Cheniere Energy, Inc. · NYSE:LNG
Cheniere Energy — FY2019 Earnings Presentation
29 slides from Cheniere Energy's earnings presentation, Feb 25, 2020
Slide 1: Fourth Quarter and Full Year 2019 Conference Call
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG Fourth Quarter and Full Year 2019 Conference Call February 25, 2020
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” 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 amend
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 Michael Wortley Executive Vice President and Chief Financial
Slide 4: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS | Jack Fusco, President and CEO
Slide 5: Fourth Quarter and Full Year 2019 Operating and Financial Highlights
Fourth Quarter and Full Year 2019 Operating and Financial Highlights Reconfirming Full Year 2020 Guidance Operating Highlights Revenues ($ billions, except per unit data) ~430 Cargoes Exported in 2019 Consolidated Adjusted EBITDA $3.8 - $4.1 $9,730 More than 1,500 TBtu $2,383 $3,007 $7,987 Distribut
Slide 6: 2019 Achievements At a Glance
2019 Achievements At a Glance Execution Growth Financial Corpus Christi Liquefaction Increased Run-Rate Production and Guidance Positive Final Investment Decision Old New Train 1 Completed February ($ billions, production mtpa per Train) DFCD Achieved June Sabine Pass Train 6 Production (20-year avg
Slide 7: Prioritizing Corporate Responsibility
Prioritizing Corporate Responsibility Commitment to a Sustainable Future Climate and Sustainability Principles Established Board and executive-level oversight of ESG and sustainability strategy 1. Science We promote and follow peer-reviewed science to Climate & Sustainability Principles adopted in 2
Slide 8: Cheniere: Infrastructure Built on Stable, Long-Term Cash Flows
Cheniere: Infrastructure Built on Stable, Long-Term Cash Flows Long-Lived Business Model Risk Management Contractual position means short-term market volatility has limited impact on results Strategic Long-Term Growth Marketing volume strategic for future growth ~85% Contracted1 On a long-term basis
Slide 9: Commercial Update
COMMERCIAL UPDATE | Anatol Feygin, EVP and CCO
Slide 10: Europe Absorbed Majority of Growth in LNG Supply in 2019
Europe Absorbed Majority of Growth in LNG Supply in 2019 2019 Incremental Global LNG Supply/Demand MT Imports of U.S. LNG by Region MT 2019 vs. 2018 12 MENA 60% 50 LatAm LNG Demand LNG Supply 10 Europe 50% Asia 6.8 8 40% 45 Europe's Share of Total US Flows 6 30% 39.6 40 15.7 ( 1.8 ) 4 20% ( 2.8 ) Ot
Slide 11: 2019 Asia LNG Demand Growth Driven by S & SE Asia
2019 Asia LNG Demand Growth Driven by S & SE Asia MT Asia Annual LNG Imports YoY Change MT South & Southeast Asia LNG Imports $/MMBtu 28.5 16 12 30 13.5 14.0 23.1 14 12.5 25 11.2 11.0 10 12 10.6 10.5 20 9.5 15.9 8 10 15 11.9 8 6 10.7 9.2 10 6.9 5.9 7.0 6.4 6.2 6.8 7.9 6 4 4.2 5 4 2 2 0 2016 2017 201
Slide 12: European LNG Imports Increased to New Record Level in 4Q 2019
European LNG Imports Increased to New Record Level in 4Q 2019 LNG Imports in Europe Europe Week-End Storage Level YoY Change in EU 28 Power Generation MT % Full TWh (2019 vs 2018) 10 100 100 43.2 73.5 9 90 0.9 50 54.3 8 80 9.5 0 7 70 (21.5) (5.9) (11.4) (48.8) 6 60 (50) (56.0) 5 50 (100) (100.7) 4 4
Slide 13: Financial Update
FINANCIAL UPDATE | Michael Wortley, EVP and CFO
Slide 14: Fourth Quarter and Full Year 2019 Results
Fourth Quarter and Full Year 2019 Results Summary Results Highlights Three Primary Financial Priorities for 2019 ($ millions, except per share and LNG data) 4Q 2019 3Q 2019 2019 2018 Revenues $3,007 $2,170 $9,730 $7,987 72% of LNG volumes recognized in income in 4Q 2019 (2) Income from Operations $1
Slide 15: Full Year 2020 Financial Guidance and Outlook
Full Year 2020 Financial Guidance and Outlook Full ThreeYear 2020 Financial Primary GuidancePriorities for 2019 2020 ThreeOutlook Primary Financial Priorities for 2019 ($ billions, except per unit data) Reiterate 2020 financial guidance originally issued November 2019 Consolidated Adjusted EBITDA $3
Slide 16: Committed to Discipline in Capital Investment Decisions
