Cheniere Energy, Inc. · NYSE:LNG

Cheniere Energy — Barclays MLP Corporate Access Day (March 2015)

40 slides from Cheniere Energy's conference presentation, March 2015

  1. Slide 1: Cheniere Energy Barclays MLP Corporate Access Day

    Cheniere Energy Barclays MLP Corporate Access Day March 2015

  2. 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

  3. Slide 3: Executing on Growth Strategy

    Executing on Growth Strategy By 2020: ~40.5 ~10% of the ~6 Bcf/d total LNG market mtpa LNG by 2019/20 One of the largest One of the largest exporters of LNG on natural gas buyers in a global basis the U.S. $30B+ in U.S. ~950 permanent Scalable, infrastructure jobs created industry- leading Significa

  4. Slide 4: Cheniere's Key Businesses

    Cheniere’s Key Businesses LNG GAS CHENIERE FUTURE PLATFORM PROCUREMENT MARKETING DEVELOPMENTS  Two LNG terminals  Providing feedstock  LNG sales, FOB or  Developing/ located along Gulf for LNG production DES, provided to investing in of Mexico customers on a infrastructure to  Redundant pipelin

  5. Slide 5: Cheniere LNG Platform

    Cheniere LNG Platform “Take or pay” contracts are a key value driver, expect ~83% of total nominal production capacity under 20-year, long term contracts Sabine Pass Liquefaction • 6 train development – 27 mtpa ~3.8 Bcf/d in export capacity • Trains 1-4 are under construction; First LNG in late 2015

  6. Slide 6: LNG Platform

    LNG Platform G&A % of CAPEX  Execution Excellence 20% Peer 18% Avg. • Sabine Pass Trains 1-4 remain on 18% 16% 14% 15% 17% 14% budget and ahead of contractual 14% 12% 12% 11% schedule: T1 & T2 project ~83% 10% complete, T3 & T4 project ~57% 8% 6% complete 4% 4% • Maintain ~100 engineers on staff to

  7. Slide 7: Aerial View of SPL Construction – January 2015

    Aerial View of SPL Construction – January 2015 T1 Methane Cold Box Train 3 Train 4 T1 Ethylene Cold Box Compressor Area Train 1 Air Coolers T2 Methane Cold Box T2 Ethylene Cold Box Propane Condenser Area Train 2

  8. Slide 8: SPL Construction – January 2015

    SPL Construction – January 2015 8

  9. Slide 9: Gas Procurement

    Gas Procurement  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 • Pricing averages HH - $0.10

  10. Slide 10: Cheniere Marketing

    Cheniere Marketing Cheniere developing platform for LNG sales to international markets  Scale up for > 7 mtpa including LNG purchases from Cheniere London, U.K. terminals and other places  Buyers & sellers of LNG cargoes  Short, mid, long-term LNG sales on FOB or DES basis Houston, TX Singapore 

  11. Slide 11: Future Developments

    Future Developments Horizontal / Vertical Integration Significant Cash LNG expansion Total focus on Flow starting in most likely the cash flow per 2017 first development share as project beyond guiding metric the current for future 9-Train program investments Cheniere core competencies, scale, and f

  12. Slide 12: Hydrocarbon Growth Story Continues to Evolve in U.S.

    Hydrocarbon Growth Story Continues to Evolve in U.S. However…production may not be as smooth as some predict Forecast 12 Source: EIA STEO Jan. 2015

  13. Slide 13: U.S. Responds To Price Signals Faster Than ROW

    U.S. Responds To Price Signals Faster Than ROW U.S. Shed ~475 Rigs in Just 3 Months U.S. Rig Activity 2,000 $120  Oil rig count -25% since November 1,500 $90  Decelerated faster than 2008 downturn  Horizontal count hit 15-month low 1,000 $60  Vertical units now lowest on record 500 $30  Capex a

  14. Slide 14: Markets Face More Cyclical Volatility

    Markets Face More Cyclical Volatility U.S. LNG projects will have advantage as oil-linked LNG developments expected to be increasingly difficult to sanction in more volatile environment Global Crude Prices  Entering period of more $150 pronounced cyclical volatility in WTI Brent $120 Forecast crude

  15. Slide 15: Cheniere by the Numbers

    Cheniere by the Numbers TODAY …WITH 9 TRAINS (Forecast) LNG Volumes - 40.5 mtpa, ~5.5Bcf/d Revenues(1) ~$260MM ~$15B+ Employees ~600 1,400+ EBITDA/Share N/A ~$14.60+ Market Capitalization ~$17B ? Note: See “Forward Looking Statements” Slide EBITDA per share is a non-GAAP measure. We have not made an

