Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Q3 2020 Earnings Presentation
26 slides from Cheniere Energy's earnings presentation, Nov 6, 2020
Slide 1: Cheniere Quarterly Earnings Presentation
Cheniere Quarterly Earnings Presentation Third Quarter 2020 November 6, 2020 NYSE American: LNG
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 that our Trains, when completed, will have certain characteristics, including amounts of liquefaction statements” within the meaning of Sect
Slide 3: Agenda
Agenda Introduction Randy Bhatia Vice President, Investor Relations Company Highlights Jack Fusco President and Chief Executive Officer Commercial Update Anatol Feygin Executive Vice President and Chief Commercial Officer Financial Review Zach Davis Senior Vice President and Chief Financial Officer
Slide 4: Operating and Financial Highlights
Operating and Financial Highlights Jack Fusco, President and CEO
Slide 5: Third Quarter Highlights and Guidance Update
Third Quarter Highlights and Guidance Update 2500 Revenues Financial Guidance 2000 FY 2020 FY 2021 ($ billions, except per unit data) 1500 1000 $2,170 Consolidated Adjusted EBITDA $3.8 - $4.1 $3.9 - $4.2 $1,460 Distributable Cash Flow $1.0 - $1.3 $1.2 - $1.5 500 0 3Q 2019 3Q 2020 CQP Distribution pe
Slide 6: Operational Excellence Creates Additional Marketable LNG
Operational Excellence Creates Additional Marketable LNG Run Rate Liquefaction Capacity Per Train1 Strategically Focused On Terming Out Marketing Volumes Over 12% increase in midpoint run rate production Enhance cash flow stability profile on existing assets before moving forward with accretive grow
Slide 7: Strategically Identifying Environmental Solutions
Strategically Identifying Environmental Solutions Focused on efforts in key areas along value chain to improve resiliency and sustainability of LNG Sabine Pass and Digital Emissions Upstream Procurement LNG Shipping Corpus Christi Tracking & Transportation • CO2 Management Solutions • Quantifying an
Slide 8: Commercial Update
Commercial Update Anatol Feygin, EVP and CCO
Slide 9: Global LNG Trade Exhibiting Flexibility and Resilience
Global LNG Trade Exhibiting Flexibility and Resilience Global LNG Supply & Demand Variance Monthly LNG Supply Variance YTD LNG Import Leaders (1-3Q 2020 vs. 1-3Q 2019) (2020 vs. 2019) (1-3Q 2020 vs. 1-3Q 2019) MT MT MT 4 5 15 Supply Demand 4 3 USA ROW 4.4 1.5 Russia 2 1 2.5 2.4 2.0 3 1.5 1.7 Austral
Slide 10: LNG Market Recovering from June Lows
LNG Market Recovering from June Lows Europe LNG Imports Gas Demand in Major European Markets European and Asian Gas Prices 9% lower YOY in 3Q due to production curtailments Recovered from lows and remaining steady Found support as markets rebalanced MT Bcf/d $/MMBtu 12 5-Yr Range 60 10 2019 55 10 TT
Slide 11: Policy Initiatives Fueling Infrastructure Spend and LNG Demand Growth
Policy Initiatives Fueling Infrastructure Spend and LNG Demand Growth Market Policy Infrastructure LNG Regasification Capacity Under Global LNG Trade Forecasts 45+ mtpa of regas capacity under Construction and Planned by 2025 Cheniere Research Q2'20 Targets 15% gas in TPED by 2030 vs. construction (
Slide 12: Financial Update
Financial Update Zach Davis, SVP and CFO
Slide 13: Third Quarter 2020 Financial Highlights
Third Quarter 2020 Financial Highlights Summary Results 3Q 2020 results impacted by timing of revenue recognition Third Quarter 2020 related to canceled cargoes ($ millions, except per share and LNG data) 3Q 2020 2Q 2020 YTD 2020 YTD 2019 • Revenues of $458 million recognized in 2Q 2020 for cargoes
Slide 14: 2021 and Increased Run Rate Guidance
