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APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Apr 7, 2014 · 121 slides

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  1. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 1
    Cheniere Energy Analyst / Investor Day April 7, 2014 1
  2. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 2
    Introduction Analyst Day / Investor Day Charif Souki - Chairman, President, and CEO April 2014
  3. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 3
    Value of the Cheniere Platform People Financial Strength Cash Flows 4
  4. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 4
    Value of the Cheniere Platform People Many are talking about LNG exports - Cheniere is building Sabine Pass is the only U.S. liquefaction project to achieve all commercial, financial, and regulatory requirements necessary to…
  5. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 5
    Value of the Cheniere Platform Financial Strength Demonstrated ability to raise capital, multiple options available Other Cheniere Consolidated As of December 31, 2013 CQP Energy, Inc. CEI Unrestricted cash and equivalents 0 961…
  6. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 6
    Value of the Cheniere Platform Cash Flows 9 trains: 3.5B - 4.5B annual EBITDA Significant cash flows under 20-year take-or-pay contracts 2.9B in fixed-fee revenue contracted to date at Sabine Pass Corpus Christi commercialization…
  7. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 7
    Macro Opportunities Continue to de-risk Corpus Christi and SPL Trains 5 & 6 Seeking opportunities upstream and downstream from the platform Hydrocarbon abundance - additional export opportunities 8
  8. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 8
    Sabine Pass Liquefaction Train 1-4 Construction Update Analyst / Investor Day Keith Teague, Executive VP Assets April 2014
  9. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 9
    Brownfield LNG Export Project: Sabine Pass Liquefaction Utilizes Existing Assets, Trains 1-4 Fully Contracted, Under Construction Current Facility 1,000 acres in Cameron Parish, LA 40 ft ship channel 3.7 miles from coast 2 berths;…
  10. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 10
    Greenfield Opportunity 850+ acres in Southwest Cameron Parish, Louisiana Site situated along the Sabine Pass Ship Channel 40 deep shipping channel 3.7 nautical miles from the coast 22.8 nautical miles from the outer buoy Acreage…
  11. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 11
    Sabine Pass LNG Terminal 1.5 billion infrastructure investment, delivered on-time and on-budget 5 tanks x 160,000 cm ( 17 Bcfe of storage) 4.3 Bcf/d peak vaporization capacity Two docks capable of handling the worlds largest LNG…
  12. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 12
    Sabine Pass Liquefaction Under Construction 1,000 acres under control Construction commenced Aug 2012 Trains 1 4 represent 9 - 10 billion infrastructure investment, before financing costs Trains 1 4 Construction materials 260,000…
  13. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 13
    Project Scope and Scale Each LNG Train Measures over 1,300 feet, or more than 3 football fields in length Consists of over 14,000 tons of structural steel; enough to build the roof for 4 NFL stadiums 14
  14. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 14
    Project Scope and Scale Six GE LM2500 Gas Turbine Generators Over 150 MW of installed generation capacity; enough to power 119,000 homes Four in place and two being added Twenty four GE LM2500 Gas Turbines driving refrigerant…
  15. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 15
    Brownfield Opportunity 16
  16. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 16
    Brownfield LNG Export Project 17
  17. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 17
    Project Scope and Scale Four LNG Trains occupy a footprint sufficient for six MLB stadiums Project acreage: Footprint of approximately 22 acres per Train 60 acre footprint for interconnecting pipe racks and other facilities 245…
  18. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 18
    Project Scope and Scale FERC and DOT regulatory process includes the review of consequence modeling for the potential of inadvertent LNG and refrigerant release Composite vapor exclusion zones for the four Trains total over…
