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August 2019 Corporate Presentation – Tellurian Inc.

Tellurian Inc. · Aug 8, 2019 · 32 slides

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Slides

  1. August 2019 Corporate Presentation – Tellurian Inc. – slide 1
    Corporate presentation August 2019
  2. August 2019 Corporate Presentation – Tellurian Inc. – slide 2
    Corporate updates 3
  3. August 2019 Corporate Presentation – Tellurian Inc. – slide 3
    Tellurian value proposition US shale gas is overwhelming domestic market and exports are only solution Driftwood project expected to deliver LNG on the water…
  4. August 2019 Corporate Presentation – Tellurian Inc. – slide 4
    U.S. must export 30 bcf/d of LNG by 2025 including an additional 20 bcf/d of LNG export capacity over firm capacity U.S. natural gas export requirements 29 bcf/d 20 bcf/d additional U.S. LNG export capacity required(1) 150…
  5. August 2019 Corporate Presentation – Tellurian Inc. – slide 5
    Permian gas outlook range of forecasts Permian dry gas production 2025 YE (Bcf/d) production 26 Pioneer(1) 22 Rystad/BP/EIA Wood Mackenzie/IHS(2) 18 RSEG(3) Scenario 70/bbl WTI(4) 14 Rising gas-oil ratios and crude 10…
  6. August 2019 Corporate Presentation – Tellurian Inc. – slide 6
    LNG demand is growing 13.5% y/y MT per month 2019 37 2019 expected capacity LNG demand H1 +13.5% y/y 35 LNG capacity H1 +13% y/y 2018 LNG demand 33 Utilization rate +600 bps y/y 31 2019 LNG demand 29 27 25 Jan Feb…
  7. August 2019 Corporate Presentation – Tellurian Inc. – slide 7
    LNG capacity growth should peak in 2019 Incremental LNG capacity (mtpa) 50.0 14.0% 35 12% 40.0 12.0% 3 26 30 10.0% 30.0 9% 18 12 8.0% 20.0 8% 17 37 13 12 6.0% 26 8 26 10.0 18 4% 8 14 4.0% 9 5 4 4% 3 (2) (1) (2)…
  8. August 2019 Corporate Presentation – Tellurian Inc. – slide 8
    Global LNG capacity call: 100-250 mtpa mtpa 800 Capacity required(1) 9.3% p.a. growth rate 9.3%(2) 700 250 mtpa 600 5.0%(3) 500 Likely + possible FID(5) 100 mtpa Under construction (4) Project Status Capacity(6) 400 (mtpa)…
  9. August 2019 Corporate Presentation – Tellurian Inc. – slide 9
    Global LNG pricing JKM forward curves Forward expectations are instructive for new US LNG projects (/mmBtu) - JKM 12 11 WoodMac 10 IHS 9 8 Broker average 7 6 Live 5 4 Sources: Marketview, IHS, Wood Mac, Brokers…
  10. August 2019 Corporate Presentation – Tellurian Inc. – slide 10
    Tellurian expects to deliver 8/share cash flow Driftwood Tellurian Market: Robust US LNG fundamentals Partners: Selling 51% of Driftwood to 3rd parties Liquefaction: 27.6 mtpa Stake: Tellurian retains 49% (13.6 mtpa) Midstream:…
  11. August 2019 Corporate Presentation – Tellurian Inc. – slide 11
    Project overview 12
  12. August 2019 Corporate Presentation – Tellurian Inc. – slide 12
    Key investment highlights Tellurian developing 30 billion of assets to generate 8 cash flow per share annually Experienced World-class Fixed-cost EPC Unique business Commercial management partners contract model momentum…
  13. August 2019 Corporate Presentation – Tellurian Inc. – slide 13
    Owning infrastructure mitigates risk Tolling model SPA model Equity model Customer incurs risk Developer incurs risk Own the infrastructure Competition between customers Developer consolidates pipeline True cost control and for…
  14. August 2019 Corporate Presentation – Tellurian Inc. – slide 14
    Best team in the business Our combination of talents sets us apart from every other developer. Our leadership is underpinned by a team with unmatched experience. 79 mtpa, our team is responsible for over 50 Our team has…
  15. August 2019 Corporate Presentation – Tellurian Inc. – slide 15
    Driftwood LNGs ideal site for exports Access to pipeline infrastructure Access to power and water Support from local communities Site size over 1,000 acres Insulation from surge, wind, and local populations Berth over 45…
  16. August 2019 Corporate Presentation – Tellurian Inc. – slide 16
    Bringing low-cost gas to SW Louisiana 1 Driftwood Pipeline(1) Capacity (Bcf/d) 4.0 Cost ( billions) 2.2 Length (miles) 96 Diameter (inches) 48 Compression (HP) 274,000 Status FERC approval complete 2 Haynesville Global Access…
  17. August 2019 Corporate Presentation – Tellurian Inc. – slide 17
