Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (November 2014)
39 slides from Cheniere Energy's investor presentation, Nov 4, 2014
Slide 1: November 2014 Corporate Presentation
November 2014 Corporate Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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, o
Slide 3: Summary Organizational Structure
Summary Organizational Structure 3 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
Slide 4: Projected Global LNG Demand Robust Growth
Projected Global LNG Demand Robust Growth 4 21 17 18 2015 2020 2025 2015 2020 2025 4 9 23 2015 2020 2025 2015 2020 2025 Americas Asia Middle East/N. Africa 198 268 323 24 64 90 Europe 0 100 200 300 400 500 mtpa Asia Pacific Europe Middle East North Africa North America South & East Africa South Amer
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 Australia – 3.4 Brunei – 1.0 Indonesia – 4.2 Malaysia – 3.4 Algeria – 2.7 Norway – 0.5 Qatar – 10.1 Russia – 1.4 Egypt – 1 Yemen – 0.9 Nigeria – 2.9 Trinidad & Tobago – 2.0 Equatorial Gu
Slide 6: Cheniere's LNG Export Projects Offering Attractive Options for Global LNG Buyers
($/MMBtu) Americas Europe Asia LNG Cost (1) $ 4.60 $ 4.60 $ 4.60 Liquefaction Fee 3.50 3.50 3.50 Shipping 0.50 1.00 3.00 Delivered Cost from SPL $ 8.60 $ 9.10 $ 11.10 Worldwide LNG Prices ~11% to 15% Crude @15% @12% @15% LNG Price (% Crude) 15.00 15.00 15.00 Net Difference $ 6.40 $ 2.90 $ 3.90 Cheni
Slide 7: Cheniere Investments
Cheniere Investments Investing $30B+ for 9 LNG trains, ~40.5 MTPA, ~5.5Bcf/d LNG exports 7 Sabine Pass Liquefaction Gulf of Mexico TX LA Creole Trail PL 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
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 8 Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline ne
Slide 9: LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction
LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction 9 (1) BG has agreed to purchase 182,500,000 MMBtu, 36,500,000 MMBtu, 34,000,000 MMBtu and 33,500,000 MMBtu of LNG volumes annually upon the commencement of operations of Trains 1, 2, 3 and 4, respectively. Total has agreed to purchase
Slide 10: SPL Construction Completion Schedules Trains 1-4
SPL Construction Completion Schedules Trains 1-4 Current plan estimates Train 1 operational in 40 months from NTP • Bechtel schedule bonus provides incentive for early delivery • Bechtel’s record delivery was Egyptian LNG train 1, delivered in 36 months from NTP Trains expected to come on-line o
Slide 11: Sabine Pass Liquefaction – Trains - Construction October 2014
Sabine Pass Liquefaction – Trains 1 - 4 Construction October 2014 11 Train 1 Train 2 Train 3 Train 4 Air Coolers Compressor Area Propane Condenser Area Ethylene Cold Box Methane Cold Box
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
Source: Lippman Consulting, Baker Hughes and Bentek, as of January 2014 Sabine Pass Terminal – Accessible Pipeline Network Procurement of Gas Supply Transco Tetco ANR Trunkline NGPL Tennessee Gas Columbia Gulf Rockies Express Texas Gas Permian Basin Barnett Granite Wash Eagle Ford Haynesville Woodfo
Slide 15: Corpus Christi Liquefaction Project
Corpus Christi Liquefaction Project 15 Proposed 3 Train Facility >1,000 acres owned and/or controlled 2 berths, 3 LNG storage tanks (~10.1 Bcfe of storage) Key Project Attributes 45 ft. ship channel 13.7 miles from coast Protected berth Premier Site Conditions • Established industrial zone
Slide 16: Corpus Christi Liquefaction SPAs
Corpus Christi Liquefaction SPAs 16 Annual Contract Quantity (TBtu) Fixed Fees $/MMBtu (1) Annual Fixed Fees (1) Term of Contract (2) Guarantor Guarantor/Corporate Credit Rating (3) Contract Start(4)(5) SPA progress: ~7.65 mtpa “take-or-pay” style commercial agreements ~$1.4B annual fixed fee revenu
Slide 17: Corpus Christi Terminal – Accessible Pipeline Network
Shale Plays Basins Source: Lippman Consulting, Baker Hughes and Bentek, as of January 2014 NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Permian Basin Barnett Granite Wash Eagle Ford Haynesville Marcellus / Utica Corpus Christi Woodford Corpus Christi Terminal – Accessible Pipeline Network Procur
Slide 18: Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6
Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6 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 authorization is pending S
Slide 19: Applications Filed with FERC for Liquefaction Projects
