Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Credit Suisse Energy Summit 2015

39 slides from Cheniere Energy's conference presentation, Feb 24, 2015

  1. Slide 1: Cheniere Energy Credit Suisse Energy Summit

    February 2015 Cheniere Energy 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: Executing on Growth Strategy

    Executing on Growth Strategy By 2020: Scalable, industry- leading platform $30B+ ~40.5 mtpa LNG by 2019/20 One of the largest natural gas buyers in the U.S. ~6 Bcf/d Supporting over 125,000 indirect jobs ~950 permanent jobs created One of the largest exporters of LNG on a global basis ~10% of the to

  4. Slide 4: Cheniere's Key Businesses

    Cheniere’s Key Businesses  Two LNG terminals located along Gulf of Mexico  ~40.5 mtpa  Scalable platform  Underpinned by long-term contracts, competitive capital costs  LNG sales, FOB or DES, provided to customers on a short, mid, and long-term basis  ~7mtpa LNG volumes from SPL and CCL termin

  5. Slide 5: Cheniere LNG Platform

    Cheniere LNG Platform Sabine Pass Liquefaction TX LA Creole Trail PL Sabine Pass Liquefaction • 6 train development – 27 mtpa ~3.8 Bcf/d in export capacity • Trains 1-4 are under construction; First LNG in late 2015 • Trains 5-6 under development; FID expected 2015 Corpus Christi Liquefaction • 3 tr

  6. Slide 6: LNG Platform

    LNG Platform  Execution Excellence • Sabine Pass Trains 1-4 remain on budget and ahead of contractual schedule: T1 & T2 project ~81% complete, T3 & T4 project ~54% complete • Maintain ~100 engineers on staff to ensure continued execution standard  Low Cost Operations • G&A metrics demonstrate effi

  7. Slide 7: Aerial View of SPL Construction – January 2015

    Aerial View of SPL Construction – January 2015 Train 1 Train 2 Train 3 Train 4 Air Coolers Compressor Area Propane Condenser Area T1 Ethylene Cold Box T1 Methane Cold Box T2 Ethylene Cold Box T2 Methane Cold Box

  8. Slide 8: SPL Construction – January 2015

    SPL Construction – January 2015 8

  9. Slide 9: Gas Procurement

    Gas Procurement  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 • Supply contracts cover ~50% of the required daily load for Trains 1-4 at Sabine Pass • Pricing averages HH - $0.10

  10. Slide 10: Cheniere Marketing

    Cheniere Marketing  Scale up for > 7 mtpa including LNG purchases from Cheniere terminals and other places  Buyers & sellers of LNG cargoes  Short, mid, long-term LNG sales on FOB or DES basis  CMI volumes sold to date primarily based on 1–2 year terms, HH + fixed fee  SPAs with SPL and CCL for

  11. Slide 11: Future Developments

    Future Developments Horizontal / Vertical Integration Total focus on cash flow per share as guiding metric for future investments LNG expansion most likely the first development project beyond the current 9-Train program Significant Cash Flow starting in 2017 Cheniere core competencies, scale, and f

  12. Slide 12: Hydrocarbon Growth Story Continues to Evolve in U.S.

    Hydrocarbon Growth Story Continues to Evolve in U.S. Source: EIA STEO Jan. 2015 However…production may not be as smooth as some predict Forecast 12

  13. Slide 13: U.S. Responds To Price Signals Faster Than ROW

    U.S. Responds To Price Signals Faster Than ROW $0 $30 $60 $90 $120 0 300 600 900 1,200 1,500 Active Rigs Outside North America Asia Pacific Middle East Africa Europe Latin America Brent Sources: Baker Hughes, EIA U.S. Shed ~475 Rigs in Just 3 Months  Oil rig count -25% since November  Decelerated

  14. Slide 14: Markets Face More Cyclical Volatility

    $0 $30 $60 $90 $120 $150 04 05 06 07 08 09 10 11 12 13 14 15 16 Global Crude Prices WTI Brent Markets Face More Cyclical Volatility  Entering period of more pronounced cyclical volatility in crude oil markets to be driven by nimble, more meaningful U.S. market  Expect shorter cycles featuring high

  15. Slide 15: Cheniere by the Numbers

    Cheniere by the Numbers TODAY …WITH 9 TRAINS (Forecast) LNG Volumes - 40.5 mtpa, ~5.5Bcf/d Revenues(1) ~$260MM ~$15B+ Employees ~600 1,400+ EBITDA/Share N/A ~$14.60+ Market Capitalization ~$17B ? 15 Note: See “Forward Looking Statements” Slide EBITDA per share is a non-GAAP measure. We have not made

