Cheniere Energy Partners, Lp · NYSE:CQP
Cheniere Energy Partners, Lp — Investor Presentation (July 2015)
35 slides from Cheniere Energy Partners, Lp's investor presentation, Jul 10, 2015
Slide 1: July 2015 Cheniere Energy, Inc.
July 2015 Cheniere Energy, Inc.
Slide 2: Forward Looking 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 amended. All statements, oth
Slide 3: Executing on Strategy
Executing on Strategy 2025 Forecast for CEI Flexible, Scalable, industry- leading platform $50B+ ~60 mtpa LNG by 2025 One of the largest natural gas buyers in the U.S. >8 Bcf/d Supporting over 200,000 indirect jobs ~1,000 permanent jobs created One of the largest exporters of LNG on a global basis ~
Slide 4: Cheniere's Key Businesses
Cheniere’s Key Businesses Four planned LNG terminals to be located along Gulf of Mexico ~60 mtpa planned Scalable platform Underpinned by long-term contracts, competitive capital costs LNG sales, FOB or DES, provided to customers on a short, mid, and long-term basis ~9 mtpa LNG volumes e
Slide 5: Cheniere LNG Platform
Cheniere LNG Platform Sabine Pass Liquefaction TX LA Creole Trail PL Sabine Pass Liquefaction • 6 train development – 27 mtpa (~3.8 Bcf/d in export capacity) • Trains 1-5 are under construction; First LNG expected in late 2015 • Train 6 under development, FID expected 2015 Corpus Christi Liquefactio
Slide 6: Aerial View of SPL Construction – June 2015
Aerial View of SPL Construction – June 2015 Train 1 Train 3 Train 4 Propane Condenser Area T2 Ethylene Cold Box T2 Methane Cold Box Train 2 Air Coolers T1 Methane Cold Box T1 Ethylene Cold Box T3 Methane Cold Box T3 Ethylene Cold Box
Slide 7: Cheniere LNG Portfolio Summary
Cheniere LNG Portfolio Summary Cheniere expected to have 20-year LT SPAs for at least 31.75 mtpa that would generate annualized EBITDA of ~$2.2B, SPAs support financing construction For the balance of the LNG volumes, long-term contracts are no longer required, Cheniere is able to sell LNG under
Slide 8: Cheniere Offers Competitive, Low Cost Source of LNG
$7.7 $9.5 $12.0 $14.0 $14.5 $13.0 $8.4 $11.5 $13.0 $16.0 $17.0 $18.5 $5 $10 $15 $20 Cheniere Gulf Coast West Africa Western Canada Northwest Australia East Africa Southeast Asia LN G p rice s ($ /M MBt u) Cheniere Offers Competitive, Low Cost Source of LNG The U.S. is one of the lowest cost natura
Slide 9: Current Market Prices Profitable for Cheniere LNG Projects
Current Market Prices Profitable for Cheniere LNG Projects 9 As shown in sensitivity table above, Cheniere can profitably sell LNG into key demand centers even in periods of lower market prices If LNG prices remain at lower levels, we would expect LNG demand to increase, thus signaling the need
Slide 10: Example CEI EBITDA Build Up – Europe @ $7.50 / Asia @ $8.75
Example CEI EBITDA Build Up – Europe @ $7.50 / Asia @ $8.75 SPL T1-6, CCL T1-3, CCL T4-5, Live Oak/Louisiana LNG T1-4 10 Estimates based on assessment of current and potential future project development opportunities, which, among other things, would require acceptable commercial and financing arran
Slide 11: Example CEI EBITDA Build Up – Europe @ $9.50 / Asia @ $10.75
Example CEI EBITDA Build Up – Europe @ $9.50 / Asia @ $10.75 SPL T1-6, CCL T1-3, CCL T4-5, Live Oak/Louisiana LNG T1-4 11 Estimates calculated assuming 31.75 MTPA at applicable SPA liquefaction fee, $3.50/MMBtu assumed for portion not yet contracted under 20-year contracts Assumes remaining LNG
Slide 12: Example CEI EBITDA Build Up – Europe @ $11.50 / Asia @ $12.75
Example CEI EBITDA Build Up – Europe @ $11.50 / Asia @ $12.75 SPL T1-6, CCL T1-3, CCL T4-5, Live Oak/Louisiana LNG T1-4 12 CEI EBITDA build up Estimates calculated assuming 31.75 MTPA at applicable SPA liquefaction fee, $3.50/MMBtu assumed for portion not yet contracted under 20-year contracts A
Slide 13: Gas Procurement Sabine Pass Terminal
Gas Procurement Sabine Pass Terminal Securing feedstock for LNG production with balanced portfolio approach • To date, have entered into term gas supply contracts with producers under 1-7 year contracts • Supply contracts cover ~50% of the required daily load for Trains 1-4 at Sabine Pass • Pricin
Slide 14: Gas Procurement Corpus Christi Terminal
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 Gas Procurement Corpus Christi Terminal CCL contracting lon
Slide 15: Cheniere Marketing
Cheniere Marketing Scale up for > 10 mtpa including LNG purchases from Cheniere terminals and other places Buyers & sellers of LNG cargoes SPAs with SPL and CCL for all LNG volumes not sold to 3rd parties Chartered 3 LNG vessels for deliveries in 2015 and 2016 Developing complementary, hig
Slide 16: Future Developments
Future Developments Horizontal / Vertical Integration Total focus on cash flow per share as guiding metric for future investments Announced brownfield expansion at Corpus Christi and mid-scale LNG investment Significant Cash Flow expected starting in 2016 Cheniere core competencies, scale, and first
