Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (September 2022)
31 slides from Cheniere Energy's investor presentation, Sep 12, 2022
Slide 1: Capital Allocation Update
Cheniere Energy, Inc. Capital Allocation Update September 12, 2022 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” 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 amend
Slide 3: Agenda
Agenda Introduction Randy Bhatia Vice President, Investor Relations Cheniere Highlights Jack Fusco President and Chief Executive Officer Capital Allocation Update Zach Davis Executive Vice President and Chief Financial Officer Q & A
Slide 4: Cheniere Highlights
Cheniere Highlights Jack Fusco, President and CEO
Slide 5: Market Leading LNG Platform with Global Scale
Market Leading LNG Platform with Global Scale #2 $75B+ 2,300+ >$40B SECOND LARGEST LIQUEFACTION ENTERPRISE VALUE CARGOES EXPORTED FROM INVESTMENT IN PLATFORM GLOBALLY CHENIERE PROJECTS INFRASTRUCTURE(1) 11%+ 37 #1 #233 OF GLOBAL LIQUEFACTION COUNTRIES & REGIONS LNG PROVIDER TO EUROPE 2022 Fortune 50
Slide 6: The LNG Industry Standard for Operational Excellence
The LNG Industry Standard for Operational Excellence Operational Excellence and Safety Driven Results +12% Increase in midpoint annual production capacity per train since 2017 from Operational Excellence program ~93% Utilization rate since 2021 vs. ~80% global average(1) Leading Safety Record 0.25 H
Slide 7: Firing On All Cylinders
Firing On All Cylinders Development Execution Operational Excellence ESG Commercial Momentum Capital Allocation Operational Excellence Enables Accelerated & Enhanced Execution on Balanced Capital Allocation Plan Strengthen Balance Sheet Share Repurchases Dividend Growth ?$4 billion repaid over ?Over
Slide 8: Innovation Drives Sustained Commercial Momentum
Innovation Drives Sustained Commercial Momentum Customer-Focused and Flexible LNG Solutions Attract Globally Diverse Creditworthy Counterparties >180 MT through 2050 Long-Term Contracts Signed in 2022 ? FOB ? DES ? IPM ? Portfolio Players ? End-Use Utilities ? North American Producers Cheniere LNG E
Slide 9: Accretive Liquefaction Growth Projects
Accretive Liquefaction Growth Projects Near-Term Growth Longer-Term Growth Cheniere Total Current, Expected & Potential Future Low-Hanging Fruit to ~60 MTPA Platform Potential for ~90 MTPA Platform Liquefaction Capacity CCL Stage 3 Trains 1-7 SPL Expansion ~90 mtpa CCL Stage 4 Future Development Pot
Slide 10: "All of the Above" Capital Allocation 2.0 Guiding Principles
“All of the Above” Capital Allocation 2.0 GUIDING PRINCIPLES Cheniere has reached a new cash flow inflection point, necessitating a revised plan to further execute on our long-term balance sheet, shareholder return, and growth priorities Position Cheniere Capital Complex for Future Success Long-Term
Slide 11: Capital Allocation Update
Capital Allocation Update Zach Davis, EVP and CFO
Slide 12: 2021 Capital Allocation Plan: Ahead of Schedule
2021 Capital Allocation Plan: Ahead of Schedule Initial Capital Allocation Priorities Accomplished in Quarters vs. Years DEBT SHARE A B C DIVIDEND D GROWTH PAYDOWN REPURCHASES Target ~$1 Billion $1 Billion Share Repurchase Initiation of Invest in Robust Target Annually For 4 Years Program For 3 Year
Slide 13: Raising Full Year 2022 Financial Guidance By ~$1.2 Billion
Raising Full Year 2022 Financial Guidance By ~$1.2 Billion Full Year 2022 Guidance ($ in billions, except per unit data) Consolidated Adjusted EBITDA Distributable Cash Flow $11.0—$11.5 $8.1—$8.6 $9.8—$10.3 $6.9—$7.4 $8.2—$8.7 $5.5—$6.0 $7.0—$7.5 $5.8—$6.3 $4.3—$4.8 $3.1—$3.6 As of 11/4/21 As of 2/2
Slide 14: 2022 Capital Allocation Plan / Vision
2022 Capital Allocation Plan: 20 / 20 Vision >$20 >$20 ~$10B ? >$20B ~$16/sh ? >$20/sh Cash Available to Deploy Through 2026 Run-Rate Distributable Cash Flow per Share 14 Note: Forecast as of September 12, 2022 and subject to change based upon, among other things, changes in commodity prices over ti
Slide 15: Evolution of Capital Allocation Opportunity
Evolution of Capital Allocation Opportunity 1 Available Cash Through 2024 (Updated ‘21 Outlook) 2 Uses of Cash To-Date >$10 bn >$20 bn >$20 bn ~$(4) bn ~$(1) bn ~$(0.3) bn ~$(2) bn >$15 bn ~$10 bn September 2021 Train 6 Acceleration Today Available Cash Debt Share Dividend Growth Remaining Market Co
Slide 16: Capital Allocation Deployment Objectives
Capital Allocation Deployment Objectives Cheniere Now Expects to Generate >$20 Bn of Available Cash Through 2026 Targeting 1:1 Long-Term Allocation of Debt Paydown to Share Repurchases of Excess Cash >$20 bn ~$(3) bn Excess Capital Deployed on a Flexible Basis ~$(4) bn ? Cumulative debt paydown to s
