Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Investor Presentation (January 2008)

35 slides from Cheniere Energy's investor presentation, Jan 22, 2008

  1. Slide 1: Cheniere Energy, Inc. January 2008

    Slide: 1 Title: January 2008 CHENIERE ENERGY, INC. (Gp:) *Corpus Christi LNG, LLC Cheniere Energy, Inc. 100% *Artist’s Rendition (Gp:) *Creole Trail LNG, L.P. Cheniere Energy, Inc. 100% *Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% * Sabine Pass LNG, L.P. Cheniere Energy Partners, L.P. C

  2. Slide 2: Forward-looking statements

    Slide: 2 Body: 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 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements, other than stat

  3. Slide 3: Cheniere Marketing, Asset Development, Partnership Interests

    Slide: 3 Cheniere Marketing Asset Development Partnership Interests Sabine Pass LNG 4.0 Bcf/d LNG Terminal Cheniere Energy Partners, L.P. (AMEX:CQP) 90.6% Interest (GP & LP units) Creole Trail LNG Terminal Creole Trail Pipeline Corpus Christi LNG Terminal Freeport LNG Development, L.P.(Freeport LNG

  4. Slide 4: Freeport LNG Development, L.P.

    Slide: 4 Title: Freeport LNG Development, L.P. Cheniere Energy, Inc. 30% Freeport LNG Construction Site August 2007 Body: Send-out capacity of 1.5 Bcf/d TUA Contracts totaling 1.55 Bcf/d Conoco 0.90 Bcf/d Dow 0.50 Bcf/d Mitsubishi 0.15 Bcf/d Facility ownership: Cheniere (30%), M. Smith (45%), Contan

  5. Slide 5: Cheniere Energy Partners, L.P. (AMEX: CQP)

    Slide: 5 Title: Cheniere Energy Partners, L.P. (AMEX: CQP) Sabine Pass LNG, L.P. Cheniere Energy, Inc. 90.6% Sabine Pass Construction Site – January 2008 Body: 4 Bcf/d capacity contracted at Sabine Pass facility resulting in annual revenues of approximately: ~$256 MM from CVX and Total ~$256 MM from

  6. Slide 6: Sabine Pass and Creole Trail Pipeline Interconnects

    Slide: 6 Sabine PL Targa Transco Gulf South Trunkline Jefferson Island Storage Sabine Pass LNG Terminal Phase I – 2Q 2008 Phase II – 2Q 2009 Creole Trail LNG Terminal Henry Hub Varibus NGPL Transco Bridgeline Tennessee Florida Gas Creole Trail Pipeline* Liberty Storage Starks Storage Hackberry Stora

  7. Slide 7: Next Generation of Terminals

    Slide: 7 Title: Next Generation of Terminals Including Some Terminals Under Construction Body: Higher construction costs: ~ $1 billion for 1 Bcf/d Utilization constraints: Operational: Marine access Pipeline takeaway Storage Market size and access Affects regional price basis Seasonality Regas hurdl

  8. Slide 8: Cheniere Energy Partners Growth Projects

    Slide: 8 Title: Cheniere Energy Partners Growth Projects Body: Fuel Efficiency Projects at Sabine Pass LNG Maximizes plant fuel efficiency using waste heat recovery and ambient air technology Customers charged 2% fuel retainage fee Projects expected to reduce fuel usage by 50% to 75% Actual savings

  9. Slide 9: Cheniere Southern Trail Pipeline map

    Slide: 9 Dq SESH - Lucedale SONAT Gulf South FGT 11 Tennessee Dequincy TGC, TETCO, Transco 45, Sempra, Liberty Storage Cheniere Sabine Pass LNG Johnson Bayou NGPL, Bridgeline, SWLateral TETCO FGT Tennessee (Gp:) Scale - Approximate (Gp:) 0 (Gp:) 40 (Gp:) 60 miles (Gp:) 20 FGT 9 LIG Cheniere Southern

  10. Slide 10: Value Drivers

    Slide: 10 Value Drivers Future Growth in MLP Assets Corpus Christi LNG terminal Creole Trail LNG terminal Future Acquisitions Cheniere Marketing Validates value of subordinated units Intrinsic value of Marketing operations

