Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Barclays CEO Energy-Power Conference 2014
38 slides from Cheniere Energy's conference presentation, Sep 2, 2014
Slide 1: Cheniere Energy Barclays CEO Energy-Power Conference
September, 2014 Cheniere Energy Barclays CEO Energy-Power Conference
Slide 2: Forward Looking Statements
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, o
Slide 3: Summary Organizational Structure
Summary Organizational Structure 3 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 Marketing, LLC
Slide 4: Projected Global LNG Demand Growth
Projected Global LNG Demand Growth 4 Regional LNG Import Outlook (mtpa) Source: Wood Mackenzie 2014 Q2 Data; Base Case Scenario – includes LNG bunkering demand 21 17 24 2015 2020 2030 2015 2020 2030 4 9 38 2015 2020 2030 2015 2020 2030 Americas Asia Middle East/N. Africa 198 268 383 24 64 95 Global
Slide 5: Cheniere's LNG Export Facilities Offer Attractive Pricing for Global LNG Buyers
Cheniere’s LNG Export Facilities Offer Attractive Pricing for Global LNG Buyers 5 Example Prices Henry Hub: $4.00 / MMBtu Brent Crude: $100 / Barrel ($/MMBtu) Americas Europe Asia LNG Cost (1) 4.60 $ 4.60 4.60 Shipping 0.50 1.00 3.00 $ 8.60 9.10 11.10 3.90 LNG Price (% Crude) @ 15% 15.00 12.00 15.00
Slide 6: Cheniere Developments/Strategy
Cheniere Developments/Strategy Liquefaction: 9 trains - ~40.5 MTPA - ~5.5Bcf/d LNG Exports • Sabine Pass Liquefaction – 6 Train Development – 27 MTPA - ~3.8 Bcf/d in export capacity – Trains 1-4 are under construction; Train 1 on schedule for first LNG in late 2015 – Trains 5-6 are under developme
Slide 7: Brownfield LNG Export Project: Sabine Pass Liquefaction
Brownfield LNG Export Project: Sabine Pass Liquefaction Utilizes Existing Assets, Trains 1-4 Fully Contracted, Under Construction 7 Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline net
Slide 8: LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction
LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction 8 (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
Slide 9: SPL Construction Completion Schedules Trains 1-4
SPL Construction Completion Schedules Trains 1-4 Current plan estimates Train 1 operational in 40 months from NTP • Bechtel schedule bonus provides incentive for early delivery • Bechtel’s record delivery was Egyptian LNG train 1, delivered in 36 months from NTP Trains expected to come on-line o
Slide 10: SPL Construction – August 2014
SPL Construction – August 2014 10
Slide 11: SPL Construction – August 2014
SPL Construction – August 2014 11
Slide 12: Corpus Christi Liquefaction Project
Corpus Christi Liquefaction Project 12 Proposed 3 Train Facility >1,000 acres owned and/or controlled 2 berths, 3 LNG storage tanks (~10.1 Bcfe of storage) Key Project Attributes 45 ft. ship channel 13.7 miles from coast Protected berth Premier Site Conditions • Established industrial zone
Slide 13: Corpus Christi Liquefaction SPAs
Corpus Christi Liquefaction SPAs 13 Annual Contract Quantity (TBtu) Fixed Fees $/MMBtu (1) Annual Fixed Fees (1) Term of Contract (2) Guarantor Guarantor/Corporate Credit Rating (3) Contract Start(4)(5) SPA progress: ~7.65 mtpa “take-or-pay” style commercial agreements ~$1.4B annual fixed fee revenu
Slide 14: Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6
Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6 Corpus Christi Trains 1-3 • FERC: Scheduling Notice received 2/2014, final EIS expected October 8, 2014, 90-day federal authorization decision deadline January 6, 2015 • DOE: Received FTA authorization • DOE: Non-FTA authorization i
Slide 15: FERC Applications Filed for Liquefaction Projects
FERC Applications Filed for Liquefaction Projects Corpus Christi received FERC scheduling notice on February 12, 2014; FERC approval expected 2014/2015 SPL received initial FERC scheduling notice on May 30, 2014; revised notice pending; FERC approval expected 2014/2015 15 LNG Export Projects Pre
Slide 16: 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 17: Timeline & Milestones
Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6 Initiate permitting process (FERC & DOE) Commercial agreements T1-T2 T5 T6: 2014 EPC contract 2015 Financing commitments 2014 2015 Regulatory approvals 2014/15 2014/15 Issue No
Slide 18: Cheniere Marketing
Cheniere Marketing International LNG marketing operation Professional staff based in London, Houston, Santiago, and Singapore SPA with SPL for all LNG volumes not under long-term contract with other parties Chartered three LNG vessels for deliveries in 2015 and 2016 Developing complementar
Slide 19: Financial Estimates
CHENIERE = Financial Estimates ant
Slide 20: Estimated CEI EBITDA Build Up
$0.3 $0.2 $1.0 $0.3 $0.5 $0.1 $0.1 $0.7 $0.5 $0.7 $1.0 - $1.2 $1.9 - $2.4 $2.6 - $3.2 $3.3 - $4.3 – $1.0 $2.0 $3.0 $4.0 $5.0 CEI EBIT DA ($ in bill ions ) Estimated CEI EBITDA Build Up SPL Trains 1-6 and CCL Trains 1-3 20 SPL Sales (T1-4) SPL CMI Sales CCL Sales (T1-2) SPL Sales (T5-6) CCL Sales (T3