Applications Filed with FERC for Liquefaction Projects Continental U.S. 19 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 Under Construction Sabine Pass Liquefaction T1-
Slide 20: Cheniere Marketing
Cheniere Marketing Scale up for > 5 mtpa including LNG purchases from Cheniere terminals and other places Short, mid-term LNG sales on FOB or DES basis SPAs with SPL and CCL for all LNG volumes not under long-term contract with other parties Chartered 3 LNG vessels for deliveries in 2015 and
Slide 21: Innovation and Technology Lead to Robust U.S. Energy Markets
Innovation and Technology Lead to Robust U.S. Energy Markets 3 4 5 6 7 8 9 10 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 U.S. Crude Oil Production Million Bbl/d 21 1.4 1.9 2.4 2.9 3.4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 U.S. NGL Field Production Mil
Slide 22: Evaluating Future Investments Leverage Existing Platform
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 =,
Slide 24: Estimated CEI EBITDA Build Up
$0.3 $0.2 $1.0 $0.3 $0.5 $0.1 $0.1 $0.7 $0.5 $0.7 $1.0 - $1.2 $1.9 - $2.4 $2.6 - $3.2 $3.3 - $4.3 – $1.0 $2.0 $3.0 $4.0 $5.0 CEI EBIT DA ($ in bill ions ) Estimated CEI EBITDA Build Up SPL Trains 1-6 and CCL Trains 1-3 24 SPL Sales (T1-4) SPL CMI Sales CCL Sales (T1-2) SPL Sales (T5-6) CCL Sales (T3
Slide 25: CQP Outlook – Visible Future Growth
$0.3 $1.2 $2.6 $2.9 $3.2 $4.4 – $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2015E 2016E 2017E 2018E 2019E 2020E ($ in bil lio ns ) SPLNG SPL T1-4 SPL T5 SPL T6 SPL commodity pmts CMI share – 347 823 939 1,046 1,378 (100) 100 300 500 700 900 1,100 1,300 1,500 2015E 2016E 2017E 2018E 2019E 2020E (TB
Slide 26: 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 $1,785 $2,655 Estimated distributable cash fl
Slide 27: Financial Strength
Financial Strength 27 Since 2010, Cheniere has executed $17B+ in corporate and project level financings • ~$5.0B in equity capital • ~$12.5B in debt capital Debt financings/refinancings related to SPL • July 2012: $3.6B Term Loan • Feb 2013: $1.5B senior secured notes • Apr 2013: $1.5B senior se
Slide 28: Cheniere's Debt Summary
Cheniere’s Debt Summary As of October 2014 28 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG) BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5 million MMBtu / yr) GAIL SPA (182.5 million M
Slide 29: Appendix
CHENIERE = Appendix =
Slide 30: Operating Assets
Operating Assets 30 Sabine Pass LNG Terminal (SPLNG) Creole Trail Pipeline
Slide 31: Contracted Capacity at SPLNG
Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) 31 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 Fe
Slide 32: Creole Trail Pipeline
Creole Trail Pipeline Current Facility Receipt capacity from SPLNG: 2.0 Bcf/d Diameter: 42-inch; Length: 94 miles Delivery Points: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline No compression Pipeline Modifications Delivery capacity to SPLNG: 1.5 Bcf/d Receipt points: TETCO, Tru
Slide 33: LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks
LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks 33 Hoover Dam Hong Kong Int’l Airport San Francisco Rapid Transit Source: Bechtel. Bechtel was the EPC contractor for the regasification project at the Sabine Pass LNG terminal, which was constructed on time and on budget Proven c
Slide 34: Timeline & Milestones
Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6 Initiate permitting process (FERC & DOE) Commercial agreements T1-T2 T5 T6: 2014/15 EPC contract 2014/15 Financing commitments 2014 2015 Regulatory approvals 2014/15 2014/15 Is
Slide 35: Cheniere Marketing SPA Example
Cheniere Marketing SPA Example Annual Profit from 2 mtpa 35 Assumptions $5/MMBtu Henry Hub Price $15/MMBtu LNG sales price, delivered at terminal 6% loss of gas on the vessel Cheniere vessels: $84,000 per day average charter rate Port / Canal costs: $900,000 per voyage 1 incremental vess
Slide 36: Conversion of Class B and Subordinated Units
Conversion of Class B and Subordinated Units 36 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 record date f
Slide 37: Pro Forma CQP Ownership
Pro Forma CQP Ownership 37 Current common unit annualized distribution expected to be $1.70/unit (2) Class B units accrete 3.5% quarterly until converted into common units (1) Unit amounts are current units outstanding, including Blackstone’s total investment of $1.5B but excluding accretion of
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Slide 39: 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 Investor Relations Contacts
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