Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — 2016 Credit Suisse Energy Summit

41 slides from Cheniere Energy's conference presentation, Feb 24, 2016

  1. Slide 1: Cheniere Energy, Inc. 2016 Credit Suisse Energy Summit

    CHENIERE ENERGY, INC. February 20162016 CREDIT SUISSE ENERGY SUMMIT

  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

    3 Cheniere LNG Platform Underway 31.5 mtpa Cash flows from fixed fees - ~$30B capital spend Significant investment in U.S. infrastructure annual fixed fees Stable cash flows underpinned by investment grade counterparties ~$4.3B ~87% Flexible, Scalable, Industry-leading platform currently under const

  4. Slide 4: Executing on Strategy

    Executing on Strategy 4  Complete construction on 7 LNG trains on an accelerated basis, on time and on budget  Transition to an operating company – Train 1 has begun producing LNG and the first LNG commissioning cargo is expected from Sabine Pass imminently  Continue commercialization of addition

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

    Cheniere Projected Cash Flow Build-Up With 7 Trains  Estimates based on fixed fees underpinned by 20-year “take-or-pay” style SPAs representing ~87% of design production capacity for seven Trains  For inclusion of CMI sales, remaining capacity estimated to be sold based on estimated market spreads

  6. Slide 6: Maintenance & Operating Cost Estimates

    Maintenance & Operating Cost Estimates  Amounts above include all expected maintenance costs for SPL and CCL on a combined basis (operating and capex) averaged over 20 years; estimated costs are ~1.5% of the total EPC costs of the trains (industry norm)  GE contracts covers highest risk components

  7. Slide 7: Cheniere Summary Organization

    Cheniere Summary Organization 7 Cheniere Energy, Inc. (NYSE MKT: LNG) Sabine Pass LNG, L.P. (“SPLNG”) Sabine Pass Liquefaction, LLC (“SPL”) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Cheniere Creole Trail Pipeline, L.P. (“CTPL”) Corpus Christi Liquefaction, LLC (“CCL”) Cheniere Marketing, LLC (“

  8. Slide 8: Cheniere's Key Businesses

    Cheniere’s Key Businesses 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 commercialization  Scalable platform  SPL T1-5 and CCL T1-2 underpinned by long-term contracts with invest

  9. Slide 9: Cheniere LNG Platform Along Gulf Coast

    Cheniere LNG Platform Along Gulf Coast 9 Sabine Pass Liquefaction Project  6 train development – 27 mtpa (~3.8 Bcf/d in export capacity)  Trains 2-5 are under construction  Train 1 has begun producing LNG, first LNG commissioning cargo expected imminently  Commissioning for Train 2 to commence i

  10. Slide 10: Aerial View of SPL Construction – February 2016

    Aerial View of SPL Construction – February 2016 10 Train 1 Train 3 Train 4 Train 2 Train 5 Train 6 Under Development T1-2 Gas Meter T3-4 Gas Meter Propane Condenser Area Air CoolersT1 Methane Cold Box T1 Ethylene Cold Box

  11. Slide 11: Aerial View of CCL Construction – February 2016

    Aerial View of CCL Construction – February 2016 11 Train 1 Train 2 Tank A Tank C Train 3 Under Development Tank B Under Development

  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 included, no lifting requirements  SPAs with investment grade off-takers featuring parent as counterparty or guarantor;  HH + fixed fee pric

  13. Slide 13: Forecast Cheniere LNG Portfolio Summary

    Forecast Cheniere LNG Portfolio Summary 13 (1) Includes ~0.7 mtpa contract with CMI for Central El Campesino in Chile. Project FID pending.  Trains under construction underpinned by long term SPAs  Continuing commercialization of additional trains; FID for SPL Train 6 and CCL Train 3 expected upon

  14. Slide 14: Estimated EBITDA forecast for CEI standalone

     Estimated EBITDA forecast for CEI standalone based on addition of Train 8 (Corpus Christi Train 3) and Train 9 (Sabine Pass Train 6) 14 * Represents expected cash flows from ownership in CQP and CQH, net of interest expense. Note: See “Forward Looking Statements” Slide. For supplementary financial

