Cheniere Energy Partners, Lp · NYSE:CQP
Cheniere Energy Partners, Lp — Investor Presentation (December 2018)
28 slides from Cheniere Energy Partners, Lp's investor presentation, Dec 18, 2018
Slide 1: Cheniere Energy, Inc. Corporate Presentation December 2018
CHENIERE ENERGY, INC. March 2018 CHENIERE ENERGY, INC. NYSE American: LNG CORPORATE PRESENTATION December 2018
Slide 2: Safe Harbor Statements
Safe Harbor 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 amend
Slide 3: Company Overview
COMPANY OVERVIEW.
Slide 4: Cheniere Investment Thesis
Cheniere Investment Thesis Premier LNG provider with substantial asset platform and proven track record of execution Full-service LNG offering enables solutions tailored to customer needs Significant stable long-term cash flows from take-or-pay style agreements with creditworthy counterparties Poten
Slide 5: Substantial Asset Platform and Global Footprint
Substantial Asset Platform and Global Footprint Building an Industry Leading U.S. LNG Export Platform Sabine Pass Liquefaction Project 22.5 mtpa(1) Liquefaction Capacity . Trains 1-4 operating, contracts with long-term buyers commenced(2) . Train 5 commissioning, first LNG October 2018 . Over 500 de
Slide 6: Recent Execution Increases Cheniere's Value Proposition
Recent Execution Increases Cheniere’s Value Proposition Optimizing Existing Liquefaction Platform . Significant debottlenecking opportunities at leading economics ~$300/ton . Increased expected average adjusted nominal production capacity per train to 4.4 – 4.9 mtpa (previously 4.3 – 4.6 mtpa) . Inc
Slide 7: Cheniere Cargo Destinations
Cheniere Cargo Destinations More Than 500 Cargoes (~35 Million Tonnes) Exported from Sabine Pass Delivered to 30 Countries and Regions London, U.K. Washington, DC Beijing, China Tokyo, Japan Houston, TX Singapore MT Sabine Pass Exports by Destination Region 6 5 4 3 2 1 0 Q2 2017 Q3 2017 Q4 2017 Q1 2
Slide 8: Market Leading Position Along the Value Chain
Market Leading Position Along the Value Chain Safe, Reliable, and Efficient Production of LNG GAS SUPPLY COMMERCIAL OPERATIONS ORIGINATION BUSINESS & ASSET OPTIMIZATION DEVELOPMENT Ensure reliable gas delivery to Deliver to foundation customers, Continue to deliver long-term Invest along the LNG val
Slide 9: Cheniere's Competitive Advantages
Cheniere’s Competitive Advantages Existing platform and portfolio volumes provide Competitive Advantages Include: competitive advantages in securing new term Large-Scale Existing Platform offtake to support incremental liquefaction Operational Expertise and Credibility capacity Marketing Capabilitie
Slide 10: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (NYSE American: LNG) CQP GP Cheniere Corpus Cheniere Marketing (& IDRs) Christi Holdcos(1) Cheniere Energy Corpus Christi Cheniere Corpus Partners, L.P. Liquefaction Christi Pipeline (NYSE American: CQP) Cheniere Creole Sabine Pass Sabine Pass LNG T
Slide 11: Liquefaction Projects Update
CCL Project LIQUEFACTION PROJECTS UPDATE
Slide 12: LNG Projects Update
LNG Projects Update SPL Stage 3 Corpus Stage 1 Corpus Stage 2 99.1% Overall 94.9% Overall 37.7% Overall Train 5 – 1Q 2019 Train 1 – 1Q 2019 Train 3 – 2H 2021 Train 2 – 2H 2019 Engineering 100% Engineering 100% Engineering 82.2% Procurement 100% Procurement 100% Procurement 58.3% Construction 98.7% C
Slide 13: Sabine Pass Liquefaction Project
Sabine Pass Liquefaction Project Liquefaction Trains 1-5 . Trains 1 through 4 complete and in operation – on budget and ahead of schedule Train 5 Commissioning . Train 5 is commissioning and produced first LNG in October 2018 . Substantial completion expected 1Q 2019 Growth . Train 6 early engineeri
Slide 14: Corpus Christi LNG Terminal