  19. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 19
    Project Scope and Scale FERC and DOT regulatory process includes the review of consequence modeling for the potential of ignition and resulting fire associated with an inadvertent LNG and refrigerant release Composite thermal…
  20. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 20
    Project Siting Challenges A Recap Physical Scope and scale of the liquefaction process dictate a large acreage position Sequential, simultaneous construction of multiple liquefaction trains dictate a large acreage position Material…
  21. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 21
    LSTK EPC Contracts with Bechtel 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 15 straight years by…
  22. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 22
    Project Execution 18 Months of Progress 23
  23. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 23
    Project Execution Trains 1 & 2
  24. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 24
    Project Execution Trains 3 & 4
  25. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 25
    Project Execution Train 1
  26. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 26
    Project Execution Train 2
  27. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 27
    Project Execution New Warehouse and O&M Buildings
  28. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 28
    Project Execution - Trains 1 - 4 Record First LNG Egyptian LNG T1 BG DFCD Train 1 Feb 2016 First LNG GN DFCD Train 2 June 2016 KOGAS DFCD Train 3 Jun 2017 April 2017 GAIL DFCD Train 4 Mar 2018 Sept 2017 Despite…
  29. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 29
    Sabine Pass Liquefaction Construction Manpower Train 1 4 Workforce to peak at 4,500; 2,800 personnel currently on site Over 31 million construction man hours; 1.7 billion in construction wages 30
  30. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 30
    Cheniere Engineering and Operations Staffing Hiring experienced personnel Estimating 470+ employees by 2016 500 471 455 Number of employees 387 409 409 387 400 282 282 300 200 100 2013A 2014E 2015E 2016E O&M…
  31. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 31
    Experienced Liquefaction Operations Team Leadership Team Leadership Team (8 persons) with 225 years of Management Production Director VP, Sabine Pass Operations management experience, including 105 years of Training Advisor VP,…
  32. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 32
    Sabine Pass Liquefaction Project Execution Keys to Success World class terminal site Deep channel in close proximity to the coast Sufficient acreage to satisfy siting challenges, both regulatory and physical World class Contractor…
  33. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 33
    Growth Projects Corpus Christi and Sabine Pass T5-6 Analyst / Investor Day Katie Pipkin, SVP - Business Development & Corporate Communications April 2014
  34. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 34
    Cheniere Liquefaction Projects 9 Trains, 31B investment, 40.5 MTPA LNG Exports (5.5Bcf/d) Sabine Pass Corpus Christi Sabine Pass Corpus T1-4 T1-2 T5-6 Christi T3 Estimated Cost 12B 10B 6B 3B Volume (MTPA) 18.0 9.0 9.0 4.5 3rd…
  35. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 35
    U.S. LNG Export Projects Quantity Company DOE FERC* Contracts (Bcf/d) Cheniere Sabine Fully 2.2 Fully permitted Pass T1 T4 Subscribed Oregon LNG FTA + Freeport 1.8 NonFTA T1-T3 FTA + Lake Charles 2.0 NonFTA Dominion Cove…
  36. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 36
    Technical Considerations for Liquefaction Projects LNG projects are physically difficult This will become apparent only through the FERC process Sites of limited size or near dense populations Possible, but expensive & delays Must…
  37. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 37
    Corpus Christi Liquefaction Project Proposed 3 Train Facility 1,000 acres owned and/or controlled 2 berths, 3 LNG storage tanks (10.1 Bcfe of storage) Project Update Lump Sum Turnkey contracts signed with Bechtel Stage 1: 7.1B,…
  38. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 38
    Aerial Map of Surrounding Area 39
