Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (November 2007)
25 slides from Cheniere Energy's investor presentation, Nov 15, 2007
Slide 1: Corporate Presentation November 2007
Slide: 1 Title: Corporate Presentation November 2007 CHENIERE ENERGY, INC. (Gp:) Corpus Christi LNG, LLC Cheniere Energy, Inc. 100% Artist’s Rendition (Gp:) Creole Trail LNG, L.P. Cheniere Energy, Inc. 100% Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% Sabine Pass LNG, L.P. Cheniere Energ
Slide 2: Body: This presentation contains certain statements that are, or may be deemed to be,
Slide: 2 Body: 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 stat
Slide 3: Value Drivers
Slide: 3 Title: Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development,
Slide 4: Freeport LNG Development, L.P.
Slide: 4 Title: Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% Expect to begin cash distributions in 3rd quarter 2008
Slide 5: Cheniere Energy Partners, L.P.
Slide: 5 Title: Cheniere Energy Partners, L.P. (AMEX: CQP) Sabine Pass LNG, L.P. Cheniere Energy, Inc. 91% Sabine Pass Construction Site – November 2007
Slide 6: Sabine Pass Terminal Update November 2007
Slide: 6 Title: Sabine Pass Terminal Update November 2007
Slide 7: Cheniere Energy Partners Growth Projects
Slide: 7 Title: Cheniere Energy Partners Growth Projects Body: Fuel Efficiency Projects at Sabine Pass LNG Waste Heat Recovery and Ambient Air Vaporizers (AAV)More economical process to reheat LNG, replaces SCVs Developed over next few years, expected in service 2010 – 2011 Funding from excess cash
Slide 8: Louisiana Natural Gas Header Proposed Pipeline
Slide: 8 Title: Louisiana Natural Gas Header Proposed Pipeline Body: After construction completion it will provide supply diversity Access to new and existing LNG gas supply in and around Louisiana; nearly 10 Bcf/d regas capacity by 2010 Access to traditional offshore, onshore and recently developed
Slide 9: Dq SESH Lucedale SONAT Gulf South FGT Tennessee Dequincy TGC, TETCO, Transco 45, Sempra,
Slide: 9 Dq SESH Lucedale SONAT Gulf South FGT 11 Tennessee Dequincy TGC, TETCO, Transco 45, Sempra, Liberty Storage Cheniere Sabine Pass LNG Johnson Bayou NGPL, Bridgeline, SWLateral TETCO FGT Tennessee (Gp:) Scale Approximate (Gp:) 0 (Gp:) 40 (Gp:) 60 miles (Gp:) 20 FGT 9 Am LIG Louisiana Natural
Slide 10: Value Drivers
Slide: 10 Title: Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development
Slide 11: Sabine PL Targa Transco Gulf South Trunkline Jefferson Island Storage Sabine Pass LNG Terminal
Slide: 11 Sabine PL Targa Transco Gulf South Trunkline Jefferson Island Storage Sabine Pass LNG Terminal Phase I – 2Q 2008 Phase II – 2Q 2009 Creole Trail LNG Terminal Henry Hub Varibus NGPL Transco Bridgeline Tennessee Florida Gas Creole Trail Pipeline Liberty Storage Starks Storage Hackberry Stora
Slide 12: Value Drivers
Slide: 12 Title: Value Drivers Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. [AMEX:CQP] 91% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development
Slide 13: North America Onshore Regasification Capacity By 2010
Slide: 13 Everett Cove Point Elba Island Lake Charles Sabine Pass Freeport Golden Pass Cameron Costa Azúl Canaport Existing Under Construction Altamira Source: Websites of Terminal Owners, Wood Mackenzie Limited, Poten & Partners Title: North America Onshore Regasification Capacity By 2010 15.8 Bcf/
