38 slides from Cheniere Energy Partners, Lp's investor presentation, Oct 20, 2015
Slide 1: Cheniere Energy, Inc. October 2015
October 2015 Cheniere Energy, Inc.
Slide 2: Forward Looking 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 amended. All statements, oth
Slide 3: Executing on Strategy
Executing on Strategy 2025 Forecast for CEI Flexible, Scalable, industry- leading platform $50B+ ~60 mtpa LNG by 2025 One of the largest natural gas buyers in the U.S. ~9 Bcf/d Supporting over 200,000 indirect jobs ~1,000 permanent jobs created One of the largest exporters of LNG on a global basis ~
Slide 4: Cheniere's Key Businesses
Cheniere’s Key Businesses Four planned LNG terminals to be located along Gulf of Mexico ~60 mtpa planned Scalable platform SPL T1-5 and CCL 1- 2 underpinned by long-term contracts, competitive capital costs LNG sales, FOB or DES, provided to customers on a short, mid, and long-term basis
Slide 5: Projected Global LNG Demand
Projected Global LNG Demand 436 mtpa by 2025 22 19 23 2015 2020 2025 2015 2020 2025 6 10 17 2015 2020 2025 2015 2020 2025 Americas Asia Middle East/N. Africa 184 260 305 31 78 92 Europe Source: Wood Mackenzie Q3 2015 LNG Tool (1) Assumes 85% utilization of nameplate capacity Demand forecasted to inc
Slide 6: U.S. Expected To Become One of the Top Three LNG Suppliers
U.S. Expected To Become One of the Top Three LNG Suppliers Projected LNG Liquefaction Capacity 2014 Global LNG Liquefaction Capacity: ~37 Bcf/d 6 United States 77 mtpa 68 mtpa Qatar Source: Wood Mackenzie Q3 2015 Cheniere 2014 2025 2014 2025 2014 2025 MEG MEG Rest of World Includes Existing and Unde
Slide 7: Cheniere LNG Platform
Cheniere LNG Platform Sabine Pass Liquefaction TX LA Creole Trail PL Sabine Pass Liquefaction • 6 train development – 27 mtpa (~3.8 Bcf/d in export capacity) • Trains 1-5 are under construction; First LNG expected in late 2015 • Train 6 under development, FID expected 2015/16 Corpus Christi Liquefac
Slide 8: Aerial View of SPL Construction – August 2015
Aerial View of SPL Construction – August 2015 Train 1 Train 3 Train 4 Propane Condenser Area T2 Ethylene Cold Box T2 Methane Cold Box Train 2 Air Coolers T1 Methane Cold Box T1 Ethylene Cold Box T3 Ethylene Cold Box T3 Methane Cold Box Train 5 T5 Soil Stabilization Train 6 Under Development
Slide 9: Cheniere LNG Portfolio Summary
Forecast Cheniere LNG Portfolio Summary Approximately 87% of LNG volumes for trains under construction are underpinned with LT SPAs, cash flows support current project debt of $21.5B 20-year LT SPAs with investment-grade counterparties For the balance of LNG volumes, long-term contracts are no
Slide 10: Cheniere's LNG Export Projects Underpinned with Attractive SPA Features
Cheniere’s LNG Export Projects Underpinned with Attractive SPA Features 10 Proven record of execution; proven technology SPAs feature parent guarantees & HH + fixed fee (no price reopeners) Cheniere LNG SPAs: LNG price tied to Henry Hub, destination flexibility, upstream gas procurement services, no
Slide 11: Cheniere Offers Competitive, Low Cost Source of LNG
$7.7 $9.5 $12.0 $14.0 $14.5 $13.0 $8.4 $11.5 $13.0 $16.0 $17.0 $18.5 $5 $10 $15 $20 Cheniere Gulf Coast West Africa Western Canada Northwest Australia East Africa Southeast Asia LN G p rice s ($ /M MBt u) Cheniere Offers Competitive, Low Cost Source of LNG The U.S. is one of the lowest cost natura
Slide 12: CEI Cash Flow Build Up
($ in billions, except for per share amounts) Corpus Christi (CCL T1-2) Total CEI standalone CEI cash flow build up (2021 estimated amounts) Project EBITDA / Deconsolidated for standalone $3.0 $1.3 $4.3 $2.3 Less: Project-level interest expense ($1.0) ($0.5) ($1.5) ($0.5) Distributable cash flow fro
Slide 13: Estimated Market Prices Profitable for Cheniere LNG Projects
Estimated Market Prices Profitable for Cheniere LNG Projects 13 As shown in sensitivity table above, Cheniere can profitably sell LNG into key demand centers even in periods of lower market prices If LNG prices remain at lower levels, we would expect LNG demand to increase, thus signaling the ne
Slide 14: CEI EBITDA Build Up – Europe $7.50 / Asia $8.75
($ in billions, except for per share amounts) Run-rate scenarios from 2021E to 2025E 7 trains (2021E) 9 trains (2021E) 11 trains (2023E) 11 trains,LO&LLNG (2025E) SPL T1-5/6 and SPLNG via GP/IDR and CQH $1.1 $1.3 $1.3 $1.3 Management fees $0.1 $0.1 $0.1 $0.2 Mid-scale LNG – – – $1.2 CCL T1-2/3/5 $1.
