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HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Mar 10, 2011 · 27 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. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 1
    Howard Weil Energy Conference New Orleans - March 2011
  2. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 2
    Cheniere Operations Cheniere is engaged in the development, construction and operation of onshore LNG terminals and pipelines, including the 4 Bcf/d Sabine Pass LNG terminal Sabine Pass LNG has been operational since 2008 and cost…
  3. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 3
    Strategic Focus: Liquefaction Expansion Project Cheniere is developing a project to add liquefaction trains, transforming the Sabine Pass facility into the first bi-directional LNG terminal that can import and export LNG 4 LNG…
  4. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 4
    Proposed Liquefaction Project Will Transform Sabine into Bi-directional Import / Export Facility Current Facility 853 acres in Cameron Parish, Louisiana 40 ft ship channel 3.7 miles from coast 2 berths; 4 dedicated tugs 5 LNG…
  5. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 5
    Bi-directional Service at Sabine Pass Provides Opportunity to Arbitrage Henry Hub vs. Oil Worldwide LNG prices predominantly based on a prices of oil Europe Asia (/MMBtu) Low High Low High Henry Hub 4.00 6.50 4.00 6.50 Capacity…
  6. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 6
    U.S. Gas Production Growth Unconventional gas = 61% of 2010 natural gas production Potential 11 Bcf/d new production from unconventional gas 2015 vs 2009 (34%) Bcf/d U.S. Natural Gas Production Forecast 69.1 63.9 59.3 60.3 4.9…
  7. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 7
    Extensive Market Access to Gas Lower 48 Technically Recoverable Unconventional Primary Gas Sources for Sabine Pass Liquefaction Reserves (Tcf) Conventional Gulf Coast Onshore; Barnett; Haynesville; Bossier; Eagle Ford Shale CBM…
  8. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 8
    Strategically Located Sabine Pass Liquidity Points Cheniere Cheniere Creole Creole Trail Trail Pipeline Pipeline 2.0 2.0 Bcf/d Bcf/d Pine Prairie Energy Center Texas Gas Transco Z3 Liquidity Points ANR Columbia Storage…
  9. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 9
    Attractive Oil Linked Market Prices / MMBtu Regional Natural Gas & LNG Prices 20 18 16 12% 12% 15% 15% of Oil Prices of Oil Prices 14 12 11.62 10 9.02 8 7.39 6 4 4.27 2 0 2004 2005 2006 2007 2008 2009 2010 Japan Avg…
  10. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 10
    Sabine Pass Liquefaction Project - Brownfield Development, Lower Expected Capital Costs Cost: /ton Range of liquefaction project costs: 200 - 1200 per ton 1200 1 Bcf/d of capacity = 1.5 B to 9 B 1000 Sabine Pass liquefaction…
  11. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 11
    ConocoPhillips-Bechtel Global LNG Collaboration Proven Designs 1969 1999 2006 2007 2012 All Collaboration projects have come onstream ahead of schedule and exceeded expectations 11 ConocoPhillips, Bechtel
  12. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 12
    LNG Project Support & Regulatory Very strong local support: Cameron Parish officials, Louisiana state and federal congressional delegations, parish & state agencies Strong support from most gas producing states Cheap ethane…
  13. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 13
    Commercial Structure: Estimated Terms of Liquefaction Contracts Estimated cost for customer to purchase U.S. supply: Capacity Fee: 1.40 - 1.75/MMBtu Take or Pay, permits lifting or unloading cargoes LNG Export Commodity Charge:…
  14. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 14
    Customer MOUs Signed to Date Date Customer Rating Capacity (mtpa) Nov-10 Morgan Stanley (US) A2 / A 1.7 Oct-10 ENN Energy Holdings (China) Ba1 / BBB- 1.5 Nov-10 Gas Natural Fenosa (Spain) Baa2 / BBB 1.5 Jan-11 EDF (France) A3 / A…
  15. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 15
    Estimated Financial Impact (Annualized) Annual Liquefaction Project Economics Contracted Cash, MM 1 Impact to CQP Impact to LNG Current 253 Stable common unit distributions 38 mm paid to CEI as 1 x coverage supported by 20 year…
  16. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 16
    Expected Timeline Sign MOUs with interested parties 4Q2010 DOE export authorization Pending Definitive commercial agreements Mid 2011 EPC contract 2H2011 Financing commitments 2H2011 FERC construction authorization 2012 Commence…
  17. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 17
    CHENIERE ENERGY Appendix
  18. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 18
    Cheniere Overview Cheniere Cheniere Energy Energy Cheniere Cheniere Energy, Energy, Inc. Inc. NYSE NYSE Amex Amex US: US: LNG LNG Partners, Partners, L.P. L.P. NYSE NYSE Amex Amex US: US: CQP CQP 88.6% (LP…
  19. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 19
    Estimated CQP Distributable Cash Flows* (Annualized, in mm) Receipts TUAs Chevron and Total 253 Other Services 7 Total Cash Receipts 260 Costs Operating, G&A, Maintenance CapEx 46 Debt Service 165 Total Costs 211 Available…
  20. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 20
    Ownership - CQP (in mm) Cheniere Energy, Inc Public* Total Common Units 10.9 15.5 26.4 Subordinated Units 135.4 135.4 General Partner 2% 3.3 3.3 149.6 15.5 165.1 Percent of total 90.6% 9.4% 100% *Excludes 1MM shares to be…
  21. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 21
    Estimated LNG 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…
  22. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 22
    Organizational Structure Existing Debt 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 263 mm 12.0% Senior Secured…
  23. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 23
    LNG Production, Capacity, Utilization Production +5.1 Bcf/d 2009, 21% increase YoY in 2010 Utilization rates returning to historical 90% norm 1.6 Bcf/d remaining capacity to bring on line in 1Q2011 Bcf/d LNG Production vs Capacity…
  24. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 24
    Global LNG Market - 2010 LNG Importers - Price Indexation 2010 Total Global LNG Export Capacity Oil Products 37 Bcf/d Natural Gas Algeria - 2.7 Japan Crude Cocktail Norway - 0.6 2010 Regional LNGDemand 30 Bcf/d Egypt - 1.7 USA -…
  25. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 25
    Firm Liquefaction Capacity Additions Nameplate Liquefaction Capacity 37 Bcf/d as of YE 2010 Bcf/d 3.0 45 Bcf/d by YE 2015 Middle East Gulf 2.5 Asia Pacific Atlantic Basin Gorgon T1 Pappa New Guinea 2.0 Gorgon T2 & Curtis T1…
  26. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 26
    North America Onshore Regasification Capacity 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…
  27. HOWARD WEIL ENERGY CONFERENCE – Cheniere Energy, Inc. – slide 27
    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

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