Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (January 2014)

40 slides from Cheniere Energy's investor presentation, Jan 8, 2014

1. Slide 1: Cheniere Energy January 2014

   Cheniere Energy January 2014

2. Slide 2: Forward Looking Statements

   Forward Looking Statements 2 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, o

3. Slide 3: Summary Pro Forma Organizational Structure

   Cheniere Energy, Inc. (NYSE: LNG) Sabine Pass LNG, L.P. (“SPLNG”) Sabine Pass Liquefaction, LLC (“SPL”) Cheniere Energy Partners, L.P. (NYSE: CQP) Cheniere Creole Trail Pipeline, L.P. (“CTPL”) Corpus Christi Liquefaction, LLC (“CCL”) Cheniere Marketing, LLC (“CMI”) Cheniere Energy Partners GP, LLC 1

4. Slide 4: Projected Global LNG Demand Growth

   Projected Global LNG Demand Growth Regional LNG Import Outlook (mtpa) Source: Wood Mackenzie 2013 Q4 Data; Base Case Scenario 20 16 19 2015 2020 2030 2015 2020 2030 6 10 38 2015 2020 2030 2015 2020 2030 Americas Asia Middle East/N. Africa 200 256 377 28 60 98 4 Global demand is forecast to grow from

5. Slide 5: Cheniere's LNG Export Facilities Offer Attractive Pricing for Global LNG Buyers

   Example Prices Henry Hub: $4.00 / MMBtu Brent Crude: $100 / Barrel ($/MMBtu) Americas Europe Asia LNG Cost (1) 4.60 $ 4.60 4.60 Shipping 0.50 1.00 3.00 $ 8.60 9.10 11.10 3.90 LNG Price (% Crude) @ 15% 15.00 12.00 15.00 Net Difference 6.40 $ 2.90 Liquefaction Fee 3.50 3.50 3.50 Delivered Cost Source:

6. Slide 6: Brownfield LNG Export Project: Sabine Pass Liquefaction

   Brownfield LNG Export Project: Sabine Pass Liquefaction Utilizes Existing Assets, Trains 1-4 Fully Contracted, Under Construction Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline netwo

7. Slide 7: LNG Sale and Purchase Agreements (SPAs)

   LNG Sale and Purchase Agreements (SPAs) (1) BG has agreed to purchase 182,500,000 MMBtu, 36,500,000 MMBtu, 34,000,000 MMBtu and 33,500,000 MMBtu of LNG volumes annually upon the commencement of operations of Trains 1, 2, 3 and 4, respectively. Total has agreed to purchase 91,250,000 MMBtu of LNG vol

8. Slide 8: SPL Construction Completion Schedules Trains 1-4

   2012 2013 2014 2015 2016 2017 2018 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 Guaranteed Current Level 3 Schedule Guaranteed Current Lev

9. Slide 9: Aerial View of SPL Construction Progress – November 2013

   Aerial View of SPL Construction Progress – November 2013 9 Train 2 Train 1 Cold Box Area Train 3 Train 4 Compressor Area Air Coolers Compressor Area Cold Box Area Propane Condenser Area Propane Condenser Area Air Coolers

10. Slide 10: Corpus Christi Liquefaction Project

    Corpus Christi Liquefaction Project Proposed 3 Train Facility  >1,000 acres owned and/or controlled  2 berths, 3 LNG storage tanks (~10.1 Bcfe of storage)  ConocoPhillips’ Optimized Cascade® Process Key Project Attributes  45 ft ship channel 13.7 miles from coast  Protected berth  Premier Site

11. Slide 11: Corpus Christi Liquefaction SPAs

    Corpus Christi Liquefaction SPAs Annual Contract Quantity (TBtu) Fixed Fees $/MMBtu (1) Annual Fixed Fees (1) Term of Contract (2) Guarantor Guarantor/Corporate Credit Rating (3) Contract Start(4)(5) First “take-or-pay” style commercial agreement for Corpus Christi signed in December 2013 with PT Pe

12. Slide 12: Competitive With Other Recent Liquefaction Projects

    - 500 1,000 1,500 2,000 * * * *  Range of liquefaction project costs: $200 - $2,000+ per ton  1 Bcf/d of capacity = $1.5B to $15.0B+  Corpus Christi liquefaction project estimated costs are ~$800/ton (1) Corpus Christi Liquefaction, LLC Competitive With Other Recent Liquefaction Projects (1) Befo

