Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — Investor Presentation (March 2018)
29 slides from Cheniere Energy's investor presentation, Mar 16, 2018
Slide 1: Cheniere Energy Partners, L.P. Corporate Presentation
1 CHENIERE ENERGY PARTNERS, L.P. CORPORATE PRESENTATION | March 2018 NYSE American: CQP
Slide 2: Safe Harbor Statements
2 Safe Harbor Statements Forward-Looking Statements This presentation contains certain statements that are, or may be deemed to be, “forward-looking statements.” All statements, other than statements of historical or present facts or conditions, included or incorporated by reference herein are “forw
Slide 3: Cheniere Partners Overview
3 CHENIERE PARTNERS OVERVIEW
Slide 4: Cheniere Partners (CQP) Investment Thesis
4 Cheniere Partners (CQP) Investment Thesis Long-term, stable, investment-grade cash flows Long-term “take-or-pay” style commercial agreements (SPAs) with investment grade off-takers for approximately 80-95% of the expected aggregate adjusted nominal production capacity under construction or compl
Slide 5: Near-term distribution growth with line of sight to run rate DCF
5 Note: 2018 Distribution per Unit range is driven by CMI margin assumptions and production. Run rate Distributable Cash Flow per Unit (“DCF per Unit”) range driven by production. Run rate CMI margin assumed at $2.50/MMBtu, before 80/20 profit sharing split with SPL; interest rate at SPL for refinan
Slide 6: Integrated and Complementary CQP Asset Platform
6 Integrated and Complementary CQP Asset Platform Liquefaction (SPL) Trains 1-4 have reached commercial operations Train 5 under construction (84.4% complete) Substantial completion expected 1H 2019 Train 6 is fully permitted and ready to be commercialized, with attractive expansion economic
Slide 7: SPL Cargo Destinations
SPL Cargo Destinations LNG from SPL Has Now Been Delivered to 25 Countries and Regions Across the Globe Approximately 300 Cargoes (~1,050 TBtu) Exported Sources: Cheniere Research, Kpler Note: Cumulative cargoes and volumes exported as of February 2018. 7 Santiago, Chile Cheniere Office Cheniere LNG
Slide 8: CQP's Successful Execution Track Record
CQP’s Successful Execution Track Record 8 Feb 2016 SPL Train 1 produces first LNG May 2016 SPL Train 1 Substantial Completion Sep 2016 SPL Train 2 Substantial Completion Nov 2016 Date of First Commercial Delivery relating to SPL Train 1 under BG SPA Mar 2017 SPL Train 3 Substantial Complet
Slide 9: CQP Organizational Structure and Debt Summary
CQP Organizational Structure and Debt Summary Cheniere Energy Partners, L.P. (NYSE American: CQP) Sabine Pass LNG, L.P. (SPLNG) Sabine Pass Liquefaction, LLC (SPL) Cheniere Creole Trail Pipeline, L.P. (CTPL) Note: This organizational chart is provided for illustrative purposes only, is not and does
Slide 10: Business Update
10 BUSINESS UPDATE
Slide 11: Sabine Pass Liquefaction Project
11 Sabine Pass Liquefaction Project Expansive Site with Significant Infrastructure Located in Cameron Parish, LA 40 ft. ship channel 3.7 nautical miles from coast 2 berths; 4 dedicated tugs 5 LNG storage tanks (~17 Bcfe of storage) 5.3 Bcf/d of pipeline interconnection Liquefaction Trains
Slide 12: Sabine Pass Liquefaction Project Construction Progress
12 Sabine Pass Liquefaction Project Construction Progress Trains 1 through 4 in Operation, Train 5 Expected 2019 Note: Based on Guaranteed Substantial Completion Dates per EPC contract. Construction percentages complete as of January 31, 2018. DFCD Window Current Completion Schedule Progress Guarant
Slide 13: Sabine Pass Liquefaction Project Execution
13 Sabine Pass Liquefaction Project Execution 1 3 Trains 1 - 4 Operational Train 6 Fully Permitted Train 5 Under Construction
Slide 14: LNG Operations
14 LNG Operations Transition Trains from construction to operations management safely, efficiently, and effectively Identify and incorporate lessons learned Cross-functional team working to identify lessons learned Implement improvements and optimize processes across trains and locations Build o
