Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (November 2014)
39 slides from Cheniere Energy's investor presentation, November 2014
Slide 1: Corporate Presentation
Corporate Presentation November 2014
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: Summary Organizational Structure
Summary Organizational Structure Cheniere Energy, Inc. (NYSE MKT: LNG) 84.5% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners Cheniere Corpus Christi Public LP Holdings, LLC Cheniere Energy Marketing, LLC 15.5% Partners GP, LLC Liquefaction, LLC (NYSE MKT: CQH) (“CMI”) (“C
Slide 4: Projected Global LNG Demand
Projected Global LNG Demand Robust Growth Demand forecasted to increase by 215 mtpa to 2025, a 6% CAGR Average of 23 mtpa of new liquefaction capacity needed each year(1) Europe 24 64 90 2015 2020 2025 Asia 323 Americas 268 198 21 17 18 2015 2020 2025 2015 2020 2025 Middle East/N. Africa 4 9 23 mtpa
Slide 5: Projected Global LNG Supply
Projected Global LNG Supply U.S., Australia, Qatar Top 3 Global LNG Suppliers 2013 Global LNG Capacity: ~38 Bcf/d Yemen – 0.9 Egypt – 1 Norway – 0.5 USA – 0.2 102 mtpa Russia – 1.4 1.4 mtpa 2014 2025 United States Algeria – 2.7 Malaysia – 3.4 Indonesia – 4.2 Brunei – 1.0 84 Trinidad mtpa & Tobago –
Slide 6: Cheniere's LNG Export Projects
Cheniere’s LNG Export Projects Offering Attractive Options for Global LNG Buyers Example Prices ($/MMBtu) Americas Europe Asia Henry Hub: $4.00 / MMBtu LNG Cost (1) $ 4.60 $ 4.60 $ 4.60 Brent Crude: $100 / Barrel Liquefaction Fee 3.50 3.50 3.50 Shipping 0.50 1.00 3.00 Delivered Cost from SPL $ 8.60
Slide 7: Cheniere Investments
Cheniere Investments Investing $30B+ for 9 LNG trains, ~40.5 MTPA, ~5.5Bcf/d LNG exports 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 Corpus Christi Liquefaction • Trains 5-6 under development; • 3
Slide 8: Sabine Pass Liquefaction - Brownfield LNG Export Project
Sabine Pass Liquefaction - Brownfield LNG Export Project Utilizes Existing Assets, Trains 1-4 Fully Contracted, Under Construction Current Facility ~1,000 acres in Cameron Parish, LA 40 ft. ship channel 3.7 miles from coast 2 berths; 4 dedicated tugs 5 LNG storage tanks (~17 Bcfe of storage)
Slide 9: LNG Sale and Purchase Agreements (SPAs)
LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction ~20 mtpa “take-or-pay” style commercial agreements ~$2.9B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. (6) Centrica plc (6) Annual Contract
Slide 10: SPL Construction Completion Schedules Trains 1-4
SPL Construction Completion Schedules Trains 1-4 2012 2013 2014 2015 2016 2017 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Record Fi
Slide 11: Sabine Pass Liquefaction – Trains 1-4 Construction
Sabine Pass Liquefaction – Trains 1 - 4 Construction October 2014 Train 3 Train 4 Methane Cold Box Ethylene Cold Box Air Coolers Compressor Area Train 1 Propane Condenser Area Train 2 11
Slide 12: SPL Construction – October 2014
SPL Construction – October 2014 12
Slide 13: SPL Construction – October 2014
SPL Construction – October 2014 13
Slide 14: Sabine Pass Terminal – Accessible Pipeline Network
Sabine Pass Terminal – Accessible Pipeline Network Procurement of Gas Supply SPL contracting direct pipeline transport capacity • Creole Trail P/L: 1.5 Bcf/d • Natural Gas P/L: 0.5 Bcf/d • Transco P/L: 1.2 Bcf/d • Kinder Morgan LA P/L: expect over 1 Bcf/d SPL contracting pipeline capacity
Slide 15: Corpus Christi Liquefaction Project
Corpus Christi Liquefaction Project Proposed 3 Train Facility HoustonNew Orleans >1,000 acres owned and/or controlled Corpus Christi 2 berths, 3 LNG storage tanks (~10.1 Bcfe of storage) Gulf of Mexico Key Project Attributes 45 ft. ship channel 13.7 miles from coast Protected berth Premier
Slide 16: Corpus Christi Liquefaction SPAs
Corpus Christi Liquefaction SPAs SPA progress: ~7.65 mtpa “take-or-pay” style commercial agreements ~$1.4B annual fixed fee revenue for 20 years PT Pertamina (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Woodside Energy Trading Électricité de France Annual Contract 79.36 117.32 39.68 78.20
Slide 17: Corpus Christi Terminal – Accessible Pipeline Network
Corpus Christi Terminal – Accessible Pipeline Network Procurement of Gas Supply CCL contracting long-term direct and upstream pipeline transport capacity CCL purchasing natural gas from producers and marketers Marcellus / Utica NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Woodford Granite Wa
Slide 18: Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6
Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6 Approvals expected 2014/15 Corpus Christi Trains 1-3 • FERC: EIS completed October 8, 2014, 90-day federal authorization decision deadline January 6, 2015, approval expected 2014/15 • DOE: Received FTA authorization • DOE: Non-FTA a
Slide 19: Applications Filed with FERC for Liquefaction Projects
