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May 2020 Corporate Presentation – Tellurian Inc.

Tellurian Inc. · May 19, 2020 · 35 slides

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Slides

  1. May 2020 Corporate Presentation – Tellurian Inc. – slide 1
    Corporate presentation May 2020
  2. May 2020 Corporate Presentation – Tellurian Inc. – slide 2
    Tellurian value proposition (Nasdaq: TELL) Developing a global natural gas business around Driftwood LNG Our business Develop Driftwood LNG: a 27.6 mtpa LNG export terminal in Louisiana Backed by a visionary management team that…
  3. May 2020 Corporate Presentation – Tellurian Inc. – slide 3
    LNG market clears amid demand shock COVID-19 has created market turbulence but recent KPIs indicate resilience What to watch for KPI Global demand: LNG demand resumes growth trend Chinese LNG demand is recovering after COVID-19…
  4. May 2020 Corporate Presentation – Tellurian Inc. – slide 4
    Bright spots emerge in China and Europe Chinese demand spiked 22% in April as lockdowns lifted and Europe is absorbing LNG for storage Chinese LNG imports European LNG imports million tonnes/month million tonnes/month 12 12 10 10…
  5. May 2020 Corporate Presentation – Tellurian Inc. – slide 5
    LNG trade growing faster than capacity Monthly global LNG trade and capacity LNG production capacity at year end million tonnes/month Expected % increase over prior year end million tonnes/month production capacity 39 2020E export…
  6. May 2020 Corporate Presentation – Tellurian Inc. – slide 6
    Entering 5-year starvation; expect rising price Global liquefaction capacity additions (mtpa) 30 mtpa capacity additions 146 mtpa capacity additions 53 mtpa capacity additions Limited capacity additions(1) 1.6% per annum 8.3% per…
  7. May 2020 Corporate Presentation – Tellurian Inc. – slide 7
    100 mtpa additional construction needed Recent demand growth rates imply the world will have LNG capacity constraints by 2021 mtpa Liquefaction capacity required by 2025(1) 900 8.0%(2) 175 mtpa 800 9.3% p.a. growth rate 700…
  8. May 2020 Corporate Presentation – Tellurian Inc. – slide 8
    U.S. gas to remain competitive worldwide Almost 50 years' worth of natural gas resources are available for less than 3/mmBtu(1) Associated Dry gas gas resources, resources, Tcf 800 Tcf economic sub-3 Tcf breakeven from dry…
  9. May 2020 Corporate Presentation – Tellurian Inc. – slide 9
    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 (GTLS) heat exchangers BH LM6000 PF+ gas turbines 3 storage tanks Storage…
  10. May 2020 Corporate Presentation – Tellurian Inc. – slide 10
    Integrated platform delivers certainty of low-cost LNG Gas supply & midstream Recent U.S. oil & gas price volatility underscores importance of cost certainty Waha and Henry Hub price fluctuations show basin diversity is key for…
  11. May 2020 Corporate Presentation – Tellurian Inc. – slide 11
    Driftwood expects to deliver LNG FOB at 3-4/mmBtu Integrated operations deliver lower costs 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…
  12. May 2020 Corporate Presentation – Tellurian Inc. – slide 12
    Positioned to deliver 6-8/sh of cash flow (1) 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…
  13. May 2020 Corporate Presentation – Tellurian Inc. – slide 13
    On path to deliver LNG from Driftwood Fully- FERC & DOE Premier site wrapped EPC Financing Construction approval contract Complete Value creation catalysts LNG market recovery from COVID-19 with JKM approaching 5/mmBtu…
  14. May 2020 Corporate Presentation – Tellurian Inc. – slide 14
    Investor focus areas post COVID-19 Market is making progress on several fronts after COVID-19 disruption LNG market implications Commercial & competitive Financial Clear benefit of integrated Improved liquidity: 50 mm LNG demand…
  15. May 2020 Corporate Presentation – Tellurian Inc. – slide 15
    Key investment highlights Driftwood LNG and pipeline are shovel ready, all permits secured Engineering 30% complete, 150 mm invested At full operations, projected 6-8/share in cash flow(1) Implied equity value of 15-20/share at…
  16. May 2020 Corporate Presentation – Tellurian Inc. – slide 16
    Driftwood project & financial details 17
  17. May 2020 Corporate Presentation – Tellurian Inc. – slide 17
    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…
  18. May 2020 Corporate Presentation – Tellurian Inc. – slide 18
    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…
  19. May 2020 Corporate Presentation – Tellurian Inc. – slide 19
    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…
  20. May 2020 Corporate Presentation – Tellurian Inc. – slide 20
    Driftwood pipeline: fully permitted Driftwood pipeline route map CS 03 Mamou 96-mile, up to 48 CGT diameter pipeline Transco T E X A S Three compressor Trunkline Texas Gas TETCO 2 stations totaling 274,000 LOUISIANA ANR…
  21. May 2020 Corporate Presentation – Tellurian Inc. – slide 21
    Value to Tellurian Inc. Every 1.00 reduction in gas costs or increase in LNG price adds 2.16/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)…
  22. May 2020 Corporate Presentation – Tellurian Inc. – slide 22
    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…
  23. May 2020 Corporate Presentation – Tellurian Inc. – slide 23
    Tellurian agreements with Total Driftwood equity investment and SPA Tellurian Marketing investment in Driftwood On July 10, 2019, Total agreed to make a 500 million Tellurian Marketing to purchase an equity interest(2) in equity…
  24. May 2020 Corporate Presentation – Tellurian Inc. – slide 24
    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)…
  25. May 2020 Corporate Presentation – Tellurian Inc. – slide 25
    Contact us Matt Phillips Social media Director, Investor Relations & Finance +1 832 320 9331 TellurianLNG matthew.phillipstellurianinc.com Joi Lecznar SVP, Public Affairs & Communication +1 832 962 4044…
  26. May 2020 Corporate Presentation – Tellurian Inc. – slide 26
    LNG market updates 27
  27. May 2020 Corporate Presentation – Tellurian Inc. – slide 27
    Global energy needs require natural gas The shifting landscape of energy consumption Drivers of shifting landscape 8 Tonnes oil equivalent/capita 35% Non-OECD energy consumption growth rate was 31% 7 30% 13x that of OECDs over the…
  28. May 2020 Corporate Presentation – Tellurian Inc. – slide 28
    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…
  29. May 2020 Corporate Presentation – Tellurian Inc. – slide 29
    Indias targets suggest even higher gas use India natural gas demand primary sources Indias gas demand drivers mtpa (1) Prime Minister Modi has set a target of 15% for Incremental supply required for 15% target natural gas share of…
  30. May 2020 Corporate Presentation – Tellurian Inc. – slide 30
    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…
  31. May 2020 Corporate Presentation – Tellurian Inc. – slide 31
    New Asian markets grow 41 mtpa by 2025 Emerging markets could add the equivalent of another South Korean market by 2025 LNG demand by region Bangladesh, Malaysia, Pakistan, Thailand: mtpa 32% gas market penetration, declining 600…
  32. May 2020 Corporate Presentation – Tellurian Inc. – slide 32
    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 (%) 106 119 34% 99 32% 78 75 70 68 27% 35 65 28% 59 29% 28% 28% 25% 10 0…
  33. May 2020 Corporate Presentation – Tellurian Inc. – slide 33
    ESG 34
  34. May 2020 Corporate Presentation – Tellurian Inc. – slide 34
    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…
  35. May 2020 Corporate Presentation – Tellurian Inc. – slide 35
    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…

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