  39. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 39
    Corpus Christi Pipeline Project 23 Miles of 48 Pipe, 2.25 bcf/d Deliverability Interconnects Tennessee Enterprise Transco Sinton Compressor Station 41,000 hp NGPL KM Tejas Channel/HPL TETCO Taft Compressor Station 12,300…
  40. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 40
    Sabine Pass Liquefaction Current Facility 1,000 acres in Cameron Parish, LA 40 ft ship channel 3.7 miles from coast 2 berths; 4 dedicated tugs 5 LNG storage tanks (17 Bcfe of storage) 5.3 Bcf/d of pipeline interconnection…
  41. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 41
    Competitive With Other Recent Liquefaction Projects Range of liquefaction project costs: 200 - 2,000+ per ton 1 Bcf/d of capacity = 1.5B to 15.0B+ Corpus Christi liquefaction project estimated costs are 800/ton (1) Cost: /ton Sabine…
  42. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 42
    Timeline & Milestones Target Date SPL CCL SPL Milestone T1-2 T3-4 T1-3 T5-6 Initiate permitting process (FERC & DOE) T1 2.3 MTPA T5 Commercial agreements 2014 T6: 2014 EPC contract 2015 Financing commitments 2014 2015…
  43. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 43
    Regulatory Review Analyst / Investor Day Pat Outtrim, Vice President Government and Regulatory Affairs April 2014
  44. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 44
    Regulatory Process for LNG Facilities Dual regulatory tracks with DOE and FERC Federal Energy Regulatory Commission (FERC) is lead agency that coordinates all federal and state agencies Department of Energy (DOE) authorizes…
  45. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 45
    FERC as Lead Agency FERC is the coordinating agency that leads federal and state review of LNG projects National Environmental Policy Act (NEPA) empowers FERC to prepare an Environmental Impact Statement (EIS) for a project in…
  46. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 46
    FERC Regulatory Process - EIS Pre-filing 13 resource reports and engineering drawings FERC coordinates public meetings and consultations, includes cooperating agencies Review of Application Schedule notice - EA or EIS date and date…
  47. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 47
    DOE Regulatory Process Non-FTA countries DOE is a cooperating agency with FERC Required to authorize exports to a foreign country unless there is a finding that such exports will not be consistent with the public interest A…
  48. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 48
    FERC Applications Filed for Liquefaction Projects LNG Export Projects Pre-filing Date Application Date FERC Scheduling Recd Approval Notice Issued Sabine Pass Liquefaction T1-4 July 26, 2010 Jan. 31, 2011 Corpus Christi…
  49. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 49
    U.S. DOE Applications for LNG Exports* ** Application filed = , FERC scheduling notice issued = Date Applicant Received Expected Order to FERC Approval to Begin Date Non FTA Received be Processed (1)2 Company Pre-Filing Process…
  50. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 50
    Corpus Christi Liquefaction & Pipeline Regulatory Update Regulatory Process Expected to Be Complete 1Q 2015 FERC Schedule Notice issued Final EIS: 10/08/2014 90-day Federal Authorization Deadline: 01/06/2015 DOE FTA approved…
  51. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 51
    Sabine Pass Liquefaction Trains 5&6 Regulatory Update Regulatory Process Expected to Be Complete by 2015 FERC application filed 9/30/2013 Expect an EA All data requests received and answered DOE FTA approved 07/12/13 and 01/22/14…
  52. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 52
    Sabine Pass Liquefaction Trains 1-4 Additional Authorization Requested FERC Amendment to Increase Capacity Increase from authorized capacity of 2.2 Bcf/d to 2.76 Bcf/d submitted 10/25/2013 Environmental Assessment issued on…
  53. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 53
    Washington Update LNG permitting process a focus in Washington Several recent hearings held by Congress House Energy and Power Subcommittee H.R. 6, The Domestic Prosperity and Global Freedom Act Senate Energy and Natural Resources -…
  54. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 54
