Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (December 2005)
18 slides from Cheniere Energy's investor presentation, December 2005
Slide 1: Cheniere Energy, Inc. Corporate Presentation December 2005
CHENIERE ENERGY, INC. *Sabine Pass LNG L.P. *Corpus Christi LNG L.P. *Creole Trail LNG L.P. *Freeport LNG L.P. (Cheniere 100%) (Cheniere 100%) (Cheniere 100%) (Cheniere 30% Limited Partner) Corporate Presentation December 2005 *Artist’s Rendition
Slide 2: Safe Harbor Act
Safe Harbor Act 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 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than sta
Slide 3: Cheniere LNG Receipt Network
Cheniere LNG Receipt Network • 4 Deepwater Ports • 7 Unloading Docks Sabine Pass • 15 Storage Tanks 4.0 Bcf/d (51.7 Bcf equivalent) Creole Trail • 11.4 Bcf/d Regas Freeport (30%) 3.3 Bcf/d 1.5 Bcf/d Capacity Under Construction Under Construction Corpus Christi 2.6 Bcf/d 3
Slide 4: Timing of Operations
Timing of Operations 2008 2009 2010 2011 Freeport 1.5 1.5 1.5 1.5 Sabine Pass 2.6 4.0 4.0 4.0 Corpus Christi -- -- 2.6 2.6 Creole Trail -- -- -- 3.3 Total Bcf/d 4.1 5.5 8.1 11.4 Certain Key Considerations • Regulatory – no delays in schedules currently anticipated • Commercial – Cheniere’s ability t
Slide 5: Projected Liquefaction Capacity 2010
Projected Liquefaction Capacity 2010 Existing Liquefaction Under Construction or Proposed Liquefaction 2010 Liquefaction Capacity Atlantic 2004 Consumption Atlantic Basin Basin 14.5 14.5 Bcf/d Bcf/d 2004 2004 N. N. America America 2004 2004 Europe Europe 2.0 2.0 Bcf/d Bcf/d 4.0 Bcf/d 4.0 Bcf/d ME ME
Slide 6: U.S. Lower-48 Gas Production
U.S. - Lower-48 Gas Production At $6/MMBtu ~10 Bcf/d replacement production needed 54 54 Bcf/d Bcf/d 55 50 50 Bcf/d Bcf/d 50 Bcf/d 41 41 45 Bcf/d Bcf/d 40 35 00 02 04 05 06 07 08 09 01 03 10 n- n- n- n- n- n- n- n- n- n- n- Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja Ja 6 Source: IHS 2005
Slide 7: Production and Imports vs. Consumption
Production and Imports vs. Consumption Replacement production + growth = 21 Bcf/d (at $6.00 per MMBtu) 80 70 9 Bcf/d LNG Bcf/d 60 Canadian Imports Requirement 12 Bcf/d 50 Lower-48 Production 40 00 01 02 03 04 05 06 07 08 09 10 20 20 20 20 20 20 20 20 20 20 20 Source: Lower-48, IHS 2005; Canadian imp
Slide 8: North America Demand by Country and Region 2004
North America Demand by Country and Region 2004 Canada Canada 99 14 14 99 13 13 66 20 20 Historical: EIA (2004), BP Statistical Review (2005); Forecast: IEA WEO (2004), Cheniere Research Mexico Mexico 55 8
Slide 9: North America Receiving Capacity
North America Receiving Capacity 2010 2.0 Bcf/d 0.7 Bcf/d 1.8 Bcf/d 0.8 Bcf/d 1.0 Bcf/d Existing Facilities New Terminals Total Regasification 10 - 12 Bcf/d Capacity: 16 – 18 Bcf/d 9 Cheniere Estimate
Slide 10: Target Market Access
Target Market Access Northeast Northeast Midwest Midwest Markets Markets Markets Markets 5.7 5.7 Bcf/d Bcf/d 11.8 11.8 Bcf/d Bcf/d Southeast Southeast Markets Markets 4.6 4.6 Bcf/d Bcf/d Gulf Gulf Coast Coast Markets Markets 4.9 4.9 Bcf/d Bcf/d Mexican Mexican Cheniere Markets Cheniere LNG LNG Marke
Slide 11: Three Major Business Groups
Three Major Business Groups Cheniere Terminal Group – Non-regulated fee based Cheniere Pipeline Group – Regulated fee based Cheniere Trading and Marketing – Transaction based 11
Slide 12: Cheniere Terminal Groups
Cheniere Terminal Groups Freeport LNG L.P. – 30 % Capacity Revenue to Cheniere Sold – Terminal Use Agreement (TUA) Conoco 1.0 Bcf/d $15 Dow 0.5 Bcf/d Revenue to Cheniere @ Cheniere Energy – 100% Capacity $0.32 MMBtu ($MM) Sold – Terminal Use Agreement Total, S.A. 1.0 Bcf/d $125 Chevron 1.0 Bcf/d $12
Slide 13: Cheniere Pipeline Group
Cheniere Pipeline Group Purpose: to service terminals and connect to grid Capacity: approximately 155 miles of pipelines from Sabine Pass, Creole Trail, and Corpus Christi CAPEX: $800 million to $1 billion over 5 years Rates: regulated – estimate $120 - $150 million of annual revenues Cust
Slide 14: Cheniere Trading & Marketing
Cheniere Trading & Marketing Developing portfolio of LNG Index Purchase Agreements and Natural Gas Sale Agreements Manage LNG GatewayTM 14
Slide 15: Cheniere Trading & Marketing Targeted Long-Term Agreements
Cheniere Trading & Marketing Targeted Long-Term Agreements Long-term LNG Index Purchase Agreements currently between 83% and 87% of NYMEX delivered at the terminal Example: LNG Index Purchase Agreement – 1 Bcf/d x Gross Margin 10% Henry Hub @ $6.00 = $250 million When LNG Index Purchase Agreem
Slide 16: Cheniere Trading & Marketing LNG Gateway
Cheniere Trading & Marketing LNG GatewayTM Because of seasonality and volatility we think the market for short-term transactions will continue to grow Opportunity to purchase LNG on better terms Plan to start receiving cargoes beginning in 2008 and gauge market reaction 16
Slide 17: Financial Resources
Financial Resources (in millions) 9-30-2005 Working Capital $ 910 Capital Contribution in Sabine Pass LNG L.P. $ 203 Undrawn Sabine Pass Project Facility $ 822 Cost of Debt Interest Rate % Sabine Pass LNG L.P. – Project Facility $ 822 6.38 1 Convertible Notes $ 325 2.25 2 B Loan $ 600 7.25 3 1. Base
Slide 18: Commercial Opportunity
Commercial Opportunity Cheniere Terminal Group – Approximately $2 billion of CapEx – Annual revenue potential $800 million – $1 billion – No commodity price exposure Cheniere Pipeline Group – Approximately $1 billion of CapEx – Annual revenue potential $120 - $150 million – Crucial to balance of
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