Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Q1 2020 Earnings Presentation
26 slides from Cheniere Energy's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Conference Call
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG First Quarter 2020 Conference Call April 30, 2020 Inbound Vessel for 1,000th Cargo
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 Company Highlights Jack Fusco President and Chief Executive Officer Commercial Update Anatol Feygin Executive Vice President and Chief Commercial Officer Financial Review Michael Wortley Executive Vice President and Chief Financial
Slide 4: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS | Jack Fusco, President and CEO
Slide 5: First Quarter Operating and Financial Highlights
First Quarter Operating and Financial Highlights Revenues ($ billions, except per unit data) RECONFIRMING Consolidated Adjusted EBITDA $3.8 - $4.1 $2,261 $2,709 FULL YEAR 2020 Distributable Cash Flow $1.0 - $1.3 GUIDANCE CQP Distribution per Unit $2.55 - $2.65 1Q 2019 1Q 2020 Consolidated Adjusted E
Slide 6: Cheniere's Response to COVID-19
Cheniere’s Response to COVID-19 COMPREHENSIVE SAFETY, Ensuring the health and safety of EMERGENCY RESPONSE, AND our workforce while providing for PROTECTIVE MEASURES IMPLEMENTED business continuity ENGINEERING AND OPERATIONS COMMUNITY SUPPORT AND CONSTRUCTION INVOLVEMENT Introduced biometric screeni
Slide 7: Long-Term Contracts Form Foundation of Our Business Model
Long-Term Contracts Form Foundation of Our Business Model Premier LNG provider with substantial platform and proven track record (1) Over $5.5 billion in run-rate annual fixed-fee, Full-service LNG offering with customer take-or-pay style revenue from long-term contracts tailored solutions Significa
Slide 8: Commercial Update
COMMERCIAL UPDATE | Anatol Feygin, EVP and CCO
Slide 9: LNG Production Reaches New High While Virus Takes Toll on Market
LNG Production Reaches New High While Virus Takes Toll on Market Global LNG Supply Variance YoY LNG Import Variances Expected FIDs 2020-2021 MT MT 1Q 2019 vs. 1Q 2020 1Q 2019 vs. 1Q 2020 mtpa Before and After Market Shocks 2.5 2.2 2.1 100 100 1.0 ~96 2.0 2.0 (0.9) 1.6 1.5 1.5 Early 2019 1.0 95 4.6 1
Slide 10: EU LNG Flows Strengthen While Storage Remains at Record Levels
EU LNG Flows Strengthen While Storage Remains at Record Levels MT Europe LNG Imports Gas Demand in European Markets Total Pipe Flows to Europe Bcf/d 10 (Bcf/d) Excluding Russian Gas to Turkey 5-Yr Range 38 60 2019 5-Yr Range 2020 2019 8 55 53.0 2019 2020 2020 34 6 50 47.7 45.4 43.0 30 45 4 40 37.8 3
Slide 11: Asia Imports Up 7% as JKT and S. Asia Increase Buying Activity
Asia Imports Up 7% as JKT and S. Asia Increase Buying Activity MT Asia LNG Imports YoY Change in Asia LNG Imports 30 MT 1Q 2019 vs. 1Q 2020 70 5-Yr Range 2019 25 68 2020 2.2 (0.9) 66 20 2.2 64 0.7 67.7 15 62 63.5 10 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1Q 2019 SE Asia S Asia JKT China
Slide 12: Financial Update
FINANCIAL UPDATE | Michael Wortley, EVP and CFO
Slide 13: First Quarter 2020 Financial Highlights
First Quarter 2020 Financial Highlights SUMMARY RESULTS 79% of LNG volumes recognized in income in 1Q 2020 ($ millions, except per share and LNG data) 1Q 2020 4Q 2019 sold pursuant to SPA or IPM agreements Revenues $2,709 $3,007 Income from Operations $1,346 $1,016 1Q 2020 Distributable Cash Flow ~$
Slide 14: Financial Position and 2020 Guidance
Financial Position and 2020 Guidance FULL YEAR 2020 GUIDANCE ~$4 BILLION LIQUIDITY Liquidity available for general corporate purposes, including cash on hand and undrawn balances under the working (1) capital facilities and revolvers across our structure ($ billions, except per unit data) Consolidat
Slide 15: CHENIERE ENERGY, INC.
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG First Quarter 2020 Conference Call April 30, 2020 Inbound Vessel for 1,000th Cargo
Slide 16: Appendix
Lae APPENDIX "mt ia LAG
Slide 17: Cheniere LNG Exports
Cheniere LNG Exports More Than 1,100 Cargoes (>75 Million Tonnes) Exported from our Liquefaction Projects Cheniere LNG Exports by Destination MT 10 8 6 4 2 0 4Q 1Q 2Q 3Q 4Q 1Q 2018 2019 2020 Europe Asia Latin America MENA Cheniere Destinations 17 Sources: Cheniere Research, Kpler Note: Cumulative ca
Slide 18: 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 • Train 1 operating, contracts with long-term buyers • Trains 1-5 operating, contracts with long-term commenced buyers comm
Slide 19: Integrated Platform Creates Commercial Advantage
Integrated Platform Creates Commercial Advantage Market leading position along the value chain GAS SUPPLY LIQUEFACTION PORTFOLIO OPTIMIZATION Strong relationships, scale and diversity Best-in-class operations, economically- Commercial flexibility and global market difficult to replicate advantaged e
Slide 20: Sabine Pass Liquefaction Update
Sabine Pass Liquefaction Update Total Investment: ~$22B Liquefaction Operations ✓ 5 Trains in operation ✓ Increased production via maintenance optimization and debottlenecking ✓ >975 cargoes produced and exported Growth ✓ Train 6 positive FID May 2019 ▪ Expected completion 1H 2023 ▪ Project completi
Slide 21: Corpus Christi Liquefaction Update
Corpus Christi Liquefaction Update Total Investment: ~$16B Liquefaction Operations ✓ 2 Trains in Operation ✓ Increased production via maintenance optimization and debottlenecking ✓ >140 cargoes produced and exported Growth ✓ Train 3 under construction ▪ Expected completion 1H 2021 ▪ Project completi
Slide 22: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (NYSE American: LNG) CQP GP Cheniere Corpus Cheniere Marketing (& IDRs) Christi Holdcos(1) Cheniere Energy Corpus Christi Cheniere Corpus Partners, L.P. Liquefaction Christi Pipeline (NYSE American: CQP) Cheniere Creole Sabine Pass Sabine Pass LNG T
Slide 23: Run-Rate Guidance
Run-Rate Guidance 9 Trains (2023) SPL T1-6, ($bn, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CEI Consolidated Adjusted EBITDA $5.2 - $5.6 Less: Distributions to CQP Non-Controlling Interest ($0.9) - ($1.0) Less: CQP Interest Expense / SPL Interest Expense / Other ($1.1
Slide 24: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.4B(1) Cheniere CCH Holdco II, LLC Cheniere Energy, Inc. $1.3B Senior Secured Convertible Notes Cheniere Energy, Inc. $1.4B PIK Convertible Notes due 2021 (4.875%) (NYSE American: LNG) due 2025 $0.63B Convertible Notes due 2045 (4.250%) Cheniere Corpus Christi
Slide 25: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Consolidated Adjusted EBITDA Regulation G Reconciliations This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per Share, and The following table reconciles our Consolidated Adjusted
Slide 26: Investor Relations Contacts
CHENIERE ENERGY, INC. 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