450 400 350 300 250 200 150 100 50 0 Qatargas Nigeria RasGas ELNGT1 Oman ALNGT1 ALNGT1-3 ELNGT1-2…
  16. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 16
    Commercial Structure Estimated Terms for LNG Sales Agreements Capacity fee includes regasification and liquefaction services - provides customer option to import or export Estimated cost to purchase U.S. supply: Capacity Fee:…
  17. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 17
    Financial
  18. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 18
    2010 Financial Developments Cheniere Energy, Inc. Entered into marketing arrangement with JPMorgan Reduced working capital requirements for cargo purchases/sales Sold 30% equity in Freeport to pay down debt Paid down 102 million…
  19. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 19
    JPMorgan Arrangement Cheniere and JPMorgan joined LNG marketing efforts CMI provides all services related to: sourcing deals and negotiating contracts, purchasing, transporting, receiving, storing, regasifying and selling cargoes…
  20. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 20
    Cheniere and CQP Restructure Marketing Arrangement* Transaction Summary CMI assigned its 2.0 Bcf/d TUA with Sabine Pass LNG to direct subsidiary of CQP, Cheniere Energy Investments, LLC (Investments) Investments will make TUA…
  21. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 21
    Organizational Structure TUA Assignment and new VCRA NYSE Amex US: LNG 100% Ownership Interest Cheniere LNG Holdings, LLC Cheniere Marketing, LLC 88.6% LP Interest 100% of 2% GP Interest NYSE Amex US: CQP VCRA Public…
  22. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 22
    Estimated Future Cash Flows Cheniere Energy, Inc. ( in MM) Annualized* Receipts Distributions from CQP (Common/GP) 20 Management fees from CQP 8-19** Disbursements G&A, net Marketing 25-35 Pipeline & tug services 10 Other,…
  23. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 23
    Estimated Future Cash Flows Cheniere Energy Partners ( in MM) Annualized* Receipts TUA Customers 251 Fuel Retainage, Tugs, Other 7 Disbursements Operating Expenses 34 Management Fees 8 Debt Service 165 Distributable Cash…
  24. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 24
    Organizational Structure NYSE Amex US: LNG 205 mm 2.25% Convertible Senior Unsecured Notes due 2012 100% Ownership Interest 298 mm 9.75% Term Loan due 2012 Cheniere LNG Holdings, LLC 247 mm 12.0% Convertible Senior Secured…
  25. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 25
    i Appendix
  26. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 26
    LNG Supply and Demand Trends Supply and Demand Trends Bcf/d(e) MTA 200 24.2 180 160 140 120 15 100 80 60 7 40 20 2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Asia Pacific Europe Americas Supply Source:…
  27. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 27
    YoY Change in LNG Supply Trends Well-below Average for Second Year 18% 16% Schedule slippage, 14% Skikda underperformance Explosion 12% FMs, Maintenance 10% 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005…
  28. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 28
    29 -4 -2 0 2 4 6 8 MTPA Abud Dhabi Algeria Australia Brunei Source: Poten Egypt E Guinea Indonesia Libya Malaysia Nigeria Norway Oman Qatar Export Variance 09 v 08 by production losses Trinidad Supply…
  29. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 29
    2009 Anomaly Europe Oversupplied but LNG Imports Up Recession induced demand reduction 4 Bcf/d But LNG Imports Up 1 Bcf/d YOY Bcf Mediterranean vs NW Europe LNG Imports 180 Med 160 - 1.5% 140 (-7 cargoes, despite addition of…
  30. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 30
    Spot LNG By Destination Region Loose Gradual Tightening Loose 100% 90% 80% 70% Traded 60% Liquid Markets 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 JKT Emerging Asia Mediterranean Other Americas US NW…
  31. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 31
    North America Onshore Regasification Capacity By 2010 15.8 Bcf/d North American Atlantic Basin Terminal Capacity Holder Baseload Sendout capacity 65% utilization = 10.3 Bcf/d (MMcf/d) Canaport 1,000 Canaport Canaport Irving,…
  32. JUNE 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 32
    CHENIERE ENERGY Cheniere Energy Investor Relations Katie Pipkin, Vice President (713) 375-5110 katie.pipkincheniere.com Christina Cavarretta, Manager (713) 375-5104 christina.cavarrettacheniere.com

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