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May 2018 Investor Update – Cheniere Energy, Inc.

Cheniere Energy, Inc. · May 29, 2018 · 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. May 2018 Investor Update – Cheniere Energy, Inc. – slide 1
    CHENIERE ENERGY, INC. March 2018 CHENIERE ENERGY, INC. NYSE American: LNG INVESTOR UPDATE May 29-30, 2018
  2. May 2018 Investor Update – Cheniere Energy, Inc. – slide 2
    Agenda Randy Bhatia Introduction Vice President, Investor Relations Company Highlights Jack Fusco and CCL T3 Overview President and Chief Executive Officer LNG Market and Anatol Feygin Strategic Update Executive Vice…
  3. May 2018 Investor Update – Cheniere Energy, Inc. – slide 3
    CCL Project COMPANY HIGHLIGHTS AND CCL T3 OVERVIEW Jack Fusco, President and CEO
  4. May 2018 Investor Update – Cheniere Energy, Inc. – slide 4
    Cheniere Investment Thesis Full-service LNG offering, including gas procurement, transportation, liquefaction, and shipping enables flexible solutions tailored to customer needs Positioned as premier LNG provider, with a proven…
  5. May 2018 Investor Update – Cheniere Energy, Inc. – slide 5
    Consistently Delivering on Our Promises Four Trains at Sabine Pass completed within 17 months safely, within budget, and ahead of schedule Anticipated completion of Sabine T5 and Corpus T1-T2 in Cheniere is well-positioned for…
  6. May 2018 Investor Update – Cheniere Energy, Inc. – slide 6
    Corpus Christi Liquefaction Train 3 Overview Corpus Christi Liquefaction Project Liquefaction Technology Positive Final Investment Decision EPC Contractor May 22, 2018 Notice to Proceed issued to Bechtel May 23, 2018…
  7. May 2018 Investor Update – Cheniere Energy, Inc. – slide 7
    Significant Capacity for Expansion at Corpus Site Organic Growth Stage 3 Property footprint of 2,000 acres provides significant opportunity In Development for liquefaction expansion beyond Trains 1-3 Advantaged location with…
  8. May 2018 Investor Update – Cheniere Energy, Inc. – slide 8
    CHENIERE OVERVIEW LNG MARKET AND STRATEGIC UPDATE Anatol Feygin, EVP and CCO
  9. May 2018 Investor Update – Cheniere Energy, Inc. – slide 9
    Supply/Demand Forecast and Strong Margins Support LNG Growth LNG Supply/Demand Forecast Indicative Future Gross Margins mtpa 6.00 500 New Supply Needed LNG Trade Forecast By 2025: 80mtpa 5.00 By 2030: 125mtpa New Supply 400…
  10. May 2018 Investor Update – Cheniere Energy, Inc. – slide 10
    Expected Asian Demand Growth Requires Steady Supply Expansion Cheniere Well Positioned to Satisfy the Call on Reliable, Competitive Supplies of LNG Actual 2017 LNG Trade Growth Forecast LNG Demand Growth, 2017-2030 Emerging Asia,…
  11. May 2018 Investor Update – Cheniere Energy, Inc. – slide 11
    Operating Capabilities Key to Project Success Sabine Pass Gas Supply Volumes 3.5 Tbtu/day Cheniere is Now the 3.0 Largest Consumer of 2.5 Natural Gas in the U.S. 2.0 1.5 1.0 Average daily quantity 0.5 Average daily…
  12. May 2018 Investor Update – Cheniere Energy, Inc. – slide 12
    Depth of Expertise and Portfolio Provide Major Competitive Advantages Liquefaction Capacity Term FOB Offtake 8 Trains 36 mtpa nominal capacity 80-90% contracted Large-Scale Existing Platform Brand recognition and reliability…
  13. May 2018 Investor Update – Cheniere Energy, Inc. – slide 13
    CHENIERE OVERVIEW FINANCIAL UPDATE Michael Wortley, EVP and CFO
  14. May 2018 Investor Update – Cheniere Energy, Inc. – slide 14
    2018 Investor Update 2017 Finance Priorities Revisited CCL Train 3 Financing Run-Rate Guidance Update Five-Year Available Cash Update 16
  15. May 2018 Investor Update – Cheniere Energy, Inc. – slide 15
    2017 Financial Priorities Revisited Reinvest and return capital while maintaining long term sustainable balance sheet Recently announced FID of CCL Train 3 financed with approximately 50% debt / 50% equity out earning equity cost of…
  16. May 2018 Investor Update – Cheniere Energy, Inc. – slide 16
    CCH Trains 1-3 Sources and Uses CCH Trains 1-3 Financing Sources and Uses(3) Sources (bn) T1-2 T3 Total % Uses (bn) T1-2 T3 Total % Upfront / Development Equity Funded 1.7 0.3 2.1 13% Bechtel EPC Contracts 7.8 2.4 10.2 65% (1)…
  17. May 2018 Investor Update – Cheniere Energy, Inc. – slide 17
    Balance Sheet Underpinned by Strong Counterparty Credits Cheniere Counterparty Exposure Cheniere 14 External SPA Customers(1) NR Take or pay style sale and purchase agreements (SPAs) with 2.4% 13 of 14 external counterparties rated as…
  18. May 2018 Investor Update – Cheniere Energy, Inc. – slide 18
    Consolidated vs. Deconsolidated Consolidated Deconsolidated CEI Minority Interest CMI CCH CQP and CQH CCL CCPL CTPL SPLNG SPL 20
  19. May 2018 Investor Update – Cheniere Energy, Inc. – slide 19
