Skip to main content January 2020 Investor Presentation – Tellurian Inc. | Shale Experts
Loading...
Pm

January 2020 Investor Presentation – Tellurian Inc.

Tellurian Inc. · Jan 6, 2020 · 40 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. January 2020 Investor Presentation – Tellurian Inc. – slide 1
    Corporate presentation January 2020
  2. January 2020 Investor Presentation – Tellurian Inc. – slide 2
    2020: the year of Tellurian Strongest LNG market fundamentals in history Global LNG demand continues to grow, four-year average of 9.3% annually Despite record global LNG supply additions from 2016-2019, capacity utilization remains…
  3. January 2020 Investor Presentation – Tellurian Inc. – slide 3
    Demand has absorbed all new LNG capacity Monthly global LNG demand and capacity(1) 2019E LNG demand and capacity(1) million tonnes/month mtpa 38 2019E utilization = 89% 36 2019E capacity 416 34 2019E LNG demand 32 372 30…
  4. January 2020 Investor Presentation – Tellurian Inc. – slide 4
    Dwindling capacity additions Global liquefaction capacity additions (mtpa) 120 mtpa capacity additions Limited capacity additions, favorable pricing(1) 43 64 mtpa capacity additions 34 29 28 27 25 16 16 11 8 3 (2)…
  5. January 2020 Investor Presentation – Tellurian Inc. – slide 5
    Global LNG capacity call: 100-200 mtpa mtpa 800 Capacity required(1) 9.3% p.a. growth rate 9.3%(2) 700 200 mtpa 600 6.6%(3) 500 100 mtpa 400 300 200 Under construction(4) 100 In operation - 2015 2016 2017 2018 2019…
  6. January 2020 Investor Presentation – Tellurian Inc. – slide 6
    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 Artist rendition…
  7. January 2020 Investor Presentation – Tellurian Inc. – slide 7
    Driftwood pipeline: fully permitted Driftwood pipeline route map CS 03 Mamou CGT 96 mile, up to 48 diameter Transco T E X A S pipeline Trunkline Texas Gas TETCO 2 LOUISIANA ANR Three compressor stations totaling CS 01…
  8. January 2020 Investor Presentation – Tellurian Inc. – slide 8
    Driftwood expects to deliver LNG FOB at 3-4/mmBtu Gas sourcing 2.00/mmBtu + 0.75/mmBtu LNG plant + pipeline(1) 3.50/mmBtu Average cost on the water Debt service(2) + 0.75/mmBtu Notes: (1) Includes operating expenses for…
  9. January 2020 Investor Presentation – Tellurian Inc. – slide 9
    Driftwood LNG and pipeline capital at 5-plant FID in billions, unless otherwise noted Uses ( bn) Sources ( bn) Driftwood LNG terminal 15.5 Driftwood partner equity 8.0 Driftwood pipeline 2.3 Cash flow from cargo ramp-up 3.4…
  10. January 2020 Investor Presentation – Tellurian Inc. – slide 10
    Commercial momentum Driftwood capacity, by partner share mtpa (2) (1) retained purchased Notes: (1) Represents required equity contribution at 500/tonne. (2) Based on Memorandum of Understanding (MOU) announced on September…
  11. January 2020 Investor Presentation – Tellurian Inc. – slide 11
    Key investment highlights Driftwood LNG and pipeline are shovel ready, all permits secured Engineering 28% complete, 150 mm invested Implied replacement enterprise value of 5.8 billion, or 20/share(1) At full operations, projected…
  12. January 2020 Investor Presentation – Tellurian Inc. – slide 12
    Contact us Kian Granmayeh Social media Director, Investor Relations +1 832 320 9293 TellurianLNG kian.granmayehtellurianinc.com Joi Lecznar SVP, Public Affairs & Communication +1 832 962 4044 joi.lecznartellurianinc.com 13
  13. January 2020 Investor Presentation – Tellurian Inc. – slide 13
    Driftwood project overview 14
  14. January 2020 Investor Presentation – Tellurian Inc. – slide 14
