Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Merger or Acquisition (September 2016)

10 slides from Cheniere Energy's merger presentation, Sep 29, 2016

  1. Slide 1: Compelling transaction for CQH shareholders

    Private and Confidential CHENIERE ENERGY, INC. Compelling transaction for CQH shareholders SEPTEMBER 29, 2016

  2. Slide 2: Disclaimer: Special Note Regarding Forward-Looking Statements

    Private and Confidential DISCLAIMER Special Note Regarding Forward-Looking Statements This document includes “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. In particular, st

  3. Slide 3: Summary of proposal

    Private and Confidential Summary of proposal  Cheniere Energy, Inc. (“Cheniere” or “CEI”) offers to acquire the outstanding shares of Cheniere Energy Partners LP Holdings, LLC (“CQH”) not already owned by CEI • Offer of 0.5049 CEI shares for each outstanding share of CQH – Represents approximately

  4. Slide 4: Simplifies CEI story

    Private and Confidential Simplifies CEI story  Simplifies corporate structure • Transaction results in typical MLP / HoldCo structure  CQH serves limited further financing purpose • CEI cannot reduce its CQH ownership without adverse tax impact  Further alignment of interests across entities Curr

  5. Slide 5: Compelling transaction for CQH shareholders

    Private and Confidential Compelling transaction for CQH shareholders  Attractive valuation • Premium to current CQH share price • Favorable exchange ratio relative to historic levels  Substantial increase in liquidity for CQH shareholders (~32x increase in trading liquidity)  Tax free stock excha

  6. Slide 6: CEI has an attractive business profile

    Private and Confidential CEI has an attractive business profile  Offers greater cash flow diversity • Increase exposure from 1 project and 5 trains to 2 projects and 7 trains • Increase exposure from 6 foundation customers to 13, all investment grade  Enhances participation in growth upside • Corp

  7. Slide 7: Substantial increase in liquidity for CQH shareholders

    Private and Confidential Substantial increase in liquidity for CQH shareholders… 12-month average daily trading volume ($MM) CQH(2) CEI Days to monetize 50% of CQH float(1) 118 4 ~$117.3mm / day ~32x ~$3.6mm / day CQH CEI Transaction to deliver ~32x increase in liquidity Source: FactSet as of 09/29/

  8. Slide 8: … and an entry point into an attractive, growth focused company

    Private and Confidential … and an entry point into an attractive, growth focused company Market perspectives  Substantial Completion of Sabine Pass Trains 1 and 2 achieved on May 26 and September 15, respectively; Train 3 in commissioning Focused path on CEI commercialization  Corpus Christi Train

  9. Slide 9: Customer and cash flow diversity

    Private and Confidential Customer and cash flow diversity  Cheniere LNG SPAs: LNG price tied to Henry Hub, offer destination flexibility, upstream gas procurement services included, no lifting requirements  SPAs with investment grade off-takers featuring parent as counterparty or guarantor  HH +

  10. Slide 10: Compelling transaction for CQH shareholders

    Private and Confidential Compelling transaction for CQH shareholders  Attractive valuation and premium to current share price  Substantial increase in liquidity  More favorable tax attributes at CEI  Tax free  Eliminates overhang of CEI ownership  Traditional C-Corp governance in CEI  Increas

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