Slide 1: Second Quarter 2019 Conference Call
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG Second Quarter 2019 Conference Call August 8, 2019
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: Second Quarter 2019 Operating and Financial Highlights
Second Quarter 2019 Operating and Financial Highlights ($ in millions unless otherwise noted) Revenues Positive Final Investment Decision Reconfirm Full Year 2019 Guidance Sabine Pass Train 6 ($ billions, except per unit data) $2,292 $1,543 Consolidated Adjusted EBITDA $2.9 - $3.2 2Q 2018 2Q 2019 Di
Slide 6: Update on 2019 Key Priorities
Update on 2019 Key Priorities Safely Place Three Trains into Service Safely Execute Maintenance Turnarounds Bring trains online safely, ahead of schedule, and on budget Manage higher than average maintenance CCL Train 2 performance test successfully completed SPL Trains 3 & 4 turnaround in process ✓
Slide 7: Commercial Update
COMMERCIAL UPDATE | Anatol Feygin, EVP and CCO
Slide 8: Supply Growth and Seasonal Trends Softened LNG Market Prices
Supply Growth and Seasonal Trends Softened LNG Market Prices MT 2019 Incremental Global LNG Supply & Demand Global LNG Supply and Asia/Europe Import YoY Change (2Q 2019 vs. 2Q 2018)* 13 11 MT LNG Demand LNG Supply 9 16 7 5 14 2.6 3 (0.4) 12.2 (0.4) 1 12 4.9 -1 Other -3 10 1Q 2018 2Q 2018 3Q 2018 4Q
Slide 9: Europe Balancing the Market with Record LNG Imports
Europe Balancing the Market with Record LNG Imports European imports supported strong storage injections and incented gas power generation MT % of Full (aGWh/d) LNG Imports in Europe Gas Storage* in Europe Gas Power Generation in Europe 10 100 6000 Germany Spain France UK Italy 9 90 8 80 7 70 4000 6
Slide 10: Asian Demand Growth Returned in the Second Quarter
Asian Demand Growth Returned in the Second Quarter Significant in-basin supply additions; Future supply additions will largely come from the U.S. MT MT mtpa LNG Imports in Asia Asia LNG Imports Variances LNG Capacity Additions 24 3.0 2Q 2019 vs. 2Q 2018 45 Atlantic Basin Pacific Basin 2.5 40 22 2.0
Slide 11: Financial Update
FINANCIAL UPDATE | Michael Wortley, EVP and CFO
Slide 12: Second Quarter 2019 Results
Second Quarter 2019 Results Summary Results Three Primary Financial Priorities for 2019 Highlights ($ millions, except per share and LNG data) 2Q 2019 1Q 2019 YTD 2019 YTD 2018 64% of LNG volumes recognized in income in 2Q 2019 (2) Revenues $2,292 $2,261 $4,553 $3,785 from our projects sold under lo
Slide 13: Balance Sheet Strategy
Balance Sheet Strategy Debt Maturity Stacks ($bn) CCH / CEI ($bn) SPL / CQP $8.0 $6.7 $8.0 $7.0 CEI and CCH Convertible Notes $7.0 CQP - Credit Facilities $6.0 CCH - Pro Forma Note Purchase Agreement $6.0 CQP - Senior Notes $5.0 CCH - Credit Facility $5.0 SPL - Senior Notes $4.0 $5.4 CCH - Senior No
Slide 14: 2019 Full Year Guidance and Capital Allocation Framework
2019 Full Year Guidance and Capital Allocation Framework Reconfirm 2019Financial Three Primary Guidance Priorities for 2019 Capital Allocation Three Primary Framework Financial Priorities for 2019 Delivered June 3, 2019 ($ billions, except per unit data) Consolidated Adjusted EBITDA $2.9 - $3.2 ✓ Gr
Slide 15: Second Quarter 2019 Conference Call
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG Second Quarter 2019 Conference Call August 8, 2019
Slide 16: Appendix
APPENDIX Uff: if —_— =
Slide 17: Cheniere LNG Exports
Cheniere LNG Exports More Than 750 Cargoes (~52 Million Tonnes) Exported from our Liquefaction Projects London, U.K. Washington, DC Beijing, China Tokyo, Japan Houston, TX Singapore Cheniere LNG Exports by Destination Region MT 8 6 4 2 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Sources: Cheni
Slide 18: Substantial Asset Platform and Global Footprint
Substantial Asset Platform and Global Footprint Building an Industry Leading U.S. LNG Export Platform Sabine Pass Liquefaction Project 27 mtpa(1) Liquefaction Capacity ▪ Trains 1-4 operating, contracts with long-term buyers commenced ▪ Train 5 operating, completed March 2019 ▪ Train 6 under construc
Slide 19: Integrated Platform Creates Commercial Advantage
Integrated Platform Creates Commercial Advantage Market leading position along the value chain GAS SUPPLY LIQUEFACTION PORTFOLIO OPTIMIZATION ▪ Significant natural gas consumer within the ▪ Second largest operator of liquefaction ▪ Loaded over 200 vessels in 2017 and over U.S. capacity in the world
Slide 20: Competitive Differentiators Drive Continued Growth
Competitive Differentiators Drive Continued Growth Over 8 mtpa of long-term deals executed since early 2018 Capitalizing on competitive strengths to provide a differentiated product and underwrite new liquefaction capacity Transaction Features: Liquefaction Capacity ✓ Early Volumes ✓ Delivered Volum
Slide 21: Innovation Brings Continued Commercial Success: FOB DES IPM
Innovation Brings Continued Commercial Success: FOB DES IPM Integrated Production Marketing (“IPM”) Transaction with Apache How It Works Core Principles ▪ Apache sells 140,000 MMBtu/d of gas to CCL Stage 3 for ▪ Generates a take-or-pay style fixed liquefaction fee for CCL ~15 years Stage 3, similar
Slide 22: Sabine Pass Liquefaction Project
Sabine Pass Liquefaction Project Liquefaction Trains 1-5 Trains 1 – 5, Supporting Infrastructure, and ▪ Trains 1 through 5 complete and in operation – all on budget and ahead of schedule Regasification Assets Train 6 ▪ Under construction, expected substantial completion 1H 2023 ▪ Full notice to proc
Slide 23: Corpus Christi LNG Terminal
Corpus Christi LNG Terminal CCL Project Trains 1-3 Train 2 Commissioning ▪ Train 1 achieved substantial completion in February 2019 Train 1 ▪ Train 2 passed performance test; substantial completion expected 3Q 2019 In Operation ▪ Train 3 is 62.4% complete overall and has a target substantial complet
Slide 24: 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 25: 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 26: Forecasting Points
Forecasting Points Tax Assumptions ▪ Cheniere cash tax payments begin early-mid 2020s ▪ Average tax rate as percentage of pre-tax cash flow: ▪ 2020 – 2030: 0-5% ▪ 2031 – 2040: 15-20% ▪ 2020 – 2030 tax rate primarily due to “80% NOL limitation” on newly-generated NOLs from Tax Cuts and Jobs Act ▪ Che
Slide 27: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.3B(1) Cheniere Energy, Inc. Cheniere Energy, Inc. $1.0B PIK Convertible Notes due 2021 (4.875%) (NYSE American: LNG) Cheniere CCH Holdco II, LLC $1.0B Senior Secured Convertible Notes $0.6B Convertible Notes due 2045 (4.250%) due 2025 $1.25B Senior Secured Rev
Slide 28: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per The following table reconciles our Consolidated Adjusted EBITDA to
Slide 29: 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