Corpus Christi LNG Terminal CCL Project Trains 1-3 . Train 1 is commissioning and produced first LNG in November 2018 Train 1 Commissioning . Substantial completion expected 1Q 2019 . Train 2 substantial completion expected 2H 2019 . Train 3 is 37.7% complete overall and has a target substantial com
Slide 15: Leading Project Partners
Leading Project Partners Sabine Pass Liquefaction Project (Louisiana) Corpus Christi Liquefaction Project (Texas) Reliable, Proven Partners Creditworthy Counterparties 15 Note: SPA counterparties exclude SPAs with Cheniere Marketing, which may or may not be used to provide commercial support for Tra
Slide 16: LNG Market Outlook
CHENIERE OVERVIEW LNG MARKET OUTLOOK
Slide 17: 2018 Global LNG Trade
2018 Global LNG Trade 12 MT LNG Export Leaders Global LNG Supply & Demand Variance (Incremental YTD 2018) (YTD 2018 vs. YTD 2017)1 9.1 MT 9 25 6.8 LNG Supply LNG Demand 6 5.3 20 3 1.6 1.2 3.2 All Others 0 -0.3 -0.3 15 -0.9 -3 -1.8 -2.6 9.1 Australia 22.4 -6 Australia United Russian Trinidad Oman Bru
Slide 18: Supply / Demand Dynamics Support LNG Growth
Supply / Demand Dynamics Support LNG Growth Global LNG Supply Demand Forecast Wood Mackenzie LNG Demand Forecast Increasing MTA mtpa 600 New Supply Needed LNG Trade Forecast 500 By 2025: ~70mtpa By 2030: ~115mtpa New Supply 550 Needed 400 Supply: Existing and UnderExistingConstruction and Supply: Co
Slide 19: EU Fundamentals Point to Increased Need for Imports
EU Fundamentals Point to Increased Need for Imports TTF Curves Groningen Production EU Carbon Price 10 Futures 30 9 25 9 8 2013 avg. ~ 4.9 Bcf/d 20 7 8 2017 avg. 15 ~2.1 Bcf/d $/Ton 6 10 7 5 d / 5 Bcf $/MMBtu 4 6 0 Jul-16 Jul-17 Jul-18 3 Jul-15 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18
Slide 20: Financial Update
SPL Project CHENIERE OVERVIEW FINANCIAL UPDATE
Slide 21: Third Quarter 2018 Results and Full Year 2018 Guidance
Third Quarter 2018 Results and Full Year 2018 Guidance Summary Results Highlights ($ millions, except per share and LNG data) 3Q 2018 3Q 2017 YTD 2018 YTD 2017 . Long-term SPA customers lifted ~86% of LNG Operating Income $425 $297 $1,508 $947 exported from Sabine Pass in 3Q 2018 Net Income (Loss) 1
Slide 22: Cheniere Investment Thesis
Cheniere Investment Thesis Premier LNG provider with substantial asset platform and proven track record of execution Full-service LNG offering enables solutions tailored to customer needs Significant stable long-term cash flows from take-or-pay style agreements with creditworthy counterparties Poten
Slide 23: Appendix
CHENIERE OVERVIEW APPENDIX
Slide 24: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$1B(1) Cheniere Energy, Inc. Cheniere Energy, Inc. (NYSE American: LNG) Cheniere CCH Holdco II, LLC $1.0B PIK Convertible Notes due 2021 (4.875%) $1.0B Senior Secured Convertible Notes $0.6B Convertible Notes due 2045 (4.250%) due 2025 $1.25B Senior Secured Revol
Slide 25: Run Rate Guidance
Run Rate Guidance 8 Trains Online SPL T1-5, ($bn, except per share and per unit amounts or unless otherwise noted) CCH T1-3 CEI Consolidated Adjusted EBITDA $4.4 - $4.9 Less: CQP Minority Interest ($0.8) - ($0.8) Less: CQP/SPL Interest Expense ($0.9) Less: CCH Interest Expense/Maintenance Capex ($0.
Slide 26: Forecasting Points
Forecasting Points Tax Assumptions . Cheniere cash tax payments begin early-mid 2020s . Average tax rate as percentage of pre-tax cash flow: . 2020 – 2030: 5-10% . 2031 – 2040: 21% . 2020 – 2030 tax rate primarily due to “80% NOL limitation” on newly-generated NOLs from Tax Cuts and Jobs Act . Cheni
Slide 27: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per The foll owing table reconciles our Consolidated Adjusted EBITDA to
Slide 28: Investor Relations Contacts
CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Megan Light Manager, Investor Relations – (713) 375-5492, megan.light@cheniere.com
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