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CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Dec 5, 2012 · 31 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. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 1
    Capital One Southcoast 2012 Energy Conference Capital One Southcoast 2012 Energy Conference Katie Pipkin p Vice President, Finance and Investor Relations December 5, 2012
  2. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 2
    Summary Organizational Structure Cheniere Energy, Inc. ( (NYSE MKT: LNG) ) 100% Interest 100% Interest 100% Interest 100% Interest 57.5% Interest (1) Cheniere Cheniere Energy Cheniere Energy Cheniere Creole Cheniere…
  3. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 3
    Operating Assets Sabine Pass LNG Terminal Creole Trail Pipeline 4
  4. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 4
    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Longterm, 20 year takeorpay style commercial contracts Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) (2) Reservation…
  5. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 5
    Projected Global LNG Demand Growth Regional LNG Import Outlook (mtpa)* From 303 mtpa (40 Bcf/d) in 2015 to 511 mtpa (68 Bcf/d) in 2030 3.5% CAGR 14 mtpa average growth (three 4.5 mtpa trains) Source: Facts Global Energy 6
  6. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 6
    Compelling Price Advantage Current Prices = 3B4B of Spread for Each Bcf/d Worldwide Gas Prices = 11% to 15% of Crude Oil Estimated Prices Regional Natural Gas & LNG Prices Henry Hub: 4.00 / MMBtu /MMBtu As of November 28, 2012…
  7. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 7
    Sabine Pass Liquefaction Project Current Facility 1,000 acres in Cameron Parish, LA 40 ft ship channel 3.7 miles from coast 2 berths; 4 dedicated tugs Existing operational 5 LNG storage tanks (17 Bcf of storage) facility…
  8. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 8
    LNG Sale and Purchase Agreements (SPAs) 16 mtpa takeorpay style commercial agreements 2.3B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation p (1) GAIL (India) Limited ( ) (1)…
  9. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 9
    LSTK EPC Contract with Bechtel and Expansion Minimize Construction Costs and Risks Why Bechtel Constructed one third of the worlds liquefaction facilities more than any other contractor Top US construction contractor for 13…
  10. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 10
    Pro Forma Corporate Structure Including Financing for Trains 1 4 ( in millions) No Debt Cheniere Energy, Inc. 15% Temasek & RRJ (NYSE MKT: LNG) 2,000 Class B Units 1,500 Blackstone 500 Cheniere Energy, Inc. Corpus Christi…
  11. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 11
    SPLNG Estimated Cash Flows (With Trains 1 4 Operational) ( in millions) Annualized Total 127 Chevron 133 SPL 285 Other 10 Total Revenues 555 Total Expenses (65) EBITDA (1) 490 b Debt Service (2) ( (150) ) Distributable…
  12. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 12
    SPL Estimated Cash Flows ( in millions) Trains 12 Trains 14 BG 520 725 G N t l Gas Natural 455 455 KOGAS 550 GAIL 550 Commodity payments net ((1)) Commodity payments, net 125 275 Total Revenues 1,100 2,555 O&M, gas…
  13. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 13
    Steady State Cash Flows ( in millions) Trains 12 Trains 14 Cheniere Energy Partners (NYSE MKT: CQP) Distributions from Sabine Pass Liquefaction b f b f 470 1,320 Distributions from Sabine Pass LNG 185 340 CQP expenses and…
  14. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 14
    Future Developments/Opportunities Cheniere Marketing SPA Excess Volumes at Sabine Pass Volumes at Sabine Pass Up to 104 Tbtu/year from Trains 14 SPA sharing mechanic incents profit Future Developments maximization (1) Corpus…
  15. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 15
    Key Investor Highlights Investing 11 billion for 2.3 billion of annual EBITDA (Sabine Pass T14) Robust credit metrics support financial flexibility Robust credit metrics support financial flexibility Equity partners with significant…
