Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — USCA Midstream Corporate Access Day (January 2016)

38 slides from Cheniere Energy's conference presentation, January 2016

  1. Slide 1: Cheniere Energy, Inc. USCA Midstream Corporate Access Day

    CHENIERE ENERGY, INC. USCA MIDSTREAM CORPORATE ACCESS DAY January 2016

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 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, oth

  3. Slide 3: Cheniere LNG Platform Underway

    Cheniere LNG Platform Underway 31.5 mtpa ~87% Cash flows from currently under LNG volumes contracted fixed fees - construction not tied to 20-year contracts with commodity prices fixed fees, no price 7 trains, design capacity reopeners, and parent as Long term SPAs support debt of 4.5 mtpa each coun

  4. Slide 4: Executing on Strategy

    Executing on Strategy  Complete construction on 7 LNG trains on an accelerated basis, on time and on budget  Transition to an operating company, first cargo expected from Sabine Pass late February/March 2016  Continue commercialization of additional LNG trains and excess LNG volumes  Seek additi

  5. Slide 5: Cheniere Projected Cash Flow Build-Up With 7 Trains

    Cheniere Projected Cash Flow Build-Up With 7 Trains CQP CCL CEI Standalone ($ in billions, except per share amounts) (SPL T1-5/ SPLNG/CTPL) CCL T1-2 Project EBITDA to CEI (net of minority interests) $1.0* $1.3 $2.3 Plus: Management fees to CEI 0.1 Less: CEI G&A (0.3) CEI Standalone EBITDA $2.1 Less:

  6. Slide 6: Maintenance & Operating Cost Estimates

    Maintenance & Operating Cost Estimates Maintenance Buildup for SPL (T1-5) and CCL (T1-2) Combined Estimated Annualized Amount ($ in mm, includes escalation averaged over 20 years) (Cash basis) Ongoing labor expense $ 40 GE contract(1) and other general maintenance contracts 150 Spare parts 30 Other

  7. Slide 7: Cheniere Summary Organization

    Cheniere Summary Organization Cheniere Energy, Inc. Public (NYSE MKT: LNG) 19.9% 80.1% Interest 100% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners LP Cheniere Corpus Christi Cheniere Energy Other Project Holdings, LLC Marketing, LLC Liquefaction, LLC Partners GP, LLC De

  8. Slide 8: Cheniere's Key Businesses

    Cheniere’s Key Businesses Unmatched scale and first-mover advantage provide industry-leading platform for further asset integration LNG Platform  Developing/constructing LNG terminals located along Gulf of Mexico  7 Trains, 31.5 mtpa under construction; 2 Trains, 9.0 mtpa permitted, ready for comm

  9. Slide 9: Cheniere LNG Platform Along Gulf Coast

    Cheniere LNG Platform Along Gulf Coast Sabine Pass Liquefaction Project  6 train development – 27 mtpa (~3.8 Bcf/d in export capacity)  Trains 1-5 are under construction  First LNG cargo expected late February/March 2016 Corpus Christi LNG Terminal  5 train development – 22.5 mtpa (~3.2 Bcf/d in

  10. Slide 10: Aerial View of SPL Construction – December 2015

    Aerial View of SPL Construction – December 2015 Train 6 Under Development Train 5 T5 Soil Stabilization T1 Methane Cold Box Train 3 T1 Ethylene Cold Box Air Coolers Propane Condenser Area Train 1 Train 4 Train 2 T3-4 Gas Meter T1-2 Gas Meter 10

  11. Slide 11: Aerial View of CCL Construction – December 2015

    Aerial View of CCL Construction – December 2015 Tank C Tank B Under Development Tank A T1 Foundation Train 1 Train 2 Train 3 Under Development 11

  12. Slide 12: Cheniere LNG Projects: Attractive Features

    Cheniere LNG Projects: Attractive Features  Cheniere LNG SPAs: LNG price tied to Henry Hub, offer destination flexibility, upstream gas procurement services, no lifting requirements  SPAs with investment grade off-takers featuring parent as counterparty or guarantor & pricing with HH + fixed fee (

  13. Slide 13: Forecast Cheniere LNG Portfolio Summary

    Forecast Cheniere LNG Portfolio Summary SPL CCL SPL CCL Total Total (in MTPA) (in MTPA) Trains 1-5 Trains 1-2 Train 6 Train 3 Design Capacity 22.5 9.0 31.5 4.5 4.5 40.5 Under Construction 22.5 9.0 31.5 - - 31.5 LT SPAs sold to date 19.8 7.7 27.4 - 1.5(1) 28.8 (% sold) (~88% sold) (~86% sold) (~87% s

  14. Slide 14: CEI Standalone EBITDA Forecast with Additional Trains

    CEI Standalone EBITDA Forecast with Additional Trains Illustrative cash flow build-up ($ in billions) Run-rate scenarios 7 trains 8 trains 9 trains SPL T1-5/6 and SPLNG via GP/IDR and CQH $1.0* $1.0* $1.3* Management fees $0.1 $0.1 $0.1 CCL T1-2/3 $1.3 $2.0 $2.0 CMI profit share - - - Total $2.4 $3.

