CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG Investor Update June 3-4, 2019
Agenda Introduction Randy Bhatia Vice President, Investor Relations Introduction and Jack Fusco Vision President and Chief Executive Officer Commercial Update Anatol Feygin Executive Vice President and Chief Commercial…
INTRODUCTION AND VISION Jack Fusco, President and CEO
The Past Year at a Glance Long-Term Contracts Record Financial and Operating Results (Prior Four Quarters) Positive Final 2 mtpa 25 years DES 255 Net (1) 2.4 Consolidated 20 LNG Investment Decision Adjusted million Exported…
Our Vision: To Provide Clean, Secure, and Affordable Energy to the World Customer Focus Liquefaction Platform Growth Long-term customer relationships Leverage expansive infrastructure footprint, operating expertise, and Contracts with…
COMMERCIAL UPDATE Anatol Feygin, EVP and CCO
Integrated Platform Creates Commercial Advantage Market leading position along the value chain GAS SUPPLY LIQUEFACTION PORTFOLIO OPTIMIZATION Significant natural gas consumer within the Second largest operator of liquefaction…
Competitive Differentiators Drive Continued Growth Over 8 mtpa of long-term deals executed since early 2018 Capitalizing on competitive strengths to provide a differentiated product and underwrite new liquefaction capacity Transaction…
Innovation Brings Continued Commercial Success: FOB DES IPM Integrated Production Management (IPM) Transaction with Apache How It Works Core Principles Apache sells 140,000 MMBtu/d of gas to CCL Stage 3 for Generates a take-or-pay…
Our Commercial Advantage Integrated Platform, Continued Innovation Gas Supply Scale and Diversity Strong producer relationships Infrastructure diversity Infrastructure scale Large-Scale Platform Best-in-class operator / 6 Trains…
FINANCIAL STRATEGY AND GUIDANCE Michael Wortley, EVP and CFO
Financial Priorities Reinvest and return capital remain focus Train 6 FID and full notice to proceed announced today Attention now on accretive growth opportunities at Corpus, starting with Stage 3 Projected returns via share…
Balance Sheet Underpinned by Strong Counterparty Credits Counterparty Exposure External Long-Term Customers(1) NR Take or pay style long-term agreements with 5.5bn of annual fixed fees A- to A+ 3.5% Rated All counterparties rated as…
SPL Train 6 Customers Announcement FOB / DES Seller Quantity & Term 20 years Dec. 2018 FOB Sabine Pass Liquefaction 2024 2044: 1.1 MTPA (Petronas LNG Ltd. NR / A3 / NR) 15 years FOB Sabine Pass Liquefaction(1) 2019-2021:…
SPL Train 6 Financing Sources and Uses (BN) Sources T6 % Uses T6 % SPL SPL Pre NTP Equity Invested 0.3 8% Bechtel EPC Contracts 2.5 76% Contracted Cash Flows to be Funded 1.6 47% Owner's Cost / Other 0.6 18% Total SPL Sources 1.8 55%…
Expected Run-Rate Liquefaction Capacity Evolution Trains Operational Run-Rate Adjusted Nominal Liquefaction Capacity Per Train Range 3 April 2017 4.3 4.6 MTPA MTPA Analyst Day 0 SPL CCL 4 November 2018 4.4 4.9 Q3…
Run-Rate Guidance Nov. 2018 Guidance Todays Guidance 8 Trains 9 Trains (2022) (2023) SPL T1-5, SPL T1-6, (b n, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CCL T1-3 4.4 - 4.9 MTPA 4.7 - 5.0 MTPA CEI…
Capital Allocation Backdrop Unprecedented period of investment (mm) Annual cash flow ramping Accretive brownfield opportunities 6,000 30 remain priority 5,000 5 Mtpa Cumulative spend (bn) 25 24BN Invested to Date 20 4,000…
Five Year Forecasted Cash Sources Reconciliation to 2018 Roadshow (bn) 10.0 9.1 3.8 9.0 Mid 2022 Mid 2024 Available Cash 8.0 7.0 0.8 6.4 70% 6.0 5.8 Increased production Early substantial Addition of 1.5 years 5.0…
Capital Allocation Prioritization 1 Continue to pursue accretive growth projects Tie goes to growth FID SPL Train 6 and pursue attractive debottlenecking opportunities Equity fund 50% of Corpus Stage 3 once commercialized (2020 FID…
1 Corpus Christi Stage 3 Stage 3 Corpus Christi Stage 3 (9.5 mtpa) Seven 1.4 mtpa mid-scale liquefaction trains, one 160,000m3 LNG storage tank Stage 3 to share significant infrastructure from Stages 1 & 2 FERC Environmental…
1 Five Year Forecasted Cash Sources After Growth Capital Allocation (bn) 10.0 9.1 9.0 Mid 2022 Mid 2024 8.0 Available Cash 7.0 6.4 6.0 (2.9) 5.5 50 / 50 debt / equity funding (0.7) Mid 2022 Mid 2024 5.0 Available Cash CEI…
2 Balance Sheet Strategy Focus on simple consolidated credit metrics (debt / EBITDA) for corporate entities CEI and CQP Plan to migrate a portion of project level debt to corporate levels to de-lever projects, defer debt amortization…
3 Capital Return Strategy 1.0 billion share repurchase program authorized Program to begin in late Q2 / early Q3 3-year program Tax efficient and flexible Actual share repurchase timing and amount dependent on: Expected excess…
3 Estimated Growth and Capital Return Results from Capital Allocation Metrics with Growth + Capital Return Policies Debt Paydown & Share Buyback Status Quo Growth Capital Return 9 Train Run-Rate 9 Trains + CCL Stage 3 9 Trains + CCL…
Key Takeaways Comprehensive Capital Allocation Policy Enhances Platform and Drives Value Reliable Execution + Steady Actionable Brownfield Sustainable Balance Sheet + Cash Flows Growth Prospects Liquidity Position Foundation…
APPENDIX
Forecasting Points (9 Trains) CEI Cash Tax Payments Begin Early - Mid 2020s CEI 2020 - 2030 Tax Rate Percentage of Pre-Tax Cash Flow 0 - 5% CEI 2031 - 2040 Tax Rate Percentage of Pre-Tax Cash Flow 15 - 20% 2020-2030 CEI tax rate…
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