Slide 15: CEI EBITDA Build Up – Europe $9.50 / Asia $10.75
($ in billions, except for per share amounts) Run-rate scenarios from 2021E to 2025E 7 trains (2021E) 9 trains (2021E) 11 trains (2023E) 11 trains,LO&LLNG (2025E) SPL T1-5/6 and SPLNG via GP/IDR and CQH $1.1 $1.3 $1.3 $1.3 Management fees $0.1 $0.1 $0.1 $0.2 Mid-scale LNG – – – $2.3 CCL T1-2/3/5 $1.
Slide 16: CEI EBITDA Build Up – Europe $11.50 / Asia $12.75
($ in billions, except for per share amounts) Run-rate scenarios from 2021E to 2025E 7 trains (2021E) 9 trains (2021E) 11 trains (2023E) 11 trains,LO&LLNG (2025E) SPL T1-5/6 and SPLNG via GP/IDR and CQH $1.1 $1.3 $1.3 $1.3 Management fees $0.1 $0.1 $0.1 $0.2 Mid-scale LNG – – – $3.4 CCL T1-2/3/5 $1.
Slide 17: Gas Procurement Sabine Pass Terminal
Gas Procurement Sabine Pass Terminal Securing feedstock for LNG production with balanced portfolio approach • To date, have entered into term gas supply contracts with producers under 1-7 year contracts • Supply contracts cover ~50% of the required daily load for Trains 1-4 at Sabine Pass • Pricin
Slide 18: Gas Procurement Corpus Christi Terminal
Shale Plays Basins Source: Lippman Consulting, Baker Hughes and Bentek, as of January 2014 NGPL Tennessee Gas HPL KM Tejas Oasis Enterprise Permian Basin Barnett Granite Wash Eagle Ford Haynesville Marcellus / Utica Corpus Christi Woodford Gas Procurement Corpus Christi Terminal CCL contracting lon
Slide 19: Cheniere Marketing
Cheniere Marketing Scale up for > 10 mtpa including LNG purchases from Cheniere terminals and other places Buyers & sellers of LNG cargoes SPAs with SPL and CCL for all LNG volumes not sold to 3rd parties Chartered 3 LNG vessels for deliveries in 2015 and 2016 (1st vessel received June 2015)
Slide 20: Future Developments
Future Developments Horizontal / Vertical Integration Total focus on cash flow per share as guiding metric for future investments Announced brownfield expansion at Corpus Christi and mid-scale LNG investment Significant revenue expected starting in 2016 Cheniere core competencies, scale, and first-m
Slide 21: Appendix
CHENIERE = Appendix
Slide 22: Investing in Cheniere – Summary Organization
Investing in Cheniere – Summary Organization 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 Mark
Slide 23: Cheniere's Debt Summary
Cheniere’s Debt Summary As of October 2015 Cheniere Energy, Inc. (NYSE MKT: LNG) Cheniere Energy Partners, L.P. (NYSE MKT: CQP) Sabine Pass LNG, L.P. (SPLNG) Total TUA (1 Bcf/d) Chevron TUA (1 Bcf/d) SPL TUA (2 Bcf/d) Sr Secured Notes $1,666 due 2016 (7.50%) $420 due 2020 (6.50%) ($ in millions)
Slide 24: Conversion of Class B and Subordinated Units
Conversion of Class B and Subordinated Units 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 for
Slide 25: Sabine Pass Liquefaction – Brownfield LNG Export Project
Sabine Pass Liquefaction –– Brownfield LNG Export Project Utilizes Existing Assets, Trains 1-5 Under Construction Significant infrastructure in place including storage, marine and pipeline interconnection facilities; pipeline quality natural gas to be sourced from U.S. pipeline network Design produc
Slide 26: SPL Estimated Cash Flows Trains 1-5 and Trains 1-6
SPL estimated cash flows ($ in billions) SPL Trains 1-5 SPL Trains 1-6 Long term SPAs $2.9 $3.2 CMI SPA payment (1) $0.4 $0.9 Commodity payments, net(2) $0.3 $0.4 Total SPL revenues $3.6 $4.4 SPLNG TUA payments(3) ($0.4) ($0.4) Plant O&M ($0.3) ($0.3) Plant maintenance capex (4) ($0.2) ($0.2) Pipeli
Slide 27: SPL Construction Completion Schedules
SPL Construction Completion Schedules Trains 1 – 5 Stage 1 (Trains 1&2) overall project progress as of September 2015 is 95.2% complete vs. Target Plan of 97.5%: Engineering, Procurement, Subcontracts and Construction are 100%, 100%, 82.2% and 91.5% complete against Target Plan of 99.8%, 100%, 87.