    EU-US Summit Joint Statement Welcomes the prospect of U.S. LNG exports President Barack Obama Leaders of the European Union EU-US Summit, Brussels, Belgium, March 26 The situation in Ukraine proves the need to reinforce energy…
  55. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 55
    Supply Procurement Analyst / Investor Day Corey Grindal, Vice President, Supply April 2014
  56. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 56
    Gas Supply Procurement Plan for Liquefaction Projects Natural gas will be procured by the terminals, liquefied and LNG sold based on NYMEX settlement for the month of delivery Gas procurement overview U.S. pipeline infrastructure…
  57. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 57
    Gas Procurement Overview Pipeline capacity contracted at terminal level Redundant delivery capacity Pipeline capacity contracted upstream of terminal Supply basin diversity Supplier diversity Term gas purchases into capacities…
  58. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 58
    U.S. Infrastructure Changes The United States is undergoing massive changes due to current and forecasted supply growth Over 10 Bcf/d of retrofits or reversals of traditional flows have been announced by U.S. interstate pipelines…
  59. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 59
    Pipelines Reversing Flows Transco Tetco ANR Trunkline NGPL Tennessee Gas Columbia Gulf Rockies Express Texas Gas CTPL Shale Plays Basins Capacity Pipelines (Bcf/d) Transco 1,700,000 TETCO 2,100,000 ANR 700,000…
  60. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 60
    Establishing NAESB* Contracts With Counterparties Producer driven supply base Have signed NAESB agreements with over 20 producers to date Examples of producers enabled to date and 4Q2013 rank** 1 ExxonMobil/ XTO (XOM) 5 Devon Energy…
  61. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 61
    SPL Terminal Pipeline Network Direct Pipeline Capacity SPL contracting long-term pipeline capacity Creole Trail Pipeline: Trains 1 / 2 1.5 Bcf/d contracted at FID Natural Gas Pipeline Company: Trains 1 /2 1.5 Bcf/d Interconnect…
  62. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 62
    SPL Terminal Pipelines Cheniere Creole Trail Pipeline (CTPL) Kinder Morgan Louisiana Pipeline (KMLP) Pine Prairie Natural Gas Pipeline Company (NGPL) Energy Center Transco Columbia Gulf Texas Eastern Texas Gas Liquidity Points…
  63. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 63
    SPL Terminal Pipeline Network Upstream Pipeline Capacity Selectively contracting capacity from major supply basins: Utica/ Marcellus TETCO, TGP, Texas Gas, CGT, Rockies Express Fayetteville Trunkline, Texas Gas, ANR, NGPL, Columbia…
  64. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 64
    SPL Supply Network Marcellus / Utica Woodford Fayetteville Shale Plays Granite Basins Wash Permian Basin Barnett Transco Haynesville Tetco ANR Trunkline NGPL Eagle Ford Tennessee Gas Sabine Pass Columbia Gulf…
  65. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 65
    SPL Supply Transactions Completed Sabine Pass has termed up a significant amount of long-term supply to date Staggered over time and train completion Accessing diverse supply basins Using existing portfolio of pipeline capacity…
  66. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 66
    Corpus Christi Contracting Working with 8 pipelines on supplying CCPL 3 Intrastates Houston Pipeline/ Channel Industries (HPL) Enterprise Texas Pipeline (ETP) Kinder Morgan Texas/ Tejas (KMT) 5 Interstates Tennessee Gas Pipeline…
  67. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 67
    Corpus Christi Pipeline (CCPL) 23 Miles of 48 Pipe, 2.25 bcf/d Deliverability, 4.5 bcf/d Interconnect Capacity Capacity Interconnect Bcf/d Tennessee 1.00 Enterprise 0.50 Transco 0.50 NGPL 0.50 Sinton Compressor Station 41,000…
  68. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 68
    Corpus Christi Gas Supply Network Current Current 2020 Rig Production est. Source Count Bcf/d Bcf/d Barnett 30 5.3 4.7 Haynesville 41 4.6 7.2 Eagle Ford 221 4.6 9.4 Marcellus / Marcellus 82 12.3 20.0 Utica Permian 487 4.8 5.6…
  69. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 69