  16. Slide 16: Estimated CEI EBITDA Per Share Build Up

    Estimated CEI EBITDA Per Share Build Up 9 Trains $14.60/Share 9-train CEI EBITDA per share $16 Estimated CEI EBITDA per share ($ per share) $2.00 $14.60 $14 $1.0 $3.20 $1.0 $12 $1.7 $10 $1.10 $1.5 $5.50 $0.6 $0.5 $8 $1.3 $6 $4.2 $4 $2.90 $2 $1.5 $1.4 – SPL T1-4 CCL T1-2 SPL T5 CCL T3 SPL T6 CMI Sale

  17. Slide 17: Targeted CEI EBITDA Per Share Build Up

    Targeted CEI EBITDA Per Share Build Up 11 Trains $20/Share, Targeting Future Growth to $30/Share in 2020(1) 11-train CEI $22 EBITDA per share $5.60 $20.20 Targeted CEI EBITDA per share ($ per share) $20 $2.0 $18 $3.6 $16 $2.00 $14 $1.0 $3.20 $1.0 $12 $1.7 $10 $1.10 $1.5 $5.50 $0.6 $0.5 $8 $1.3 $6 $4

  18. Slide 18: Appendix

    CHENIERE el Appendix

  19. Slide 19: Investing in Cheniere – Summary Organization

    Investing in Cheniere – Summary Organization Cheniere Energy, Inc. (NYSE MKT: LNG) 80.1% Interest 100% Interest 100% Interest 100% Interest Cheniere Energy Partners Cheniere Corpus Christi Public LP Holdings, LLC Cheniere Energy Marketing, LLC 19.9% Partners GP, LLC Liquefaction, LLC (NYSE MKT: CQH)

  20. Slide 20: Operating Assets

    Operating Assets Sabine Pass LNG Terminal (SPLNG) Creole Trail Pipeline 20

  21. Slide 21: Contracted Capacity at SPLNG

    Contracted Capacity at SPLNG Third Party Terminal Use Agreements (TUAs) Long-term, 20 year “take-or-pay” style commercial contracts ~$253MM annual fixed fee revenue Total Gas & Power N.A. Chevron U.S.A. Inc. Capacity 1.0 Bcf/d 1.0 Bcf/d Fees (1) Reservation Fee (2) $0.28/MMBTU $0.28/MMBTU Opex Fee (

  22. Slide 22: Creole Trail Pipeline

    Creole Trail Pipeline  In May 2013, Cheniere Partners acquired CTPL from Cheniere Energy, Inc. for $480MM, and following the sale CTPL secured a $400 million senior secured term loan facility  CTPL is fully contracted with expected annual revenue of ~$80MM expected to commence with Train 1 operati

  23. Slide 23: LSTK EPC Contracts with Bechtel

    LSTK EPC Contracts with Bechtel Minimize Construction Costs and Risks Bechtel was the EPC contractor for the regasification project at the Why Bechtel? Sabine Pass LNG terminal, which was constructed on time and on budget Proven construction contractor • Founded in 1898 and headquartered in San Fran

  24. Slide 24: Timeline & Milestones

    Timeline & Milestones Target Date SPL Corpus SPL Milestone T1-2 T3-4 Christi T5-6  Initiate permitting process (FERC & DOE)     T1-T2  T5   Commercial agreements   T3: 2015 T6: 2015  EPC contract    2015  Financing commitments    2015  Regulatory approvals   2015 2015  Issue No

  25. Slide 25: Conversion of Class B and Subordinated Units

    Conversion of Class B and Subordinated Units Class B 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 r

  26. Slide 26: Pro Forma CQP Ownership

    Pro Forma CQP Ownership (in millions) CEI CQH(3) Blackstone Public Total Common units (1) 12.0 45.1 57.1 Class B units (1) 45.3 100.0 145.3 Subordinated units (1) 135.4 135.4 General Partner @ 2% 6.9 6.9 6.9 192.7 100.0 45.1 344.7 Percent of total (as of 12/31/14) 2% 55.9% 29.0% 13.1% 100.0% Pro for

  27. Slide 27: Projected Global LNG Demand

    Projected Global LNG Demand Robust Growth Demand forecasted to increase by 215 mtpa to 2025, a 6% CAGR Average of 23 mtpa of new liquefaction capacity needed each year(1) Europe 24 64 90 2015 2020 2025 Asia 323 Americas 268 198 21 17 18 2015 2020 2025 2015 2020 2025 Middle East/N. Africa 4 9 23 mtpa