Slide 28: LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction
LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction (1) BG has agreed to purchase 182,500,000 MMBtu, 36,500,000 MMBtu, 34,000,000 MMBtu and 33,500,000 MMBtu of LNG volumes annually upon the commencement of operations of Trains 1, 2, 3 and 4, respectively. Total has agreed to purchase 91
Slide 29: Corpus Christi Liquefaction Project
Corpus Christi Liquefaction Project 29 Proposed 5 Train Facility >1,000 acres owned and/or controlled 2 berths, 4 LNG storage tanks (~13.5 Bcfe of storage) Key Project Attributes 45 ft. ship channel 14 miles from coast Protected berth Premier Site Conditions 23-mile 48” and 42” parallel
Slide 30: CCL Estimated Cash Flows Trains 1-2 and Trains 1-3
CCL estimated cash flows ($ in billions) CCL Trains 1-2 CCL Trains 1-3 Long term SPAs $1.4 $1.9 CMI SPA payment(1) $0.2 $0.5 Commodity payments, net(2) $0.1 $0.1 Total CCL revenues $1.7 $2.5 Plant O&M ($0.2) ($0.2) Plant maintenance capex (3) ($0.1) ($0.1) Pipeline costs (primary plant and upstream
Slide 31: Corpus Christi Liquefaction Project Schedule
Corpus Christi Liquefaction Project Schedule Stage 1 (Trains 1&2) overall project progress as of September 2015 is ahead of target: Engineering, Procurement, and Construction has progressed to 82.0%, 32.0%, and 0.4% compared to a plan of 77.1%, 21.5%, and 0.9% respectively. NTP issued, construct
Slide 32: Corpus Christi Liquefaction SPAs
PT Pertamina (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Woodside Energy Trading Électricité de France EDP Energias de Portugal S.A. Annual Contract Quantity (TBtu) 79.36 117.32 39.68 78.20 44.12 40.00 40.00 Annual Fixed Fees (1) ~$278 MM ~$411 MM ~$139 MM ~$274 MM ~$154 MM ~$140 MM ~$14
Slide 33: Timeline & Milestones
Timeline & Milestones Target Date SPL Corpus Christi Milestone T1-4 T5-6 T1-3 T4-5 Initiate permitting process (FERC & DOE) Commercial agreements T5 T6: 2015/16 T1-T2 T3: 2015/16 2016/2017 EPC contract T5 T6: 2015/16 2016/2017 Financing commitments T5 T6: 2015/16 20
Slide 34: Live Oak and Louisiana Liquefaction Projects
Live Oak and Louisiana Liquefaction Projects1 34 Live Oak LNG Facility Overview 340 acres on the Calcasieu Channel, just north of Calcasieu Lake ~5 mtpa development 1 berth, 2 LNG storage tanks Project Update FERC pre-filing expected in 2015 First LNG expected 2021 Louisiana LNG Facility O
Slide 35: Applications Filed with FERC for Liquefaction Projects
Applications Filed with FERC for Liquefaction Projects Continental U.S. LNG Export Projects Quantity Bcf/d FERC Pre-filing Date FERC Application Date FERC Scheduling Notice Issued EIS / EA Scheduled Date for EIS or EA FERC Approval DOE Non FTA Final Under Construction Sabine Pass Liquefaction T1-4 2
Slide 36: 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 T
Slide 37: Slide 37
Slide 38: Investor Relations Contacts
Randy Bhatia: Director, Finance and Investor Relations – (713) 375-5479, randy.bhatia@cheniere.com Katy Cox: Senior Analyst, Investor Relations – (713) 375-5079, katy.cox@cheniere.com Investor Relations Contacts