Slide 17: Appendix
CHENIERE = Appendix
Slide 18: Investing in Cheniere – Summary
Investing in Cheniere – Summary Organization 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 Mark
Slide 19: Cheniere's Debt Summary
Cheniere’s Debt Summary As of July 2015 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG) Total TUA (1 Bcf/d) Chevron TUA (1 Bcf/d) SPL TUA (2 Bcf/d) Sr Secured Notes $1,666 due 2016 (7.50%) $420 due 2020 (6.50%) ($ in millions) Ch
Slide 20: Conversion of Class B and Subordinated Units
Conversion of Class B and Subordinated Units 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 for
Slide 21: Estimated CQP Distributable Cash Flow Build Up
$2.95 $3.30 $3.65 $3.15 $3.60 $4.05 – $1.00 $2.00 $3.00 $4.00 CQP dist ribu tab le cash flow per uni t ($ p er u nit) Estimated CQP Distributable Cash Flow Build Up 21 Note: Distributable cash flow (“DCF”) is a non-GAAP measure. We have not made any forecast of net income, which would be the most di
Slide 22: Sabine Pass Liquefaction – Brownfield LNG Export Project
Sabine Pass Liquefaction –– Brownfield LNG Export Project Utilizes Existing Assets, Trains 1-5 Under Construction Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline network Design produc
Slide 23: SPL Construction Completion Schedules
SPL Construction Completion Schedules Trains 1 – 4 Stage 1 (Trains 1&2) overall project progress as of May 2015 is 90.8% complete vs. Target Plan of 92.6%: Engineering, Procurement, Subcontracts and Construction are 100%, 100%, 71.2% and 81.9% complete against Target Plan of 99.6%, 100%, 76.8% and
Slide 24: LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction
LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction (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 91
Slide 25: Corpus Christi Liquefaction Project
Corpus Christi Liquefaction Project 25 Proposed 5 Train Facility >1,000 acres owned and/or controlled 2 berths, 4 LNG storage tanks (~13.5 Bcfe of storage) Key Project Attributes 45 ft. ship channel 14 miles from coast Protected berth Premier Site Conditions 23-mile 48” and 42” parallel
Slide 26: Corpus Christi Liquefaction SPAs
PT Pertamina (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Woodside Energy Trading Électricité de France EDP Energias de Portugal S.A. Annual Contract Quantity (TBtu) 79.36 117.32 39.68 78.20 44.12 40.00 40.00 Annual Fixed Fees (1) ~$278 MM ~$411 MM ~$139 MM ~$274 MM ~$154 MM ~$140 MM ~$14
Slide 27: Corpus Christi Liquefaction Project Schedule
Corpus Christi Liquefaction Project Schedule Current plan estimates Train 1 and Train 2 operational in 53 and 63 months from NTP • First LNG expected in late 2018 • Bechtel schedule bonus provides incentive for early delivery NTP issued, construction commenced for Trains 1-2 in May 2015 27 Note:
Slide 28: Timeline & Milestones
Timeline & Milestones Target Date SPL Corpus Christi Milestone T1-4 T5-6 T1-3 T4-5 Initiate permitting process (FERC & DOE) Commercial agreements T5 T6: 2015 T1-T2 T3: 2015 2016/2017 EPC contract T5 T6: 2015 2016/2017 Financing commitments T5 T6: 2015 T1-T2 T3 201
Slide 29: Live Oak and Louisiana Liquefaction Projects
Live Oak and Louisiana Liquefaction Projects 29 Live Oak LNG Facility Overview 350 acres on the Calcasieu Channel, just north on Calcasieu Lake 2 trains – 5.2 mtpa (2.6 mtpa each) 1 berth, 2 LNG storage tanks (~6.6 Bcfe of storage capacity) Project Update FERC pre-filing expected in mid 2015
Slide 30: Proposed Development – Other Hydrocarbon Exports
Proposed Development – Other Hydrocarbon Exports Estimated investment opportunity up to $2B Facilities to export up to 1 MMbpd liquid hydrocarbons Initial development expected to be supported with 3rd party contracts Initial investment expected up to $1B, initial commercialization ~200kbpd
Slide 31: Projected Global LNG Demand
Projected Global LNG Demand 438 mtpa by 2025 22 17 19 2015 2020 2025 2015 2020 2025 5 10 16 2015 2020 2025 2015 2020 2025 Americas Asia Middle East/N. Africa 186 270 314 30 63 89 Europe Source: Wood Mackenzie Q1 2015 LNG Tool (1) Assumes 85% utilization of nameplate capacity Demand forecasted to inc
Slide 32: Applications Filed with FERC for Liquefaction Projects
Applications Filed with FERC for Liquefaction Projects Continental U.S. 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 T1-4 2
Slide 33: U.S. LNG Export Projects
Source: Office of Oil and Gas Global Security and Supply, Office of Fossil Energy, U.S. Department of Energy; U.S. Federal Energy Regulatory Commission; Company releases U.S. LNG Export Projects Dominion Cove Point Under Construction Company Quantity (Bcf/d) DOE FERC * Contracts Cheniere Sabine Pass
Slide 34: Slide 34
Slide 35: Investor Relations Contacts
Randy Bhatia: Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Katy Cox: Senior Analyst, Investor Relations – (713) 375-5079, katy.cox@cheniere.com Investor Relations Contacts
Cheniere Energy Partners — Investor Presentation (July 2015) on 6ix