1
April 2005
*Artist’s Rendition
*Creole Trail LNG L.P. (Cheniere 100%)
*Corpus Christi LNG L.P. (Cheniere 100%)
*Sabine Pass LNG L.P. (Cheniere 100%)
*Freeport LNG L.P. (Cheniere 30% Limited Partner)
Cheniere Energy, Inc.
Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of
1995: Certain information in this presentation are forward looking statements that
are based on management's belief, as well
as assumptions made by, and
information currently available to management. While the company believes that its
expectations are based upon reasonable assumptions, there can be no assurances
that the company's financial goals will be realized. Numerous
uncertainties and risk
factors may affect the company's actual results and may cause results to differ
materially from those expressed in forward-looking statements made by or on
behalf of the company. These uncertainties and risk factors include
political,
economic, environmental and geological issues, including but not limited to, the
continued need for additional capital, the competition within the oil and gas
industry, the price of oil and gas, currency fluctuations, and other risks
detailed
from time to time in the company's periodic reports filed with the United States
Securities and Exchange Commission.
Safe Harbor Act
2
Market Performance
DEC 31
2002
DEC 31
2003
DEC 31
2004
MAR 31
2005
*Percentage increase based on a stock closing price of $1.28 at December 31, 2002 and $64.51 at March 31, 2005.
*
4940%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$/Share Closing Price
0%
500%
1000%
1500%
2000%
2500%
3000%
3500%
4000%
4500%
5000%
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
4
Business Structure
Freeport LNG
30%
Corpus Christi LNG
100%
Sabine Pass LNG
100%
100%
Creole Trail LNG
1
2
$1.7 billion equity market cap1
5
J&S Cheniere
E&P
Capacity sold out
Majority of financing
provided by
ConocoPhillips
Minimal capital
commitments by Cheniere
Market capitalization based on 26.76 million shares outstanding as of March 31, 2005 and a stock price of $64.62 as of April 13, 2005
Total S.A. has 1.0 Bcf/d of reserved capacity and ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d
by July 1, 2005 or increase to 1.0 Bcf/d by December 1, 2005, leaving
current retained capacity of 0.9 Bcf/d
Other Businesses
Marketed capacity sold
out2
$822 million project
financing closed on
February 25, 2005
Marketing capacity
Evaluating financing
strategy
Marketing capacity
Evaluating financing
strategy
Site Selection
100%
Permitting
75%
Financing
37%
TUAs
52%
Arrangements
0%
Long Term Other
Commercial Commercial
Arrangements
0%
4 of 4
Sites
3 of 4
Terminals
$1.1 of $3
billion
3.2 of 6.2
Bcf/d
0 of 1
Bcf/d
0 of 4
Bcf/d
Other
Executing the Business Plan
Cheniere LNG Receipt Network
Sabine Pass
Freeport (30%)
Corpus Christi
Creole Trail
7
Optionality
Flexibility
Reliability
Liquidity
Low Cost
4 Deepwater Ports
7 Unloading Docks
12 Storage Tanks
(40 Bcf equivalent)
10 Bcf/d Sendout
Target Gas Demand Corridor
Market Access – 29 Bcf/d
Midwest
Markets
11.8 Bcf/d
Northeast
Markets
5.7 Bcf/d
Southeast
Markets
4.6 Bcf/d
Gulf Coast
Markets
4.9 Bcf/d
Mexican
Markets
1.7 Bcf/d
Source: Cheniere Research
Cheniere LNG
Receipt Network
8
Cheniere Holds 3 of 4 Permits
4 Onshore applications approved by FERC – 8.2 Bcf/d
7 Onshore applications filed w/ FERC – 7.1 Bcf/d
Outside U.S. for U.S. Markets (Bahamas and Mexico)
FERC Approved
Cameron LNG (TX)
Corpus Christi – (TX)
Freeport LNG (TX)
Sabine Pass – (LA)
Filed with FERC
Calhoun LNG – (TX)
Fall River – (MA)
Golden Pass – (TX)
Ingleside – (TX)
Long Beach – (CA)
Providence – (RI)
Vista del Sol – (TX)
Onshore
Only 2 Onshore Terminals
Now Under Construction
Sabine Pass LNG Construction Site
Freeport LNG Construction Site
10
$1,122
TOTAL
$ 822
Project Finance for Sabine Pass
February 2005
$ 300
Equity at $60 per share
December 2004
$ Million
Sources of Funds
11
Marketing Status
Corpus Christi
2.6 Bcf/d
Freeport
1.5 Bcf/d
Sabine Pass*
2.6 Bcf/d
Creole Trail
3.3 Bcf/d
Contracted
Marketing TUA’s
Other Commercial
Arrangements
1.5
1.7
0.9
1.0
1.6
2.3
1.0
1 ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d by July 1, 2005 or increase to
1.0 Bcf/d by December 1, 2005
*Excludes possible expansion to 4.0 Bcf/d
1
12
$230 + ???
6.2
Total
?
1.0
Marketing
Creole Trail2
Marketing
Marketing
Contracted
Contracted
Contracted
TUA
Status
$0.32
$0.32
Fee
($/MMbtu)
$ 15
1.5
Freeport
?
?
$125
$ 90
Calculated
Revenue to Cheniere
($mm)1
1.0
Corpus Christi2
1.0
Sabine Expansion2
1.0
0.73
Sabine Pass
Total
ChevronTexaco
TUA
Capacity
(Bcf/d)
TUA Annual Revenue
1 Revenue calculations are based solely on TUAs and reflect numerous assumptions; Freeport revenues represent the midpoint
of currently
estimated pre-tax cash distributions of $10—$20 million per year, excluding effects of potential expansion
2 Fixed cash operating expenses for each terminal are estimated to be $25—$30 million per year; Sabine Pass LNG,
Corpus Christi LNG and
Creole Trail LNG will also retain 2% of throughput for fuel usage
3 ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d ($65 million in revenues)
by July 1, 2005 or increase
to 1.0 Bcf/d ($129 million in revenues) by December 1, 2005
TUA Characteristics
Securing long-term terminal use agreements (TUAs)
Sell approximately one-half of existing and future
regasification capacity under TUAs
TUAs are 20 years or longer
Agreements made with investment grade customers
Take-or-pay contract terms
Provides stable stream of contracted cash flows
14
Investment Grade Anchor Customers
1 ChevronTexaco has 0.7 Bcf/d of reserved capacity with the option to reduce to 0.5 Bcf/d by July 1, 2005 or increase
to
1.0 Bcf/d by December 1, 2005
1
Reserved
Capacity
(Bcf/d)
Equity market
Capitalization
($billion)
Credit
ratings
Freeport
0.5
$48
A
-
/ A3
1.0
$80
A
-
/ A3
Sabine Pass
1.0
$149
AA / Aa2
0.7
$120
AA / Aa2
Corpus Christi and Creole Trail
Currently marketing to similarly large investment grade energy companies
15
Other Commercial Arrangements
Capacity reservation fees indexed to NYMEX prices
Gas purchase and sales indexed to NYMEX prices
Gas purchase and sales based on market area prices
Spot market terminal usage
16
Current Status
$230 million revenue stream per year secured
$1.1 billion financing completed
Marketing
Sabine Pass Expansion 1.0 Bcf/d
Corpus & Creole TUA’s 2.0 Bcf/d
Other Long-term Commercial 1.0 Bcf/d
Arrangements
Other marketing arrangements 1.0 Bcf/d