  28. Slide 28: Sabine Pass Liquefaction - Brownfield LNG Export Project

    Sabine Pass Liquefaction - Brownfield LNG Export Project Utilizes Existing Assets, Trains 1-4 Fully Contracted, Under Construction Current Facility  ~1,000 acres in Cameron Parish, LA  40 ft. ship channel 3.7 miles from coast  2 berths; 4 dedicated tugs  5 LNG storage tanks (~17 Bcfe of storage)

  29. Slide 29: LNG Sale and Purchase Agreements (SPAs)

    LNG Sale and Purchase Agreements (SPAs) Sabine Pass Liquefaction ~20 mtpa “take-or-pay” style commercial agreements ~$2.9B annual fixed fee revenue for 20 years BG Gulf Coast LNG Gas Natural Fenosa Korea Gas Corporation GAIL (India) Limited Total Gas & Power N.A. (6) Centrica plc (6) Annual Contract

  30. Slide 30: SPL Construction Completion Schedules Trains 1-4

    SPL Construction Completion Schedules Trains 1-4 2012 2013 2014 2015 2016 2017 2018 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Record Fi

  31. Slide 31: Sabine Pass Terminal – Accessible Pipeline Network

    Sabine Pass Terminal – Accessible Pipeline Network Procurement of Gas Supply  SPL contracting direct pipeline transport capacity • Creole Trail P/L: 1.5 Bcf/d  • Natural Gas P/L: 0.5 Bcf/d  • Transco P/L: 1.2 Bcf/d  • Kinder Morgan LA P/L: expect over 1 Bcf/d  SPL contracting pipeline capacity

  32. Slide 32: Corpus Christi Liquefaction Project

    Corpus Christi Liquefaction Project Proposed 3 Train Facility HoustonNew Orleans  >1,000 acres owned and/or controlled Corpus Christi  2 berths, 3 LNG storage tanks (~10.1 Bcfe of storage) Gulf of Mexico Key Project Attributes  45 ft. ship channel 13.7 miles from coast  Protected berth  Premier

  33. Slide 33: Corpus Christi Liquefaction SPAs

    Corpus Christi Liquefaction SPAs SPA progress: ~8.42 mtpa “take-or-pay” style commercial agreements ~$1.5B annual fixed fee revenue for 20 years PT Pertamina Woodside Energy Électricité de EDP Energias de (Persero) Endesa S.A. Iberdrola S.A. Gas Natural Fenosa Trading France Portugal S.A. Annual Con

  34. Slide 34: Corpus Christi Terminal – Accessible Pipeline Network

    Corpus Christi Terminal – Accessible Pipeline Network Procurement of Gas Supply  CCL contracting long-term direct and upstream pipeline transport capacity • Tennessee P/L: 0.3 Bcf/d  • KM Tejas P/L: 0.25 Bcf/d   CCL purchasing natural gas from producers and Marcellus / marketers Utica NGPL Tenne

  35. Slide 35: Corpus Christi Financing Update

    Corpus Christi Financing Update  Equity Financing • Commitment from EIG Management to purchase $1.5B in convertible notes from a wholly-owned subsidiary of Cheniere – Funding can occur in phases coinciding with FID of Stage 1 and Stage 2 – Notes would be convertible into LNG common shares after com

  36. Slide 36: Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6

    Regulatory Approvals Needed for Corpus Christi and SPL Trains 5-6 Approvals expected 2015  Corpus Christi Trains 1-3 • FERC: Received FERC authorization December 30, 2014 • DOE: Received FTA authorization • DOE: Non-FTA authorization is pending  SPL Trains 5-6 • FERC: Final EA published December 1

  37. Slide 37: Applications Filed with FERC for Liquefaction Projects

    Applications Filed with FERC for Liquefaction Projects Continental U.S. FERC FERC Scheduled DOE Quantity FERC EIS / Under LNG Export Projects Application Scheduling Date for EIS FERC Approval Non FTA Bcf/d Pre-filing Date EA Construction Date Notice Issued or EA Final Sabine Pass Liquefaction T1-4 2

  38. Slide 38: Cheniere's Debt Summary

    Cheniere’s Debt Summary As of March 2015 ($ in millions) Cheniere Energy, Inc. Unsecured Convertible PIK Notes (NYSE MKT: LNG)  $1,000 due 2021 (4.875%) Cheniere Energy Partners LP Corpus Christi CQP GP Cheniere Marketing, No Debt Holdings, LLC Liquefaction, LLC (& IDRs) LLC (NYSE MKT: CQH) Chenier

  39. Slide 39: Slide 39

  40. Slide 40: Investor Relations Contacts

    Investor Relations Contacts Randy Bhatia: Director, Finance and Investor Relations – (713) 375-5479, [email protected] Christina Burke: Manager, Investor Relations – (713) 375-5104, [email protected]

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