Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (June 2013)

35 slides from Cheniere Energy's investor presentation, Jun 20, 2013

  1. Slide 1: Cheniere Energy June 2013

    Cheniere Energy June 2013

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 2 This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, o

  3. Slide 3: Organizational Structure and Future Developments Summary

    2.0% Interest & Incentive Dist. Rights Cheniere Energy, Inc. (NYSE MKT: LNG) Sabine Pass LNG, L.P. (“SPLNG”) Sabine Pass Liquefaction, LLC (“SPL”) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Cheniere Creole Trail Pipeline, L.P. (“CTPL”) Corpus Christi Liquefaction, LLC Cheniere Marketing, LLC (“C

  4. Slide 4: Operating Assets: Sabine Pass LNG Terminal, Creole Trail Pipeline

    Operating Assets Sabine Pass LNG Terminal Creole Trail Pipeline 4

  5. Slide 5: Contracted Capacity at SPLNG

    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long-term, 20 year “take-or-pay” style commercial contracts ~$253MM annual fixed fee revenue Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fee (

  6. Slide 6: Projected Global LNG Demand Growth

    Projected Global LNG Demand Growth Regional LNG Import Outlook (mtpa)* Source: Facts Global Energy 18 20 19 2015 2020 2030 2015 2020 2030 6 14 30 2015 2020 2030 2015 2020 2030 Americas Europe Asia Middle East *Base-case scenario 192 242 310 87 123 152 From 303 mtpa (~40 Bcf/d) in 2015 to 511 mtpa (~

  7. Slide 7: Regional Natural Gas & LNG Prices

    0 2 4 6 8 10 12 14 16 18 20 M a y -0 8 M a y -0 9 M a y -1 0 M a y -1 1 M a y -1 2 M a y -1 3 $/MMBtu Regional Natural Gas & LNG Prices As of May 28, 2013 NBP IFERC HH Monthly Japan avg LNG European Gas Contract Estimated Prices Henry Hub: $4.00 / MMBtu Brent Crude: $100 / Barrel ($/MMBtu) Americas

  8. Slide 8: Brownfield Project Utilizes Existing Assets

    Brownfield Project Utilizes Existing Assets Trains 1-4 Under Construction Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline network Liquefaction Trains 3 & 4  LSTK EPC contract w/ Bech

  9. Slide 9: LNG Sale and Purchase Agreements (SPAs)

    LNG Sale and Purchase Agreements (SPAs) (1) BG has agreed to purchase 182,500,000 MMBtu, 36,500,000 MMBtu, 34,000,000 MMBtu and 33,500,000 MMBtu of LNG volumes annually upon the commencement of operations of Trains 1, 2, 3 and 4, respectively. Total has agreed to purchase 91,250,000 MMBtu of LNG vol

  10. Slide 10: Sabine Pass Liquefaction – Stage Construction

    Sabine Pass Liquefaction – Stage 1 Construction

  11. Slide 11: Aerial View of SPL Construction

    Aerial View of SPL Construction 11

  12. Slide 12: SPLNG Estimated Cash Flows

    SPLNG Estimated Cash Flows (With Trains 1 – 4 Operational) Total Revenues Total Expenses Total Chevron SPL Other EBITDA (1) 127 133 290 10 560 (65) $ 495 $ Distributable cash flow to CQP $ 365 ($ in millions) Debt Service (2) (130) Annualized (1) EBITDA is a non-GAAP measure. EBITDA is computed as t

  13. Slide 13: SPL Estimated Cash Flows Trains 1-4

    SPL Estimated Cash Flows Trains 1-4 Total Revenues BG Gas Natural KOGAS GAIL Total Centrica Commodity payments, net (1) O&M, gas procurement & other SPLNG/Total TUA Pipeline Costs EBITDA (2) 725 455 550 550 - - 275 2,555 (285) (320) (160) (765) $ 1,790 $ ($ in millions) Total Expenses (1) Assumes $6

  14. Slide 14: CQP Estimated Distributable Cash Flows Trains 1-4

    CQP Estimated Distributable Cash Flows Trains 1-4 Distributions (1) Public common units Cheniere common units General partner Distribution per unit (1) 690 690 295 $ 3.00 $ Total distributions from contracted cash flow $ 1,675 ($ in millions) SPLNG distributable cash flow SPL distributable cash flow

  15. Slide 15: Cheniere Estimated Steady State Cash Flows

    Cheniere Estimated Steady State Cash Flows (With Trains 1 – 4) ($ in millions) Net Cash Flows Cheniere Energy, Inc. Distributions from CQP Management fees CEI expenses and other 985 50 (85) 950 $ $ plus: Est. CF generated at CEI from CMI SPA (1) $0 - $1,000 (1) CMI is entitled to recover all operati

  16. Slide 16: Summary Organizational Structure

    Summary Organizational Structure Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG)  58% Cheniere Energy, Inc.  29% Blackstone  13% Public BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5

  17. Slide 17: CMI SPA – Excess Volumes from Trains 1-4 at SPL

    CMI SPA – Excess Volumes from Trains 1-4 at SPL  CMI-SPL SPA provides CMI with up to 2 mtpa of LNG delivered FOB Sabine Pass starting with the initial production from Train 1 •Maximum Annual Contract Quantity of up to 104 TBtu/year from first four trains  SPA sharing mechanic incents profit maximi