Slide 15: Sabine Pass Facility Gas Supply Transportation
15 Sabine Pass Facility Sabine Pass Liquefaction Gas Supply Transportation into SPL (TBtu/day) Pipeline Contracted Capacity Total Capacity CTPL 1.530 1.530 NGPL 0.550 0.750 Transco 1.200 1.500 KMLP 0.600 1.200 Total 3.880 4.980 Diverse and redundant pipeline network has allowed SPL to reach into a
Slide 16: Sabine Pass LNG
16 Sabine Pass LNG Operational regasification capacity of ~4.0 Bcf/d Aggregate LNG storage capacity of ~16.9 Bcfe Total and Chevron have each reserved ~1.0 Bcf/d of regasification capacity and make monthly capacity payments aggregating ~$250 million per year The remaining 2.0 Bcf/d of capaci
Slide 17: Creole Trail Pipeline
17 Creole Trail Pipeline ~94-mile pipeline which interconnects the SPL terminal with a number of large interstate pipelines including NGPL, Transco, TGPL, FGT, Bridgeline, Tetco, and Trunkline Fully contracted through firm transportation agreement with SPL Placed in service in April 2008, with
Slide 18: LNG Market Outlook
18 LNG MARKET OUTLOOK
Slide 19: Demand Growth Points to Approaching Supply Gap
19 Demand Growth Points to Approaching Supply Gap Source: Cheniere Research, Kpler (1) Includes Norway’s production (4) (2) - 2 4 6 8 10 12 14 Ch in a K o re a T u rk e y S p a in Fr a n c e P a k is ta n Ita ly P o rt u g a l T a iwa n J a p a n T h a ila n d M e x ic o G re e c e M a la y s ia P o
Slide 20: Investment Slowdown to Pressure LNG Expansion
20 Investment Slowdown to Pressure LNG Expansion Source: Cheniere Research, Wood Mackenzie Asian Spot Prices Sustained a Three Year Premium This Winter But LNG Maintained Competitiveness Against Liquid Fuels Slowdown in FIDs Since 2014. But Cheniere Well Placed As Market Turns $0 $2 $4 $6 $8 $10 $12
Slide 21: Strategic Advantages and Growth
21 STRATEGIC ADVANTAGES AND GROWTH
Slide 22: Leveraging Infrastructure and Expertise
22 Leveraging Infrastructure and Expertise Leverage Existing Infrastructure to Enable Competitive, Incremental Liquefaction Capacity Able to leverage existing network to supply incremental gas to feed additional trains • Significant investment in infrastructure – firm pipeline transportation capacit
Slide 23: Incremental LNG Supply Forecast
23 -10 0 10 20 30 40 50 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 mtpa LNG Capacity FID Incremental LNG Supply Forecast Source: Cheniere interpretation of Wood Mackenzie data Note: 2017 FID includes Coral FLNG (3.4 mtpa).
Slide 24: Financial Update
24 FINANCIAL UPDATE
Slide 25: 4Q and Full Year 2017 Financial Highlights
25 4Q and Full Year 2017 Financial Highlights Note: Adjusted EBITDA is a non-GAAP measure. A reconciliation to Net loss attributable to common stockholders, the most comparable U.S. GAAP measure, is included in the appendix. $612 $1,512 4Q 2017 FY 2017 Adjusted EBITDA ($ in millions, volumes in TBtu
Slide 26: CQP Balance Sheet Management
26 CQP Balance Sheet Management SPL rated investment grade by all three major credit ratings agencies Target strong high yield ratings (BB / Ba) for CQP debt No additional debt required to complete 5-Train platform at SPL Back-end equity contribution of ~$2.5B in process and expected to be f
Slide 27: Appendix
27 APPENDIX
Slide 28: Reconciliation to Non-GAAP Measures
28 Reconciliation to Non-GAAP Measures Regulation G Reconciliations In addition to disclosing financial results in accordance with U.S. GAAP, the accompanying news release contains non-GAAP financial measures. Adjusted EBITDA, Distributable Cash Flow and Distributable Cash Flow per Share are non-GAA
Slide 29: Investor Relations Contacts
29 CHENIERE ENERGY PARTNERS, L.P. INVESTOR RELATIONS CONTACTS Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Megan Light Manager, Investor Relations – (713) 375-5492, megan.light@cheniere.com