    Tellurian projects annual 8 cash flow/sh(1) Integrated model to produce low- Partners 100% cost LNG on the water (7 billion in equity) Variable and operating costs 51% Equity ownership 49% expected to be 2.50- 3.00/mmBtu FOB 1…
  18. August 2019 Corporate Presentation – Tellurian Inc. – slide 18
    Commercial momentum to 3-plant FID Driftwood Holdings volume Tellurian Marketing volume mtpa mtpa (1) Total S.A. Purchased 1.5 2.0 (3) Vitol 1.5 Petronet(2) Retained 4.6 Remaining 3.6 (1) Tellurian Contracted…
  19. August 2019 Corporate Presentation – Tellurian Inc. – slide 19
    Growing list of expected partners and customers Partner Off-take Volume Credit rating(3) Equity investor 1.0 mtpa A+/Aa3/AA- Driftwood project Baa2 Equity investor(1) Under review (Moodys) JKM linked 1.5 mtpa A+/Aa3/AA-…
  20. August 2019 Corporate Presentation – Tellurian Inc. – slide 20
    Driftwood Holdings financing 2-Plant Case 3-Plant Case Full Development Capacity (mtpa) 11.0 16.6 27.6 Capital investment ( billions) Liquefaction terminal(1) 7.6 10.6 15.5 Owners cost & contingency(2) 1.1 1.8 2.3 Driftwood…
  21. August 2019 Corporate Presentation – Tellurian Inc. – slide 21
    Value to Tellurian Inc. Every 1.00 reduction in gas costs or increase in LNG price adds 2.66/share in 5-plant case USGC Cost of 2 Plants 3 Plants 5 Plants Margin netback LNG(1) Cash flows(2)(3)(4) (/mmBtu) (/mmBtu) (/mmBtu)…
  22. August 2019 Corporate Presentation – Tellurian Inc. – slide 22
    Ability to deliver low-cost LNG on the water 4.50/mmBtu Optimistic case Replace or substitute amortizing bank debt (1) Debt 1.50 3.50/mmBtu for interest-only bonds Improved operating 1.00 outlook at liquefaction plant…
  23. August 2019 Corporate Presentation – Tellurian Inc. – slide 23
    Final Investment Decision expected in 2019 Milestone Target date Fully-wrapped EPC contract November 2017 Draft FERC EIS September 2018 Final FERC EIS January 2019 Final FERC Order April 2019 Executed suite of partnership DOE…
  24. August 2019 Corporate Presentation – Tellurian Inc. – slide 24
    Contact us Amit Marwaha Social media Director, Investor Relations & Finance +1 832 485 2004 TellurianLNG amit.marwahatellurianinc.com Joi Lecznar SVP, Public Affairs & Communication +1 832 962 4044…
  25. August 2019 Corporate Presentation – Tellurian Inc. – slide 25
    Appendix 26
  26. August 2019 Corporate Presentation – Tellurian Inc. – slide 26
    Recent milestones and key corporate updates Converted HOA with Total into finalized definitive agreements for 2.5 mtpa of LNG Total to purchase 1 mtpa of LNG for 500 million equity investment in Driftwood Entered into SPA for…
  27. August 2019 Corporate Presentation – Tellurian Inc. – slide 27
    Bechtel LSTK secures project execution Driftwood EPC contract costs ( per tonne) 700 Leading LNG EPC contractor 550 44 LNG trains delivered to 18 customers 490 500 in 9 countries 380 30% of global LNG liquefaction capacity (125…
  28. August 2019 Corporate Presentation – Tellurian Inc. – slide 28
    Driftwood vs. competitors cost per tonne Capacity, mtpa 27.6 31.2 10.0 16.5 14.0 9.0 15.6 9.0 8.9 5,025 4,144 3,774 (2) 2,657 2,214 (1) 1,603 1,654 1,320 1,428 Driftwood Qatar New Mozambique Yamal LNG Canada APLNG…
  29. August 2019 Corporate Presentation – Tellurian Inc. – slide 29
    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…
  30. August 2019 Corporate Presentation – Tellurian Inc. – slide 30
    Returns to Driftwood Holdings partners U.S. Gulf Coast netback price (/mmBtu) 6.00 8.00 10.00 15.00 Driftwood LNG, FOB U.S. Gulf Coast (3.50) (3.50) (3.50) (3.50) (/mmBtu) Margin (/mmBtu) 2.50 4.50 6.50 11.50 Annual partner cash…
  31. August 2019 Corporate Presentation – Tellurian Inc. – slide 31
    Environmental and social leadership Driftwood LNG project expected to reduce lifecycle carbon emissions and support local communities Lifecycle emission reduction Sustainable development Social engagement Provide an outlet for…
  32. August 2019 Corporate Presentation – Tellurian Inc. – slide 32
    Building momentum to FID in 2019 September February December Feb/March June February April Management, Merge with Raise Announce Raise Announce Driftwood friends and Magellan approximately open seasons approximately MOU for LNG…

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