Corporate presentation Credit Suisse 23rd Annual Energy Summit Vail, Colorado February 14, 2018 Meg Gentle, CEO
Introducing Tellurian (NASDAQ: TELL) Strategy: Building a low-cost, global natural gas company Upstream production 11,620 acres in the Haynesville w. 1.4 Tcf resource Pipeline infrastructure development 7 BN of pipeline projects LNG…
Global LNG market is commoditizing 894 LNG Storage - 2017 Bcf of LNG 715 Japan + Korea terminals: 633 Bcf LNG vessels: 686 Bcf storage of LNG 488 610 vessels 2017 2020 of cargoes 19 loaded 14 per day Legend 2017…
Global LNG oversupply is over Price signals balance the market Global LNG market JKM annual average prices Asia LNG imports Bcf/d /mmBtu Bcf/d 45 18 29 Infrastructure constraint 40 16 28 14 27 35 12 26 30 10 25 25 8 24 20…
New liquefaction capacity required Accelerated demand growth 2017 effective capacity(1) Higher prices signal need for more LNG driven by low LNG prices utilization 97% Emerging indices provide transparency LNG demand growth LNG…
Driftwood LNG terminal Driftwood LNG terminal Land 1,000 acres near Lake Charles, LA Capacity 27.6 mtpa Up to 20 trains of 1.38 mtpa each Trains Chart heat exchangers GE LM6000 PF+ compressors 3 storage tanks Storage 235,000…
12 Bcf/d Southwest Louisiana gas demand Core of U.S. natural gas exports Southwest Louisiana firm demand(1)(2) Texas Louisiana Bcf/d Eunice, LA 12 Bcf/d 12 Gillis, LA 10 Lake Charles Petrochemical complex 8 Demand Driftwood…
Plentiful, low-cost U.S. gas endowment Production growth and resource base from selected U.S. unconventional basins Resource size, Tcf 411 Total selected basin shale production, 33.0 Bcf/d 24.6 70.2 19.6 23 5.6 6.1 50.6 2017…
Ill-suited existing infrastructure Pre-shale pipelines and import facilities did not contemplate the shale revolution Major gas transportation flows 3 2008 major pipeline corridor 13 approximate capacity, Bcf/d 6 13…
Infrastructure first wave Industry built new pipelines, reversed old ones and developed the first wave of LNG export projects 4.8 1.7 0.7 Bcf/d Pipeline reversals Completed pipeline 2.6 reversals and new construction, Bcf/d…
New infrastructure required 13 Bcf/d of incremental production at risk of flaring without additional infrastructure investment New pipelines required Total estimated 2017-2025 Required future investment: 20 production growth, Bcf/d…
Permian production outpacing pipelines Takeaway constraints in the Permian Rolling forward curve of Waha basis swap Mar 18 Bcf/d /mmBtu 16 0.00 14 May 2016 12 10 Historical -0.50 8 January 2018 6 -1.00 4 2 - -1.50…
Tellurian Pipeline Network Bringing low-cost gas to Southwest Louisiana 1 Driftwood Pipeline1 Capacity, Bcf/d 4.0 Cost, billions 2.2 Length, miles 96 Diameter, inches 48 Compression, HP 274,000 2 Status FERC approval pending 2…
Business model Nasdaq: TELL Tellurian will offer equity interest in Driftwood Holdings Customer/Partner Driftwood Holdings will consist of Tellurian Production Company, Driftwood Pipeline 60% - 75% Equity ownership 25% - 40% 100%…
Potential margin capture from Driftwood Total cost of 3/mmBtu locks in low cost of supply 1.50 15.00/mmBtu of margin potential /mmBtu Netback prices to the Gulf Coast 20 0.75 /mmBtu 0.22 15 Mar 18 GCM(3) 12 Feb 2018: 0.79…
Driftwood vs. competitors cost per tonne Capacity, mtpa 9.5 27.6 10.0 16.5 13.0 9.0 15.6 9.0 8.9 5,025 4,144 3,774 2,657 per tonne 2,083 1,500 1,603 1,654 1,428 Qatar New Driftwood Mozambique Yamal LNG Canada APLNG…
Catalysts 2018 2019 Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Regulatory Draft EIS Final EIS 10/12/18 Scheduled authorization 1/10/19 Pipelines HGAP open season PGAP open season Driftwood Driftwood equity syndication Driftwood FID…
Conclusions LNG demand is growing at 11-12% per annum Netback LNG prices to the U.S. Gulf Coast of 8.00/mmBtu have signaled that additional liquefaction capacity is needed The U.S. is best positioned to meet global LNG supply needs…
Contact us Amit Marwaha Joi Lecznar Director, Investor Relations & Finance SVP, Public Affairs & Communication +1 832 485 2004 +1 832 962 4044 amit.marwahatellurianinc.com joi.lecznartellurianinc.com TellurianLNG 20 Contacts
2017 Additional detail
Creating Tellurian (NASDAQ: TELL) 2016 2017 Upstream 60 25 207 Acquisition 100 Merger million million million million LSTK February April August December January February June November December Charif Souki Management, Meg…
Building a low-cost global gas business Upstream Pipeline Liquefaction Marketing Purchase low-cost gas at Diversify gas supply Develop low-cost Develop suite of flexible liquidity points or as Develop pipeline solutions…
Illustrative financials Scenario Phase 1(1) Full development(1) Capacity, mtpa 11.0 27.6 Upstream resource need(2), Tcf 15 40 Investment, billions Terminal and S&U 7.6 15.2 Pipeline 1.1 2.2 Owner's costs and other 1.1 2.1…
Return on 1,500 per tonne investment Payback period analysis(6) Netback FOB U.S. Gulf Coast net back U.S. Gulf Coast 6.00 10.00 15.00 Cumulative cash flow price(1), /mmBtu millions 10/mmBtu Driftwood LNG, (3.00) (3.00) (3.00) FOB…
Integrated model prevalent internationally Projects include: Americas Europe Mideast/Africa Australasia IOC Atlantic LNG, Snohvit, Yamal Angola LNG, EG LNG, APLNG, Darwin, Peru LNG, LNG LNG Damietta, ELNG, Yemen GLNG, Gorgon,…
Driftwood schedule Months - 12 24 36 48 Estimated Catalyst Sabine 1 timeline Cameron Draft Environmental 1H 2018 Impact Statement First wave Cove Point Final Environmental 12 October Corpus Impact Statement 2018 1…
Tellurian Pipeline Network Gillis Market Area Permian Supply Area Haynesville Supply Area Interconnects Interconnects Interconnects KMPL CTPL Texas Gas ETC Comanche OXY Northern Natural Crosstex CenterPoint Texas Gas TETCO…
Tellurian Production Company Objectives Acquisitions Acquire and develop long life, low-cost natural Tellurian acquired 11,620 net acres in the Haynesville gas resources shale for 87.8 million in Q4 2017 Low geological risk Primarily…
Haynesville type curve comparison Comparative type curve statistics Cumulative production normalized to 7,500(3) Tellurian Peer A Peer B Peer C Peer D Bcf 6.0 Type curve detail Peer D NLA core / NLA Peer B De Soto / North…
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