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June 2018 Corporate Presentation – Tellurian Inc.

Tellurian Inc. · Jun 18, 2018 · 34 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. June 2018 Corporate Presentation – Tellurian Inc. – slide 1
    Corporate presentation June 2018
  2. June 2018 Corporate Presentation – Tellurian Inc. – slide 2
    Contents Business model Driftwood assets Market fundamentals Additional detail 3
  3. June 2018 Corporate Presentation – Tellurian Inc. – slide 3
    Global call on U.S. natural gas U.S. supply push and global demand pull Output from selected shale basins(1) Global LNG production capacity mtpa mtpa Takeaway Supply infrastructure 221 infrastructure 150 101 Required 127…
  4. June 2018 Corporate Presentation – Tellurian Inc. – slide 4
    Building a low-cost global gas business Driftwood Holdings partnership integrated, low-cost Upstream 11,620 acres in the Haynesville with 1.4 Tcf resource Pipeline 7 billion(1) of pipeline infrastructure projects in…
  5. June 2018 Corporate Presentation – Tellurian Inc. – slide 5
    Tellurians differentiating factors Experienced World class Fixed cost EPC Regulatory Unique business management partners contract certainty model Management Guaranteed FERC Integrated: track record at lump sum scheduling Upstream…
  6. June 2018 Corporate Presentation – Tellurian Inc. – slide 6
    Business model Nasdaq: TELL Tellurian will offer equity interest in Driftwood Holdings Customer/Partner Driftwood Holdings will consist of a Production Company, a Pipeline Network and an LNG 60% Equity ownership 40% 100% Terminal…
  7. June 2018 Corporate Presentation – Tellurian Inc. – slide 7
    Driftwood Holdings construction budget Scenario Phase 1(1) Full development(1) Capacity (mtpa) 11.0 27.6 Upstream resource need(2), Tcf 15 40 Investment ( billions) Terminal 7.6 15.2 Pipeline(3) 1.1 2.2 Owner's costs and other 1.1…
  8. June 2018 Corporate Presentation – Tellurian Inc. – slide 8
    Driftwood Holdings operating costs Total cost of 3/mmBtu locks in low cost of supply /mmBtu 0.75 0.22 0.79 3.00 0.36 2.25 0.88 Drilling and Operating Gathering, Contingency Delivered Liquefaction Total completion(1)…
  9. June 2018 Corporate Presentation – Tellurian Inc. – slide 9
    Margins and price signals Netback prices to the Gulf Coast(1) 2018 JKM forward prices up 3.40 since September 2017 /mmBtu /mmBtu Avg. 2018 25 July 2018 GCM(2) JKM price up 12 5 June 2018: 54% since 8.41/mmBtu 11 Sept-17 20 10…
  10. June 2018 Corporate Presentation – Tellurian Inc. – slide 10
    Returns to Driftwood Holdings partners(1) U.S. Gulf Coast netback price (/mmBtu) 6.00 10.00 15.00 Driftwood LNG, FOB U.S. Gulf Coast (3.00) (3.00) (3.00) Margin (/mmBtu) 3.00 7.00 12.00 Annual partner cash flow ( millions)(2)…
  11. June 2018 Corporate Presentation – Tellurian Inc. – slide 11
    Value to Tellurian Inc. Cash flow analysis Analyst estimates, NAV and trading range per share 80 Annual cash flows Full development 70 USGC ( millions) netback Margin(1) Full 60 (/mmBtu) (/mmBtu) Phase 1(2) development(2) 50…
  12. June 2018 Corporate Presentation – Tellurian Inc. – slide 12
    Marketing process Driftwood Holdings 2018 Activity Q1 Q2 Q3 Q4 Launch marketing Feb 15 25 customer/partners in data room Narrow candidates Negotiate agreements Commercialize Phase 1 by Q3 or Q4 2018 13 Business model
  13. June 2018 Corporate Presentation – Tellurian Inc. – slide 13
    Conclusions A global LNG demand pull has coincided with a supply push from the U.S., signaling the need for additional liquefaction capacity Tellurians business model provides investors with access to the U.S. integrated gas value…
  14. June 2018 Corporate Presentation – Tellurian Inc. – slide 14
    Contents Business model Driftwood assets Market fundamentals Additional detail 15
  15. June 2018 Corporate Presentation – Tellurian Inc. – slide 15
    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…
  16. June 2018 Corporate Presentation – Tellurian Inc. – slide 16
    Regulatory and cost certainty Regulatory schedule clarity Guaranteed lump sum turnkey contract with Bechtel per tonne Catalyst Estimated timeline 700 Draft Environmental Impact Statement 1H 2018 550 Final Environmental Impact…