  15. Slide 15: Gas Procurement: Sabine Pass Terminal

    Gas Procurement: Sabine Pass Terminal  Securing feedstock for LNG production with balanced portfolio approach  To date, have entered into term gas supply contracts with producers under 1-7 year contracts aggregating approximately 2 Tcf.  Supply contracts cover ~50% of the required daily load for

  16. Slide 16: Gas Procurement: Corpus Christi Terminal

    Gas Procurement: Corpus Christi Terminal  CCL contracted long-term direct and upstream pipeline transport capacity for Trains 1 and 2 – Tennessee P/L: 0.3 Bcf/d  – KM Tejas P/L: 0.25 Bcf/d  Marcellus / – NGPL P/L: 0.385 Bcf/d  Utica – Transco P/L: 0.4 Bcf/d   Negotiating with producers for ter

  17. Slide 17: Cheniere Marketing

    Cheniere Marketing Platform for LNG sales - short, mid, long-term sales, FOB or DES basis  Scale for up to 9 mtpa including LNG purchases from Cheniere London, U.K. terminals and other places  SPAs with SPL and CCL for all LNG Washington, D.C. volumes not sold to 3rd parties  ~560 million MMBtu s

  18. Slide 18: LNG Market Prices Profitable for Cheniere

    LNG Market Prices Profitable for Cheniere Cheniere can profitably sell LNG given lower prices Market price sensitivity Europe LNG Sale Price ($/MMBtu) $5.00 $6.00 $7.00 $8.00 Implied margin $1.00 $2.00 $3.00 $4.00 Asia LNG Sale Price ($/MMBtu) $7.00 $8.00 $9.00 $10.00 Implied margin $2.00 $3.00 $4.0

  19. Slide 19: Growth Projects

    Growth Projects Leverage core competencies – platform for future growth projects  ~$6B in near term major growth projects focused on expansions of liquefaction capacity Growth Project Estimated Unlevered Costs Corpus Christi Train 3 ~$3B(1) Sabine Pass Train 6 ~$2.5B Total Growth Projects ready for

  20. Slide 20: Projected Global LNG Demand by 2025

    Projected Global LNG Demand by 2025 Demand expected to increase 176 mtpa to 421 mtpa by 2025, a 5.5% CAGR Average of ~21 mtpa new liquefaction capacity needed each year(1) Europe 37 93 99 2015 2020 2025 Asia 282 Americas 240 28 177 22 21 Middle East/N. Africa 2015 2020 2025 2015 2020 2025 13 9 12 20

  21. Slide 21: U.S. to Be One of Top Three LNG Suppliers

    U.S. to Be One of Top Three LNG Suppliers Projected Liquefaction Capacity 82 mtpa ~50 mtpa 64 87 77 77 mtpa mtpa under 31.5 mtpa mtpa 1.5 const. mtpa 35 mtpa under PB mtpa const. 2015 2025 2025 PB 2015 2025 2015 2025 United States Cheniere Qatar Australia Sabine Pass T1‐6 Corpus Christi T1‐5 MEG MEG

  22. Slide 22: Cheniere Competitive Advantage: Low Cost

    Cheniere Competitive Advantage: Low Cost  The U.S. is one of the lowest cost natural gas providers in the world  U.S. liquefaction project costs are also significantly lower due to less project development needed  Breakeven LNG price for Cheniere LNG export facilities is one of the lowest compare

  23. Slide 23: In Summary

    In Summary  Primary focus on completing construction of 7 LNG trains on an accelerated basis, on time and on budget  2 additional trains fully permitted and ready for commercialization – Cheniere positioned to grow as low-cost provider to market with projected growing demand  Cheniere volumes rem

  24. Slide 24: Appendix

    CHENIERE ENERGY, INC. APPENDIX

  25. Slide 25: Cheniere's Debt Summary – January 2016

    Cheniere’s Debt Summary – January 2016 ($ in millions) Convertible Debt Cheniere Energy, Inc.  $1,000 PIK Convertible Notes due 2021 (4.875%) (NYSE MKT: LNG)  $625 Convertible Notes due 2045 (4.250%) Trains 1-2 Equity Cheniere Energy Partners  $1,000 Senior Secured CQP GP Cheniere Marketing, LLC

  26. Slide 26: Cheniere Cash Flow Build-Up With 7 Trains

    Cheniere Cash Flow Build-Up With 7 Trains ($ in billions, except for per share amounts) CQP Corpus Christi (SPL T1‐5/SPLNG/CTPL) (CCL T1‐2) Total CEI standalone CEI cash flow build up (2021 estimated amounts) (1) Project EBITDA / Deconsolidated for standalone $3.0 $1.3 $4.3 $2.3 Less: Project‐level

