Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (May 2018)
30 slides from Cheniere Energy's investor presentation, May 21, 2018
Slide 1: Cheniere Energy, Inc. Corporate Presentation May 2018
CHENIERE ENERGY, INC. March 2018 CHENIERE ENERGY, INC. NYSE American: LNG CORPORATE PRESENTATION May 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: Cheniere Overview: Company Overview
SPL Project CHENIERE OVERVIEW COMPANY OVERVIEW
Slide 4: Cheniere Investment Thesis
Cheniere Investment Thesis . Full-service LNG offering, including gas procurement, transportation, liquefaction, and shipping enables flexible solutions tailored to customer needs . Positioned as premier LNG provider, with a proven track record and low-cost advantage through capacity expansion at ex
Slide 5: Cheniere's Expansive Footprint
Cheniere’s Expansive Footprint Sabine Pass Liquefaction Corpus Christi Liquefaction Domestic Pipelines and Legacy Global Corporate Footprint to Project (SPL Project) Project (CCL Project) Assets Facilitate Growth Four trains operating, and one under First greenfield LNG export facility in Extensive
Slide 6: Robust LNG Market Reinforces Positive Outlook for Cheniere
Robust LNG Market Reinforces Positive Outlook for Cheniere LNG Market Fundamentals Supportive Shipping Market Strong Commodity Pricing . LNG demand growth continues to . Vessel day rates ~50% of peak . 1Q 2018 LNG pricing more than outpace incremental supply winter pricing 20% higher than 1Q 2017 .
Slide 7: Continuing Our Successful Execution Track Record
Continuing Our Successful Execution Track Record Four Trains brought online in 17 months safely, on time, Successful sale and delivery of portfolio volumes and and on budget capture of optimization opportunities Over 14 million tonnes of LNG produced at Sabine Pass in Raised $5.9B across the
Slide 8: Sabine Pass Cargo Destinations
Sabine Pass Cargo Destinations Approximately 350 Cargoes (~1,250 TBtu) Exported from Sabine Pass Since Startup Delivered to 26 Countries and Regions Across the Globe London, U.K. Poland, Lithuania, Netherlands, United Kingdom Japan, Washington, DC Portugal, South Korea Spain Italy, Malta, Beijing, C
Slide 9: 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 Optimize and monetize excess Continue to deliver term contracts Invest along the LNG va
Slide 10: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (CEI) (NYSE American: LNG) Cheniere Energy Partners CQP GP Cheniere Marketing, LLC Cheniere CCH LP Holdings, LLC (& IDRs) (CMI) Holdco II, LLC (NYSE American: CQH) Cheniere Energy Partners, Cheniere CCH L.P. Holdco I, LLC (NYSE American: CQP) Chenie
Slide 11: Existing LNG Platform Creates Advantages for Growth
Existing LNG Platform Creates Advantages for Growth Construction Operations . Significant infrastructure investment at Corpus Christi and . Ability to scale quickly and effectively Sabine Pass sites . Scale helps improve operating margin . Site preparation . Operating expense associated with expansi
Slide 12: Cheniere Overview: Liquefaction Projects Update
SPL Project, Train 5 CHENIERE OVERVIEW LIQUEFACTION PROJECTS UPDATE
Slide 13: Sabine Pass Liquefaction Project
Sabine Pass Liquefaction Project Liquefaction Trains 1-5: Fully Contracted . Trains 1 through 4 are complete and in operation – on budget and ahead of schedule Train 5 . Under Construction Train 5 is 89.3% complete overall and has a target in-service date of 1H 2019 Growth . Train 6 is fully permitt
Slide 14: Corpus Christi LNG Terminal
Corpus Christi LNG Terminal CCL Project Stage 1 Train 3 FID Expected Imminently . Trains 1 and 2 are 85.7% complete overall and have target in-service dates of 1H 2019 and 2H 2019, respectively CCL Project Stage 2 . Train 3 early groundwork, engineering and procurement in process under LNTP . Commer
Slide 15: Cheniere Liquefaction Projects at a Glance
Cheniere Liquefaction Projects at a Glance Sabine Pass Liquefaction Project Corpus Christi Liquefaction Project Liquefaction Technology EPC Contractor Financial Partner Creditworthy SPA Counterparties Maintenance Contract Servicer Total Mtpa(1) Under Construction or Operating 22.5 9.0 Firm Pipeline