    Cheniere Ongoing Supply Strategy Sabine Pass Continue to purchase gas supply and strategically fill existing pipeline capacity Currently in discussion with 15+ counterparties on term deals Structuring deals to best mitigate both…
  70. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 70
    Commercializing Corpus Christi & Sabine Pass T6 Analyst / Investor Day Meg Gentle, Executive VP Marketing April 2014
  71. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 71
    2013 Year in Review LNG market growth is constrained by supply, not by demand 1 new liquefaction plant came on-line (Angola) plus 1 rebuild (Algeria) 12 new regasification plants came on-line including 5 floating 20 vessels…
  72. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 72
    Steady LNG Demand Growth Demand forecasted to increase by 215 mtpa 2014 to 2025, a 5.6% CAGR Average 23 mtpa of new liquefaction capacity needed each year(1) mtpa 500 450 400 350 300 250 200 150 100 50 0 Asia Pacific…
  73. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 73
    Firm Liquefaction Capacity Additions (mtpa) Nameplate Liquefaction Capacity 289 mtpa as of YE 2013 394 mtpa by YE 2019 mtpa 20 Asia Pacific SPL T2, Gorgon T2, Petronas FLNG1 18 Atlantic Basin APLNG T2 Gladstone T1 16 SPL T1,…
  74. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 74
    39 mtpa of Contracted LNG to Expire 2018 - 2020 Estimated Expiring Contracted LNG, mtpa 24.7 17.0 17.7 15.7 9.6 8.9 8.5 7.7 8.4 6.5 7.3 5.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source:…
  75. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 75
    What is our competitive advantage 1. Low cost natural gas and Henry Hub pricing 2. Low cost construction 3. Full destination flexibility 4. Ability to cancel cargo lifting with notice 5. Contract structure FOB tailgate vs…
  76. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 76
    What is the plan Project Commercial Deadline Corpus Christi T1-2 Pertamina 0.8 mtpa Complete Endesa 1.5 mtpa Complete FOB 3.7 mtpa 2014 Sabine Pass T6 FOB 2.0 mtpa TBD upon finalization of EPC Corpus Christi T3 TBD TBD 77
  77. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 77
    Short Term and Medium Term Marketing
  78. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 78
    LNG Trade in 1988, MMcf/d Two highly regionalized markets 76 USA 169 Belgium 524 To 192 35 France 157 Japan Spain 2,437 USA S. Korea 185 58 873 UAE Japan Algeria Libya 422 480 Brunei 1,280 Malaysia Imports…
  79. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 79
    LNG Trade in 2007, MMcf/d Regional markets growing New supply players Spot trade increasing 157 USA 136 U.K. 277 Belgium 282 8,938 1,282 231 To Portugal 2,486 France 3,500 Italy 547 Japan 2,088 Spain Turkey 398 USA S.…
  80. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 80
    LNG Trade in 2013, MMcf/d Many more small importers Longer shipping routes South America enters trade Re-exports from 17 countries Optimization needed Historical exporters shrink 374 Norway 138 11,042 9,708 1,353 860 Belgium…
  81. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 81
    Flexibility mtpa Non Long Term LNG Trade 90 35% 80 31% 70 27% 60 23% 50 19% 40 16% 30 12% 20 8% 10 4% 0 0% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Sources: IHS, US DOE, IGU 82
  82. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 82
    Chenieres Marketing Assets Amid the Global Importers Cheniere is long options and vessel charters Call options at Henry Hub Index to begin in 2016 5 year time charters on 3 LNG vessels to begin in 2015 and 2016 Put options at Isle…
  83. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 83
    Futures Prices Support 7.25 / MMBtu Intrinsic Margin 9.70 / MMBtu gross margins realized from purchasing LNG at 115% of HH and selling at 15% of Brent; higher in the prompt month 7.25 / MMBtu intrinsic margins net of shipping,…
  84. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 84
    Annual Gross Profit from 2 mtpa Volumes LNG Loaded Sabine Pass (Tbtu) 104 Assumptions LNG Delivered DES (Tbtu) 98 5 Henry Hub Price Cash Flows 15 LNG sales price, delivered at terminal Sales Total Revenue (MM) 1,466 6% loss of…
  85. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 85
    Price Sensitivities MM Gross Profit at Varying Prices Observations LNG Sales Price, /MMBtu The intrinsic value of 104 10.00 15.00 20.00 million MMBtu of LNG from Henry Hub 4.00 338 827 1,316 Sabine Pass is 700 million Price,…