  18. Slide 18: Corpus Christi Liquefaction Project

    Corpus Christi Liquefaction Project Proposed Facility  >1,000 acres owned and/or controlled near Corpus Christi, TX  3 trains, each 4.5 mtpa nameplate capacity  2 berths  3 LNG storage tanks (~10.1 Bcfe of storage)  ConocoPhillips’ Optimized Cascade® Process Key Project Attributes  Marine envi

  19. Slide 19: Timeline & Milestones

    Timeline & Milestones  Initiate permitting process (FERC & DOE)  Commercial agreements 2H13  EPC contract 2H13  Financing commitments 1H14  Regulatory approvals 1H14  Commence construction 1H14  Commence operations (1) 2016/17 2017 Milestone Corpus Christi (1) Each Train is expected to commen

  20. Slide 20: Appendix

    CHENIERE = Appendix

  21. Slide 21: Sabine Pass Liquefaction Project Update

    Sabine Pass Liquefaction Project Update  Trains 1&2 fully financed & under construction, LSTK with Bechtel • Total EPC contract price ~$3.97 billion • Trains 1&2 construction started August 2012 • Bechtel is ahead of schedule – expect operations by 1Q 2016 • Full $1.89 billion of equity capital has

  22. Slide 22: Construction Completion Schedules Trains 1-4

    2012 2013 2014 2015 2016 2017 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Guaranteed Accelerated Guaranteed Accelerated Early Engine

  23. Slide 23: Why Bechtel

    Why Bechtel  Constructed one-third of the world’s liquefaction facilities - more than any other contractor  Top US construction contractor for 15 straight years by Engineering News-Record  Bechtel was the EPC contractor for the regasification project at the Sabine Pass LNG Terminal, which was con

  24. Slide 24: Regulatory Approvals

    Regulatory Approvals  SPL Trains 1-4: FERC and DOE authorization received • DOE: Authorization to Export 2 Bcf/d – Approval to export to Free Trade Nations received in Aug. 2010 – Approval to export to Non-free Trade Nations received in May 2011 – Final order received in Aug. 2012 • FERC: Authoriza

  25. Slide 25: Creole Trail Pipeline

    Current Facility Delivery from SPLNG: 2.0 Bcf/d Diameter: 42-inch; Length: 94 miles  Interconnects: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline Pipeline Modifications Reconfiguring to reverse flow of gas One new compressor station with three new units Two new meter stations Modify

  26. Slide 26: 2012 Global LNG Supply & Demand

    2012 Global LNG Supply & Demand 2012 Global LNG Capacity: ~37.3 Bcf/d Natural Gas Oil Products LNG Importers - Price Indexation Japan Crude Cocktail 2012 Global LNG Demand: ~31.5 Bcf/d No r th Ame r ica S outh Ame r ica E u r ope A sia 6.5 1.4 1.1 22 A ust r alia - 3.3 B r unei - 1.0 Indonesia - 4.6

  27. Slide 27: U.S. Natural Gas Markets

    US Proved Non-Producing Reserves Productive Capacity from Unconventional Reservoirs Tcf Bcf/d MMB/d  Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster increase in natural gas demand – have created an opportunity to expand into exports – be

  28. Slide 28: Primary Gas Sources for Sabine Pass Liquefaction

    Montana Thrust Belt Cody Gammon Hilliard Baxter- Mancos Greater Green River Basin Forest City Basin Pierre Illinois Basin Piceance Basin Lewis San Juan Basin Raton Basin Anadarko Basin PaloDuro Basin Permian Basin Barnett Woodford Pearsall Eagle Ford Rio Grande Embayment Barnett Woodford Michigan Ba

  29. Slide 29: Local Pipeline Interconnections

    Local Pipeline Interconnections Targa Columbia Gulf Tennessee Cheniere Creole Trail Pipeline Trunkline Kinder Morgan Louisiana Pipeline NGPL Texas to Louisiana (bi-directional) Transco TETCO Tennessee FGT SW Lateral (Trn, TN, FGT) Existing Pipeline Grid Transco Z3 Sabine Pine Prairie Energy Center E

  30. Slide 30: U.S. LNG Export Projects

    Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S. Department of Energy; U.S. Federal Energy Regulatory Commission; Company releases U.S. LNG Export Projects Dominion Cove Point Under Construction Company Quantity (Bcf/d) DOE FERC* Contracts Cheniere Sabine Pass

  31. Slide 31: Projected Firm Liquefaction Capacity Additions

    Projected Firm Liquefaction Capacity Additions 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 17Q2 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4 2013 2014 2015 2016 2017 2018 Asia Pacific Atlantic Basin Bcf/d Skik

  32. Slide 32: Pro Forma CQP Ownership

    Pro Forma CQP Ownership  Current common unit annualized distribution expected to be $1.70/unit (1)  Class B units accrete 3.5% quarterly until convertible into common units (1) Currently, CQP is paying distributions on the common units and the applicable 2% distribution to the GP. Note: The above

  33. Slide 33: Condensed Balance Sheets

    Condensed Balance Sheets Pro Forma CTPL Purchase and Credit Facility  Other Cheniere Energy, Inc. unrestricted cash and cash equivalents adjusted for sale of Creole Trail Pipeline in May 2013 of $314 million  CQP restricted cash and cash equivalents adjusted for proceeds from CTPL term loan, net o

  34. Slide 34: Slide 34

  35. Slide 35: Investor Relations Contacts

    Nancy Bui: Director, Investor Relations – (713) 375-5280, nancy.bui@cheniere.com Christina Burke: Manager, Investor Relations – (713) 375-5104, christina.burke@cheniere.com Investor Relations Contacts:

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