Slide 16: Cheniere Overview: LNG Market Outlook
CHENIERE OVERVIEW LNG MARKET OUTLOOK
Slide 17: Supply Growth Cleared By Strong Asian Demand
Supply Growth Cleared By Strong Asian Demand 2018 Incremental Global LNG Supply & Demand YTD JKM and HH Prices as Percentage of JCC (through end-March 2018) 20% LNG Demand LNG Supply 18% 10 mtpa 16% (0.4) 0.5 14% JKM 9.1 (0.9) 12% 8 10% (1.0) 7.1 8% 6% 4% Asian LNG demand outpaced LNG supply growth
Slide 18: U.S. Continues to Satisfy the Call on LNG in Asia
U.S. Continues to Satisfy the Call on LNG in Asia Quarterly YoY LNG Import Leaders China’s Top 5 LNG Suppliers (Incremental Q1 2018 vs Q1 2017) (1Q 2018) 6 mtpa Asia Continues to be the 4.9 5 6 mtpq Main Driver of Global 4 Q1 2017 LNG Demand Growth 3 Q1 2018 1.8 2 1.2 5 1 0.6 0.5 0 -1 (0.3) (0.3) (0
Slide 19: Operating Capabilities Key to Project Success
Operating Capabilities Key to Project Success Sabine Pass Gas Supply Volumes 3.5 Tbtu/day Cheniere is Now the 3.0 Largest Consumer of 2.5 Natural Gas in the U.S. 2.0 1.5 1.0 0.5 Average daily quantity Average daily fluctuation Strive to Serve Customer’s LNG Needs in the High Growth and 0.0 Most Effe
Slide 20: LNG Supply v. Demand Forecast Supportive of Long-Term Growth
LNG Supply v. Demand Forecast Supportive of Long-Term Growth 2015 to 2030 Production capacity 2015/2020 CAGR(%) = 4.8 500 100 LNG trade 80 forecast 60 2020 New supply mtpa 40 400 20 2015 0 Malaysia US Qatar Australia 300 mtpa 200 Supply: existing and under construction 100 0 2000 2005 2010 2015 2020
Slide 21: Cheniere Overview: Financial Update
SPL Project CHENIERE OVERVIEW FINANCIAL UPDATE
Slide 22: First Quarter 2018 Results
First Quarter 2018 Results Metric ($ in millions, excl. per share and LNG data) 1Q 2018 1Q 2017 Revenues $2,242 $1,211 Operating Income $747 $376 Net Income $600 $172 Net Income Attributable to Common Stockholders $357 $54 Net Income per Share1 $1.50 $0.23 Consolidated Adjusted EBITDA $907 $483 SPL
Slide 23: 2018 Guidance
2018 Guidance ($ billions, except per share amounts) FY 2018 Consolidated Adjusted EBITDA $2.3 - $2.5 Distributable Cash Flow $0.35 - $0.55 CQP Distribution per Unit $2.20 - $2.30 CQH Dividend per Share $2.25 - $2.35 Consolidated Adjusted EBITDA Guidance Bridge Distributable Cash Flow Guidance Bridg
Slide 24: New LNG Investment Considerations
New LNG Investment Considerations Evolving Fundamentals Facilitate Flexible Solutions . Strong cash flows from first trains and corporate debt capacity enable flexibility . High performance levels and focus on operational excellence enable optimization of excess capacity and flexible contract soluti
Slide 25: Cheniere Investment Thesis
Cheniere Investment Thesis . Full-service LNG offering, including gas procurement, transportation, liquefaction, and shipping enables flexible solutions tailored to customer needs . Positioned as premier LNG provider, with a proven track record and low-cost advantage through capacity expansion at ex
Slide 26: Cheniere Overview: Appendix
CHENIERE OVERVIEW APPENDIX
Slide 27: Cheniere Debt Summary
Cheniere Debt Summary CEI Revolver Cheniere Energy, Inc. (CEI) $0.75B senior secured revolving credit facility due 2021 CEI Cash Balance: ~$0.7B(1) Convertible Debt (NYSE American: LNG) $1.0B PIK Convertible Notes due 2021 (4.875%) $0.6B Convertible Notes due 2045 (4.250%) Cheniere Energy Partners C
Slide 28: LNG Production Capacity
LNG Production Capacity Adjusted nominal capacity is expected Nominal Adjusted Capacity to range between 4.3 and 4.6 mtpa in Capacity run-rate years . Preliminary overdesign assessment in progress; requires Debottleneck Maintenance more warm weather data Adjustments Overdesign . Low end is driven by
Slide 29: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. The following table reconciles our Consolidated Adjusted EBITDA
Slide 30: 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