Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Barclays CEO Energy-Power Conference 2017
25 slides from Cheniere Energy's conference presentation, Sep 6, 2017
Slide 1: Cheniere Energy, Inc. Barclays CEO Energy-Power Conference
1 CHENIERE ENERGY, INC. BARCLAYS CEO ENERGY-POWER CONFERENCE | September 2017 NYSE American: LNG
Slide 2: Safe Harbor Statements
2 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 ame
Slide 3: Cheniere Investment Thesis
3 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
Slide 4: LNG from Sabine Pass Delivered to 25 Countries
4 Santiago, Chile Cheniere LNG Cargo Destinations Cheniere Office Cheniere LNG Facility Portugal, Spain Kuwait, UAE, Pakistan India, Thailand Brazil Argentina Houston, TX Washington, DC London, U.K. Singapore Cargo Delivery Destination China, Taiwan Poland, Lithuania, Netherlands, United Kingdom Mex
Slide 5: Sabine Pass Liquefaction Construction Progress
5 Sabine Pass Liquefaction Construction Progress Trains 1, 2, and 3 in Operation, Train 4 Expected 2H 2017, Train 5 Expected 2019 Note: Based on Guaranteed Substantial Completion Dates per EPC contract. Construction percentages complete as of July 31, 2017. DFCD Window Current Completion Schedule Pr
Slide 6: Corpus Christi Liquefaction Construction Progress
6 Corpus Christi Liquefaction Construction Progress Trains 1 & 2 Expected Completion 2019 Stage 1 (Trains 1 & 2) 69.6% overall project completion • Engineering 100% complete, procurement 88.7% complete, construction 44.2% complete • Target substantial completion mid-2019, several months ahead of g
Slide 7: Run Rate Guidance: 7 Train Case
7 7 Trains ($bn, except per share amounts or unless otherwise noted) SPL T1-5, CCH T1-2 CEI Consolidated Adjusted EBITDA $3.8 - $4.1 Less: CQP/CQH Minority Interest ($0.9) - ($0.9) Less: CQP/SPL Interest Expense ($0.9) Less: CEI Interest Expense/Other ($0.0) Less: CCH Interest Expense ($0.5) CEI Dis
Slide 8: Balance Sheet Management: Debt Maturity Profile Progression
8 $8 .4 – $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 CCH - Credit Facilities $1 .2 5 $1 .5 $1 .5 $4 .6 – $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 CCH - Credit Facilities CCH - Senior Notes $1 .7 $0.4 $0.4 $4 .6 $5 .0 $2 .0 $1 .0 $1 .5 $2 .0 $2 .0 – $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 SPLNG - Senior
Slide 9: Five Year Sources and Uses: Projected Available Cash Generation
9 Note: Cash flows from CQP, SPL and CCH are subject to meeting their applicable distribution requirements. Assumes seven Trains operational at approximately 4.5 mtpa/train production beginning at each Train’s respective completion date. (1) Assumes current implied gross margin by CMI through 2019 a
Slide 10: LNG Market Tightening Into Winter Months
10 LNG Market Tightening Into Winter Months Attractive Margins Available In the Market Today Margins available in winter months approximately ~$2.00/MMBtu in both Asia and Europe Train 4 at Sabine Pass expected to reach substantial completion in October; Cheniere’s LNG marketing function will ha
Slide 11: Existing LNG Platform Creates Advantages for Growth
11 Cheniere’s Existing LNG Platform Creates Advantages for Growth Construction Operations Significant infrastructure investment at Corpus Christi and Sabine Pass sites • Site preparation • Utilities • Storage • Marine Additional expansion at very competitive investment: ~$500-600/ton(1) Positi
Slide 12: Corpus Christi Expansion
12 Corpus Christi Expansion Corpus Christi Property Allows for Major Expansion of Cheniere’s Existing Footprint Stage 2 Train 3 fully permitted, partially commercialized Brownfield economics with significant infrastructure already installed Stage 3 Trains 4 and 5 permitting process initiated P
