Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (January 2016)

38 slides from Cheniere Energy's investor presentation, Jan 15, 2016

  1. Slide 1: Cheniere Energy, Inc. Corporate Presentation January 2016

    CHENIERE ENERGY, INC. CORPORATE PRESENTATION January 2016

  2. 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

  3. Slide 3: Cheniere LNG Platform Underway

    3 Cheniere LNG Platform Underway 31.5 mtpa Cash flows from fixed fees - ~$30B capital spend Significant investment in U.S. infrastructure annual fixed fees Stable cash flows underpinned by investment grade counterparties ~$4.3B ~87% Flexible, Scalable, Industry-leading platform currently under const

  4. Slide 4: Executing on Strategy

    Executing on Strategy 4  Complete construction on 7 LNG trains on an accelerated basis, on time and on budget  Transition to an operating company, first cargo expected from Sabine Pass late February/March 2016  Continue commercialization of additional LNG trains and excess LNG volumes  Seek addi

  5. Slide 5: Cheniere Projected Cash Flow Build-Up With Trains

    Cheniere Projected Cash Flow Build-Up With 7 Trains  Estimates based on fixed fees underpinned by 20-year SPAs representing ~87% of capacity  Remaining capacity estimated to be sold based on prevailing market spreads 5 * Represents expected cash flows from ownership in CQP and CQH, net of interest

  6. Slide 6: Maintenance & Operating Cost Estimates

    Maintenance & Operating Cost Estimates  Amounts above include all expected maintenance costs for SPL and CCL on a combined basis (operating and capex) averaged over 20 years; estimated costs are ~1.5% of the total EPC costs of the trains (industry norm)  GE covers highest risk components; turbines

  7. Slide 7: Cheniere Summary Organization

    Cheniere Summary Organization 7 Cheniere Energy, Inc. (NYSE MKT: LNG) Sabine Pass LNG, L.P. (“SPLNG”) Sabine Pass Liquefaction, LLC (“SPL”) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Cheniere Creole Trail Pipeline, L.P. (“CTPL”) Corpus Christi Liquefaction, LLC (“CCL”) Cheniere Marketing, LLC (“

  8. Slide 8: Cheniere's Key Businesses

    Cheniere’s Key Businesses LNG Platform  Developing/constructing LNG terminals located along Gulf of Mexico  7 Trains, 31.5 mtpa under construction; 2 Trains, 9.0 mtpa permitted, ready for commercialization  Scalable platform  SPL T1-5 and CCL T1-2 underpinned by long-term contracts with investme

  9. Slide 9: Cheniere LNG Platform Along Gulf Coast

    Cheniere LNG Platform Along Gulf Coast 9 Sabine Pass Liquefaction Project  6 train development – 27 mtpa (~3.8 Bcf/d in export capacity)  Trains 1-5 are under construction  First LNG cargo expected late February/March 2016 Corpus Christi LNG Terminal  5 train development – 22.5 mtpa (~3.2 Bcf/d

  10. Slide 10: Aerial View of SPL Construction – December 2015

    Aerial View of SPL Construction – December 2015 10 Train 1 Train 3 Train 4 Train 2 Train 5 Train 6 Under Development Propane Condenser Area Air Coolers T1 Methane Cold Box T1 Ethylene Cold Box T5 Soil Stabilization T1-2 Gas Meter T3-4 Gas Meter

  11. Slide 11: Aerial View of CCL Construction – December 2015

    Aerial View of CCL Construction – December 2015 11 Train 1 T1 Foundation Train 2 Tank A Tank C Train 3 Under Development Tank B Under Development

  12. Slide 12: Cheniere LNG Projects: Attractive Features

    Cheniere LNG Projects: Attractive Features  Cheniere LNG SPAs: LNG price tied to Henry Hub, offer destination flexibility, upstream gas procurement services, no lifting requirements  SPAs with investment grade off-takers featuring parent as counterparty or guarantor & pricing with HH + fixed fee (

  13. Slide 13: Forecast Cheniere LNG Portfolio Summary

    Forecast Cheniere LNG Portfolio Summary 13 (in MTPA) (1) Includes ~0.7 mtpa contract with CMI for Central El Campesino in Chile.  Trains under construction underpinned by long term SPAs  Continuing commercialization of additional trains; FID expected upon, among other things, obtaining sufficient

