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USCA Midstream Corporate Access Day – Cheniere Energy, Inc.

Cheniere Energy, Inc. · Jan 26, 2016 · 37 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. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 1
    CHENIERE ENERGY, INC. USCA MIDSTREAM CORPORATE ACCESS DAY January 2016
  2. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 2
    Cheniere LNG Platform Underway 31.5 mtpa 87% Cash flows from currently under LNG volumes contracted fixed fees - construction not tied to 20-year contracts with commodity prices fixed fees, no price 7 trains, design capacity…
  3. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 3
    Executing on Strategy Complete construction on 7 LNG trains on an accelerated basis, on time and on budget Transition to an operating company, first cargo expected from Sabine Pass late February/March 2016 Continue commercialization…
  4. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 4
    Cheniere Projected Cash Flow Build-Up With 7 Trains CQP CCL CEI Standalone ( in billions, except per share amounts) (SPL T1-5/ SPLNG/CTPL) CCL T1-2 Project EBITDA to CEI (net of minority interests) 1.0* 1.3 2.3 Plus: Management…
  5. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 5
    Maintenance & Operating Cost Estimates Maintenance Buildup for SPL (T1-5) and CCL (T1-2) Combined Estimated Annualized Amount ( in mm, includes escalation averaged over 20 years) (Cash basis) Ongoing labor expense 40 GE contract(1)…
  6. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 6
    Cheniere Summary Organization Cheniere Energy, Inc. Public (NYSE MKT: LNG) 19.9% 80.1% Interest 100% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners LP Cheniere Corpus Christi Cheniere Energy Other…
  7. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 7
    Chenieres Key Businesses Unmatched scale and first-mover advantage provide industry-leading platform for further asset integration LNG Platform Developing/constructing LNG terminals located along Gulf of Mexico 7 Trains, 31.5 mtpa…
  8. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 8
    Cheniere LNG Platform Along Gulf Coast Sabine Pass Liquefaction Project 6 train development 27 mtpa (3.8 Bcf/d in export capacity) Trains 1-5 are under construction First LNG cargo expected late February/March 2016 Corpus…
  9. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 9
    Aerial View of SPL Construction December 2015 Train 6 Under Development Train 5 T5 Soil Stabilization T1 Methane Cold Box Train 3 T1 Ethylene Cold Box Air Coolers Propane Condenser Area Train 1 Train 4…
  10. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 10
    Aerial View of CCL Construction December 2015 Tank C Tank B Under Development Tank A T1 Foundation Train 1 Train 2 Train 3 Under Development 11
  11. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 11
    Cheniere LNG Projects: Attractive Features Cheniere LNG SPAs: LNG price tied to Henry Hub, offer destination flexibility, upstream gas procurement services, no lifting requirements SPAs with investment grade off-takers featuring…
  12. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 12
    Forecast Cheniere LNG Portfolio Summary SPL CCL SPL CCL Total Total (in MTPA) (in MTPA) Trains 1-5 Trains 1-2 Train 6 Train 3 Design Capacity 22.5 9.0 31.5 4.5 4.5 40.5 Under Construction 22.5 9.0 31.5 - - 31.5 LT SPAs sold to…
  13. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 13
    CEI Standalone EBITDA Forecast with Additional Trains Illustrative cash flow build-up ( in billions) Run-rate scenarios 7 trains 8 trains 9 trains SPL T1-5/6 and SPLNG via GP/IDR and CQH 1.0* 1.0* 1.3* Management fees 0.1 0.1…
  14. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 14
    Gas Procurement: Sabine Pass Terminal Securing feedstock for LNG production with balanced portfolio approach To date, have entered into term gas supply contracts with producers under 1-7 year contracts aggregating approximately 2…
  15. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 15
    Gas Procurement: Corpus Christi Terminal CCL contracted long-term direct and upstream pipeline transport capacity for Trains 1 and 2 Tennessee P/L: 0.3 Bcf/d KM Tejas P/L: 0.25 Bcf/d Marcellus / NGPL P/L: 0.385 Bcf/d Utica…
  16. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 16
    Cheniere Marketing Platform for LNG sales - short, mid, long-term sales, FOB or DES basis Scale for up to 9 mtpa including LNG purchases from Cheniere London, U.K. terminals and other places SPAs with SPL and CCL for all LNG…
  17. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 17
    LNG Market Prices Profitable for Cheniere Cheniere can profitably sell LNG given lower prices Market price sensitivity Europe LNG Sale Price (/MMBtu) 5.00 6.00 7.00 8.00 Implied margin 1.00 2.00 3.00 4.00 Asia LNG Sale Price…
  18. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 18
    Growth Projects Leverage core competencies platform for future growth projects 6B in near term major growth projects focused on expansions of liquefaction capacity Growth Project Estimated Unlevered Costs Corpus Christi Train 3…
