Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (January 2007)
21 slides from Cheniere Energy's investor presentation, Jan 19, 2007
Slide 1: Cheniere Energy, Inc. Corporate Presentation January 2007
CHENIERE ENERGY ,INC . Corporate Presentation January 2007
Slide 2: 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 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than statements of histo
Slide 3: Freeport LNG terminal overview
⑀⍽ Land - 233 acres in Brazoria County, TX ⑀⍽ Berthing/Unloading - 1 dock - LNGCs up to 265,000 cm - 3 dedicated tugs ⑀⍽ Storage - 2 x 160,000 cm (6.7 Bcfe) ⑀⍽ Vaporization - 1.5 Bcf/d ⑀⍽ Project Status - 71% complete December 2006 - Operational 1H 2008 Sold - Terminal Use Agreement (TUA) 1.0 Bcf/d
Slide 4: Sabine Pass LNG, L.P.
Sabine Pass LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 853 acres in Cameron Parish, LA ⑀⍽ Accessibility - Deep Water Ship Channel - Sabine River Channel dredged to 40 feet ⑀⍽ Proximity - 3.7 nautical miles from coast - 22.8 nautical miles from outer buoy ⑀⍽ Berthing/Unloading - 2 docks - LNGCs up to 2
Slide 5: Corpus Christi LNG, L.P.
Corpus Christi LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 212 acres in San Patricio County, TX - ~ 400 acres of permanent easement ⑀⍽ Accessibility - Deepwater Ship Channel - La Quinta Channel dredged to 45 feet ⑀⍽ Proximity - 14.3 nautical miles from coast - 16 nautical miles from outer buoy ⑀⍽ Berth
Slide 6: Creole Trail LNG, L.P.
Creole Trail LNG, L.P. Cheniere Energy 100% ⑀⍽ Land - 1463 Acres in Cameron Parish, LA ⑀⍽ Accessibility - Deepwater Ship Channel - Calcasieu Channel dredged to 40+ feet ⑀⍽ Proximity - 3.2 nautical miles from Coast - 30.9 nautical miles from outer buoy ⑀⍽ Berthing/Unloading - 2 docks - LNGCs up to 26
Slide 7: Cheniere Terminal Group: Terminal Use Agreements and revenue
Cheniere Terminal Group $126 $130 $256 1.0 Bcf/d 1.0 Bcf/d 2.0 Bcf/d Sold - Terminal Use Agreement Total, S.A. Chevron Cheniere Marketing Revenue to Cheniere @ $0.32 MMBtu ($MM) Capacity Sabine Pass LNG - 100% $15 1.0 Bcf/d 0.5 Bcf/d Sold - Terminal Use Agreement (TUA) Conoco Dow Revenue to Cheniere
Slide 8: Cheniere Marketing: Potential Value of Capacity
Cheniere Marketing Potential Value of Capacity ⑀⍽ Availability of LNG ⑀⍽ Seasonal flows and basis differential (natural gas de mand) ⑀⍽ Availability of regas capacity close to market demand
Slide 9: Liquefaction Growth
Liquefaction Growth Source: Wood Mackenzie, 2007 Global Liquefaction Capacity 0 5 10 15 20 25 30 35 40 45 2005 2006 2007 2008 2009 2010 Bcf/d 37 Bcf/d 37 Bcf/d
Slide 10: Realignment of LNG Imports By Region
Realignment of LNG Imports By Region LNG Trade (Bcf/d) (Bcf/d) Asia Pacific Europe North America 0 5 10 15 20 25 30 Atlantic Basin Pacific Basin 2005 Atlantic Basin Pacific Basin 2010 Atlantic Basin Pacific Basin 2015
Slide 11: Seasonal LNG Imports - 2010
Seasonal LNG Imports - 2010 15.2 15.7 17.3 0 5 10 15 20 Atlantic Basin Q2 Q3 Q4 Bcf/d Europe Asia North America 9.6 5.6 8.4 10.1 7.9 10. 6 9.6 7.2 Pacific Basin Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin Atlantic Basin Pacific Basin Q1 17.9 Source: Cheniere Research