  86. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 86
    Upside; Scalability Potential Annual Marketing Gross Margin, MM 2,750 1,350 1,250 150 1,000 250 900 100 2 mtpa SPL Extrinsic 3.0 mtpa CCL Notes: 1. 2 mtpa from SPL is based on the range in slide 16 based on 6 HH and…
  87. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 87
    Maximizing Long Term Value Asset Backed Trading Toolkit 1. Options to buy LNG from Sabine Pass 2. Ship charters 3. FOB sales 4. Ex-ship deliveries 5. Put options 6. Time swaps 7. Additional ship charters 8. LNG purchases from…
  88. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 88
    Organizational Resources Staffing Front Office Mid Office / Risk control Back Office IT Systems Current system: Sungard Entegrate Future system: Endur OpenLink Credit Cash Transactional lines of credit Hedging accounts Risk…
  89. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 89
    Conclusions The potential LNG market is limited by supply By 2020 we expect: U.S. / Qatar / Australia will each produce 70 mtpa of LNG Over 50% of the LNG market will trade on a gas price basis The entire LNG market could be…
  90. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 90
    Financial Update Analyst / Investor Day Conference Michael Wortley, Chief Financial Officer April 2014
  91. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 91
    US LNG Well Positioned for Growth US has a tremendous resource base at low cost 1,000 Tcf of unconventional gas reserves(1) recoverable at prices less than 7/MMBtu Equivalent to 27 Bcf/d of incremental production assuming a 100 year…
  92. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 92
    Financing Strategy Update As of February 2014, SPL Project o Engineering: 94% (Trains 1-2), 48% (Trains 3-4) (Trains 1-4) o Overall project completion: 61% (Trains 1-2), 23% (Trains 3-4) Spent 6bn to date, expect to draw on TL-A in…
  93. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 93
    Summary Organizational Structure Cheniere Energy, Inc. (NYSE: LNG) 84.5% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners Cheniere Corpus Christi Public Cheniere Energy 15.5% LP Holdings, LLC…
  94. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 94
    Estimated Consolidated CQP Cash Flows SPL Trains 1-4 ( in billions, except per unit amounts or unless otherwise noted) SPL Trains 1-4 SPL firm SPA payments 2.3 SPL commodity payments, net(1) 0.2 CMI SPA payments(2) 0.1 - 0.2 SPLNG…
  95. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 95
    Estimated CEI Cash Flows SPL Trains 1-4 1.0 - 1.2 billion of run-rate EBITDA CEI NOL exhausted in 2019 2020, depending on CMI profitability CEI EBITDA build up ( in billions, unless otherwise noted) CQH distributions (based on…
  96. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 96
    Estimated CEI EBITDA Build Up SPL Trains 1-4 5.0 CEI EBITDA ( in billions) 4.0 3.0 2.0 1.0 - 1.2 1.0 0.7 0.2 0.3 SPL Sales (T1-4) SPL CMI Sales Cumulative build up Number of trains 4 trains 4 trains Nameplate…
  97. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 97
    Corpus Christi Liquefaction Trains 1-2 Corpus Christi Liquefaction Trains 1-2 CCL Trains 1-2 Houston New Orleans FID Date Q1 2015 Corpus Christi Capex Estimate 10 billion Gulf of Mexico Project Equity 4 billion Project Debt 6…
  98. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 98
    Estimated CCL Project Level Economics Trains 1-2 0.9 - 1.3 billion of incremental EBITDA to CEI ( in billions, unless otherwise noted) CCL Trains 1-2 Long term SPAs 1.1 Short / medium term LNG sales(1) 0.5 - 0.9 Commodity…
  99. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 99
    Estimated CEI EBITDA Build Up SPL Trains 1-4 and CCL Trains 1-2 5.0 CEI EBITDA ( in billions) 4.0 3.0 1.9 - 2.5 0.4 2.0 1.0 - 1.2 0.9 1.0 0.7 0.2 0.3 SPL Sales (T1-4) SPL CMI Sales CCL Sales (T1-2) Cumulative build…
  100. APRIL 2014 INVESTOR PRESENTATION – Cheniere Energy, Inc. – slide 100
    Sabine Pass Liquefaction Trains 5-6 Expansion SPL Trains 5-6 Expansion SPL Trains 5-6 Expansion FID Date H2 2015 Capex Estimate 6 billion Project Equity 1.5 billion Project Debt 4.5 billion COD 2018/2019 Commercial Assumptions…

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