  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 16 Shale Plays Basins NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Permian Basin Barnett Granite Wash Eagle Ford Haynesville Marcellus / Utica Corpus Christi Woodford  CCL contracted long-term direct and upstream pipeline transport capacity for Trains 1

  17. Slide 17: Cheniere Marketing

    Cheniere Marketing  Scale for ~9 mtpa including LNG purchases from Cheniere terminals and elsewhere  SPAs with SPL and CCL for all LNG volumes not sold to 3rd parties under SPAs  Offering customized sales of LNG, optimizing sales from SPL and CCL terminals  Chartered LNG vessels for DAT sales 

  18. Slide 18: Cheniere Marketing – Significant LNG Sales to Date

    Cheniere Marketing – Significant LNG Sales to Date Marketing Deals Entered Into Prior to 2015 EDF ENGIE El Campesino(1) (pending FID) Contracted Quantity ~150 MM MMBtus (42 cargoes) ~150 MM MMBtus (42 cargoes) ~222 MM MMBtus (12 cargoes per year) 32.3 MM MMBtus/year (~9 cargoes per year) Term of Con

  19. Slide 19: Growth Projects

    Growth Projects  ~$6B in near term major growth projects focused on expansions of liquefaction capacity  Assessing additional project opportunities to drive future growth • Permitting process initiated for Corpus Christi Trains 4 & 5 • Domestic gas pipeline infrastructure opportunities • Internati

  20. Slide 20: U.S. to Become Third Largest LNG Supplier

    0 100 200 300 400 500 2000 2005 2010 2015 2020 2025 2030 m t p a U.S. to Become Third Largest LNG Supplier  LNG demand expected to nearly double from 2015 to 2030  Supply-demand gap projected to open shortly after 2020 as trade grows and existing production declines in certain regions  ~42 LNG tr

  21. Slide 21: LNG Imports to 2030: Growing and Evolving Market Place

    LNG Imports to 2030: Growing and Evolving Market Place 0 50 100 150 200 250 300 350 2005 2010 2015 2020 2025 2030 Bunkers Atlantic Europe N. America S. America 21 0 50 100 150 200 250 300 350 2005 2010 2015 2020 2025 2030 Bunkers Asia Middle East Other Asia China India JKT m t p a JKT China India Ot

  22. Slide 22: 2015 Global LNG Liquefaction Capacity

    2015 Global LNG Liquefaction Capacity: ~39 Bcf/d 22 United States 77 mtpa 77 mtpa Qatar Source: Wood Mackenzie H1 2015; Cheniere Research Figures represent nominal capacity per Wood Mackenzie’s data 2015 2025 2015 2025 2015 2025 MEG MEG Rest of World Includes Existing, Under Construction, and New Pr

  23. Slide 23: Cheniere Competitive Advantage: Low Cost

    23  U.S. natural gas is one of the lowest cost sources of supply 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 compared to other proposed LNG projects C

  24. Slide 24: New Markets Present Demand Upside Potential

     In 2015, imports to new LNG buyers helped offset import declines of traditional LNG buyers  New markets, such as Egypt and Jordan, benefitted from installing FSRUs • FSRUs require lower upfront capital than traditional regasification facilities and have shorter lead times  Over 30 new markets cu

  25. Slide 25: LNG Market Prices Profitable for Cheniere

    LNG Market Prices Profitable for Cheniere  As shown in sensitivity table above, Cheniere can profitably sell excess LNG available into key demand centers even in periods of lower market prices  If LNG prices remain at lower levels, we would expect global LNG demand to increase, thus signaling the

  26. Slide 26: In Summary

    In Summary  First Train at SPL construction complete, expect first LNG commissioning cargo imminently  Second Train at SPL commissioning expected to commence in upcoming months, with remaining three Trains at SPL to commence on a staggered basis  CCL Trains 1&2 construction progressing on time an