Slide 12: Contractual Trends Away from Utilities
Contractual Trends Away Contractual from Utilities Source: Cheniere Research Contracted Supplies - Utility vs. Non -Utility 0 10 20 30 40 50 60 2005 2006 2007 2008 2009 2010 2011 2012 Bcf/d Non-Utility Non-Utility Uncommitted Uncommitted Utility Utility
Slide 13: Contracted Volumes - Utility vs. Non-Utility
Contracted Volumes - Utility vs. Non-Utility * Uncommitted = Total Atlantic Liq. + ME Gulf to Atlantic minus Contracted Volumes In BCFD 2006 2007 2008 2009 2010 Atlantic Basin Utility 5.3 5.0 5.2 5.1 5.1 Non-utility 3.1 4.1 4.1 4.1 4.0 In BCFD 2006 2007 2008 2009 2010 ME Gulf to Atlantic Utility 0.8
Slide 14: NYMEX vs NBP - September 21, 2006
NYMEX vs NBP - September 21, 2006 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-0
Slide 15: NYMEX vs. NBP - January 16, 2007
NYMEX vs. NBP - January 16, 2007 Henry Hub Index minus National Balancing Point Index ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Mar-98 May-98 Jul-98 Sep-98 Nov-98 Jan-99 Mar-99 May-99 Jul-99 Sep-99 Nov-99 Jan-00 Mar-00 May-00 Jul-00 Sep-00 Nov-00
Slide 16: NBP / NYMEX Comparison - January 16, 2007
NBP / NYMEX Comparison - January 16, 2007 Seasonal Strip Averages Summer 07 Mar-Oct 1.81 Winter 07 Nov-Feb (0.50) Summer 08 Apr-Oct 1.24 Winter 08 0.06 NBP/ NYMEX Forward Comparison ($/mmcf) NYMEX NBP Spread (NYMEX-NBP) Feb-07 6.60 6.06 Mar-07 6.70 5.52 Apr-07 6.77 5.09 May-07 6.85 5.00 Jun-07 6.93
Slide 17: North America Regasification Capacity By 2010
North America Regasification Capacity By 2010 Altamira 700 Shell, Total Costa Azul - Q4 2008 1,000 Shell, Sempra Canaport - Q4 2008 1,000 Irving, Repsol Total 16,550 Golden Pass - Q1 2010 2,000 Qatar Petroleum, EOM, COP Cameron - Q4 2008 1,500 Sempra, ENI Sabine Pass - Q1 2008 2,600 Phase II - Q2 20
Slide 18: Retained Capacity
Retained Capacity ⑀⍽ Merchant activities are necessary to deal with seasonality ⑀⍽ Gulf Coast is “backstop” for merchant activities ⑀⍽ Can accommodate lar ge quantities of baseload capacity
Slide 19: U.S. Gulf Coast Receiving Capacity
U.S. Gulf Coast Receiving Capacity Example: 1 Bcf/d of baseload supply purchased at 86% of $6.00 Henry Hub with a gross margin of 10% equates to $220 million per year • Any redirection benefits are incremental Two Strategies 1. Long term dedicated volumes can be redirected to premium market seasonal
Slide 20: Cheniere Merchant Capacity
Cheniere Merchant Capacity ⑀⍽ Cheniere is focused on securing 1 Bcf/d of long-term dedicated supply under “Indexed Purchase Agreements” - Up to 0.5 Bcf/d starting in 2008 - 1.0 Bcf/d starting in 2009 - When 1.0 Bcf/d is achieved, Cheniere will contemplate construction of the next terminal ⑀⍽ Chenier
Slide 21: Revenue objectives by group
Terminal Group MM Sabine Pass $ 512 Freeport 15 527 OpEx < 40 > Debt Service < 151 > $ 336 Marketing Group Cost < $ 276 > Revenues ? Corporate < $ 75 > Note: These revenue objectives reflect numerous assumptions. Please refer to the Safe Harbor Statement on page 2 of this presentation.
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