  19. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 19
    Projected Global LNG Demand by 2025 Demand expected to increase 176 mtpa to 421 mtpa by 2025, a 5.5% CAGR Average of 21 mtpa new liquefaction capacity needed each year(1) Europe 37 93 99 2015 2020 2025 Asia 282 Americas 240…
  20. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 20
    U.S. to Be One of Top Three LNG Suppliers Projected Liquefaction Capacity 82 mtpa 50 mtpa 64 87 77 77 mtpa mtpa under 31.5 mtpa mtpa 1.5 const. mtpa 35 mtpa under PB mtpa const. 2015 2025 2025 PB 2015 2025 2015 2025…
  21. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 21
    Cheniere Competitive Advantage: Low Cost The U.S. is one of the lowest cost natural gas providers in the world U.S. liquefaction project costs are also significantly lower due to less project development needed Breakeven LNG price for…
  22. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 22
    In Summary Primary focus on completing construction of 7 LNG trains on an accelerated basis, on time and on budget 2 additional trains fully permitted and ready for commercialization Cheniere positioned to grow as low-cost provider…
  23. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 23
    CHENIERE ENERGY, INC. APPENDIX
  24. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 24
    Chenieres Debt Summary January 2016 ( in millions) Convertible Debt Cheniere Energy, Inc. 1,000 PIK Convertible Notes due 2021 (4.875%) (NYSE MKT: LNG) 625 Convertible Notes due 2045 (4.250%) Trains 1-2 Equity Cheniere Energy…
  25. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 25
    Cheniere Cash Flow Build-Up With 7 Trains ( in billions, except for per share amounts) CQP Corpus Christi (SPL T15/SPLNG/CTPL) (CCL T12) Total CEI standalone CEI cash flow build up (2021 estimated amounts) (1) Project EBITDA /…
  26. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 26
    Conversion - Class B and Subordinated Units Class B Units: Mandatory conversion: within 90 days of the substantial completion of Train 3 Optional conversion by a Class B unitholder may occur at any of the following times: After 83…
  27. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 27
    Sabine Pass Liquefaction Project (SPL) 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…
  28. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 28
    SPL Estimated Cash Flows Trains 1-5 and Trains 1-6 SPL estimated cash flows ( in billions) SPL Trains 15 SPL Trains 16 Long term SPAs 2.9 3.2 CMI SPA payment(1) 0.4 0.9 Commodity payments, net(2) 0.3 0.4 Total SPL revenues 3.6…
  29. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 29
    SPL Construction Schedules Trains 1 5 2012 2013 2014 2015 2016 2017 2018 2019 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55…
  30. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 30
    Sabine Pass Liquefaction SPAs 20 mtpa take-or-pay style commercial agreements 2.9B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A.…
  31. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 31
    Corpus Christi LNG Terminal Proposed 5 Train Facility 1,000 acres owned and/or controlled Initiated 2 berths, 4 LNG storage tanks Development Trains 4-5 (13.5 Bcfe of storage) Key Project Attributes 45 ft. ship channel 14 miles…
  32. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 32
    CCL Estimated Cash Flows Trains 1-2 and Trains 1-3 CCL estimated cash flows ( in billions) CCL Trains 12 CCL Trains 13 Long term SPAs 1.4 1.9 CMI SPA payment(1) 0.2 0.5 Commodity payments, net(2) 0.1 0.1 Total CCL revenues 1.7…
  33. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 33
    Corpus Christi Liquefaction Project Schedule Train 1 DFCD Oct 2019 Feb 2019 Train 2 DFCD July 2020 June 2019 Stage 1 (Trains 1&2) overall project progress as of December 2015: Engineering, Procurement, and Construction…
  34. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 34
    Corpus Christi Liquefaction SPAs SPA progress: 8.42 mtpa take-or-pay style commercial agreements 1.5B annual fixed fee revenue for 20 years PT Pertamina Woodside Energy EDP Energias de (Persero) Endesa S.A. Iberdrola S.A. Gas…
  35. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 35
    FERC Applications for Liquefaction Projects FERC FERC FERC Scheduled DOE Quantity EIS / FERC Under LNG Export Projects Pre-filing Application Scheduling Date for EIS Non FTA Bcf/d EA Approval Construction Date Date Notice Issued or…
  36. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 36
    U.S. LNG Export Projects Quantity Company DOE FERC Contracts (Bcf/d) Cheniere Sabine Fully 2.2 Fully permitted Subscribed Pass T1 T4 Oregon LNG Fully Freeport 1.8 Fully permitted Subscribed Fully Lake Charles 2.0 FTA…
  37. USCA Midstream Corporate Access Day – Cheniere Energy, Inc. – slide 37
    CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Director, Finance and Investor Relations (713) 375-5479, randy.bhatiacheniere.com Katy Cox Senior Analyst, Investor Relations (713) 375-5079, katy.coxcheniere.com

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