  16. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 16
    Appendix
  17. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 17
    Construction Completion Schedules May-12 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 May-13 May-14 May-15 May-16 May-17 May-18 Nov-12 Dec-12 Nov-13 Dec-13…
  18. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 18
    Creole Trail Pipeline CTPL expected to be modified for bidirectional flow to source natural gas supply for SPL 90MM of capex for 65MM of annual EBITDA CQP expected to purchase CTPL in due course Q p p Current Facility Delivery…
  19. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 19
    Strategically Located Extensive Market Access to Gas Lower 48 Recoverable Unconventional Reserves (Tcf) Primary Gas Sources for Sabine Pass Liquefaction Shale Conventional Gulf Coast Onshore; Barnett; Haynesville; Bossier; Eagle…
  20. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 20
    Corpus Christi Liquefaction Project 13.5 mtpa Nameplate Plant (1.8 Bcf/d of exports) EPC Contracting Strategy: LSTK with Bechtel GE LM2500+ G4 gas turbine driven refrigerant compressors Three 4.5 mtpa nameplate liquefaction trains…
  21. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 21
    Corpus Christi Liquefaction, LLC Competitive With Other Recent Greenfield Liquefaction Projects Range of liquefaction project costs: 200 2,000 per ton 1 Bcf/d of capacity = 1.5 B to 15.0 B Cost: /ton Corpus Christi Liquefaction…
  22. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 22
    Timeline & Milestones Target Date Sabine Pass Corpus Mil Milestone T1 2 T12 T3 4 T34 Ch i i Christi Initiate permitting process (FERC & DOE) Commercial agreements Commercial agreements 3Q13 EPC contract 4Q12 4Q13 Financing…
  23. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 23
    CMI SPA Excess Volumes at SPL CMISPL SPA provides CMI with up to 2 mtpa of LNG delivered FOB Sabine Pass starting with the initial production from Train 1 Maximum Annual Contract Quantity of up to 104 Tbtu/year from first four…
  24. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 24
    Pro Forma CQP Ownership (in millions) CEI Blackstone Public Total Common units 12.0 27.5 39.5 Class B units 33.3 100.0 133.3 Subordinated units 135.4 135.4 General partner 2% 6.3 6.3 187.0 100.0 27.5 314.5 Percent of total 59.5%…
  25. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 25
    Financing 11.0B total funding for Trains 1 4 25% Equity (at the Cheniere Energy Partners level) 2.0B equity funding for Trains 1 2 0.5B Cheniere completed July 2012 1.3B Blackstone completed Oct 2012 0.2B Blackstone (guaranteed)…
  26. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 26
    Estimated Sources and Uses Including Trains 1 4 Trains 34 financing expected to be completed after EPC contract awarded Sabine Pass Liquefaction LLC Sabine Pass Liquefaction, LLC ( in millions) Sources Uses Debt financing 8,460…
  27. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 27
    Robust Credit Metrics Support Financial Flexibility 2018 runrate year ( in millions) Sabine Pass LNG Sabine Pass Liquefaction Cheniere Energy Partners EBITDA 490 EBITDA 1,840 1 840 EBITDA 2,315 2 315 Debt Debt Debt Senior…
  28. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 28
    Condensed Balance Sheets As of September 30, 2012 (in millions) Cheniere Energy Other Cheniere Consolidated P Partners, L.P. LP E Energy, Inc. I (1) Ch i Cheniere Energy, Inc. E I (2) Unrestricted cash and equivalents 215…
  29. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 29
    Net Operating Loss (NOL) NOLs projected to increase until commercial start of Train 1 NOLs expected to offset taxable income starting with Train 1 commercial operations Cheniere not expected to be taxpayer until at least 2021 MLP…
  30. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 30
  31. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 31
    Investor Relations Contacts: Investor Relations Contacts: Nancy Bui: Director, Investor Relations (713) 3755280, nancy.buicheniere.com Christina Burke: Manager, Investor Relations Christina Burke: Manager Investor Relations (713)…

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