Slide 13: Cheniere Energy, Inc. Barclays CEO Energy-Power Conference
13 CHENIERE ENERGY, INC. BARCLAYS CEO ENERGY-POWER CONFERENCE | September 2017 NYSE American: LNG
Slide 14: Appendix
14 APPENDIX
Slide 15: Sabine Pass Liquefaction Project Execution – 2Q 2017
15 Sabine Pass Liquefaction Project Execution – 2Q 2017 Trains 1, 2 & 3 Operational Train 4 Commissioning Train 5 Under Construction Train 6 Fully Permitted
Slide 16: Corpus Christi Liquefaction Project Execution – 2Q 2017
16 Corpus Christi Liquefaction Project Execution – 2Q 2017 Stage 1: Trains 1& 2, Tanks A & C, Marine Berths Under Construction Stage 2 Train 3, Tank B Fully Permitted
Slide 17: LNG Fundamentals are Supportive of Long-Term Growth
17 Existing Capacity Newly Operational Under Construction 0 50 100 150 200 250 300 350 400 450 500 2016 2018 2020 2022 2024 2026 2028 2030 LNG Demand vs. Supply (mtpa) Pacific Basin SPAs Atlantic Basin SPAs 0 50 100 150 200 250 300 350 400 450 500 2016 2018 2020 2022 2024 2026 2028 2030 Global LNG D
Slide 18: Demand Forecast to Grow More than 200 mtpa by 2030
18 - 50 100 150 200 250 300 350 400 450 500 2000 2005 2010 2015 2020 2025 2030 mtpa Demand Forecast to Grow More than 200 mtpa by 2030 Driven by Supplemental & Growth Markets LNG Market Segmentation Traditional Flex Growth Supplemental Type Characteristics Locations Demand Growth (mtpa) Supplemental
Slide 19: Cheniere Liquefaction Projects at a Glance
19 Sabine Pass Liquefaction Project Corpus Christi Liquefaction Project 22.5 9.0 Trains 1 – 3: Operating Train 4: Commissioning Train 5: Under Construction (2H 2019) Trains 1-2: Under Construction (2019) Creole Trail NGPL Transco Kinder Morgan LA Corpus Christi Pipeline Midship Pipeline Tennessee NG
Slide 20: Impact of Additional Train at CCH
20 7 Trains utilizing Corporate Debt Capacity CCH T3 Utilizing Corporate Debt Capacity CCH Debt Amortization Start at CCH Mid 2020s Late 2020s Migrated Debt to CEI ($bn) ~$2.0 - $2.5 ~$2.3 - $3.3 Debt at CCH(2) ~$6.5 - $7.5 ~$7.5 - $9.0 Debt at CEI(3) ~$2.6 - $3.1 ~$2.9 - $3.9 7 Trains 8 Trains ($bn
Slide 21: Projected Amortization Requirements at Project Levels
21 ($bn) 7 Trains without utilizing Corporate Debt Capacity 7 Trains utilizing Corporate Debt Capacity SPL Debt Amortization Start at SPL (1.5x DSCR) Early 2020s Mid-Late 2020s Migrated Debt to CQP (5.0x debt / EBITDA) – ~$3.0 - $4.0 Debt at SPL (project) $13.7 ~$9.7 - $10.7 Debt at CQP (corporate)
Slide 22: Forecasting Points
22 Forecasting Points EIG Notes Conversion CCH Holdco II Notes (EIG Notes) convert into ~20mm LNG shares in 2020 at estimated $94 / share (ultimate principal balance of ~$1.7B) • Conversion at a 10% discount to LNG’s share price • Only 50% of the EIG Notes can be converted at initial conversion an
Slide 23: Insurance Summary
23 Insurance Summary Property and Business Interruption – SPLNG, SPL and CTPL • Assets Under Construction • Trains 4 and 5 are insured by Bechtel until transfer of care, custody and control to Sabine • Assets in Operation • SPLNG, CTPL and SPL Trains 1-3 are insured under a Cheniere program • $3.5
Slide 24: Reconciliation to Non-GAAP Measures
24 Reconciliation to Non-GAAP Measures Regulation G Reconciliations In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying presentation contains non- GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow per Sha
Slide 25: Investor Relations Contacts
25 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
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