  14. Slide 14: Estimated EBITDA for CEI Standalone With Trains 8 and 9

     Estimated EBITDA for CEI standalone based on addition of Train 8 (Corpus Christi Train 3) and Train 9 (Sabine Pass Train 6) 14 * Represents expected cash flows from ownership in CQP and CQH, net of interest expense. Note: See “Forward Looking Statements” Slide. For supplementary financial details,

  15. Slide 15: Gas Procurement: Sabine Pass Terminal

    Gas Procurement: Sabine Pass Terminal  Securing feedstock for LNG production with balanced portfolio approach  To date, have entered into term gas supply contracts with producers under 1-7 year contracts aggregating approximately 2 Tcf.  Supply contracts cover ~50% of the required daily load for

  16. Slide 16: Gas Procurement: Corpus Christi Terminal

    Gas Procurement: Corpus Christi Terminal 16 Shale Plays Basins NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Permian Basin Barnett Granite Wash Eagle Ford Haynesville Marcellus / Utica Corpus Christi Woodford  CCL contracted long-term direct and upstream pipeline transport capacity for Trains 1

  17. Slide 17: Cheniere Marketing

    Cheniere Marketing  Scale for up to 9 mtpa including LNG purchases from Cheniere terminals and other places  SPAs with SPL and CCL for all LNG volumes not sold to 3rd parties  ~560 million MMBtu sold to date to investment-grade counterparties, 1- 5 yr. terms, prices linked to HH or European indic

  18. Slide 18: LNG Market Prices Profitable for Cheniere

    LNG Market Prices Profitable for Cheniere  As shown in sensitivity table above, Cheniere can profitably sell LNG into key demand centers even in periods of lower market prices  If LNG prices remain at lower levels, we would expect global LNG demand to increase, thus signaling the need for more liq

  19. Slide 19: Growth Projects

    Growth Projects  ~$6B in near term major growth projects focused on expansions of liquefaction capacity  Assessing additional project opportunities to drive future growth  Permitting process initiated for Corpus Christi Trains 4 & 5  Domestic gas pipeline infrastructure opportunities  Internati

  20. Slide 20: Projected Global LNG Demand by 2025

    20 22 19 23 2015 2020 2025 2015 2020 2025 6 10 17 2015 2020 2025 2015 2020 2025 Americas Asia Middle East/N. Africa 184 260 305 31 78 92 Europe Source: Wood Mackenzie Q3 2015 LNG Tool (1) Assumes 85% utilization of nameplate capacity Projected Global LNG Demand by 2025 Demand expected to increase 19

  21. Slide 21: Projected Liquefaction Capacity

    2014 Global LNG Liquefaction Capacity: ~37 Bcf/d 21 United States 77 mtpa 68 mtpa Qatar Source: Wood Mackenzie Q3 2015, Cheniere research 2014 2025 2014 2025 2014 2025 MEG MEG Rest of World Includes Existing and Under Construction Projects 2014: 171 mtpa 2025: 189 mtpa AB 2014 2025 AB AP AP 1.4 mtpa

  22. Slide 22: Cheniere Competitive Advantage: Low Cost

    22  The U.S. is one of the lowest cost natural gas providers in the world  U.S. liquefaction project costs are also significantly lower due to less project development needed  Breakeven LNG price for Cheniere LNG export facilities is one of the lowest compared to other proposed LNG projects Cheni

  23. Slide 23: In Summary

    In Summary  Primary focus on completing construction of 7 LNG trains on an accelerated basis, on time and on budget  2 additional trains fully permitted and ready for commercialization – Cheniere positioned to grow as low-cost provider to market with projected growing demand  Cheniere volumes rem

  24. Slide 24: Appendix

    CHENIERE ENERGY, INC. APPENDIX

  25. Slide 25: Cheniere's Debt Summary – January 2016

    Cheniere’s Debt Summary – January 2016 25 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG) Total TUA (1 Bcf/d) Chevron TUA (1 Bcf/d) SPL TUA (2 Bcf/d) Sr Secured Notes  $1,666 due 2016 (7.50%)  $420 due 2020 (6.50%) ($ in millions)

  26. Slide 26: Cheniere Cash Flow Build-Up With Trains

    Cheniere Cash Flow Build-Up With 7 Trains  Trains under construction financed with non-recourse project debt – SPL T1-5 (CQP) and CCL T1-2 (CEI)  27.4 MTPA under 20-year SPAs; excess LNG assumed sold at current market prices and shipping rates  For scenario above, estimated tax payments of ~15% o

