NextDecade Corporation · NASDAQ:NEXT
NextDecade — Wells Fargo Securities 16th Annual Pipeline, MLP, and Utility Symposium 2017
19 slides from NextDecade's conference presentation, Dec 6, 2017
Slide 1: Corporate Presentation
Corporate Presentation Wells Fargo Securities 16th Annual Pipeline, MLP, and Utility Symposium December 6-7, 2017 NASDAQ NEXT
Slide 2: Disclaimer and Forward Looking Statements
Disclaimer and Forward Looking Statements This Presentation includes forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this Presentation, including statements regarding the future re
Slide 3: Introduction
Introduction NextDecade is a liquefied natural gas development company focused on LNG export projects and associated pipelines in the State of Texas (USA) 2
Slide 4: NextDecade: Innovation and Opportunity
NextDecade: Innovation and Opportunity Members of NextDecade’s management team have a record of successful LNG project development and marketing, including: 11 10 FSRU Projects 10 9 including Regasification Liquefaction Pipeline 8 New-Build Terminals Terminals Projects FSRU Vessels 3
Slide 5: Experienced Leadership Team
Experienced Leadership Team KATHLEEN MATT EISBRENNER SCHATZMAN Chairman & CEO President RENÉ BEN ALFONSO VAN VLIET ATKINS PUGA Chief Operating Officer Chief Financial Officer Chief Commercial Officer 4
Slide 6: Leading the NEXT Wave of LNG
Leading the NEXT Wave of LNG EXPERIENCED Members of the management team have experience developing and marketing LEADERSHIP TEAM some of the most successful projects across the global LNG value chain. LOW-COST, NextDecade selected proven and widely utilized liquefaction technology (APCI-, C3MRTM), c
Slide 7: Rio Grande LNG & Rio Bravo Pipeline
Rio Grande LNG & Rio Bravo Pipeline Location/Site • Brownsville, Texas, USA • 984-acre site optimally located in the Port of Brownsville ANADARKO FAYETTEVILLE • Owned by Brownsville Navigation District for Industrial Development Capacity • 27 mtpa PERMIAN BARNETT HAYNESVILLE Trains • 6 x 4.5 mtpa ea
Slide 8: LNG Market Overview: Demand Growth
LNG Market Overview: Demand Growth ▪ Market expected to face a supply shortfall in the next 5-10 years ▪ Demand Growth from 2014 to 2025: › 5.48% CAGR (base case) › 7.48% CAGR (upside case) ▪ According to GIIGNL, global LNG demand growth was 7.5% in 2016 ▪ The global LNG market will need at least 15
Slide 9: Significant Demand Growth by 2025
Significant Demand Growth by 2025 Global LNG Demand Growth Expected to Continue Rising 600 526 500 98 98 New FIDs 150+ Needed 400 44 44 300 146 384 // Demand CAGR 200 ~ 375 Upside Case 526 mtpa 7.48% 238 100 Base Case 428 mtpa 5.48% 0 2014 Established Player Emerging Upside 2025 2025 Demand Growth D
Slide 10: Projections: Top Markets by Volume
Projections: Top 20 Markets by Volume Rank (2025) Country 2000 2010 2015 2020 2025 2030 1 Japan 53.29 69.88 85.01 74.47 70.38 67.80 2 China 0.00 9.40 19.66 60.75 67.42 78.57 3 India 0.00 8.84 14.72 34.86 38.93 43.19 4 South Korea 15.12 32.91 33.36 32.38 33.02 39.42 5 United Kingdom 0.00 13.68 9.56 1
Slide 11: LNG Contract Roll-Off: Volume by Year (mtpa)
LNG Contract Roll-Off: Volume by Year (mtpa) Through 2023, 80 mtpa of demand (and 190 mtpa through 2030) is expected to free up as legacy contracts expire and customers look to switch to U.S. LNG providers. We believe NextDecade is well- positioned to capitalize on these anticipated roll-off volumes
Slide 12: FSRUs: Enabling Several New Markets
FSRUs: Enabling Several New Markets FSRUs present a valuable opportunity to access developing and/or underserved LNG markets, including those seeking LNG to replace declining gas reserves.* NextDecade can leverage that opportunity with their management team’s FSRU experience – a source of competitiv
Slide 13: Portfolio Growth: Opportunities & Differentiators
Portfolio Growth: Opportunities & Differentiators NextDecade is a portfolio company that has significant prospects for growth through various incremental opportunities and differentiators. While the management team remains focused on advancement and development of NextDecade’s Rio Grande LNG facilit
Slide 14: Comparison: U.S. Reserve Basins
Comparison: U.S. Reserve Basins Permian production costs are among the lowest across U.S. basins, providing ample scope to absorb transport costs from Waha to Agua Dulce. Gas Breakeven* Rank Play $/mmbtu 1 Permian - Midland $(6.31) 2 Permian - Delaware (2.69) 3 Eagle Ford (0.31) 13 4 Permian - Alpin
Slide 15: Permian Basin: A World-Class Reserve Base
Permian Basin: A World-Class Reserve Base The Permian Basin saw nearly $30 billion of M&A activity in 2016, approximately half of all U.S. upstream M&A activity showcasing elevated interest among producers. Drilling and Completion (D&C) spending in the Basin is expected to more than double (YoY) by
Slide 16: Gas Takeaway Capacity from West Texas
Gas Takeaway Capacity from West Texas Expansion Projects From Permian Basin/Waha to Agua Dulce: • Kinder Morgan, DCP, Targa: 1.9 Bcf/day Gulf Coast Express • NAmerico – 1.5 Bcf/day Pecos Trail • Energy Transfer – 1.5 Bcf/day Waha Express • NextEra – 1.5 Bcf/day Republic Pipeline Waha Katy Henry Hub
Slide 17: Summary
Summary The global LNG market is expected to exceed 500 mtpa in the next decade, and multiple new project FIDs are required to close an anticipated supply shortfall. Particularly in the current macroeconomic and geopolitical environment, the United States is the next export country of choice. The Pe
Slide 18: Contact
Contact COMMUNICATIONS Ward CC (for NextDecade) 5959 West Loop South, Suite 510 Bellaire, Texas 77401 USA Molly LeCronier, Vice President T: + 1 (713) 869 0707 | E: [email protected] INVESTORS AND CORPORATIONS NextDecade Corporation 3 Waterway Square Place, Suite 400 The Woodlands, Texas 77380 U
Slide 19: Experienced Management Team; Low-Cost, Reliable, Proven Design
✓ Experienced Management Team ✓ Low-Cost, Reliable, Proven Design ✓ Strong Technical, Legal, and Financial Partners ✓ Advantageous Location and Access to Gas Supply ✓ Flexible Business Model and Contract Structures ✓ Advanced Regulatory Status and Outlook ✓ Highly Visible at National and Local Level
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