Slide 17: "All of the Above" Capital Allocation 2.0
“All of the Above” Capital Allocation 2.0 DEBT SHARE A B C DIVIDEND D GROWTH PAYDOWN REPURCHASES ? Target ~4x Debt / EBITDA ? Upsize Share Repurchase ? ~20% Increase Today to ? Stage 3 Expected to Run-Rate Program by $4 billion for $1.58 Annualized Come Online Starting ? ~50% of Excess Cash Flow 3 Y
Slide 18: Capital Allocation Priorities Reaffirmed and Enhanced
Capital Allocation Priorities Reaffirmed and Enhanced ? Targeting long-term, run-rate leverage of ~4x at $2.00—$2.50 / MMBtu CMI margin levels with Investment Grade credit metrics maintained through Stage 3 construction Long-Term Sustainable ? Balance sheet strength and flexibility a competitive adv
Slide 19: Financial Sustainability a Key Strength
A Financial Sustainability a Key Strength Enhanced Cash Flow Forecast Enables ~4x Long-Term Leverage to Solidify Investment Grade Credit Metrics Across Cheniere Complex Commitment 1 2 to Balance 3 Sheet Enhanced 4 5 6 Contracted Profile Underpins Cash Flow Sustainability September 2021 Long-Term Lev
Slide 20: Cheniere's Share Repurchase Plan Augmented
B Cheniere’s Share Repurchase Plan Augmented Upsize share repurchase program by $4 billion beginning in 4Q 2022 – Cheniere has reduced run-rate share count by ~50 million shares through opportunistic redemption of two convertible notes with the CEI Term Loan raised in 2020 (since repaid) and share r
Slide 21: Stable and Growing Dividends
C Stable and Growing Dividends ~20% Step Up Today with ~10% Annual Growth Rate Target Through Stage 3 Construction To Achieve ~20% Run-Rate Payout Ratio ~20% Payout Ratio Dividend Provides Significant, Stable, and Growing Return ? Expected cash return of ~$2 billion to shareholders through Stage 3 $
Slide 22: Stage 3 Meets Disciplined Investment Parameters
D Stage 3 Meets Disciplined Investment Parameters Stage 3 FID Demonstrates Commitment to Accretive Contracted Growth and Disciplined Capital Investment Parameters; Sights Now Set on Further Corpus Christi Expansion Highly Contracted Value Accretive Credit Accretive Substantially all liquefaction cap
Slide 23: 2020 Vision: >$20 Billion Cash Available, >$20 DCF Per Share
20 / 20 Vision | >$20 Billion Cash Available | >$20 DCF Per Share Stage 3 + Capital Returns + Today With Stage 3 Only Stage 3 + Capital Returns Incremental Growth 9 Trains + 9 Trains + CCL 9 Trains + (Run-Rate Metric) 9 Trains % ? vs. Today CCL Stage 3 + % ? vs. Today Stage 3 + Capital % ? vs. Today
Slide 24: Capital Allocation Update
Cheniere Energy, Inc. Capital Allocation Update September 12, 2022 NYSE American: LNG
Slide 25: Appendix
Appendix CHENIERE
Slide 26: Run-Rate Guidance Update
Run-Rate Guidance Update Assumes CMI Run-Rate of $2.00—$2.50 / MMBtu Prior Guidance Revised Guidance Revised + 20/20 Vision 9 Trains + Stage 3 + Midscale 8 & 9 + 9 Trains 9 Trains + Stage 3 Capital Return (Full Year) (Full Year) (Full Year) SPL T1-6 SPL T1-6 SPL T1-6 ($ bn, unless otherwise noted) C
Slide 27: Cheniere Debt Summary as of June 30, 2022
Cheniere Debt Summary as of June 30, 2022 Cash Balance: ~$2.6B(1) Cheniere Energy, Inc. Cheniere Energy, Inc. $2.0B Senior Notes due 2028 (4.625%) (NYSE American: LNG) $1.25B Senior Secured Revolving Credit Facility due 2026 Cheniere Corpus Christi Holdings, LLC $1.25B Notes due 2024 (7.000%) $1.5B
Slide 28: Strong Long-Term Global LNG Demand Fundamentals
Strong Long-Term Global LNG Demand Fundamentals Global Natural Gas Prices Through 2026(1) $75 Forward curves TTF $60 JKM $45 MMbtu USGC Netbacks / $30 $ Oil Parity $15 Henry Hub $0 Jan-21 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Dec-26 Global LNG Demand Outlook to 2040(2) 800 LatAm MENA Bunkers Other 600
Slide 29: Critical Role of North American Natural Gas
Critical Role of North American Natural Gas Abundant Lower 48 Gas Supply Long-Term Affordable Resource Cleaner-Burning Fuel $10 $10 Henry Hub ($/MMBtu) $8 $8 Average: ~$5.00 47-57% $6 Average: ~$3.50 Even $4 $6 less GHG emissions $2 $4 than coal when reak generating electricity(1) B $- $2 $(2) /MMBt
Slide 30: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Regulation G Reconciliations This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per Share, and Distributable Cash Flow per Unit are non-GAAP financial measures that we use to facil
Slide 31: Investor Relations Contacts
Investor Relations Contacts Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Frances Smith Manager, Investor Relations – (713) 375-5753, frances.smith@cheniere.com © 2021 Cheniere Energy, Inc. All Rights Reserved
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