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NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Nov 10, 2010 · 36 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. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 1
    Cheniere Energy, Inc. Cheniere Energy Partners, L.P. November 2010
  2. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 2
    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…
  3. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 3
    Sabine Pass LNG Operational since 2008 Aerial view of Sabine Pass LNG Terminal Cost 1.6 billion 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…
  4. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 4
    Sabine Pass LNG Creole Trail Pipeline* Creole Trail P/L provides 2 Bcf/d takeaway capacity from the Sabine Pass terminal Sabine Pass is interconnected to 1 intrastate and 10 interstate pipelines * Owned by Cheniere Energy, Inc.…
  5. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 5
    Contracted Capacity TUAs Summary of 20-year Terminal Use Agreements (4) Total Gas & Power N.A. Chevron USA Cheniere Energy Investments Capacity 1.0 Bcf/d 1.0 Bcf/d 2.0 Bcf/d Fees (1) (2) Reservation Fee 0.28/MMBTU 0.28/MMBTU…
  6. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 6
    Strategic Focus Operations Manage Sabine Pass LNG receiving terminal, regasify and store LNG for customers Commercial Monetize 2 Bcf/d regas capacity held by Cheniere Marketing International LNG marketing efforts Seek long-term…
  7. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 7
    i LNG Market Update
  8. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 8
    LNG Production, Capacity, Utilization Production +5.5 Bcf/d 2009, 24% increase YoY in 1H10 2008 2010 average capacity utilization 83% vs historical 90% 2 Bcf/d remaining capacity to bring on line by 1Q2011 Bcf/d Percent %…
  9. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 9
    Jan Jul Average LNG Imports by Region Asian & European demand absorb production increases Bcf/d LNG Imports, Jan - Jul 27.8 2.4 22.8 23.3 23.0 1.4 2.0 2.8 8.4 5.9 5.4 6.5 16.0 17.0 14.5 14.5 2007 2008 2009 2010…
  10. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 10
    Firm Liquefaction Capacity Additions Bcf/d Nameplate Liquefaction Capacity 37 Bcf/d by YE 2010 3.0 Middle East Gulf 2.5 Asia Pacific Atlantic Basin 2.0 1.5 1.0 0.5 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1…
  11. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 11
    i Liquefaction Project
  12. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 12
    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…
  13. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 13
    Sabine Pass LNG: Bi-directional Import / Export Proposed Liquefaction Project - Overview Leveraging existing assets Large acreage position (853 acres) Can readily accommodate 4 liquefaction trains (up to 2 Bcf/d capacity)…
  14. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 14
    Sabine Pass is Interconnected with the Extensive Shale Resource Base Shale Gas Plays Lower 48 States Montana Thrust Belt Williston Cody Basin Gammon Hilliard Michigan Appalachian Greater Baxter- Basin Antrim Basin Green…
  15. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 15
    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…
  16. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 16
    Productive Capacity Relative to Demand Projected productive capacity at 6.50 Bcf/d Reduction in estimated demand 90 -21.5 Bcf/d 80 -21.4 Bcf/d -10.0 Bcf/d -17.2 Bcf/d 70 Other 60 Electric Generation 50…
  17. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 17
    Destination Market Economics Oil/HH Price Ratio Oil Price Assumption 90.00 /bbl 24 Europe Asia Americas 22 Gas Opportunity Cost (% Oil) 11.0% 14.8% 17.2% Europe (11%) Gas Price 9.90 13.32 15.52 20 Asia (14.8%) Less: Receiving…
  18. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 18
    Attractive Oil Linked Market Prices / MMBtu Regional Natural Gas & LNG Prices 20 18 12% 12% 15% 15% 16 of of Oil Oil Prices Prices 14 12.36 12 11.77 10 8 6 5.16 4 4.73 2 0 Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan…
  19. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 19
    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:…
  20. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 20
    Low Cost Liquefaction Facilities Proven Technology ConocoPhillips-Bechtel Global Liquefaction Collaboration Cost: /Ton 450 400 350 300 250 200 150 100 50 0 Qatargas Nigeria RasGas ELNGT1 Oman ALNGT1 ALNGT1-3…
  21. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 21
    Regulatory Approval Process Dual regulatory tracks with the DOE and FERC FERC coordinates federal & state review of proposals to build LNG terminals DOE regulates imports and exports of natural gas Key regulatory and legislative…
  22. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 22
    Sabine Pass Liquefaction Proposed Project Timeline File DOE Applications Execute EPC Begin NEPA Notice Construction (beginning of six Agreement DOE Authorization Commence month consultation Bi-directional to export natural…
  23. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 23
    Sabine Pass Liquefaction Proposed Corporate Entity Relationship 88.6% LP Interest 100% of 2% GP Interest 9.4% LP Interest Public Unit holders 100% Sabine Pass LNG, L.P. Existing Terminal Assets 100% Sabine Pass LNG-LP,…
  24. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 24
    LNG Market Fundamentals Lead to Adding Liquefaction Capabilities The 2007 2009 liquefaction build out is nearly complete U.S. need for LNG muted by unconventional gas production Oil linked markets provide attractive economics and…
  25. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 25
    CHENIERE ENERGY Financial
  26. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 26
    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,…
  27. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 27
    Estimated Future Cash Flows Cheniere Energy Partners, L.P. ( in MM) Annualized* Receipts TUA Customers 251 Fuel Retainage, Tugs, Other 7 Disbursements Operating Expenses 34 Management Fees 8 Debt Service 165 Distributable…
  28. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 28
    Cheniere Energy Partners, L.P. Cheniere Cheniere Energy, Energy, Inc. Inc. CQP operates the Sabine Pass LNG NYSE NYSE Amex: Amex: LNG LNG receiving terminal in Cameron Parish, LA 88.6% LP interest Sabine Pass LNG terminal…
  29. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 29
    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 247 mm 12.0% Convertible…
  30. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 30
    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…
  31. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 31
    Investment Highlights Stable earnings and cash flows, fee-based earnings A-rated, 20 year long-term take-or-pay contracts Cheniere Energy, Inc. (sponsor) to maintain significant, beneficial ownership in CQP Focusing on strategic…
  32. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 32
    CHENIERE ENERGY Appendix
  33. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 33
    Organizational Structure TUA Assignment and new VCRA* Transaction Summary 100% Ownership Interest Initial terminal use agreement (TUA) Cheniere Cheniere LNG assigned to Investments Marketing, LLC Holdings, LLC CMI entered into…
  34. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 34
    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…
  35. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 35
    Sabine Pass LNG: Bi-directional Import / Export Phase 1 Liquefaction Artist Rendition 2 X 0.5 bcf/d Trains 336
  36. NOVEMBER 2010 CORPORATE PRESENTATION – Cheniere Energy, Inc. – slide 36
    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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