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Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc.

Cheniere Energy, Inc. · May 10, 2016 · 39 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 1
    CHENIERE ENERGY, INC. DEUTSCHE BANK 2016 MLP, MIDSTREAM, AND NATURAL GAS CONFERENCE May 2016
  2. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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 commissioning cargo from Train 1 exported February 24th Continue commercialization…
  4. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 4
    Cheniere Projected Cash Flow Build-Up With 7 Trains CQP CCL ( in billions, except per share amounts) (SPL T1-5/ SPLNG/CTPL) CCL T1-2 CEI Standalone Project EBITDA to CEI (net of minority interests) 1.0* 1.3 2.3 Plus: Management fees…
  5. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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) Train 1 construction complete Trains 2-5 are under construction First commissioning cargo from…
  9. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 9
    Aerial View of SPL Construction April 2016 Train 6 Under Development Train 5 T1 Ethylene Cold Box T1 Methane Cold Box Air Coolers Train 3 Train 4 Train 1 Propane Condenser Area T1-2 Gas Meter Train 2 10
  10. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 10
    Aerial View of CCL Construction April 2016 Train 3 Under Development Train 2 Train 1 Tank C Tank B Under Development Tank A 11
  11. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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 included, no lifting requirements SPAs with investment grade off-takers…
  12. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 12
    Forecast Cheniere LNG Portfolio Summary SPL CCL Total Under SPL CCL Total Portfolio (in MTPA) Trains 1-5 Trains 1-2 Construction 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 - -…
  13. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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/CTPL via GP/IDR and CQH 1.0* 1.0* 1.3* Management fees 0.1 0.1…
  14. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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 NGPL P/L: 0.385 Bcf/d Marcellus / Utica…
  16. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 16
    Cheniere Marketing Platform for LNG sales - short, mid, long-term sales, FOB or DAT basis Scale for 9 mtpa including LNG purchases from Cheniere terminals London, U.K. and elsewhere SPAs with SPL and CCL for all LNG Washington,…
  17. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 17
    Cheniere Marketing Significant LNG Sales to Date Marketing Deals Entered El Campesino(1) EDF ENGIE Into Prior to 2015 (pending FID) Contracted 150 MM MMBtus 150 MM MMBtus 222 MM MMBtus 32.3 MM MMBtus/year Quantity (42 cargoes) (42…
  18. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – 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. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 19
    Supply / Demand Fundamentals Support Continued LNG Growth LNG demand expected to nearly double from 2015 to 2030 Supply-demand gap projected to open shortly after 2020 as trade grows and existing production declines in certain…
  20. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 20
    LNG Imports to 2030: Growing and Evolving Market Place Pacific Basin Forecast Atlantic Basin Forecast Future growth from newer markets as traditional LNG will play a growing role in Europe as domestic import markets mature production…
  21. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 21
    U.S. to Be One of Top Three LNG Suppliers Projected Liquefaction Capacity 84 mtpa 50 mtpa 64 89 mtpa 77 77 mtpa under mtpa mtpa 31.5 1.5 const. mtpa 36 mtpa under PB mtpa const 2015 2025 . 2025 PB 2015 2025 2015 2025…
  22. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 22
    Cheniere Competitive Advantage: Low Cost U.S. natural gas is one of the lowest cost sources of supply in the world U.S. liquefaction project costs are also significantly lower due to less project development needed Breakeven LNG price…
  23. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 23
    New Markets Present Demand Upside Potential mtpa 4 Global LNG Import Variance (2015 vs. 2014) 3 Net global imports increased 8 mtpa in 2015 2 1 0 Dominican Republic Thailand Netherlands Greece Puerto Rico…
  24. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 24
    LNG Market Prices Profitable for Cheniere Cheniere can profitably sell excess LNG volumes at 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…
  25. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 25
    In Summary First commissioning cargo from Train 1 exported February 24th Train 2 at SPL commissioning underway, with remaining three Trains at SPL to commence on a staggered basis CCL Trains 1&2 construction progressing on time and…
  26. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 26
    CHENIERE ENERGY, INC. APPENDIX
  27. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 27
    Chenieres Debt Summary May 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…
  28. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 28
    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) Project EBITDA / Project…
  29. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 29
    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…
  30. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 30
    Sabine Pass Liquefaction Project (SPL) Current Facility Utilizing existing assets 1,000 acres in Cameron Parish, LA Under Construction 40 ft. ship channel 3.7 miles from coast Trains 1-5 2 berths; 4 dedicated tugs 5 LNG storage…
  31. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 31
    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…
  32. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 32
    SPL Construction Schedules Trains 1 5 Commissioning process will begin several months before each Train is complete. 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 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…
  33. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 33
    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.…
  34. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 34
    Corpus Christi LNG Terminal Proposed 5 Train Facility 2,000 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…
  35. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 35
    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…
  36. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 36
    Corpus Christi Liquefaction Project Schedule 2015 2016 2017 2018 2019 2020 0 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 56…
  37. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 37
    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…
  38. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 38
    FERC Applications for Liquefaction Projects FERC FERC FERC Scheduled DOE Quantity EIS / FERC Under LNG Export Projects Pre-filing Application Scheduling Date for Final Non FTA Bcf/d EA Approval Construction Date Date Notice Issued…
  39. Deutsche Bank 2016 MLP Midstream and Natural Gas Conference – Cheniere Energy, Inc. – slide 39
    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…

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