    Positioned to deliver 8/share(1) of cash flow Tellurian ownership structure(2) Illustrative cash flow calculation to Tellurian 13.6 mtpa 49% LP ownership mmBtu 52 100% GP ownership x conversion Driftwood Holdings x 3.50…
  15. January 2020 Investor Presentation – Tellurian Inc. – slide 15
    Bechtel LSTK secures project execution Driftwood EPC contract costs ( per tonne) 710 Increase from price refresh Leading LNG EPC contractor 560 44 LNG trains delivered to 18 500 510 customers in 9 countries 390 30% of global LNG…
  16. January 2020 Investor Presentation – Tellurian Inc. – slide 16
    Pipeline network 1 Driftwood Pipeline(1) Capacity (Bcf/d) 4.0 1,000 miles of pipe Cost ( billions) 2.3 Length (miles) 96 Diameter (inches) 48 Compression (HP) 274,000 Status FERC approval complete 2 Haynesville Global Access…
  17. January 2020 Investor Presentation – Tellurian Inc. – slide 17
    Value to Tellurian Inc. Every 1.00 reduction in gas costs or increase in LNG price adds 2.65/share in cash flow in 5-plant case Base case 3 Plants 5 Plants USGC netback Cost of LNG(1) Margin Cash flows(2)(3)(4) (/mmBtu) (/mmBtu)…
  18. January 2020 Investor Presentation – Tellurian Inc. – slide 18
    Returns to Driftwood Holdings partners U.S. Gulf Coast netback price (/mmBtu) 5.00 7.00 9.00 11.00 Driftwood LNG, FOB U.S. Gulf Coast (3.50) (3.50) (3.50) (3.50) (/mmBtu) Margin 1.50 3.50 5.50 7.50 (/mmBtu) Annual partner…
  19. January 2020 Investor Presentation – Tellurian Inc. – slide 19
    Driftwood Holdings financing 3-Plant 5-Plant FID Fully-integrated FID Fully-integrated Capacity (mtpa) 16.6 16.6 27.6 27.6 Capital investment ( billions) Liquefaction terminal(1) 10.6 10.6 15.5 15.5 Owners cost & contingency(2) 1.8…
  20. January 2020 Investor Presentation – Tellurian Inc. – slide 20
    Driftwood timeline Milestone Target date Fully-wrapped EPC contract November 2017 Draft FERC EIS September 2018 Final FERC EIS January 2019 Final FERC Order April 2019 DOE license to export to non-FTA countries May 2019…
  21. January 2020 Investor Presentation – Tellurian Inc. – slide 21
    Building momentum to FID September February December Feb/March June April September Management, Merge with Raise Announce Raise Driftwood Announce friends and Magellan approximately open seasons approximately LNG receives MOU for…
  22. January 2020 Investor Presentation – Tellurian Inc. – slide 22
    Commercial momentum 23
  23. January 2020 Investor Presentation – Tellurian Inc. – slide 23
    Growing list of expected partners and customers Partner Off-take Volume Credit rating(3) Equity investor 1.0 mtpa A+/Aa3/AA- Driftwood Baa2 Equity investor(1) Up to 5.0 mtpa project (Moodys) Equity investor 2.0 mtpa --…
  24. January 2020 Investor Presentation – Tellurian Inc. – slide 24
    Tellurian agreements with Total Driftwood equity investment and SPA Tellurian Marketing investment in Driftwood On July 10, 2019, Total agreed to make a 500 Tellurian Marketing to purchase an equity interest(2) million equity…
  25. January 2020 Investor Presentation – Tellurian Inc. – slide 25
    Tellurian MOU with Petronet LNG On September 21, 2019, Tellurian and Petronet LNG Limited INDIA (Petronet LNG) signed a memorandum of understanding (MOU) for up to five million tonnes per annum (mtpa) of liquefied natural gas (LNG)…
  26. January 2020 Investor Presentation – Tellurian Inc. – slide 26
    Petronet LNG premier equity partner Key player in major LNG demand center Petronet LNG ownership structure Petronet LNG formed as a joint venture in 1998 by the government of India to import LNG and set up regasification terminals…
  27. January 2020 Investor Presentation – Tellurian Inc. – slide 27
