Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (November 2004)
18 slides from Cheniere Energy's investor presentation, Nov 16, 2004
Slide 1: Cheniere Energy, Inc. Corporate Presentation
Cheniere Energy, Inc. a Corporate Presentation November 2004 CHENIERE =
Slide 2: Safe Harbor Act
Safe Harbor Act Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this presentation are forward looking statements that are based on management's belief, as well as assumptions made by, and information currently available to management. Whil
Slide 3: US natural gas production and consumption forecast
Tcf) 25 = - Historic Forecast > Trillion cubic feet SF QW © ff — Production —— Consumption Cheniere estimate based on 2% annual average dectine in production, 3 1% annual average growth in consumption post-2008 CHENIERE
Slide 4: Domestic Production: US Lower 48 Dry Gas Production Forecast
omestic Production Befid US Lower 48 Dry Gas Production Forecast As ion ‘51 > 1.42 49 1.37 47 1.31 45 1.26 43 1.20 an 114 39 1.09 Sime pa ay many 0 7 “= $5IMcf (83% Rig Utilization) . 35 “© $4/Mcf (77% Rig Utilization) 0.98 3S Tete mt uaric ie 3 0.86 29 0.81 a 0.75 25 SSsesasees ore geerece on SSS3s
Slide 5: Committed Liquefaction Investment $20 Billion by 2010
‘ PN ‘Committed Liquefaction Investment $20 Billion by 2010 = 80% Controlled by National Oil Companies, ‘ A ae Asia - 11 Befld Europe ~ 4 Betid ‘Americas — 2 Betld K 4 S0urce: GIIGNL, Cheniare Research Samana, al
Slide 6: Committed Shipping Investment over $13 Billion by 2008
a Committed Shipping Investment over $13 Billion by 2008 Increasing number of ships uncommitted to a trade World Fleet” 1995 93 2001 128 2003 152 2008 244+ ‘Source: “Poten & Partners July 2004 CHENIERE al
Slide 7: Status of Industry
Status of | try a In the next three years: = Liquefaction growth of 10 Bcf/d represents 60% increase over next 3 years = Shipping growth of 92 vessels represents 60% increase over next 3 years = The supply - demand gap in the US continues to make this market the prime target for LNG producers ~ 14 -
Slide 8: LNG Import Facilities
G Import Facilities Existing 2.5 Befid Expansion _5.0 Bcfid r 7
Slide 9: Coastal States Gas Consumption
Coastal States Gas Consumpti ag 3 2002 Oo. 6 (yy ) 08 0.9 | 1.0 i In Bet/d A Top 5 Coastal Consumers * 43) TX, CA, LA, NY, FLA 1 Source: EIA, NG Monthly, April 2004 4 J ° ~- CHENIERE SHEN
Slide 10: US Gas Flows - 2001
US Gas Flows - 2001 CHENIERE eal vi From Gulf Coast = 10 Source: EIA — See
Slide 11: US Regasification Capacity
US Regasification Capacity 010 © sing Facies She New Teminats
Slide 12: ZA CHENIERE
ZA 2 CHENIERE
Slide 13: Facility Overview
Facility Overview Freeport LNG LP. 30% ‘Sabine Pass LNG L.P. 100% Corpus Christi LNG LP. 66.7% $650 - $750 million | 1.5 Befld $750 - $850 million _ $650 - $750 million 2.6 Befld Groundbreaking Qt 2005 _ Expected Q4 2004 Qt 2005 _Expected Q2 2005 “Estimated construction costs before financing costs
Slide 14: Marketing of Capacity
Marketing of Capacity a Total capacity in development 6.7 Befld Freeport — Sold Out 1.5 Befld DowChemical 0.5 Befld ConocoPhillips 1.0 Befid Sabine Pass — Sold Out 2.6 Befid Total 1.0 Befld ChevronTexaco” 1.0 Befld Held to Cheniere Account 0.6 Bef/d Corpus Christi 2.6 Befld Available 1.5 Befld Held
Slide 15: Low Risk Base Business
ow Risk Base Business a = Provider of service for fees (no gas risk) = Conventional, proved technology = Anchor customer strategy — Large customers — 500 MMcfid - 1 Bef/d each — Arated credit or better — Long term commitments — 20 years or more — take or pay — Covers facility costs, debt service, an
Slide 16: Service Provider Model Economics
Service Provider Model Eco ics ae Freeport LNG, L.P — Cheniere 30% Limited Partner + Capacity: 1.5 Befid + CAPEX: Estimate $650 - $750 million Financed by ConocoPhillips * ConocoPhillips — terminal usage fee sufficient to recover financing and pro-rata costs; plus throughput fee $0.05/Mef on 1 Bef/d
Slide 17: Cheniere's Competitive Advantage
Cheniere’s Competitive Advantage ae = Low cost supplier of LNG regas capacity — Gulf Coast provides highest market optionality — Early mover = best sites — Gulf Coast allows large capacity terminals = low unit cost — Large sites allow use of existing technology = low capital cost =» Low execution ri
Slide 18: Searchable text section of graphics shown above
Searchable text section of graphics shown above Che niere Energy, Inc. Corporate Presentation November 2004 [LOGO] Saf e Harbor Act Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this presentation are forward looking statements that are b
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