  16. Slide 16: 9-train CEI EBITDA per share

    9-train CEI EBITDA per share SPL T6 (LT SPA) Estimated CEI EBITDA Per Share Build Up Note: Assumes ~274.3 CEI shares outstanding. See “Forward Looking Statements” Slide. (1) Assumes future contracting of 2.08 MTPA at CCL T3 and 3.25 MTPA at SPL T6 at $3.50 per MMBtu. Number of trains 4 trains 6 trai

  17. Slide 17: 11-train CEI EBITDA per share

    11-train CEI EBITDA per share Targeted CEI EBITDA Per Share Build Up Note: See “Forward Looking Statements” slide. Assumes ~274.3 CEI shares outstanding. (1) Management goals based on assessment of current and potential future project development opportunities, which, among other things, would requi

  18. Slide 18: Appendix

    CHENIERE = Appendix

  19. Slide 19: Investing in Cheniere – Summary

    Investing in Cheniere – Summary Organization 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 Mark

  20. Slide 20: Operating Assets

    Operating Assets Sabine Pass LNG Terminal (SPLNG) Creole Trail Pipeline 20

  21. Slide 21: 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 (

  22. Slide 22: Creole Trail Pipeline

    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, Tru

  23. Slide 23: LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks

    LSTK EPC Contracts 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 Sabine Pass LNG terminal, which was constructed on time and on budget Proven cons

  24. Slide 24: Timeline & Milestones

    Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6  Initiate permitting process (FERC & DOE)      Commercial agreements   T1-T2  T3: 2015 T5  T6: 2015  EPC contract    2015  Financing commitments    2015  Regulatory approvals   2015 2015  Issue No

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: Projected Global LNG Demand

    Projected Global LNG Demand Robust Growth 21 17 18 2015 2020 2025 2015 2020 2025 4 9 23 2015 2020 2025 2015 2020 2025 Americas Asia Middle East/N. Africa 198 268 323 24 64 90 Europe 0 100 200 300 400 500 mtpa Asia Pacific Europe Middle East North Africa North America South & East Africa South Americ

  28. Slide 28: Sabine Pass Liquefaction - Brownfield LNG Export Project

    Sabine Pass Liquefaction - Brownfield LNG Export Project 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 netw

  29. Slide 29: LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction

    LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction (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

  30. Slide 30: SPL Construction Completion Schedules

    SPL Construction Completion Schedules Trains 1-4  Current plan estimates Train 1 operational in 40 months from NTP • Bechtel schedule bonus provides incentive for early delivery • Bechtel’s record delivery was Egyptian LNG train 1, delivered in 36 months from NTP  Trains expected to come on-line o

  31. Slide 31: Sabine Pass Terminal – Accessible Pipeline Network

    Source: Lippman Consulting, Baker Hughes and Bentek, as of January 2014 Sabine Pass Terminal – Accessible Pipeline Network Procurement of Gas Supply Transco Tetco ANR Trunkline NGPL Tennessee Gas Columbia Gulf Rockies Express Texas Gas Permian Basin Barnett Granite Wash Eagle Ford Haynesville Woodfo

  32. Slide 32: 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) Key Project Attributes  45 ft. ship channel 13.7 miles from coast  Protected berth  Premier Site Conditions • Established industrial zone •

  33. Slide 33: Corpus Christi Liquefaction SPAs

    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 ~$139 MM ~$274 MM ~$154 MM ~$140 MM ~$14

  34. Slide 34: Corpus Christi Terminal – Accessible Pipeline Network

    Shale Plays Basins Source: Lippman Consulting, Baker Hughes and Bentek, as of January 2014 NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Permian Basin Barnett Granite Wash Eagle Ford Haynesville Marcellus / Utica Corpus Christi Woodford Corpus Christi Terminal – Accessible Pipeline Network Procur

  35. Slide 35: Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6

    Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6  Corpus Christi Trains 1-3 • FERC: Received FERC authorization December 30, 2014 • DOE: Received FTA authorization • DOE: Non-FTA authorization is pending  SPL Trains 5-6 • FERC: Final EA published December 12, 2014; Approval expect

  36. Slide 36: Applications Filed with FERC for Liquefaction Projects

    Applications Filed with FERC for Liquefaction Projects Continental U.S. LNG Export Projects Quantity Bcf/d FERC Pre-filing Date FERC Application Date FERC Scheduling Notice Issued EIS / EA Scheduled Date for EIS or EA FERC Approval DOE Non FTA Final Under Construction Sabine Pass Liquefaction T1-4 2

  37. Slide 37: Cheniere's Debt Summary

    Cheniere’s Debt Summary As of February 2015 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: 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 MMB

  38. Slide 38: Slide 38

  39. Slide 39: 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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