Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (May 2012)

22 slides from Cheniere Energy's investor presentation, May 29, 2012

  1. Slide 1: Corporate Presentation June 2012

    Corporate Presentation June 2012

  2. Slide 2: 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, other than statements of his

  3. Slide 3: Cheniere Including Sabine Pass Liquefaction Project (SPL)

    3 Cheniere Including Sabine Pass Liquefaction Project (“SPL”) Cheniere Energy, Inc. Sabine Pass LNG, L.P. - EBITDA Estimate: $0.2B(2) Sabine Pass Liquefaction, LLC - EBITDA Estimate: $2.6B(3) Cheniere Energy Partners, L.P. 2.0% Interest & Incentive Dist. Rights Cheniere Creole Trail Pipeline, L.P. C

  4. Slide 4: Financial Forecast Summary including Sabine Pass Liquefaction Project

    4 Financial Forecast Summary including Sabine Pass Liquefaction Project Current Debt Estimated EBITDA - including SPL  Trains 1 & 2: $4.5B to $5.0B  Trains 3 & 4: $4.5B to $5.0B  CQP: $2.2B  LNG: $0.5B(2)  Total: $2.7B(3)  90% from long-term fixed contracts with investment-grade customers (1)

  5. Slide 5: Cheniere Ranks Among Large Cap Midstream/Pipeline C-Corps by EBITDA

    $53,513 $56,617 $31,648 $28,630 $14,925 $16,040 $28,600 $8,398 – $20,000 $40,000 $60,000 TRP ENB SE WMB NI OKE KMI EQT 12.6x 15.4x 10.2x 10.4x 9.2x 10.1x 18.0x 8.0x $4,253 $3,667 $3,095 $2,762 $1,620 $1,590 $1,589 $1,046 – $1,000 $2,000 $3,000 $4,000 $5,000 TRP ENB SE WMB NI OKE KMI EQT 5 Cheniere’s

  6. Slide 6: Sabine Pass with Liquefaction Expansion

    6 Sabine Pass with Liquefaction Expansion Sabine Pass LNG

  7. Slide 7: Proposed SPL Project: Development Utilizing Existing Assets

    7 Proposed SPL Project: Development Utilizing Existing Assets Current Facility  ~1,000 acres in Cameron Parish, LA  40 ft ship channel 3.7 miles from coast  2 berths; 4 dedicated tugs  5 LNG storage tanks (17 Bcf of storage)  4.3 Bcf/d peak regasification capacity  5.3 Bcf/d of pipeline interc

  8. Slide 8: Current Facility; Creole Trail Pipeline Modifications and Purchase

    Current Facility Delivery from SPLNG: 2.0 Bcf/d Diameter: 42-inch  Length: 94 miles  Interconnects: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline Pipeline Modifications Reconfigure for bi-directional flow  One new compressor station with three new units  Two new meter stations Modif

  9. Slide 9: Progress on Liquefaction Project

     DOE export authorization  Definitive commercial agreements  EPC contract 4Q12  FERC construction authorization  Financing commitments 2Q12 1Q13  Commence construction 2012 2013  Commence operations 2015/2016 2017/2018 Milestone Target Date Note: Past results not a guarantee of future perform

  10. Slide 10: Contracted Capacity at SPLNG

    10 Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long-term, 20 year “take-or-pay” style commercial contracts Total Gas & Power N.A. Chevron USA Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fee (3) $0.04/MMBTU $0.04/MMBTU 2011 Full-Y

  11. Slide 11: Contracted Capacity at SPL

    Contracted Capacity at SPL Sale and Purchase Agreements (SPAs) (1) Conditions precedent must be satisfied by December 31, 2012 for BG Group and Gas Natural Fenosa and by June 30, 2013 for KOGAS and GAIL (India) Ltd. or either party can terminate. CPs include financing, regulatory approvals, positive

  12. Slide 12: Sabine Pass LNG Exports Provide Attractive Alternative Source of Supply

    12 Sabine Pass LNG Exports Will Provide Global LNG Buyers With an Attractive, Long-term, Alternative Source of Supply Henry Hub 3.00 $ Capacity Charge 3.00 Shipping 1.25 Fuel/Basis 0.35 Delivered Cost 7.60 $ 3.00 $ 3.00 3.00 0.35 9.35 $ Europe Asia ($/MMBtu) Cost of delivered gas from Sabine Pass to

