Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (June 2024)
20 slides from Cheniere Energy's investor presentation, Jun 17, 2024
Slide 1: Capital Allocation Presentation
Cheniere Energy, Inc. Capital Allocation Presentation June 17, 2024 Exhibit 99.2
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
Slide 3: Premier LNG Platform with Global Scale
Premier LNG Platform with Global Scale #1 LARGEST LIQUEFACTION PLATFORM IN THE U.S. ~3,500 CARGOES EXPORTED FROM CHENIERE PROJECTS #200 2024 Fortune 500 ~8% OF US NATURAL GAS PRODUCTION PROCESSED DAILY AT SPL & CCL ~$45B INVESTMENT IN INFRASTRUCTURE1 21 CREDIT RATING UPGRADES ACROSS COMPLEX SINCE 20
Slide 4: Today's Announcements
4 4 Today’s Announcements Line of Sight to Achieve ‘20/20 Vision’ of Deploying >$20 Billion through 2026 and Reaching >$20/Share of Run-Rate Distributable Cash Flow Upsized share repurchase authorization through 2027 $4 Billion Annualized dividend; 15% increase to 3Q’24 dividend1 $2/share (1) Subjec
Slide 5: '20/20 Vision' Capital Allocation Plan: Ahead of Schedule
‘20/20 Vision’ Capital Allocation Plan: Ahead of Schedule 5 T a rg e t (2 0 2 2 ) P ro g re ss DEBT PAYDOWN ▪ ~4x Debt / EBITDA ▪ Investment Grade Ratings across Corporate Structure ▪ Repaid ~$4 Billion ▪ Achieved Investment Grade Ratings SHARE REPURCHASES ▪ ~10% of LNG Market Cap ▪ Incremental Buyb
Slide 6: Capital Allocation Progress Since 2021
Capital Allocation Progress Since 2021 6 Note: Figures as of March 31, 2024 except for total shares outstanding and CCL Stage 3 project completion. (1) As of May 31, 2024 and reflects engineering 92.9% complete, procurement 78.0% complete, subcontract 82.1% complete and construction 22.3% complete.
Slide 7: Cheniere's Balanced Capital Allocation Philosophy
7 Cheniere’s Balanced Capital Allocation Philosophy Cash Flow Visibility Capital Management Long-Term Value Creation ✓ Best-in-class operations and safety at the foundation ✓ Unmatched contracted portfolio ensures cash flow resiliency ✓ Balance sheet management increases debt capacity for future gro
Slide 8: Today's Updates Under '20/20 Vision'
Today’s Updates Under ‘20/20 Vision’ 8 (1) Subject to declaration by Board of Directors. (2) Payout ratio consists of full-year dividends divided by full-year DCF. Significant Cash Flow Generation and Visibility Enable Follow-Through on All-of-the-Above Capital Allocation Plan Accretive Growth ▪ Com
Slide 9: Line of Sight to Deploy >$20 Billion
Line of Sight to Deploy >$20 Billion 9 Capital Deployed Under ‘20/20 Vision’ Plan and Remaining Available Cash Through 2026 ($ in billions) Note: Capital deployed as of March 31, 2024. Available cash reflects updated forecast as of March 31, 2024. Forecast subject to change based upon, among other t
Slide 10: Target ~35 MTPA of Growth
0 20 40 60 80 Today + CCL Stage 3 + Midscale Trains 8&9 + SPL Expansion Project +Future Growth Target ~35 MTPA of Growth 10 M il li o n T o n n e s P e r A n n u m ( M T P A ) Note: Incremental capacity from Midscale T8&9 and SPL Expansion Project includes estimated debottlenecking potential. (1) CC
Slide 11: Share Repurchase Program Upsized by $4 Billion
11 Cheniere has reduced run-rate share count by ~25 million shares since 2021 – both previous plans deployed at an accelerated pace New $4 billion share repurchase authorization announced today to enable further share reduction through 2027 or earlier Share repurchases remain a flexible, opportunist
Slide 12: Target 'BBB' Balance Sheet
Target ‘BBB’ Balance Sheet 12 Focus on continued credit improvement; targeting sustainable ‘BBB’ ratings at corporate levels <4x leverage aligns with funding ~7x Capex / EBITDA growth with ~50% debt funding Aim to achieve further deleveraging through robust free cash flow generation with opportunist
Slide 13: Target ~10% Annual Dividend Growth Rate
13 Target ~10% Annual Dividend Growth Rate Plan to increase annualized dividend rate by 15% to $2.00 per share1 for 3Q’24 from $1.74 per share Continue to target ~10% annual growth rate through the 2020s Expected cash return of ~$2 billion in dividends throughout Stage 3 construction Targeting ~20%
Slide 14: Line of Sight to Generate >$20 DCF Per Share
Since “20/20 Vision” unveiled, share count reduced by ~10% and debt reduced by ~$4 bn… …with the expectation of first LNG at Stage 3 this year and full project in service by 2026… …which, in combination with further growth and buybacks, can achieve >$20 of DCF / share Line of Sight to Generate >$20
Slide 15: Appendix
Append ix CHENIERE
Slide 16: The Benefits of U.S. LNG Are Clear
The Benefits of U.S. LNG Are Clear 16 1. ~82% less Nitrogen Oxides, ~99% less Sulfur Dioxides, ~100% less mercury emissions. National Energy Technology Laboratory (2016); National Petroleum Council (2011). Compares emissions when used in combined-cycle power plants. 2. Roman-White et al., 2021, LNG
Slide 17: Global LNG Supply Dynamics
Cycle 2 Cycle 3 % Increase2 CAGR Regas Capacity3 27% 8% ~1,360 MT 37% 11% 919 MT 36% 17% 638 MT Global LNG Supply Dynamics 17 Further LNG Supply Growth Required Beyond Existing and Planned Capacity to Meet Expected Demand Growth Europe Global LNG Supply & Demand1 Outlook Current and Future LNG Suppl
Slide 18: Global LNG Demand Dynamics
0 400 800 1,200 1,600 2000 2005 2010 2015 2020 2025 2030 MT South America North America Middle East + Africa Europe Asia Pacific LNG Trade Outlook Source: BP Statistical Review, IEA World Energy Outlook 2023, Wood Mackenzie, S&P Global, IEEJ, IEA Coal 2023, Kpler, ICIS, CME, ICE. Note: All regasific
Slide 19: Regulation G Reconciliations
Regulation G Reconciliations This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per Share, and Distributable Cash Flow per Unit are non-GAAP financial measures that we use to facilitate comparisons of operating perfo
Slide 20: Investor Relations Contacts
© 2024 Cheniere Energy, Inc. All Rights Reserved Investor Relations Contacts Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Frances Smith Director, Investor Relations – (713) 375-5753, frances.smith@cheniere.com