    Run Rate Guidance 7 Trains Online 8 Trains Online SPL T1-5, SPL T1-5, (bn, except per share and per unit amounts or unless otherwise noted) CCH T1-2 CCH T1-3 CEI Consolidated Adjusted EBITDA 3.8 - 4.1 4.3 - 4.6 Less: CQP/CQH Minority…
  20. May 2018 Investor Update – Cheniere Energy, Inc. – slide 20
    Run Rate Guidance: Impact of Additional Train at SPL Additional Run-Rate Distributable Cash Flow 8 Trains Online 9 Trains Online SPL T1-5, SPL T6 (2) SPL T-6, (bn, except per share and per unit amounts or unless otherwise noted) CCH…
  21. May 2018 Investor Update – Cheniere Energy, Inc. – slide 21
    Summary Amortization Requirements at Project Levels CCH / CEI (CCL Trains 1 - 2) (CCL Trains 1 - 3) 2 Trains utilizing 3 Trains utilizing (bn) Corporate Debt Capacity Corporate Debt Capacity Debt Amortization Start at CCH (1.4x DSCR)…
  22. May 2018 Investor Update – Cheniere Energy, Inc. – slide 22
    CEI and CQP Available Liquidity bn 2.5 Total: 2.3 billion CCH General WC 0.1 Facility Capacity 2.0 0.8 CEI Revolver Capacity Total: 1.4 billion 1.5 0.1 CQP DSRA 0.5 Remaining CCH Contingency(4) 0.4 SPL DSRA 1.0 0.1 CQP…
  23. May 2018 Investor Update – Cheniere Energy, Inc. – slide 23
    CEI Deconsolidated Five Year Sources and Uses Projected Available Cash Generation: 2018 2022 12.0 bn Sources: 10.9 billion Uses: 10.9 billion Available Free Cash Flow 10.0 1.7 CQP GP / IDR Distributions Grow (SPL T6 Equity from…
  24. May 2018 Investor Update – Cheniere Energy, Inc. – slide 24
    Projected Five Year Sources and Uses Reconciliation to 2017 Analyst Day (bn) 7.0 6.0 2.1 5.8 1.2 5.0 4.7 (1.1) 4.0 4.0 (1.6 ) 2020-2022 5.1 2020-2022 Free Cash Generated 4.0 3.0 Free Cash Generated 2.0 1.0 0.7 0.7…
  25. May 2018 Investor Update – Cheniere Energy, Inc. – slide 25
    Capital Allocation CEI Free Cash Flow Achieve Target Leverage Target 1.4x/1.5x Investment Grade ratings at Projects Target 4.0x Deconsolidated Debt / EBITDA at Corporates Grow Buy Back Stock Pay Dividend Further Debt Invest…
  26. May 2018 Investor Update – Cheniere Energy, Inc. – slide 26
    Key Takeaways Chenieres first mover advantage and successful financial and operational execution have 1 Cheniere at the forefront of the next wave of new LNG build FID of CCL Train 3 marks first FID on new U.S. liquefaction capacity…
  27. May 2018 Investor Update – Cheniere Energy, Inc. – slide 27
    Q&A 29
  28. May 2018 Investor Update – Cheniere Energy, Inc. – slide 28
    SPL Project, Train 5 CHENIERE OVERVIEW APPENDIX
  29. May 2018 Investor Update – Cheniere Energy, Inc. – slide 29
    Sabine Pass Cargo Destinations Approximately 350 Cargoes (1,250 TBtu) Exported from Sabine Pass Since Startup Delivered to 26 Countries and Regions Across the Globe London, U.K. Poland, Lithuania, Netherlands, United Kingdom…
  30. May 2018 Investor Update – Cheniere Energy, Inc. – slide 30
    LNG Production Capacity Adjusted nominal capacity is expected Nominal Adjusted Capacity to range between 4.3 and 4.6 mtpa in Capacity run-rate years Preliminary overdesign assessment in progress; requires Debottleneck Maintenance…
  31. May 2018 Investor Update – Cheniere Energy, Inc. – slide 31
    Forecasting Points CEI Cash Tax Payments Begin Early - Mid 2020s CQH Tax Sharing Payments Begin Early 2020s 2020 - 2030 Tax Rate Percentage of Pre-Tax Cash Flow CEI 0 - 5% CQH 10 - 15% 2031 - 2040 Tax Rate Percentage of Pre-Tax Cash…
  32. May 2018 Investor Update – Cheniere Energy, Inc. – slide 32
    Target Leverage for Projects and Corporates Cheniere Energy Inc. (CEI) Corporates (NYSE American: LNG) Debt / EBITDA: BB Ratings Profile 4.0x Target Debt / EBITDA Deconsolidated Debt Outstanding Annual Deconsolidated EBITDA…
  33. May 2018 Investor Update – Cheniere Energy, Inc. – slide 33
    Long-term Capital Structure Plan Utilize leverage capacity at CQP and CEI (the corporate levels) to delever SPL and CCH (the project levels) over the next 5-10 years Debt incurrence test will force the deleveraging of SPL and CCH…
  34. May 2018 Investor Update – Cheniere Energy, Inc. – slide 34
    Credit Ratings Policy Reasons to maintain IG ratings Reasons to maintain BB ratings at the project levels at the corporate levels Project indentures already require amortization over time at IG Project ratings capped by agencies to be…
  35. May 2018 Investor Update – Cheniere Energy, Inc. – slide 35
    Non-GAAP Measures In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow and Distributable Cash…
  36. May 2018 Investor Update – Cheniere Energy, Inc. – slide 36
    CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Vice President, Investor Relations (713) 375-5479, randy.bhatiacheniere.com Megan Light Manager, Investor Relations (713) 375-5492, megan.lightcheniere.com

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