  11. Slide 11: North America Onshore Regasification Capacity By 2010

    Slide: 11 Everett Cove Point Elba Island Lake Charles Sabine Pass Freeport Golden Pass Cameron Costa Azúl Canaport Existing Under Construction Altamira Source: Websites of Terminal Owners, Wood Mackenzie Limited, Poten & Partners Title: North America Onshore Regasification Capacity By 2010 15.8 Bcf/

  12. Slide 12: LNG Fundamentals; Value of Marketing

    Slide: 12 LNG Fundamentals Value of Marketing

  13. Slide 13: New Liquefaction Competes for Market Share

    Slide: 13 Title: New Liquefaction Competes for Market Share Source: CERA, 2006 Atlantic Basin 12 Bcf/d ME Gulf 11 Bcf/d Asia Pacific 13 Bcf/d 2005 Europe 4.7 Bcf/d 2005 12.3 Bcf/d 2005 NA 1.8 Bcf/d (Gp:) 2010 Liquefaction Capacity (Gp:) 2005 Consumption 5 15 25 35 45 36 23 24 26 30 35 Bcf/d Liquefac

  14. Slide 14: 2010 Annual Balance - Bcf/d

    Slide: 14 Title: 2010 Annual Balance - Bcf/d Global Liquefaction Capacity 36 Estimated LNG Delivery @ 90% 32 Asian Consumption <~16> European Consumption <~ 6> Remaining for North America ~10 Source: Cheniere Research

  15. Slide 15: Constraint is not Regasification but Natural Gas Consumption

    Slide: 15 Title: Constraint is not Regasification but Natural Gas Consumption Source: GIIGNL; Waterborne LNG; Cheniere Research Regasification is built for peak utilization because of seasonal variations Bcf/d Asia Europe North America

  16. Slide 16: Demand Seasonality will Impact Flows

    Slide: 16 Title: Demand Seasonality will Impact Flows Source: IEA 2006 Demand 0 5 10 15 20 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Belgium Spain France UK US GC Bcf/d

  17. Slide 17: Pipeline Competition in Europe

    Slide: 17 Title: . . . and Pipeline Competition in Europe . . . Transatlantic LNG Deep and liquid market with large storage and summer peak demand will balance global LNG supply Pipeline gas supply into Europe will compete to push LNG to higher value markets. (Gp:) New Pipeline (Gp:) Existing Pipeli

  18. Slide 18: More LNG is Becoming Flexible

    Slide: 18 1.5 1.5 1.5 1.5 1.8 1.8 1.8 1.6 0.5 0.5 0.5 0.5 2.0 2.0 2.0 2.0 0.4 0.4 0.4 0.4 1.3 2.3 4.9 0.2 0.2 0.2 0.3 9.2 11.7 7.9 6.6 - 2 4 6 8 10 12 2007 2008 2009 2010 Bcf/d Nigeria Yemen Qatar Oman Abu Dhabi Trinidad Norway Eq. Guinea Egypt Algeria Title: . . . Means More LNG is Becoming Flexibl

  19. Slide 19: NYMEX vs. NBP – January 17, 2008

    Slide: 19 Title: NYMEX vs. NBP – January 17, 2008 Historical Data Futures as of 1/17/08

  20. Slide 20: NYMEX vs. NBP – August 6, 2007

    Slide: 20 Title: NYMEX vs. NBP – August 6, 2007 Historical Data Futures as of 08/06/07

  21. Slide 21: NYMEX vs. NBP – January 16, 2007

    Slide: 21 Title: NYMEX vs. NBP – January 16, 2007 Historical Data Futures as of 1/16/07

  22. Slide 22: NYMEX vs NBP - September 21, 2006

    Slide: 22 Title: NYMEX vs NBP - September 21, 2006 Historical Data Futures as of 9/21/06

  23. Slide 23: European Storage: 2007 vs 5yr Avg

    Slide: 23 Title: European Storage: 2007 vs 5yr Avg * Figures represent PIRA’s projections 0 10 20 30 40 50 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bcm 5 yr Avg 2007 Total

  24. Slide 24: European Storage by Country

    Slide: 24 Title: European Storage by Country * Figures represent PIRA’s projections 0 5 10 15 20 25 30 35 40 Bcm End of 2007 vs 5 yr Avg End of Dec 15.6 9.2 6 1.5 3.8 3.9 39.98 5 yr Avg 15.8 7.4 5.7 1 1.8 3.8 35.43 Germany France Italy Spain Austria U.K. Total