13. Slide 13: Regulatory Approvals – Corpus Christi and SPL Trains 5-6

    Regulatory Approvals – Corpus Christi and SPL Trains 5-6  Corpus Christi Trains 1-3: Filed FERC and DOE applications • Completed and filed FERC application in 8/2012 (NEPA pre-filing process initiated in 12/2011) − Corpus Christi is one of seven liquefaction projects with a FERC application on file

14. Slide 14: FERC Applications Filed for Liquefaction Projects

    FERC Applications Filed for Liquefaction Projects Note: National Environmental Policy Act (NEPA) empowers FERC as the lead Federal agency to prepare an Environmental Impact Statement in cooperation with other state and federal agencies LNG Export Projects Pre-filing Date Application Date FERC Schedu

15. Slide 15: U.S. DOE Applications for LNG Exports

    Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S. Department of Energy; U.S. Federal Energy Regulatory Commission; Company releases U.S. DOE Applications for LNG Exports* ** Application filed = v, FERC scheduling notice issued =  * As of December 5, 2013. Note

16. Slide 16: CMI SPA – Excess Volumes from Trains 1-4 at SPL

    CMI SPA – Excess Volumes from Trains 1-4 at SPL  CMI-SPL SPA provides CMI with up to 2 mtpa of LNG delivered FOB Sabine Pass starting with the initial production from Train 1 •Maximum Annual Contract Quantity of up to 104 TBtu/year from first four Trains  SPA sharing mechanic incents profit maximi

17. Slide 17: Example Annual Cash Flow on CMI SPA

    Example Annual Cash Flow on CMI SPA (1) Net margins based on profitability of cargoes, up to $3.00/MMBtu paid to SPL on 36 Bcf of LNG sold in a year (Tranche 1); 20% of net margins paid to SPL on the remaining 68 Bcf of LNG sold in the year (Tranche 2) LNG sold 104 Bcf/year Net profit (after LNG cos

18. Slide 18: Timeline & Milestones

    Timeline & Milestones  Initiate permitting process (FERC & DOE)  Commercial agreements  EPC contract  Financing commitments  Regulatory approvals  Issue Notice to Proceed  Commence operations (1) Milestone Corpus Christi (1) Each Train of the respective projects is expected to commence operat

19. Slide 19: Financial Estimates

    Financial Estimates (includes SPL Trains 1-4 and Trains 1-6)

20. Slide 20: CQP: SPLNG (Regas) Estimated Cash Flows

    CQP: SPLNG (Regas) Estimated Cash Flows Total Revenues Total Expenses Total Chevron SPL Other EBITDA (1) 127 133 290 10 560 (65) $ 495 $ SPLNG Distributable cash flow to CQP $ 365 ($ in millions) Interest Expense (2) (130) Annualized (1) EBITDA is a non-GAAP measure. EBITDA is computed as total reve

21. Slide 21: CQP: SPL Estimated Cash Flows Trains 1-4

    CQP: SPL Estimated Cash Flows Trains 1-4 Total Revenues Trains 1-4 (BG, Gas Natural, KOGAS, GAIL) Total Centrica Train 6 Customer (1) CMI (2) Commodity payments, net (3) O&M, gas procurement, & other Maintenance capex SPLNG/Total TUA Pipeline Costs EBITDA (4) 2,285 - - - 145 245 2,675 (175) (85) (32

22. Slide 22: CQP Forecasted Distributable Cash Flows Trains 1-4

    CQP Forecasted Distributable Cash Flows Trains 1-4 Estimated distributable cash flow to (1) General partner CQH Public and BX units Estimated range of DCF per unit 370 730 715 $3.00 - $3.20 $ Estimated total distributable cash flow $ 1,815 ($ in millions) SPLNG distributable cash flow SPL distributa

23. Slide 23: CQP Outlook Visible Future Growth

    CQP Outlook Visible Future Growth Expected LNG Export Volumes (SPL) Tbtu/yr CQP Expected Revenues $MM Forecasted CQP Distributable Cash Flow $ per common unit Note: Estimates represent a summary of internal forecasts, are based on current assumptions and are subject to change. Actual performance may

24. Slide 24: Cheniere Estimated Steady State Cash Flows

    Cheniere Estimated Steady State Cash Flows ($ in millions) Net Cash Flows Cheniere Energy, Inc. CQP GP Interest CQH Retained Interest (1) Management fees CEI expenses and other 370 620 50 (85) 955 $ $ Potential CF generated from CMI SPA (2) $0 - $1,000 (1) Before exercise of greenshoe option by unde