  13. Slide 13: U.S. Natural Gas Markets

    U.S. Natural Gas Markets US Gas Consumptions vs. Production US Proved Non-Producing Reserves Productive Capacity from Unconventional Reservoirs US Natural Gas Resources Tcf Bcf/d MMB/d Tcf  Current market fundamentals in the U.S. – increased production, increased natural gas reserves and lackluster

  14. Slide 14: Global Petroleum Demand – Stationary Sources

    14 Global Petroleum Demand – Stationary Sources Asia 6.9 MM b/d ~41 Bcf/d Europe 2.9 MM b/d ~17 Bcf/d Mid East 2.8 MM b/d ~17 Bcf/d Latin America 2.3 MM b/d ~14 Bcf/d FSU 0.9 MM b/d ~5 Bcf/d Africa 1.2 MM b/d ~7 Bcf/d US & Canada 2.2 MM b/d ~13 Bcf/d Global oil use totals 19 million b/d (~22%) in st

  15. Slide 15: Liquefaction Project Financing Options

    15 Liquefaction Project Financing Options Trains 1 & 2  Debt: project finance market and Term Loan B market - $2.5B bank debt - $2.0B Term Loan B - $1.25B @ Liquefaction for the Liquefaction Project - $0.75B @ CQP for the Creole Trail Acquisition - ~$1.0B of EBITDA from customers - ~$100MM - $200MM

  16. Slide 16: Summary Steady State Cash Flows

    16 Summary Steady State Cash Flows Trains 1 & 2 (1) Includes operating expenses, management fees, maintenance expenditures and marketing costs associated with purchasing gas. (2) TUA payments to SPLNG to increase from original $250MM per year for inflation indexation and cargo loading fees. (3) EBIT

  17. Slide 17: Appendix

    CHENIERE al Appendix

  18. Slide 18: Organizational Structure and Customer Payments

    18 Customer Annual SPA Pmt BG Gulf Coast LNG $723MM Gas Natural Fenosa $454MM GAIL (India) Ltd. $548MM Korea Gas Corp. $548MM Organizational Structure 11.4% LP Interest 100% Ownership Interest Cheniere Energy Partners, L.P. $205 mm 2.25% Convertible Senior Unsecured Notes due 2012 NYSE Amex US: LNG

  19. Slide 19: Condensed Balance Sheets As of March 31, 2012

    19 Condensed Balance Sheets As of March 31, 2012 Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. (2) Unrestricted cash and equivalents $ - 440 $ 440 $ Restricted cash and securities (3) 197 9 206 Property, plant and equipment, net 1,505 588 2,093 Goo

  20. Slide 20: Global LNG Market

    20 Global LNG Market A sia E u r o p e South America 2010 Total Global LNG Liquefaction Capacity ~37 Bcf/d N o r th A me r i c a 18 8.6 1.8 1.3 A ust r alia - 3.1 B r unei - 1.0 Indonesia - 4.6 M al a y sia - 3.0 A lge r ia - 2.7 N o r w a y - 0.6 Q a tar - 9.3 R ussia - 1.3 E g ypt - 1.6 Y emen - 1

  21. Slide 21: Firm Liquefaction Capacity Additions

    21 Q1 Q1 Q1 Q1 Q2 Q2 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q3 Q4 Q1 Q3 Q4 Firm Liquefaction Capacity Additions Source: Cheniere Research - 0.5 1.0 1.5 2.0 2.5 3.0 Bcf/d Middle East Gulf Asia Pacific Atlantic Basin Nameplate Liquefaction Capacity ~ 37 Bcf/d as of YE 2010 ~ 44 Bcf/d by YE 2015 2011 2012 2013 201

  22. Slide 22: Cheniere Energy Contacts

    Cheniere Energy Contacts Katie Pipkin, Vice President Finance & Investor Relations (713) 375-5110 – katie.pipkin@cheniere.com Nancy Bui, Director Finance & Investor Relations (713) 375-5280 – nancy.bui@cheniere.com Christina Burke, Manager Investor Relations (713) 375-5104 – christina.burke@cheniere

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