Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (April 2010)
19 slides from Cheniere Energy's investor presentation, Apr 6, 2010
Slide 1: Cheniere Energy Corporate Presentation
CHENIERE ENERGY Cheniere Energy Corporate Presentation April 2010
Slide 2: Safe Harbor Act
Safe Harbor Act 1 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 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than s
Slide 3: Cheniere Business Segments
Cheniere Business Segments Cheniere Energy Marketing Sabine Pass LNG (SPLNG) (90.6%) Freeport LNG (30%) Approved Permits: Creole Trail LNG Corpus Christi LNG Creole Trail P/L (100%) Approved Permits: Creole Trail P/L Phase II Corpus Christi P/L 2.0 Bcf/d SPLNG TUA MSPAs with major LNG suppliers, mer
Slide 4: Sabine Pass LNG
TUA Capacity 2010 Full-Year Payments ($ in MM) Total LNG USA Chevron USA Cheniere Marketing 1.0 Bcf/d 1.0 Bcf/d 2.0 Bcf/d $123 $128 $252 3 Sabine Pass LNG Cheniere Energy, Inc. 90.6% Aerial view of Sabine Pass LNG § Vaporization – ~4.3 Bcf/d peak send-out § Storage – 5 tanks x 160,000 cm (16.9 Bcfe)
Slide 5: Creole Trail Pipeline
Creole Trail Pipeline Cheniere Energy, Inc. 100% § Size: – 2.0 Bcf/d § Diameter: – 42-inch diameter § Cost: – ~$560 million first 94 miles § Initial interconnects: – 4.1 Bcf/d of interconnect capacity § Provides optimal market access for LNG from the Sabine Pass terminal § First 94 miles complete an
Slide 6: Freeport LNG Development, L.P.
Sold - Terminal Use Agreement (TUA) Capacity (Bcf/d) Estimated Annual Distribution to Cheniere* Conoco Dow Mitsubishi 0.90 0.50 0.15 $8 - $12MM Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% *Quarterly cash distributions commenced in 1Q09 and are subject to Freeport board approval. April 2
Slide 7: Strategic Focus
Strategic Focus § Commercial - monetize 2 Bcf/d regas capacity at Sabine Pass receiving terminal held by Cheniere Marketing – International LNG marketing efforts – Seek long-term TUAs, LNG purchase/sale agreements – Purchase spot cargoes available in the Gulf of Mexico § Financial - manage liquidity
Slide 8: J.P. Morgan Arrangement
J.P. Morgan Arrangement § Cheniere and J.P. Morgan join LNG marketing efforts § CMI provides all services related to: – sourcing deals and negotiating contracts, purchasing, transporting, receiving, storing, regasifying and selling cargoes of LNG and regasified LNG on an exclusive basis § JPM provid
Slide 9: Supply and Demand Trends
Supply and Demand Trends Source: Poten 24.2 Bcf/d(e)
Slide 10: YoY Change in Supply Trends Well-below Average for Second Year
Skikda Explosion Schedule slippage, underperformance FMs, Maintenance YoY Change in Supply Trends Well-below Average for Second Year Source: GIIGNL, Cheniere Research, 2009e
Slide 11: YoY Changes in LNG Supply and Demand
YoY Changes in LNG Supply and Demand Source: Poten Supply growth masked by production losses Traditional markets offset by traded markets
Slide 12: 2009 'Anomaly' Europe Oversupplied but LNG Imports Up
2009 ‘Anomaly’ Europe Oversupplied but LNG Imports Up Recession induced demand reduction ~4 Bcf/d Med NWE + 109 % (+145 cargoes) Note: NWE = UK, BE, + Montoir - 1.5% (-7 cargoes, despite addition of Rovigo in Italy) Source: Waterborne
Slide 13: LNG Spot Trade
LNG Spot Trade Source: GIIGNL. Cheniere Research , 2009 Estimated Growth Trend in Diversion of Flexible Term Supply
Slide 14: Spot Buying By Region
Spot Buying By Region Source: GIIGNL. Cheniere Research , 2009e Spot Concentrated in Atlantic Traditionally Rapid Shift to Asia and Back Extreme Price Movements $20/MMBTU $7/MMBTU
Slide 15: Spot LNG By Destination Region
Spot LNG By Destination Region Traded Liquid Markets Loose Gradual Tightening Loose Source: GIIGNL, Cheniere Research , 2009e
Slide 16: Firm Liquefaction Capacity Additions
Firm Liquefaction Capacity Additions Source: Cheniere Research
Slide 17: Estimated Future Cash Flows Cheniere Energy, Inc.
Estimated Future Cash Flows Cheniere Energy, Inc. Annualized* ($ in MM) Disbursements § Cheniere Marketing TUA @ Sabine Pass $252 § G&A 30-40 § Pipeline & tug services 10 § Other, incl adv tax payments 3-5 § Debt service 44 $55 - 65 *Estimates represent a summary of internal forecasts, are based on
Slide 18: Estimated Future Cash Flows Cheniere Energy Partners
Estimated Future Cash Flows Cheniere Energy Partners Annualized* ($ in MM) Disbursements § Operating Expenses $34 § Management Fees 19 § Debt Service 165 $285 *Estimates represent a summary of internal forecasts, are based on current assumptions and are subject to change. Actual performance may diff
Slide 19: Organizational Structure
3 Organizational Structure Public Unit holders 9.4% LP Interest Cheniere Energy Investments, LLC Sabine Pass LNG-GP, Inc. Sabine Pass LNG, L.P. Sabine Pass LNG-LP, LLC 100% Ownership Interest 100% Ownership Interest 100% Ownership Interest 100% LP Interest Non-Economic GP Interest 100% Ownership Int