25. Slide 25: Cheniere's Debt Summary

    Cheniere’s Debt Summary As of December 2013 Cheniere Energy, Inc. (NYSE: LNG) Cheniere Energy Partners, L.P. (NYSE: CQP) Sabine Pass LNG, L.P. (SPLNG) BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5 million MMBtu / yr) GAIL SPA (182.5 million MMBtu / yr)

26. Slide 26: Appendix

    CHENIERE = Appendix

27. Slide 27: Operating Assets

    Operating Assets Sabine Pass LNG Terminal Creole Trail Pipeline 27

28. Slide 28: Contracted Capacity at SPLNG

    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long-term, 20 year “take-or-pay” style commercial contracts ~$253MM annual fixed fee revenue Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fee (

29. Slide 29: LSTK EPC Contract with Bechtel

    LSTK EPC Contract with Bechtel Minimize Construction Costs and Risks Hoover Dam Hong Kong Int’l Airport San Francisco Rapid Transit Source: Bechtel. Bechtel was the EPC contractor for the regasification project at the Pass LNG terminal, which was constructed on time and on budget Proven construction

30. Slide 30: Creole Trail Pipeline

    Current Facility  Receipt capacity from SPLNG: 2.0 Bcf/d  Diameter: 42-inch; Length: 94 miles  Delivery Points: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline No compression Pipeline Modifications  Delivery capacity to SPLNG: 1.5 Bcf/d  Receipt points: TETCO, Trunkline, Transco One ne

31. Slide 31: 2012 Global LNG Supply & Demand

    2012 Global LNG Supply & Demand 2012 Global LNG Capacity: ~37.3 Bcf/d Natural Gas Oil Products LNG Importers - Price Indexation Japan Crude Cocktail 2012 Global LNG Demand: ~31.5 Bcf/d No r th Ame r ica S outh Ame r ica E u r ope A sia 6.5 1.4 1.1 22 A ust r alia - 3.3 B r unei - 1.0 Indonesia - 4.6

32. Slide 32: U.S. Natural Gas Markets

    US Proved Non-Producing Reserves Productive Capacity from Unconventional Reservoirs Tcf Bcf/d MMB/d  Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster increase in natural gas demand – have created an opportunity to expand into exports – be

33. Slide 33: Primary Gas Sources for Sabine Pass and Corpus Christi Liquefaction

    Montana Thrust Belt Cody Gammon Hilliard Baxter- Mancos Greater Green River Basin Forest City Basin Pierre Illinois Basin Piceance Basin Lewis San Juan Basin Raton Basin Anadarko Basin PaloDuro Basin Permian Basin Barnett Woodford Pearsall Eagle Ford Rio Grande Embayment Barnett Woodford Michigan Ba

34. Slide 34: Multiple Local Pipeline Interconnections Provide Access to Natural Gas Supply

    Multiple Local Pipeline Interconnections Provide Several Options for Access to Natural Gas Supply Targa Columbia Gulf Tennessee Cheniere Creole Trail Pipeline Trunkline Kinder Morgan Louisiana Pipeline NGPL Texas to Louisiana (bi-directional) Transco TETCO Tennessee FGT ) Existing Pipeline Grid Tran

35. Slide 35: Firm Liquefaction Capacity Additions

    0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019 Firm Liquefaction Capacity Additions (Bcf/d) 35 Asia Pacific Atlantic Basin Bcf/d Nameplate Liquefaction Capacity ~ 39 Bcf/d as of YE

36. Slide 36: Conversion of Class B and Subordinated Units

    Conversion of Class B and Subordinated 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 record date for

37. Slide 37: Pro Forma CQP Ownership

    Pro Forma CQP Ownership  Current common unit annualized distribution expected to be $1.70/unit (2)  Class B units accrete 3.5% quarterly until converted into common units (1) Unit amounts are current units outstanding, including Blackstone’s total investment of $1.5B but excluding accretion of Cla

38. Slide 38: Proforma Condensed Balance Sheets

    Proforma Condensed Balance Sheets (1) Includes intercompany eliminations and reclassifications. (2) For complete balance sheets, see the Cheniere Energy, Inc., Cheniere Energy Partners, L.P and Sabine Pass LNG, L.P. Quarterly Reports on Form 10-Q for the quarter ended September 30, 2013, filed with

39. Slide 39: Slide 39

40. Slide 40: Investor Relations Contacts

    Randy Bhatia: Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Christina Burke: Manager, Investor Relations – (713) 375-5104, christina.burke@cheniere.com Investor Relations Contacts

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