Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (January 2012)

23 slides from Cheniere Energy's investor presentation, Jan 17, 2012

  1. Slide 1: Corporate Presentation January 2012

    Corporate Presentation January 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

    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  Phase 1: $4.5B to $5.0B  Phase 2: $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) Expected c

  5. Slide 5: Cheniere's EBITDA expected to be bolstered from Sabine Liquefaction contracts

    5 Cheniere’s EBITDA expected to be bolstered from Sabine Liquefaction contracts (1) Represents mid-point of Adjusted Segment Profit + DD&A guidance, pro forma for E&P spin-off; estimated based on Q3 2011 Williams investor presentation. $45,143 $35,688 $32,029 $25,503 $9,503 $8,937 $54,885 $25,100 $1

  6. Slide 6: Sabine Pass with Liquefaction Expansion

    6 Sabine Pass with Liquefaction Expansion Sabine Pass LNG

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

    7 Proposed SPL Project: Brownfield Development Utilizing Existing Assets Current Facility  853 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 pipelin

  8. Slide 8: Progress on SPL Project Phase 1 and Phase 2

    8  DOE export authorization  Definitive commercial agreements  EPC contract 4Q12  Financing commitments 1Q12 1Q13  FERC construction authorization 1Q12 1Q12 – EA issued – Decision authorization deadline 3/27/12  Commence construction 2012 2013  Commence operations 2015/2016 2017/2018 Mileston

  9. Slide 9: Contracted Capacity at SPLNG

    9 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-Ye

  10. Slide 10: Contracted Capacity at SPL

    10 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 GAIL (India) Ltd. or either party can terminate. CPs include financing, regulatory approvals, positive final

  11. Slide 11: Sabine Pass LNG Exports Will Provide Global LNG Buyers an Alternative Source of Supply

    11 Sabine Pass LNG Exports Will Provide Global LNG Buyers With an Attractive, Long-term, Alternative Source of Supply Henry Hub 4.00 $ Capacity Charge 2.50 Shipping 1.00 Fuel/Basis 0.60 Delivered Cost 8.10 $ 4.00 $ 2.50 2.80 0.60 9.90 $ Europe/Americas Asia ($/MMBtu) Cost of delivered gas from Sabin

  12. Slide 12: U.S. Natural Gas Markets

    12 U.S. Natural Gas Markets US Gas Consumptions vs. Production US Proved Non-Producing Reserves Annual Production 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 lackluste

  13. Slide 13: Global Petroleum Demand – Stationary Sources

    13 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

  14. Slide 14: Financing Options

    14 Financing Options Phase I – Trains 1&2  Debt: project finance market - ~$3B at Libor + ~300bps (swapped) - ~$1.2B of EBITDA for coverage  Equity: options - CQP common units - CQP subordinated units - LNG shares  Issuing CQP subordinated units most likely Phase II – Trains 3&4  Debt: term loan

  15. Slide 15: Appendix

    CHENIERE al Appendix

  16. Slide 16: Cheniere

    16 Cheniere  Cheniere is engaged in the development and operation of LNG terminals and pipelines and marketing of LNG and natural gas – Sabine Pass LNG Terminal became operational in 2008 and cost ~$1.6B, send-out capacity is 4.0 Bcf/d, storage capacity is 16.9 Bcfe – Sabine Pass LNG Terminal is co

  17. Slide 17: Expansion Project: Adding Liquefaction Capabilities at Sabine Pass LNG Terminal

    17 Expansion Project: Adding Liquefaction Capabilities at Sabine Pass LNG Terminal  SPL Project will include four liquefaction trains, each with nominal capacity of 4.5 mtpa – Baseload capacity of 3.5 mtpa per train to be contracted under SPAs – Additional (seasonal) capacity estimated up to 1.0 mt

  18. Slide 18: Organizational Structure and Customer Payments

    18 Customer Annual SPA Pmt BG Gulf Coast LNG $411MM Gas Natural Fenosa $454MM GAIL (India) Ltd. $548MM Organizational Structure 11.2% LP Interest 100% Ownership Interest Cheniere Energy Partners, L.P. $205 mm 2.25% Convertible Senior Unsecured Notes due 2012 NYSE Amex US: LNG NYSE Amex US: CQP $282

  19. Slide 19: Condensed Balance Sheets

    19 Condensed Balance Sheets As of September 30, 2011 Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. (2) Unrestricted cash and equivalents $ - 131 $ 131 $ Restricted cash and securities (3) 232 3 235 Property, plant and equipment, net 1,524 596 2,120

  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 Q4 Q1 Q1 Q1 Q1 Q1 Q2 Q2 Q1 Q2 Q3 Q2 Q3 Q4 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 by YE 2010 ~ 44 Bcf/d by YE 20

  22. Slide 22: North America Onshore Receiving Terminals

    22 Everett Cove Point Elba Island Lake Charles Sabine Pass Freeport Golden Pass Cameron Costa Azúl Canaport Altamira Source: Websites of Terminal Owners, DOE filings Terminal Capacity Holder Baseload Sendout (MMcf/d) Canaport 1,000 Repsol Everett - Suez 700 Cove Point 1,800 BP, Statoil, Shell Elba I

  23. Slide 23: Cheniere Energy Contacts

    Cheniere Energy Contacts Katie Pipkin, Vice President Finance & Investor Relations (713) 375-5110 – katie.pipkin@cheniere.com Christina Burke, Manager Investor Relations (713) 375-5104 – christina.burke@cheniere.com CHENIERE ENERGY

Cheniere Energy — Investor Presentation (January 2012) on 6ix