Co rpo rate pre se ntatio n Cr e dit Suisse 23r d Annual E ne r - PowerPoint PPT Presentation

Co rpo rate pre se ntatio n Cr e dit Suisse 23r d Annual E ne r gy Summit Vail , Color ado F ebr uar y 14, 2018 Me g Ge ntle , CE O

Cautio nar y state me nts F o rwa rd-lo o king sta te me nts T he info rma tio n in this pre se nta tio n inc lude s “fo rwa rd-lo o king sta te me nts” within the me a ning o f Pla ns fo r the Pe rmia n Glo b a l Ac c e ss Pipe line a nd Ha yne sville Glo b a l Ac c e ss Pipe line pro je c ts Se c tio n 27A o f the Se c uritie s Ac t o f 1933, a s a me nde d, a nd Se c tio n 21E o f the Se c uritie s E xc ha ng e disc usse d he re in a re in the e a rly sta g e s o f de ve lo pme nt a nd nume ro us a spe c ts o f the pro je c ts, Ac t o f 1934, a s a me nde d. All sta te me nts o the r tha n sta te me nts o f histo ric a l fa c t a re fo rwa rd-lo o king suc h a s de ta ile d e ng ine e ring a nd pe rmitting , ha ve no t c o mme nc e d. Ac c o rding ly, the na ture , sta te me nts. T he wo rds “a ntic ipa te ,” “a ssume ,” “b e lie ve ,” “b udg e t,” “e stima te ,” “e xpe c t,” timing , sc o pe a nd b e ne fits o f tho se pro je c ts ma y va ry sig nific a ntly fro m o ur c urre nt pla ns due to a “fo re c a st,” “initia l,” “inte nd,” “ma y,” “pla n,” “po te ntia l,” “pro je c t,” “sho uld,” “will,” “wo uld,” a nd wide va rie ty o f fa c to rs, inc luding future c ha ng e s to the pro po sa ls. Altho ug h the Driftwo o d Pipe line simila r e xpre ssio ns a re inte nde d to ide ntify fo rwa rd-lo o king sta te me nts. T he fo rwa rd-lo o king pro je c t is sig nific a ntly mo re a dva nc e d in te rms o f e ng ine e ring , pe rmitting a nd o the r fa c to rs, its sta te me nts in this pre se nta tio n re la te to , a mo ng o the r thing s, future c o ntra c ts, c o ntra c t te rms a nd c o nstruc tio n, b udg e t a nd timing a re a lso sub je c t to sig nific a nt risks a nd unc e rta intie s. ma rg ins, future c a sh flo ws a nd pro duc tio n, e stima te d ultima te re c o ve rie s a nd de live ry o f L NG, future c o sts, pric e s, fina nc ia l re sults, ra te s o f re turn, liq uidity a nd fina nc ing , re g ula to ry a nd pe rmitting Pro je c te d future c a sh flo ws a s se t fo rth he re in ma y diffe r fro m c a sh flo ws de te rmine d in de ve lo pme nts, c o nstruc tio n a nd pe rmitting o f pipe line s a nd o the r fa c ilitie s, future de ma nd a nd a c c o rda nc e with GAAP. supply a ffe c ting L NG a nd g e ne ra l e ne rg y ma rke ts a nd o the r a spe c ts o f o ur b usine ss a nd o ur pro spe c ts. T he info rma tio n o n slide s 15, 16, 24, a nd 25 is me a nt fo r illustra tive purpo se s o nly a nd do e s no t purpo rt to sho w e stima te s o f a c tua l future fina nc ia l a rra ng e me nts o r pe rfo rma nc e . Our fo rwa rd-lo o king sta te me nts a re b a se d o n a ssumptio ns a nd a na lyse s ma de b y us in lig ht o f o ur e xpe rie nc e a nd o ur pe rc e ptio n o f histo ric a l tre nds, c urre nt c o nditio ns, e xpe c te d future T he fo rwa rd-lo o king sta te me nts ma de in o r in c o nne c tio n with this pre se nta tio n spe a k o nly a s o f the de ve lo pme nts, a nd o the r fa c to rs tha t we b e lie ve a re a ppro pria te unde r the c irc umsta nc e s. T he se da te he re o f. Altho ug h we ma y fro m time to time vo lunta rily upda te o ur prio r fo rwa rd-lo o king sta te me nts a re sub je c t to nume ro us kno wn a nd unkno wn risks a nd unc e rta intie s whic h ma y c a use sta te me nts, we disc la im a ny c o mmitme nt to do so e xc e pt a s re q uire d b y se c uritie s la ws. a c tua l re sults to b e ma te ria lly diffe re nt fro m a ny future re sults o r pe rfo rma nc e e xpre sse d o r implie d b y the fo rwa rd-lo o king sta te me nts. T he se risks a nd unc e rta intie s inc lude tho se de sc rib e d in the “Risk Re se rve s a nd re so urc e s F a c to rs” se c tio n o f o ur Qua rte rly Re po rt o n F o rm 10-Q fo r the q ua rte r e nde d Se pte mb e r 30, 2017 file d with the Se c uritie s a nd E xc ha ng e Co mmissio n (the “SE C”) o n No ve mb e r 9, 2017 a nd o the r filing s with the SE C, whic h a re inc o rpo ra te d b y re fe re nc e in this pre se nta tio n. Ma ny o f the fo rwa rd- E stima te s o f no n-pro ve d re se rve s a nd re so urc e s a re b a se d o n mo re limite d info rma tio n, a nd a re lo o king sta te me nts in this pre se nta tio n re la te to e ve nts o r de ve lo pme nts a ntic ipa te d to o c c ur sub je c t to sig nific a ntly g re a te r risk o f no t b e ing pro duc e d, tha n a re e stima te s o f pro ve d re se rve s. nume ro us ye a rs in the future , whic h inc re a se s the like liho o d tha t a c tua l re sults will diffe r ma te ria lly fro m tho se indic a te d in suc h fo rwa rd-lo o king sta te me nts. 2 Disc la ime r