  25. Slide 25: European Gas Storage Inventory

    Slide: 25 307 73% 143 72% 196 64% 101 67% 204 66% 241 65% Draw in the 2nd week of Jan mostly in Baumgarten (14%) and Iberian market area (6%) Title: European Gas Storage Inventory - Bcf *Inventory as of Jan 14, 2008 Source: GSE 1/14/08

  26. Slide 26: Worldwide Liquefaction Capacity

    Slide: 26 Title: Worldwide Liquefaction Capacity Source: GIIGNL; Poten, Cheniere Research 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 2004 2005 2006 NLNG T6 Snohvit RG T5 Eq. Guinea Bcf/d

  27. Slide 27: Liquefaction - Growth

    Slide: 27 Title: Liquefaction - Growth (Gp:) Worldwide Liquefaction (Gp:) - (Gp:) 5 (Gp:) 10 (Gp:) 15 (Gp:) 20 (Gp:) 25 (Gp:) 30 (Gp:) 35 (Gp:) 40 (Gp:) 45 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4 (Gp:) Q1 (Gp:) Q2 (Gp:) Q3 (Gp:) Q4

  28. Slide 28: Worldwide Liquefaction Utilization

    Slide: 28 Title: Worldwide Liquefaction Utilization Source: Poten, Cheniere Research (Gp:) 0% (Gp:) 10% (Gp:) 20% (Gp:) 30% (Gp:) 40% (Gp:) 50% (Gp:) 60% (Gp:) 70% (Gp:) 80% (Gp:) 90% (Gp:) 100% (Gp:) 110% (Gp:) 120% (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp

  29. Slide 29: Europe – Total LNG Imports

    Slide: 29 Title: Europe – Total LNG Imports Source: Poten, Cheniere Research (Gp:) 0 (Gp:) 1 (Gp:) 2 (Gp:) 3 (Gp:) 4 (Gp:) 5 (Gp:) 6 (Gp:) 7 (Gp:) 8 (Gp:) 9 (Gp:) 10 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (Gp:) 2007 (Gp

  30. Slide 30: Asia – Total LNG Imports

    Slide: 30 Title: Asia – Total LNG Imports Source: Poten, Cheniere Research (Gp:) 0 (Gp:) 2 (Gp:) 4 (Gp:) 6 (Gp:) 8 (Gp:) 10 (Gp:) 12 (Gp:) 14 (Gp:) 16 (Gp:) 18 (Gp:) 20 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (Gp:) 2007

  31. Slide 31: North America – Total LNG Imports

    Slide: 31 Title: North America – Total LNG Imports Source: Poten, Cheniere Research (Gp:) 0 (Gp:) 1 (Gp:) 2 (Gp:) 3 (Gp:) 4 (Gp:) 5 (Gp:) Jan (Gp:) Feb (Gp:) Mar (Gp:) Apr (Gp:) May (Gp:) Jun (Gp:) Jul (Gp:) Aug (Gp:) Sep (Gp:) Oct (Gp:) Nov (Gp:) Dec (Gp:) Bcf/d (Gp:) 2007 (Gp:) 2006 (Gp:) 2005

  32. Slide 32: Cheniere Marketing Strategy

    Slide: 32 1 Bcf/d by 2010 12 Bcf/d of undecided gas globally 86% of Henry Hub 94% - 65 cents (GdF transaction) Seek to capture portion of redirect rights Estimate 30 cargoes annually Title: Cheniere Marketing Strategy Term Contracts: Indexed Purchase Agreements (IPA) Spot Market: 1 Bcf/d portion See

  33. Slide 33: Cheniere Growth Strategy

    Slide: 33 Title: Cheniere Growth Strategy Body: Pursue acquisitions for Cheniere Energy Partners, L.P. (AMEX: CQP) Continue asset development: terminals and pipelines Develop a balanced supply portfolio for Cheniere Marketing between long-term IPA’s and LNG Gateway exposure to the spot, option and s

  34. Slide 34: Appendix

    Appendix CHENIERE Aa

  35. Slide 35: Condensed Balance Sheet

    Slide: 35 Title: Condensed Balance Sheet Cheniere Energy Other Cheniere Consolidated Partners, L.P. Energy, Inc. (1) Cheniere Energy, Inc. Unrestricted cash (2) - $ - 447 $ 447 $ Restricted cash and securities 885 45 930 Property, plant and equipment 1,006 393 1,399 Goodwill and other assets 71 170

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