    LNG macro updates 28
  28. January 2020 Investor Presentation – Tellurian Inc. – slide 28
    U.S. must export 30 bcf/d of LNG by 2025 U.S. natural gas export requirements 30 bcf/d 17 bcf/d additional U.S. natural gas export capacity required(1) 115 mtpa of additional LNG capacity required(2) 8 bcf/d LNG export…
  29. January 2020 Investor Presentation – Tellurian Inc. – slide 29
    Permian gas to drive U.S. LNG export growth Permian oil drilling activity expected to double Permian gas production from 2018 to 2025 Permian oil and gas production forecast mmboe/d 12 Dry gas 19 bcf/d 2025E Permian dry gas…
  30. January 2020 Investor Presentation – Tellurian Inc. – slide 30
    Global energy needs require natural gas The shifting landscape of energy consumption Drivers of shifting landscape 8Tonnes oil equivalent/capita 35% 31% Non-OECD energy consumption growth rate was 7 30% 13x that of OECDs over the…
  31. January 2020 Investor Presentation – Tellurian Inc. – slide 31
    China & India: 90 mtpa growth potential LNG demand growth (2019-2025) Key growth drivers mtpa Infrastructure: 2x growth in Indias pipeline grid by 2025 2x growth in Indias regas capacity by 2025 1.5x growth in Chinas pipeline grid…
  32. January 2020 Investor Presentation – Tellurian Inc. – slide 32
    Indias targets suggest even higher gas use India natural gas demand primary sources Indias gas demand drivers mtpa Incremental supply required for 15% target (1) Prime Minister Modi has set a target of 15% for Uncontracted LNG…
  33. January 2020 Investor Presentation – Tellurian Inc. – slide 33
    India is rapidly building out gas infrastructure Sharp increase in LNG and gas-related infrastructure will tap into significant latent gas demand Indias emerging regas & gas transport infrastructure Indias regasification capacity…
  34. January 2020 Investor Presentation – Tellurian Inc. – slide 34
    Indias demand: not just a power gen story Indias gas demand growth breakout (2018-2025) Indias gas demand drivers Indias gas infrastructure build out will unlock Transport (3%) Other (4%) significant latent natural gas demand…
  35. January 2020 Investor Presentation – Tellurian Inc. – slide 35
    New Asian markets grow 41 mtpa by 2025 Emerging markets could add the equivalent of another South Korean market by 2025 Bangladesh, Malaysia, Pakistan, Thailand: LNG demand by region (mtpa) 32% gas market penetration, declining 600…
  36. January 2020 Investor Presentation – Tellurian Inc. – slide 36
    1,359 mtpa LNG equivalent latent LNG demand There is substantial latent demand for LNG, which is competitive with oil prices and cleaner than coal 2018 fuel consumption (mtpa LNG equivalent) 885 170 208 97 Liquid maritime…
  37. January 2020 Investor Presentation – Tellurian Inc. – slide 37
    JKM growing as price reference for Asia Spot and short-term LNG trade JKM swaps cleared Total trade (mtpa) mtpa equivalent Share of total trade (%) 99 87 32% 78 75 70 68 65 27% 28% 35 59 29% 28% 28% 25% 10 0 0 0 1 3…
  38. January 2020 Investor Presentation – Tellurian Inc. – slide 38
    ESG 39
  39. January 2020 Investor Presentation – Tellurian Inc. – slide 39
    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…
  40. January 2020 Investor Presentation – Tellurian Inc. – slide 40
    LNGs role in the energy transition Today: Reduce carbon intensity, improve air quality Future: Net zero carbon emissions Increasingly cost-competitive with coal Reduces carbon emissions by up to 50% Reduces SOx, NOx and particulate…

From the store

Browse maps, data & reports in the Shale Experts store