Slide 21: Potential Financial Profile of CEI
Potential Financial Profile of CEI 21 (1) Depending on CMI’s financial performance, CEI is expected to become a corporate tax payer after its NOLs are fully exhausted, which is anticipated in either 2020 or 2021, with a ~20-25% effective tax rate on pre-tax equity cash flow. (2) EBITDA is a non-GAAP
Slide 22: CQP estimated distributable cash flows
CQP estimated distributable cash flows ($ in millions) Trains 1-4 Trains 1-6 SPLNG distributable cash flow $370 $380 SPL distributable cash flow 1,400 2,260 CTPL distributable cash flow 30 30 CQP expenses (15) (15) Estimated total distributable cash flow $1,785 $2,655 Estimated distributable cash fl
Slide 23: CQP Outlook – Visible Future Growth
$0.3 $1.2 $2.6 $2.9 $3.2 $4.4 – $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2015E 2016E 2017E 2018E 2019E 2020E ($ in bil lio ns ) SPLNG SPL T1-4 SPL T5 SPL T6 SPL commodity pmts CMI share – 347 823 939 1,046 1,378 (100) 100 300 500 700 900 1,100 1,300 1,500 2015E 2016E 2017E 2018E 2019E 2020E (TB
Slide 24: Financial Strength
Financial Strength 24 Since 2010, Cheniere has executed $15B+ in corporate and project level financings • ~$5.0B in equity capital • ~$10.5B in debt capital Multiple sources of capital available Demonstrated ability to raise capital, multiple options available As of June 30, 2014 CQP Other Cheni
Slide 25: Cheniere's Debt Summary
Cheniere’s Debt Summary As of August 2014 25 Cheniere Energy, Inc. (NYSE: LNG) Cheniere Energy Partners, L.P. (NYSE: CQP) Sabine Pass LNG, L.P. (SPLNG) BG SPA (286.5 million MMBtu / yr) Gas Natural SPA (182.5 million MMBtu / yr) KOGAS SPA (182.5 million MMBtu / yr) GAIL SPA (182.5 million MMBtu / yr
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Slide 27: Appendix
CHENIERE = Appendix =
Slide 28: Operating Assets
Operating Assets 28 Sabine Pass LNG Terminal (SPLNG) Creole Trail Pipeline
Slide 29: Contracted Capacity at SPLNG
Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) 29 Long-term, 20 year “take-or-pay” style commercial contracts ~$253MM annual fixed fee revenue Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fe
Slide 30: Creole Trail Pipeline
Creole Trail Pipeline Current Facility Receipt capacity from SPLNG: 2.0 Bcf/d Diameter: 42-inch; Length: 94 miles Delivery Points: NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, Trunkline No compression Pipeline Modifications Delivery capacity to SPLNG: 1.5 Bcf/d Receipt points: TETCO, Tru
Slide 31: LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks
LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks 31 Hoover Dam Hong Kong Int’l Airport San Francisco Rapid Transit Source: Bechtel. Bechtel was the EPC contractor for the regasification project at the Sabine Pass LNG terminal, which was constructed on time and on budget Proven c
Slide 32: Global LNG Supply & Demand
Global LNG Supply & Demand 2013 Global LNG Capacity: ~38 Bcf/d Natural Gas Oil Products LNG Importers - Price Indexation Japan Crude Cocktail 2013 Global LNG Demand: ~31 Bcf/d No r th Ame r ica S outh Ame r ica E u r ope A sia 4.7 1.3 1.4 24 A ust r alia - 3.4 B r unei - 1.0 Indonesia - 4.2 M al a y
Slide 33: Firm Liquefaction Capacity Additions
0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019 Firm Liquefaction Capacity Additions (Bcf/d) 33 Asia Pacific Atlantic Basin Bcf/d Nameplate Liquefaction Capacity ~ 38 Bcf/d as of YE
Slide 34: Multiple Local Pipeline Interconnections Provide Several Options for Access to Natural Gas Supply
Multiple Local Pipeline Interconnections Provide Several Options for Access to Natural Gas Supply 34 Targa Columbia Gulf Tennessee Cheniere Creole Trail Pipeline Trunkline Kinder Morgan Louisiana Pipeline NGPL Texas to Louisiana (bi-directional) Transco TETCO Tennessee FGT ) Existing Pipeline Grid T
Slide 35: Cheniere Marketing SPA Example
Cheniere Marketing SPA Example Annual Profit from 2 mtpa 35 Assumptions $5 Henry Hub Price $15 LNG sales price, delivered at terminal 6% loss of gas on the vessel Cheniere vessels: $84,000 per day average charter rate Port / Canal costs: $900,000 per voyage 1 incremental vessel needed at
Slide 36: Conversion of Class B and Subordinated Units
Conversion of Class B and Subordinated Units 36 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 f
Slide 37: Pro Forma CQP Ownership
Pro Forma CQP Ownership 37 Current common unit annualized distribution expected to be $1.70/unit (2) Class B units accrete 3.5% quarterly until converted into common units (1) Unit amounts are current units outstanding, including Blackstone’s total investment of $1.5B but excluding accretion of
Slide 38: Investor Relations Contacts
Randy Bhatia: Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Christina Burke: Manager, Investor Relations – (713) 375-5104, christina.burke@cheniere.com Investor Relations Contacts
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