  17. June 2018 Corporate Presentation – Tellurian Inc. – slide 17
    Production Company strategy Objectives Current assets Acquire and develop long-life, low-cost natural gas Tellurian acquired 11,620 net acres in the Haynesville resources shale for 87.8 million in Q4 2017 Low geological risk…
  18. June 2018 Corporate Presentation – Tellurian Inc. – slide 18
    100 Tcf available resources in Haynesville Driftwood Holdings plans to fund and purchase 15 Tcf Potential Target size: acquisition targets: Range of resources per target (Tcf)(1): Large 15 Tcf 15 Medium 9 to 15 Tcf 9 15…
  19. June 2018 Corporate Presentation – Tellurian Inc. – slide 19
    Pipeline network Bringing low-cost gas to Southwest Louisiana 1 Driftwood Pipeline(1) 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…
  20. June 2018 Corporate Presentation – Tellurian Inc. – slide 20
    Contents Business model Driftwood assets Market fundamentals Additional detail 21
  21. June 2018 Corporate Presentation – Tellurian Inc. – slide 21
    Demand pull Demand outlook mtpa 500 127 mtpa of new Demand(2) liquefaction capacity required 107 mtpa 400 by 2025(1) Under 300 construction 200 In operation 100 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024…
  22. June 2018 Corporate Presentation – Tellurian Inc. – slide 22
    U.S. natural gas needs global market access 13 Bcf/d of incremental production; associated gas at risk of flaring without infrastructure investment LNG liquefaction terminal Operating/under construction Future Required future…
  23. June 2018 Corporate Presentation – Tellurian Inc. – slide 23
    Deeper physical liquidity from infrastructure 902 LNG Storage - 2017 751 Japan + Korea terminals: 633 Bcf Bcf of LNG LNG vessels: 751 Bcf storage 609 of LNG 507 vessels 2017 2020 of 17 cargoes 13 loaded per day 2017…
  24. June 2018 Corporate Presentation – Tellurian Inc. – slide 24
    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 25 Contacts
  25. June 2018 Corporate Presentation – Tellurian Inc. – slide 25
    2017 Additional detail
  26. June 2018 Corporate Presentation – Tellurian Inc. – slide 26
    Building a low-cost global gas business 2016 2017 2018 Upstream 60 acquisition Pipeline 25 207 100 50 Merger open million million million million million LSTK seasons April December January February June November December…
  27. June 2018 Corporate Presentation – Tellurian Inc. – slide 27
    Funding and ownership Sources (1) ( million) Ownership(1) (%) Bechtel Mgmt, investment, family and ATM 50 friends, 60 program, Total 10 20% GE investment, 25 Free Float 35% Public equity 467 million 228 million shares…
  28. June 2018 Corporate Presentation – Tellurian Inc. – slide 28
    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…
  29. June 2018 Corporate Presentation – Tellurian Inc. – slide 29
    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,…
  30. June 2018 Corporate Presentation – Tellurian Inc. – slide 30
    Driftwood schedule Months - 12 24 36 48 (1) Sabine Cameron First wave Cove Point Corpus (1) Southern (1) Freeport DWLNG Second wave Magnolia Golden Pass Lake Charles Venture Global Pre-filing FERC…
  31. June 2018 Corporate Presentation – Tellurian Inc. – slide 31
    Key terms of EPC agreements with Bechtel 700 per tonne 550 490 500 380 Phase 1 Phase 2 Phase 3 Phase 4 Total Capacity 11.0 5.5 5.5 5.5 27.6 Trains 8 4 4 4 20 Storage facilities 2 0 1 0 3 Berths 1 1 1 0 3 32…
  32. June 2018 Corporate Presentation – Tellurian Inc. – slide 32
    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 Cameron Pine…
  33. June 2018 Corporate Presentation – Tellurian Inc. – slide 33
    PGAP connects constrained gas to SWLA Takeaway constraints in the Permian Southwest Louisiana demand Bcf/d Texas Louisiana 16 Eunice, LA 14 Permian Gillis, LA production 12 Southwest Louisiana firm demand(1)(2) 10 (bcf/d) 12…
  34. June 2018 Corporate Presentation – Tellurian Inc. – slide 34
    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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