  27. Slide 27: Conversion - Class B and Subordinated Units

    Conversion - 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 re

  28. Slide 28: Sabine Pass Liquefaction Project (SPL)

    Sabine Pass Liquefaction Project (SPL) 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)  5.3 Bcf/d of pipeline interconnection Liquefaction Trains 1 – 5: Fully Contracted  Lump

  29. Slide 29: SPL Estimated Cash Flows

    SPL Estimated Cash Flows 29 Note: EBITDA and distributable cash flow are non-GAAP measures. EBITDA is computed as earnings before interest, taxes, depreciation and amortization. We have not made any forecast of net income, which would be the most directly comparable financial measure under GAAP, and

  30. Slide 30: SPL Construction Schedules

    SPL Construction Schedules Trains 1 – 5  Stage 1 (Trains 1&2) overall project progress as of Dec 2015 is 97.4% complete vs. Target Plan of 99.2%:  Engineering, Procurement, Subcontracts and Construction are 100%, 100%, 87.1% and 96.2% complete against Target Plan of 99.9%, 100%, 93.1% and 99.6% re

  31. Slide 31: Sabine Pass Liquefaction SPAs

    Sabine Pass Liquefaction SPAs 31 BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. Centrica plc Annual Contract Quantity (MMbtu) 286,500,000 (1) 182,500,000 182,500,000 182,500,000 104,750,000 (1) 91,250,000 Annual Fixed Fees (2) ~$723 MM (3) ~$45

  32. Slide 32: Corpus Christi LNG Terminal

    Corpus Christi LNG Terminal Proposed 5 Train Facility  >1,000 acres owned and/or controlled  2 berths, 4 LNG storage tanks (~13.5 Bcfe of storage) Key Project Attributes  45 ft. ship channel 14 miles from coast  Protected berth  Premier Site Conditions  23-mile 48” and 42” parallel pipelines w

  33. Slide 33: CCL Estimated Cash Flows Trains 1-2 and Trains 1-3

    CCL Estimated Cash Flows 33 Trains 1-2 and Trains 1-3 CCL estimated cash flows ($ in billions) CCL Trains 1-2 CCL Trains 1-3 Long term SPAs $1.4 $1.9 CMI SPA payment(1) $0.2 $0.5 Commodity payments, net(2) $0.1 $0.1 Total CCL revenues $1.7 $2.5 Plant O&M ($0.2) ($0.2) Plant maintenance capex(3) ($0.

  34. Slide 34: Corpus Christi Liquefaction Project Schedule

    Corpus Christi Liquefaction Project Schedule  Stage 1 (Trains 1&2) overall project progress as of December 2015:  Engineering, Procurement, and Construction has progressed to 93.6%, 41.9%, and 2.2% compared to a plan of 87.3%, 24.9%, and 3.7% respectively.  NTP issued, construction commenced for

  35. Slide 35: Corpus Christi Liquefaction SPAs

    Corpus Christi Liquefaction SPAs 35 PT Pertamina (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Woodside Energy Trading Électricité de France EDP Energias de Portugal S.A. Annual Contract Quantity (TBtu) 79.36 117.32 39.68 78.20 44.12 40.00 40.00 Annual Fixed Fees (1) ~$278 MM ~$411 MM ~$13

  36. Slide 36: FERC Applications for Liquefaction Projects

    FERC Applications for Liquefaction Projects  6 projects have received FERC approval and final DOE approval for Non FTA 36 LNG Export Projects Quantity Bcf/d FERC Pre-filing Date FERC Application Date FERC Scheduling Notice Issued EIS / EA Scheduled Date for EIS or EA FERC Approval DOE Non FTA Final

  37. Slide 37: U.S. LNG Export Projects

    U.S. LNG Export Projects 37 Company Quantity (Bcf/d) DOE FERC Contracts Cheniere Sabine Pass T1 – T4 2.2 Fully permitted Fully Subscribed Freeport 1.8 Fully permitted Fully Subscribed Lake Charles 2.0 FTA  Fully Subscribed Dominion Cove Point 1.0 Fully permitted Fully Subscribed Cameron LNG T1-3 1.

  38. Slide 38: Investor Relations Contacts

    CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Katy Cox Senior Analyst, Investor Relations – (713) 375-5079, katy.cox@cheniere.com

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