  27. Slide 27: Appendix

    CHENIERE ENERGY, INC. APPENDIX

  28. Slide 28: Cheniere's Debt Summary – February 2016

    Cheniere’s Debt Summary – February 2016 28 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG) Total TUA (1 Bcf/d) Chevron TUA (1 Bcf/d) SPL TUA (2 Bcf/d) Sr Secured Notes  $1,666 due 2016 (7.50%)  $420 due 2020 (6.50%) ($ in millions)

  29. Slide 29: Cheniere Cash Flow Build-Up With Trains

    Cheniere Cash Flow Build-Up With 7 Trains  Project debt raised for Trains under construction is all non-recourse – SPL T1-5 (CQP) and CCL T1-2 (CEI)  27.4 MTPA under 20-year SPAs; excess LNG assumed sold at estimated market prices and shipping rates  For scenario above, estimated tax payments of

  30. Slide 30: 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

  31. Slide 31: Sabine Pass Liquefaction Project (SPL)

    Sabine Pass Liquefaction Project (SPL) Current Facility – Utilizing existing assets  ~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 –

  32. Slide 32: SPL Estimated Cash Flows

    SPL Estimated Cash Flows 32 Note: EBITDA and distributable cash flow are non-GAAP measures. EBITDA is computed as earnings before interest, taxes, depreciation and amortization. We have not made any forecast of net income, which would be the most directly comparable financial measure under GAAP, and

  33. Slide 33: SPL Construction Schedules Trains 1 – 5

    0 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 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Train1 Guaranteed Current Le

  34. Slide 34: Sabine Pass Liquefaction SPAs

    Sabine Pass Liquefaction SPAs 34 BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. Centrica plc Annual Contract Quantity (Tbtu) 286.50 (1) 182.50 182.50 182.50 104.75 (1) 91.25 Annual Fixed Fees (2) ~$723 MM (3) ~$454 MM ~$548 MM ~$548 MM ~$314 MM

  35. Slide 35: Corpus Christi LNG Terminal

    Corpus Christi LNG Terminal Proposed 5 Train Facility  ~2,000 acres owned and/or controlled  2 berths, 4 LNG storage tanks (~13.5 Bcfe of storage) Key Project Attributes  45 ft. ship channel 14 miles from coast  Protected berth  Premier Site Conditions  23-mile 48” and 42” parallel pipelines w

  36. Slide 36: CCL Estimated Cash Flows Trains 1-2 and Trains 1-3

    CCL Estimated Cash Flows 36 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.

  37. Slide 37: Corpus Christi Liquefaction Project Schedule

    0 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 6 Train 1 Guaranteed Current Level 3 Schedule Train 2 Guaranteed Current Level 3 Schedule 20202015 2016 2017

  38. Slide 38: Corpus Christi Liquefaction SPAs

    Corpus Christi Liquefaction SPAs 38 PT Pertamina (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Woodside Energy Trading Électricité de France EDP Energias de Portugal S.A. Annual Contract Quantity (TBtu) 79.36 117.32 39.68 78.20 44.12 40.00 40.00 Annual Fixed Fees (1) ~$278 MM ~$411 MM ~$13

  39. Slide 39: FERC Applications for Liquefaction Projects

    FERC Applications for Liquefaction Projects  6 projects have received FERC approval and final DOE approval for Non-FTA 39 LNG Export Projects Quantity Bcf/d FERC Pre-filing Date FERC Application Date FERC Scheduling Notice Issued EIS / EA Scheduled Date for Final EIS or EA FERC Approval DOE Non FTA

  40. Slide 40: U.S. LNG Export Projects

    U.S. LNG Export Projects 40 Company Quantity(Bcf/d) DOE FERC Contracts Cheniere Sabine Pass T1 – T4 2.2 Fully permitted Fully Subscribed Freeport 1.8 Fully permitted Fully Subscribed Lake Charles 2.0 FTA  Fully Subscribed Dominion Cove Point 1.0 Fully permitted Fully Subscribed Cameron LNG T1-3 1.7

  41. Slide 41: 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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