Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (April 2005)
16 slides from Cheniere Energy's investor presentation, Apr 18, 2005
Slide 1: Cheniere Energy, Inc.
Cheniere Energy, Inc. April 2005 *Artist’s Rendition *Creole Trail LNG L.P. (Cheniere 100%) *Corpus Christi LNG L.P. (Cheniere 100%) *Sabine Pass LNG L.P. (Cheniere 100%) *Freeport LNG L.P. (Cheniere 30% Limited Partner)
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: Market Performance
Market Performance 0% 500% 1000% 1500% 2000% 2500% 3000% 3500% 4000% 4500% 5000% DEC 31 DEC 31 DEC 31 MAR 31 *Percentage increase based on a stock closing price of $1.28 at December 31, 2002 and $64.51 at March 31, 2005. * 4940% $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $/Share Closing Price $0 $10 $20
Slide 4: Business Structure
Business Structure Freeport LNG 30% Corpus Christi LNG 100% Sabine Pass LNG 100% 100% Creole Trail LNG $1.7 billion equity market cap 1 J&S Cheniere E&P Capacity sold out Majority of financing provided by ConocoPhillips Minimal capital commitments by Cheniere Market capitalization based on 26.76 mil
Slide 5: Executing the Business Plan
4 of 4 Sites 3 of 4 Terminals $1.1 of $3 billion 3.2 of 6.2 Bcf/d Executing the Business Plan Site Selection 100% Permitting 75% Financing 37% TUAs 52% Arrangements 0% Long Term Other Commercial Commercial Arrangements 0% Bcf/d Bcf/d Other
Slide 6: Cheniere LNG Receipt Network
Cheniere LNG Receipt Network Optionality Flexibility Reliability Liquidity Low Cost 4 Deepwater Ports 7 Unloading Docks 12 Storage Tanks (40 Bcf equivalent) 10 Bcf/d Sendout Sabine Pass Freeport (30%) Corpus Christi Creole Trail
Slide 7: Target Gas Demand Corridor Market Access
Target Gas Demand Corridor Market Access – 29 Bcf/d Midwest Markets 11.8 Bcf/d Northeast Markets 5.7 Bcf/d Southeast Markets 4.6 Bcf/d Gulf Coast Markets 4.9 Bcf/d Mexican Markets 1.7 Bcf/d Source: Cheniere Research Cheniere LNG Receipt Network
Slide 8: Cheniere Holds 7 Onshore Permits
Cheniere Holds 3 of 4 Permits 4 Onshore applications approved by FERC – 8.2 Bcf/d 7 Onshore applications filed w/ FERC – 7.1 Bcf/d Outside U.S. for U.S. Markets (Bahamas and Mexico) FERC Approved Cameron LNG (TX) Corpus Christi – (TX) Freeport LNG (TX) Sabine Pass – (LA) Filed with FERC Calhoun LNG
Slide 9: Only Onshore Terminals Now Under Construction
Only 2 Onshore Terminals Now Under Construction Sabine Pass LNG Construction Site Freeport LNG Construction Site
Slide 10: Sources of Funds
$ Million Sources of Funds $1,122 TOTAL $ 822 Project Finance for Sabine Pass February 2005 $ 300 Equity at $60 per share December 2004
Slide 11: Marketing Status
Marketing Status 1.5 1.7 0.9 1.0 1.6 2.3 1.0 1 Corpus Christi 2.6 Bcf/d Freeport 1.5 Bcf/d Sabine Pass* 2.6 Bcf/d Creole Trail 3.3 Bcf/d Contracted Marketing TUA’s Other Commercial Arrangements 1 ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d by July 1, 2005
Slide 12: TUA Annual Revenue
TUA Annual Revenue $230 + ??? 6.2 Total ? 1.0 Marketing Creole Trail 2 Marketing Marketing Contracted Contracted Contracted TUA Status $0.32 $0.32 Fee ($/MMbtu) $ 15 1.5 Freeport ? ? $125 $ 90 Calculated Revenue to Cheniere ($mm) 1 1.0 Corpus Christi 2 1.0 Sabine Expansion 2 1.0 0.7 3 Sabine Pass To
Slide 13: TUA Characteristics
TUA Characteristics Securing long-term terminal use agreements (TUAs) Sell approximately one-half of existing and future regasification capacity under TUAs TUAs are 20 years or longer Agreements made with investment grade customers Take-or-pay contract terms Provides stable stream of contracted cash
Slide 14: Investment Grade Anchor Customers
Investment Grade Anchor Customers Reserved Capacity (Bcf/d) Equity market Capitalization ($billion) Credit ratings 1 ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d by July 1, 2005 or increase to 1.0 Bcf/d by December 1, 2005 Freeport 0.5 $48 A - / A3 1.0 $80
Slide 15: Other Commercial Arrangements
Other Commercial Arrangements Capacity reservation fees indexed to NYMEX prices Gas purchase and sales indexed to NYMEX prices Gas purchase and sales based on market area prices Spot market terminal usage
Slide 16: Current Status
Current Status $230 million revenue stream per year secured $1.1 billion financing completed Marketing Sabine Pass Expansion 1.0 Bcf/d Corpus & Creole TUA’s 2.0 Bcf/d Other Long-term Commercial 1.0 Bcf/d Arrangements Other marketing arrangements 1.0 Bcf/d