Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Q3 2021 Earnings Presentation
25 slides from Cheniere Energy's earnings presentation, Nov 4, 2021
Slide 1: Cheniere Earnings Presentation Third Quarter 2021
Cheniere Earnings Presentation Third Quarter 2021 November 4, 2021 NYSE American: LNG
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 that our Trains, when completed, will have certain characteristics, including amounts of liquefaction statements” within the meaning of Sect
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 Zach Davis Senior Vice President and Chief Financial Officer
Slide 4: Operating and Financial Highlights
Operating and Financial Highlights Jack Fusco, President and CEO
Slide 5: Third Quarter Highlights and Guidance Update
Third Quarter Highlights and Guidance Update Consolidated Adjusted EBITDA Financial Guidance $1,200 $1,000 ($ billions, except per unit data) FY 2021 Introduced FY 2022 $800 $600 Consolidated Adjusted EBITDA $4.6 - $5.0 $5.8 - $6.3 $1,053 $400 $200 $477 Distributable Cash Flow $1.8 - $2.1 $3.1 - $3.
Slide 6: LNG Market Fundamentals Support Commercial Momentum
LNG Market Fundamentals Support Commercial Momentum Expected FID of Corpus Christi Stage 3 in 2022 supported by strong global LNG market and the demonstrated value of Cheniere’s reliable and flexible commercial offering to meet the long-term energy needs and environmental goals of our customers Comm
Slide 7: Commercial Update
Commercial Update Anatol Feygin, EVP and CCO
Slide 8: Tight and Volatile Global Gas Market Heading Into Winter
Tight and Volatile Global Gas Market Heading Into Winter Global LNG Demand LNG Capacity and Output Variance (‘21 vs. ‘19) Global Energy Commodity Prices Global consumption of LNG grew 7% in 3Q amid intense Strong US LNG supply growth continues to underpin global JKM and TTF reached unprecedented lev
Slide 9: Strong Buying in Asia Keeping Inventories Low in Europe
Strong Buying in Asia Keeping Inventories Low in Europe Asia LNG Imports Europe LNG Imports Latin America LNG Imports 3Q LNG demand rose 10% YoY led by Korea and China Imports were down 19% or 3.1 MT YoY in 3Q due to tight LNG imports increased by 107% YoY to 6.4 MT primarily supply and a strong pul
Slide 10: The Pandemic "Reset" the Supply Cycle
The Pandemic “Reset” the Supply Cycle Historically low FIDs taken in 2015-2018 foretold a tighter market starting in 2021, further accelerated by the structural shift to natural gas mtpa Variable Y-Y Tight Loose Tight (E) mtpa Market Signaling for Additional Investment in 90 600 Stalled supply and N
Slide 11: Financial Update
Financial Update Zach Davis, SVP and CFO
Slide 12: Third Quarter Financial Highlights
Third Quarter Financial Highlights Repaid $750 million of consolidated indebtedness and repurchased an Summary Results aggregate of 77,100 shares of common stock for ~$6 million, in line with our capital allocation plan, for the nine months ended September 30, 2021 ($ millions, except per share and
Slide 13: 2021 and 2022 Financial Guidance
2021 and 2022 Financial Guidance Full Year 2021 Guidance Full Year 2022 Guidance ($ billions, except per unit data) ($ billions, except per unit data) Consolidated Adjusted EBITDA $4.6 - $5.0 Consolidated Adjusted EBITDA $5.8 - $6.3 Distributable Cash Flow $1.8 - $2.1 Distributable Cash Flow $3.1 -
Slide 14: Cheniere Earnings Presentation Third Quarter 2021
Cheniere Earnings Presentation Third Quarter 2021 November 4, 2021 NYSE American: LNG
Slide 15: Appendix
Append ix CHENIERE
Slide 16: Cheniere LNG Exports
Cheniere LNG Exports Over 1,800 Cargoes (>135 Million Tonnes) Exported from our Liquefaction Projects Cheniere LNG Exports by Destination MT 12 10 8 6 4 2 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2020 2021 Europe Asia Latin America MENA Cheniere Destinations Sources: Cheniere Research, Kpler. 16 Note: Cumulative carg
Slide 17: Industry Leading U.S. LNG Export Platform
Industry Leading U.S. LNG Export Platform Corpus Christi LNG Terminal Sabine Pass Liquefaction ~15 mtpa Total Production Capacity ~30 mtpa Total Production Capacity Trains 1-2 operating, contracts with long-term buyers Trains 1-5 operating, contracts with long-term buyers commenced commenced >1,500
Slide 18: Sabine Pass Update
Sabine Pass Update Liquefaction Operations 5 Trains in operation Increased production via maintenance optimization and debottlenecking >1,400 cargoes produced and exported Growth Train 6 commissioning activities commenced • Expected completion 1Q 2022 • Project completion 97.1% 3rd berth constructio
Slide 19: Corpus Christi Update
Corpus Christi Update Liquefaction Operations 3 Trains in operation Increased production via maintenance optimization and debottlenecking >380 cargoes produced and exported Growth ~10+ mtpa Stage 3 expansion project fully permitted ~6 mtpa of available long-term contracts to support Stage 3 19 Note:
Slide 20: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (NYSE American: LNG) CQP GP Cheniere Corpus Cheniere Marketing (& IDRs) Christi Holdings Cheniere Energy Corpus Christi Cheniere Corpus Partners, L.P. Liquefaction Christi Pipeline (NYSE American: CQP) Cheniere Creole Sabine Pass Sabine Pass LNG Tra
Slide 21: Run Rate Guidance
Run Rate Guidance 9 Trains (Full Year) SPL T1-6 ($billions, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CEI Consolidated Adjusted EBITDA $5.3 - $5.7 Less: Distributions to CQP Non-Controlling Interest ($0.9) – ($1.0) Less: CQP Interest Expense / SPL Interest Expense / O
Slide 22: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.2B1,3 Cheniere Energy, Inc. Cheniere Energy, Inc. ~$0.63B Convertible Notes due 2045 (4.250%) (NYSE American: LNG) $2.0B Senior Notes due 2028 (4.625%) Cheniere Corpus Christi Holdings, LLC $1.25B Senior Secured Revolving Credit Facility due 20264 $1.25B Notes
Slide 23: Reconciliation to Non-GAAP Measures
Consolidated Adjusted EBITDA Reconciliation to Non-GAAP Measures The following table reconciles our Consolidated Adjusted EBITDA to U.S. GAAP results for the three months ended June 30, 2021 and three and nine months ended September 30, 2021 and 2020 (in millions): Three Months Ended Three Months Ni
Slide 24: Reconciliation to Non-GAAP Measures (continued)
Reconciliation to Non-GAAP Measures (continued) Regulation G Reconciliations (continued) Beginning with our 2022 financial guidance, we have adopted a revised definition for Distributable Cash Flow, which aims to more accurately reflect the consolidated distributable cash flow of each of our subsidi
Slide 25: Investor Relations Contacts
Investor Relations Contacts Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Frances Smith Manager, Investor Relations – (713) 375-5753, frances.smith@cheniere.com Zak Broderick Senior Analyst, Investor Relations – (713) 375-5308, zak.broderick@cheniere.com