Applications Filed with FERC for Liquefaction Projects Continental U.S. FERC FERC Scheduled DOE Quantity FERC EIS / Under LNG Export Projects Application Scheduling Date for EIS FERC Approval Non FTA Bcf/d Pre-filing Date EA Construction Date Notice Issued or EA Final Sabine Pass Liquefaction T1-4 2
Slide 20: Cheniere Marketing
Cheniere Marketing Cheniere developing platform for LNG sales to international markets Scale up for > 5 mtpa including London, U.K. LNG purchases from Cheniere terminals and other places Short, mid-term LNG sales on FOB or DES basis Houston, TX Singapore SPAs with SPL and CCL for all LNG volum
Slide 21: Innovation and Technology Lead to Robust U.S. Energy Markets
Innovation and Technology Lead to Robust U.S. Energy Markets Bcf/d U.S. Dry Gas Production 75 Gas production increased 25.4 Bcf/d to an all- 70 time high of ~70 Bcf/d 65 60 F o NGL field production rebounded 97.2% from 55 r e 2005 low and is at an all-time high of 3MMbpd c 50 a Crude output ha
Slide 22: Evaluating Future Investments
Evaluating Future Investments Leverage Existing Platform Horizontal/vertical integration with liquefaction platform Hydrocarbon opportunities Domestic export infrastructure Domestic midstream opportunities International projects 22
Slide 23: Financial
CHENIERE Financial 23
Slide 24: Estimated CEI EBITDA Build Up
Estimated CEI EBITDA Build Up SPL Trains 1-6 and CCL Trains 1-3 $5.0 $3.3 - $4.3 CEI EBITDA ($ in billions) $4.0 $0.5 $2.6 - $3.2 $0.7 $3.0 $0.1 $0.1 $1.9 - $2.4 $0.5 $0.3 $2.0 $1.0 - $1.2 $1.0 $1.0 $0.7 $0.2 $0.3 – SPL Sales (T1-4) SPL CMI Sales CCL Sales (T1-2) SPL Sales (T5-6) CCL Sales (T3) Cumu
Slide 25: CQP Outlook – Visible Future Growth
CQP Outlook – Visible Future Growth SPL Trains 1-6 Estimated LNG export volumes Estimated CQP revenues 1,500 $4.5 $4.4 1,378 1,300 $4.0 1,046 $3.5 $3.2 1,100 $2.9 939 $3.0 $2.6 ($ in billions) 823 (TBtu per year) 900 $2.5 700 $2.0 500 347 $1.5 $1.2 300 $1.0 100 – $0.5 $0.3 (100) 2015E 2016E 2017E 20
Slide 26: CQP Forecasted Distributable Cash Flows
CQP Forecasted Distributable Cash Flows CQP estimated distributable cash flows ($ in millions) Trains 1-4 Trains 1-6 SPLNG distributable cash flow $370 $380 SPL distributable cash flow 1,400 2,260 CTPL distributable cash flow 30 30 CQP expenses (15) (15) Estimated total distributable cash flow $1,78
Slide 27: Financial Strength
Financial Strength Demonstrated ability to raise capital, multiple options available Other Cheniere Consolidated As of September 30, 2014 CQP Energy, Inc. CEI Unrestricted cash and equivalents $0 $792 $792 Restricted cash and securities 1,526 275 1,801 Long-term debt, net $8,990 $ 0 $8,990 Since 2
Slide 28: Cheniere's Debt Summary
Cheniere’s Debt Summary As of October 2014 ($ in millions) No Debt Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners LP Corpus Christi CQP GP Cheniere Marketing, No Debt Holdings, LLC Liquefaction, LLC (& IDRs) LLC (NYSE MKT: CQH) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pa
Slide 29: Appendix
CHENIERE Appendix 29
Slide 30: Operating Assets
Operating Assets Sabine Pass LNG Terminal (SPLNG) Creole Trail Pipeline 30
Slide 31: 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 (
Slide 32: Creole Trail Pipeline
Creole Trail Pipeline In May 2013, Cheniere Partners acquired CTPL from Cheniere Energy, Inc. for $480MM, and following the sale CTPL secured a $400 million senior secured term loan facility CTPL is fully contracted with expected annual revenue of ~$80MM expected to commence with Train 1 operati
Slide 33: LSTK EPC Contracts with Bechtel
LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks Bechtel was the EPC contractor for the regasification project at the Why Bechtel? Sabine Pass LNG terminal, which was constructed on time and on budget Proven construction contractor • Founded in 1898 and headquarted in San Franci
Slide 34: Timeline & Milestones
Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6 Initiate permitting process (FERC & DOE) T5 Commercial agreements T1-T2 T6: 2014/15 EPC contract 2014/15 Financing commitments 2014 2015 Regulatory approvals 2014/15 2014/15 Is
Slide 35: Cheniere Marketing SPA
Cheniere Marketing SPA Example Annual Profit from 2 mtpa Volumes LNG Loaded Sabine Pass (Tbtu) 104 Assumptions LNG Delivered DES (Tbtu) 98 $5/MMBtu Henry Hub Price Cash Flows $15/MMBtu LNG sales price, Sales delivered at terminal Total Revenue ($MM) $ 1,466 Expenses 6% loss of gas on the vesse
Slide 36: Conversion of Class B and Subordinated Units
Conversion of Class B and Subordinated Units Class B 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 r
Slide 37: Pro Forma CQP Ownership
Pro Forma CQP Ownership (in millions) CEI CQH(3) Blackstone Public Total Common units (1) 12.0 45.1 57.1 Class B units (1) 45.3 100.0 145.3 Subordinated units (1) 135.4 135.4 General Partner @ 2% 6.9 6.9 6.9 192.7 100.0 45.1 344.7 Percent of total (as of 12/31/13) 2% 55.9% 29.0% 13.1% 100.0% Pro for
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Slide 39: Investor Relations Contacts
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
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