Committed to Discipline in Capital Investment Decisions Growth CapitalFinancial Three Primary Investment Parameters Priorities for 2019 Corpus Christi Stage 3 Unlevered payback 10 years on fixed-fee contracted basis Steps remaining to reach positive Final Investment Decision: Secure Sufficient Compl
Slide 17: Fourth Quarter and Full Year 2019 Conference Call
CHENIERE ENERGY, INC. CHENIERE ENERGY, INC. NYSE American: LNG Fourth Quarter and Full Year 2019 Conference Call February 25, 2020
Slide 18: Appendix
APPENDIX Uff: if —_— =
Slide 19: Cheniere LNG Exports
Cheniere LNG Exports More Than 1,000 Cargoes (>70 Million Tonnes) Exported from our Liquefaction Projects London, U.K. Washington, DC Beijing, China Tokyo, Japan Houston, TX Singapore MT Cheniere LNG Exports by Destination Region 10 MT 8 6 4 2 0 3Q 4Q 1Q 2Q 3Q 4Q 2018 2019 Sources: Cheniere Research
Slide 20: Building an Industry Leading U.S. LNG Export Platform
Building an Industry Leading U.S. LNG Export Platform Sabine Pass Liquefaction Project ~30 mtpa Total Production Capacity ▪ Trains 1-5 operating, contracts with long-term buyers commenced ▪ Train 6 under construction, est. completion 1H 2023 Corpus Christi LNG Terminal ~15 mtpa Total Production Capa
Slide 21: Integrated Platform Creates Commercial Advantage
Integrated Platform Creates Commercial Advantage Market leading position along the value chain GAS SUPPLY LIQUEFACTION PORTFOLIO OPTIMIZATION Strong relationships, scale and diversity Best-in-class operations, economically- Commercial flexibility and global market difficult to replicate advantaged e
Slide 22: Competitive Differentiators Drive Continued Growth
Competitive Differentiators Drive Continued Growth Over 9 mtpa of long-term deals executed since early 2018 Capitalizing on competitive strengths to provide a differentiated product and underwrite new liquefaction capacity Transaction Features: Liquefaction Capacity ✓ Early Volumes ✓ Delivered Volum
Slide 23: Sabine Pass Liquefaction Update
Sabine Pass Liquefaction Update Total Investment: ~$22B Liquefaction Operations ✓ 5 Trains in operation ✓ Increased production via maintenance optimization and debottlenecking ✓ >900 cargoes produced and exported Growth ✓ Train 6 positive FID May 2019 ▪ Expected completion 1H 2023 ▪ Project completi
Slide 24: Corpus Christi Liquefaction Update
Corpus Christi Liquefaction Update Total Investment: ~$16B Liquefaction Operations ✓ 2 Trains in Operation ✓ Increased production via maintenance optimization and debottlenecking ✓ >100 cargoes produced and exported Growth ✓ Train 3 under construction ▪ Expected completion 1H 2021 ▪ Project completi
Slide 25: Cheniere Corporate Structure
Cheniere Corporate Structure Cheniere Energy, Inc. (NYSE American: LNG) CQP GP Cheniere Corpus Cheniere Marketing (& IDRs) Christi Holdcos(1) Cheniere Energy Corpus Christi Cheniere Corpus Partners, L.P. Liquefaction Christi Pipeline (NYSE American: CQP) Cheniere Creole Sabine Pass Sabine Pass LNG T
Slide 26: Run-Rate Guidance
Run-Rate Guidance 9 Trains (2023) SPL T1-6, ($bn, except per share and per unit amounts or unless otherwise noted) CCL T1-3 CEI Consolidated Adjusted EBITDA $5.2 - $5.6 Less: Distributions to CQP Non-Controlling Interest ($0.9) - ($1.0) Less: CQP Interest Expense / SPL Interest Expense / Other ($1.1
Slide 27: Cheniere Debt Summary
Cheniere Debt Summary Cash Balance: ~$2.5B(1) Cheniere CCH Holdco II, LLC Cheniere Energy, Inc. $1.3B Senior Secured Convertible Notes Cheniere Energy, Inc. $1.4B PIK Convertible Notes due 2021 (4.875%) (NYSE American: LNG) due 2025 $0.63B Convertible Notes due 2045 (4.250%) Cheniere Corpus Christi
Slide 28: Reconciliation to Non-GAAP Measures
Reconciliation to Non-GAAP Measures Regulation G Reconciliations Consolidated Adjusted EBITDA This presentation contains non-GAAP financial measures. Consolidated Adjusted EBITDA, Distributable Cash Flow, Distributable Cash Flow per Share, and The following table reconciles our Consolidated Adjusted
Slide 29: Investor Relations Contacts
CHENIERE ENERGY, INC. INVESTOR RELATIONS CONTACTS Randy Bhatia Vice President, Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Megan Light Director, Investor Relations – (713) 375-5492, megan.light@cheniere.com