  27. Slide 27: Conversion - Class B and Subordinated Units

    Conversion - Class B and Subordinated Units Class B Units:  Mandatory conversion: within 90 days of the substantial completion of Train 3  Optional conversion by a Class B unitholder may occur at any of the following times:  After 83 months from issuance of EPC notice to proceed  Prior to the re

  28. Slide 28: Sabine Pass Liquefaction Project (SPL)

    Sabine Pass Liquefaction Project (SPL) Current Facility  ~1,000 acres in Cameron Parish, LA  40 ft. ship channel 3.7 miles from coast  2 berths; 4 dedicated tugs  5 LNG storage tanks (~17 Bcfe of storage)  5.3 Bcf/d of pipeline interconnection Liquefaction Trains 1 – 5: Fully Contracted  Lump

  29. Slide 29: SPL Estimated Cash Flows

    SPL Estimated Cash Flows Trains 1-5 and Trains 1-6 SPL estimated cash flows ($ in billions) SPL Trains 1‐5 SPL Trains 1‐6 Long term SPAs $2.9 $3.2 CMI SPA payment(1) $0.4 $0.9 Commodity payments, net(2) $0.3 $0.4 Total SPL revenues $3.6 $4.4 SPLNG TUA payments (3) ($0.4) ($0.4) Plant O&M ($0.3) ($0.

  30. Slide 30: SPL Construction Schedules Trains 1 – 5

    SPL Construction Schedules Trains 1 – 5 2012 2013 2014 2015 2016 2017 2018 2019 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 73 74 75 76 7

  31. Slide 31: Sabine Pass Liquefaction SPAs

    Sabine Pass Liquefaction SPAs ~20 mtpa “take-or-pay” style commercial agreements ~$2.9B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. Centrica plc Annual Contract Quantity (MMbtu) 286,500,000 (1) 182,500,0

  32. Slide 32: Corpus Christi LNG Terminal

    Corpus Christi LNG Terminal Proposed 5 Train Facility  >1,000 acres owned and/or controlled Initiated  2 berths, 4 LNG storage tanks Development Trains 4-5 (~13.5 Bcfe of storage) Key Project Attributes  45 ft. ship channel 14 miles from coast  Protected berth  Premier Site Conditions  23-mile

  33. Slide 33: CCL Estimated Cash Flows

    CCL Estimated Cash Flows Trains 1-2 and Trains 1-3 CCL estimated cash flows ($ in billions) CCL Trains 1‐2 CCL Trains 1‐3 Long term SPAs $1.4 $1.9 CMI SPA payment(1) $0.2 $0.5 Commodity payments, net(2) $0.1 $0.1 Total CCL revenues $1.7 $2.5 Plant O&M ($0.2) ($0.2) Plant maintenance capex(3) ($0.1)

  34. Slide 34: Corpus Christi Liquefaction Project Schedule

    Corpus Christi Liquefaction Project Schedule Train 1 DFCD Oct 2019 Feb 2019 Train 2 DFCD July 2020 June 2019  Stage 1 (Trains 1&2) overall project progress as of December 2015:  Engineering, Procurement, and Construction has progressed to 93.6%, 41.9%, and 2.2% compared to a plan of 87.3%, 24.9%,

  35. Slide 35: Corpus Christi Liquefaction SPAs

    Corpus Christi Liquefaction SPAs SPA progress: ~8.42 mtpa “take-or-pay” style commercial agreements ~$1.5B annual fixed fee revenue for 20 years PT Pertamina Woodside Energy EDP Energias de (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Trading Électricité de France Portugal S.A. Annual Con

  36. Slide 36: FERC Applications for Liquefaction Projects

    FERC Applications for Liquefaction Projects FERC FERC FERC Scheduled DOE Quantity EIS / FERC Under LNG Export Projects Pre-filing Application Scheduling Date for EIS Non FTA Bcf/d EA Approval Construction Date Date Notice Issued or EA Final Sabine Pass Liquefaction T1-4 2.8 7/26/10 1/31/11 12/16/11

  37. Slide 37: U.S. LNG Export Projects

    U.S. LNG Export Projects Quantity Company DOE FERC Contracts (Bcf/d) Cheniere Sabine Fully 2.2 Fully permitted Subscribed Pass T1 – T4 Oregon LNG Fully Freeport 1.8 Fully permitted Subscribed Fully Lake Charles 2.0 FTA  Subscribed Jordan Cove Dominion Cove Point Dominion Cove Fully 1.0 Fully permit

  38. Slide 38: Investor Relations Contacts

    CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Katy Cox Senior Analyst, Investor Relations – (713) 375-5079, katy.cox@cheniere.com

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