Slide 14: Constraint is not Regasification but Natural Gas Consumption
Slide: 14 Title: Constraint is not Regasification but Natural Gas Consumption Source: GIIGNL; Waterborne LNG, Cheniere Research Regasification is built for peak utilization because of seasonal variations
Slide 15: Contractual Trends Away from Utilities
Slide: 15 Title: Contractual Trends Away from Utilities 0 10 20 30 40 50 Bcf/d 2005 2006 2007 2008 2009 2010 2011 2012 Non Utility Uncommitted Utility 44% of 2010 LNG supply will seek premium markets Source: Estimates according to Cheniere Research
Slide 16: NYMEX vs. NBP – November 2, 2007
Slide: 16 Title: NYMEX vs. NBP – November 2, 2007 Historical Data Futures as of 11/02/07
Slide 17: Worldwide Liquefaction Capacity
Slide: 17 Title: Worldwide Liquefaction Capacity Source: GIIGNL; Poten, Cheniere Research (Gp:) 15 (Gp:) 16 (Gp:) 17 (Gp:) 18 (Gp:) 19 (Gp:) 20 (Gp:) 21 (Gp:) 22 (Gp:) 23 (Gp:) 24 (Gp:) 25 (Gp:) 26 (Gp:) 27 (Gp:) 28 (Gp:) 29 (Gp:) 30 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:)
Slide 18: Liquefaction Growth
Slide: 18 Title: Liquefaction Growth (Gp:) Worldwide Liquefaction (Gp:) (Gp:) 5 (Gp:) 10 (Gp:) 15 (Gp:) 20 (Gp:) 25 (Gp:) 30 (Gp:) 35 (Gp:) 40 (Gp:) 45 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:
Slide 19: Worldwide Liquefaction Utilization
Slide: 19 Title: Worldwide Liquefaction Utilization Source: Poten, Cheniere Research (Gp:) 0% (Gp:) 10% (Gp:) 20% (Gp:) 30% (Gp:) 40% (Gp:) 50% (Gp:) 60% (Gp:) 70% (Gp:) 80% (Gp:) 90% (Gp:) 100% (Gp:) 110% (Gp:) 120% (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp
Slide 20: Europe – Total LNG Imports
Slide: 20 Title: Europe – Total LNG Imports Source: Poten, Cheniere Research (Gp:) Bcf/d (Gp:) 0 (Gp:) 1 (Gp:) 2 (Gp:) 3 (Gp:) 4 (Gp:) 5 (Gp:) 6 (Gp:) 7 (Gp:) 8 (Gp:) 9 (Gp:) 10 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (G
Slide 21: Asia – Total LNG Imports
Slide: 21 Title: Asia – Total LNG Imports Source: Poten, Cheniere Research (Gp:) 0 (Gp:) 2 (Gp:) 4 (Gp:) 6 (Gp:) 8 (Gp:) 10 (Gp:) 12 (Gp:) 14 (Gp:) 16 (Gp:) 18 (Gp:) 20 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (Gp:) Bcf/d
Slide 22: North America – Total LNG Imports
Slide: 22 Title: North America – Total LNG Imports Source: Poten, Cheniere Research (Gp:) 0 (Gp:) 1 (Gp:) 2 (Gp:) 3 (Gp:) 4 (Gp:) 5 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (Gp:) Bcf/d (Gp:) 2007 (Gp:) 2006 (Gp:) 2005
Slide 23: Cheniere Marketing Strategy
Slide: 23 1 Bcf/d by 2010 12 Bcf/d of undecided gas globally 86% of Henry Hub 94% 65 cents (GdF transaction) Seek to capture portion of redirect rights Estimate 30 cargoes annually Title: Cheniere Marketing Strategy Term Contracts: Indexed Purchase Agreements (IPA) Spot Market: 1 Bcf/d portion Seek
Slide 24: Cheniere Growth Strategy
Slide: 24 Title: Cheniere Growth Strategy Body: Pursue acquisitions for Cheniere Energy Partners, L.P. (AMEX: CQP) Continue asset development: terminals and pipelines Develop a balanced supply portfolio for Cheniere Marketing between long term IPA’s and LNG Gateway exposure to the spot, option and s
Slide 25: Condensed Balance Sheet
Slide: 25 Title: Condensed Balance Sheet Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. Unrestricted cash (2) $ 447 $ 447 $ Restricted cash and securities 885 45 930 Property, plant and equipment 1,006 393 1,399 Goodwill and other assets 71 170 241
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