Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Q2 2020 Earnings Presentation
24 slides from Cheniere Energy's earnings presentation, Aug 6, 2020
Slide 1: Cheniere Quarterly Earnings Presentation
Cheniere Quarterly Earnings Presentation Second Quarter 2020 August 6, 2020 NYSE American: LNG
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 that our Trains, when completed, will have certain characteristics, including amounts of liquefaction statements” within the meaning of Sect
Slide 3: Agenda
Agenda Introduction Randy Bhatia Vice President, Investor Relations Company Highlights Jack Fusco President and Chief Executive Officer Commercial Update Anatol Feygin Executive Vice President and Chief Commercial Officer Financial Review Zach Davis Senior Vice President and Chief Financial Officer
Slide 4: Operating and Financial Highlights
Operating and Financial Highlights Jack Fusco, President and CEO
Slide 5: Second Quarter Operating and Financial Highlights
Second Quarter Operating and Financial Highlights Revenues ($ billions, except per unit data) RECONFIRMING 3000 Consolidated Adjusted EBITDA $3.8 - $4.1 2000 FULL YEAR 2020 Distributable Cash Flow $1.0 - $1.3 $2,402 GUIDANCE 1000 $2,292 CQP Distribution per Unit $2.55 - $2.65 0 2Q 2019 2Q 2020 Conso
Slide 6: Cheniere's Inaugural Corporate Responsibility (CR) Report
Cheniere’s Inaugural Corporate Responsibility (CR) Report First and Forward Environment Report developed by deep, cross-functional team Alignment with several TCFD-recommended disclosures in our inaugural CR report spanning 12+ groups with Board of Directors oversight 33% 62% Reduction in Reduction
Slide 7: Commercial Update
Commercial Update Anatol Feygin, EVP and CCO
Slide 8: Global LNG Supply Growth Rate Decreased in 1H 2020
Global LNG Supply Growth Rate Decreased in 1H 2020 Global LNG Supply Variance YoY Quarterly LNG Supply Variance Global LNG Production vs Utilization 1H 2020 vs 1H 2019 Global liquefaction supply adjusted downward Utilization decreased to 82% in 2Q 2020 In 2Q 2020 to adapt to the impact of COVID-19 M
Slide 9: Pace of European Gas Receipts Began to Slow in Late 2Q
Pace of European Gas Receipts Began to Slow in Late 2Q Europe LNG Imports Europe Week End Storage Level Gas Supply/Demand Variance in Europe Sharp declines to ease storage surplus Pipeline flows decreased 6.8 Bcf/d YoY 1H 2020 vs 1H 2019 MT % of Full Bcm 12 Bcf/d 5-Yr Range 100 100 60 10 2019 80 202
Slide 10: Asian Demand Bolstered by China Recovery
Asian Demand Bolstered by China Recovery Asia LNG Imports China Gas and LNG Demand YoY Variance Change in Asia LNG Imports 2Q20 imports decline slightly YoY 1H 2020 vs 1H 2019 1H 2020 vs 1H 2019 MT Bcf/d 30 3 2.5 MT 2.3 5-Yr Range 1.9 125 124.5 1.5 +1.8 2 25 2019 1.1 0.8 0.9 2020 1 0.7 0.2 20 +0.8 0
Slide 11: Financial Update
Financial Update Zach Davis, SVP and CFO
Slide 12: Second Quarter 2020 Financial Highlights
Second Quarter 2020 Financial Highlights Summary Results Second Quarter 2020 77% of LNG volumes recognized in income in 2Q ($ millions, except per share and LNG data) 2Q 2020 1Q 2020 1H 2020 1H 2019 2020 sold pursuant to long-term SPA or IPM Revenues $2,402 $2,709 $5,111 $4,553 agreements2 Income fr
Slide 13: Balance Sheet Update and 2020 Guidance
Balance Sheet Update and 2020 Guidance $2.0 Billion SPL Senior Secured Notes due 2030 Proceeds used to redeem SPL Senior Secured Notes due 2021 Full Year 2020 Guidance ($ billions, except per unit data) ~$2.7 Billion CEI Term Loan Agreement Redeemed all outstanding 11% CCH Holdco II convertible note
Slide 14: Cheniere Quarterly Earnings Presentation
Cheniere Quarterly Earnings Presentation Second Quarter 2020 August 6, 2020 NYSE American: LNG
Slide 15: Appendix
Append ix CHENIERE
Slide 16: Cheniere LNG Exports
Cheniere LNG Exports More Than 1,175 Cargoes (>80 Million Tonnes) Exported from our Liquefaction Projects Cheniere LNG Exports by Destination 10 8 6 4 2 0 1Q 2Q 3Q 4Q 1Q 2Q 2019 2020 Europe Asia Latin America MENA Cheniere Destinations Sources: Cheniere Research, Kpler 16 Note: Cumulative cargoes an
Slide 17: Building an Industry Leading U.S. LNG Export Platform
Building an Industry Leading U.S. LNG Export Platform Corpus Christi LNG Terminal Sabine Pass Liquefaction ~15 mtpa Total Production Capacity ~30 mtpa Total Production Capacity Trains 1-2 operating, contracts with long-term buyers Trains 1-5 operating, contracts with long-term buyers commenced comme
Slide 18: Sabine Pass Liquefaction Update
Sabine Pass Liquefaction Update Liquefaction Operations 5 Trains in operation Increased production via maintenance optimization and debottlenecking >1,025 cargoes produced and exported Growth Train 6 positive FID May 2019 • Expected completion 2H 2022 • Project completion 63.9% 3rd berth NTP issued
Slide 19: Corpus Christi Liquefaction Update
Corpus Christi Liquefaction Update Liquefaction Operations 2 Trains in operation Increased production via maintenance optimization and debottlenecking >150 cargoes produced and exported Growth Train 3 commissioning • Expected completion 1H 2021 • Project completion 90.5% ~10 mtpa Stage 3 expansion p
Slide 20: 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 21: Run-Rate Guidance
Run-Rate Guidance 9 Trains (2023) SPL T1-6 ($bn, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CEI Consolidated Adjusted EBITDA $5.2 - $5.6 Less: Distributions to CQP Non-Controlling Interest ($0.9) – ($1.0) Less: CQP Interest Expense / SPL Interest Expense / Other ($1.1)
Slide 22: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.0B1 Cheniere Energy, Inc. Cheniere Energy, Inc. ~$0.5B PIK Convertible Notes due 2021 (4.875%) (NYSE American: LNG) ~$0.63B Convertible Notes due 2045 (4.250%) Cheniere Corpus Christi Holdings, LLC $1.25B Senior Secured Revolving Credit Facility due 2022 ~$3.3
Slide 23: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Consolidated Adjusted EBITDA Regulation G Reconciliations otherwise predictive or indicative of ongoing operating performance, including The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and six months This presenta
Slide 24: Investor Relations Contacts
Investor Relations Contacts Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Megan Light Director, Investor Relations – (713) 375-5492, megan.light@cheniere.com ®2020 Cheniere Energy, Inc. Copyrights - All Rights Reserved