2021 and Increased Run Rate Guidance Full Year 2021 Guidance Run Rate Guidance ($ billions, except per unit data) ($ billions except LNG, per share, and per unit data) Consolidated Adjusted EBITDA $3.9 - $4.2 Consolidated Adjusted EBITDA $5.3 - $5.7 Distributable Cash Flow (DCF) $2.6 - $3.0 Distribu
Slide 15: 2021 Free Cash Flow Inflection Creates Capital Allocation Flexibility
2021 Free Cash Flow Inflection Creates Capital Allocation Flexibility Significant Free Cash Flow Expected in 2021 Free Cash Flow Drives Capital Allocation Flexibility Completion of Corpus Christi Train 3 expected to Debt Reduction is Near-Term Priority reduce capital commitments and increase operati
Slide 16: Cheniere Quarterly Earnings Presentation
Cheniere Quarterly Earnings Presentation Third Quarter 2020 November 6, 2020 NYSE American: LNG
Slide 17: Appendix
Append ix CHENIERE
Slide 18: Cheniere LNG Exports
Cheniere LNG Exports More Than 1,250 Cargoes (>85 Million Tonnes) Exported from our Liquefaction Projects Cheniere LNG Exports by Destination MT 10 8 6 4 2 0 2Q 3Q 4Q 1Q 2Q 3Q 2019 2020 Europe Asia Latin America MENA Cheniere Destinations Sources: Cheniere Research, Kpler 18 Note: Cumulative cargoes
Slide 19: Building an Industry Leading U.S. LNG Export Platform
Building an Industry Leading U.S. LNG Export Platform Corpus Christi LNG Terminal Sabine Pass Liquefaction ~15 mtpa Total Production Capacity ~30 mtpa Total Production Capacity Trains 1-2 operating, contracts with long-term buyers Trains 1-5 operating, contracts with long-term buyers commenced comme
Slide 20: Sabine Pass Update
Sabine Pass Update Liquefaction Operations 5 Trains in operation Increased production via maintenance optimization and debottlenecking >1,075 cargoes produced and exported Growth Train 6 positive FID May 2019 • Expected completion 2H 2022 • Project completion 70.9% 3rd berth NTP issued and construct
Slide 21: Corpus Christi Update
Corpus Christi Update Liquefaction Operations 2 Trains in operation Increased production via maintenance optimization and debottlenecking >180 cargoes produced and exported Growth Train 3 commissioning • Expected completion 1Q 2021 • Project completion 96.7% ~10 mtpa Stage 3 expansion project fully
Slide 22: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (NYSE American: LNG) CQP GP Cheniere Corpus Cheniere Marketing (& IDRs) Christi Holdings Cheniere Energy Corpus Christi Cheniere Corpus Partners, L.P. Liquefaction Christi Pipeline (NYSE American: CQP) Cheniere Creole Sabine Pass Sabine Pass LNG Tra
Slide 23: Run Rate Guidance
Run Rate Guidance 9 Trains (Full Year) SPL T1-6 ($billions, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CEI Consolidated Adjusted EBITDA $5.3 - $5.7 Less: Distributions to CQP Non-Controlling Interest ($0.9) – ($1.0) Less: CQP Interest Expense / SPL Interest Expense / O
Slide 24: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.1B1 Cheniere Energy, Inc. Cheniere Energy, Inc. ~$0.5B PIK Convertible Notes due 2021 (4.875%) ~$0.63B Convertible Notes due 2045 (4.250%) (NYSE American: LNG) Cheniere Corpus Christi Holdings, LLC $2.0B Senior Secured Notes due 2028 (4.625%) ~$2.6B Credit Fac
Slide 25: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Consolidated Adjusted EBITDA The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three and nine months ended September 30, 2020 and 2019 and the three months ended June 30, 2020 (in millions): Regulation G Reconciliations y
Slide 26: Investor Relations Contacts
Investor Relations Contacts Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Megan Light Director, Investor Relations – (713) 375-5492, megan.light@cheniere.com ®2020 Cheniere Energy, Inc. Copyrights - All Rights Reserved