I ntr o duc ing T e llur ian (NASDAQ: T E L L )  Stra te g y: Building a lo w-c o st, g lo b a l na tura l g a s c o mpa ny ― Upstre a m pro duc tio n – 11,620 a c re s in the Ha yne sville w. ~1.4 T c f re so urc e ― Pipe line infra struc ture de ve lo pme nt – ~$7 BN o f pipe line pro je c ts ― L NG e xpo rt infra struc ture de ve lo pme nt – ~$15 BN o f liq ue fa c tio n pro je c ts ― L NG ma rke ting – inte rna tio na l de live ry o f L NG c a rg o e s  Diffe re ntia to rs ― I nte g ra te d b usine ss mo de l ― L o we ring c o st fo r susta ina b le de ve lo pme nt in a c o mmo ditizing ma rke t  T o da y’ s Pre se nta tio n . . . Ma rke t c o nte xt . . . Asse t pla ns . . . Busine ss mo de l 3 Busine ss mo d e l

Glo bal L NG mar ke t is c o mmo ditizing 894 L NG Stor age - 2017 715 Ja pa n + K o re a te rmina ls: 633 Bc f Bc f o f L NG L NG ve sse ls: 686 Bc f sto ra g e 610 # o f L NG 488 ve sse ls 2017 2020 # o f 19 c a rg o e s 14 lo a de d pe r da y L e ge nd 2017 2020 L NG c a rrie r – la d e n So urc e s: K p le r, Ma ra n Ga s, I HS, Wo o d Ma c ke nzie . L NG c a rrie r – unla d e n No te s: L NG sto ra g e a ssume s ha lf o f fle e t is in b a lla st, 2.9 Bc f c a p a c ity p e r ve sse l. Ave ra g e c a rg o size ~2.9 Bc f, a ssuming 150,000 m 3 ship . I n 2017, a p p ro xima te ly a third o f a ll L NG c a rg o e s a re e stima te d to b e sp o t vo lume s. Assume s 11% p e r a nnum d e ma nd g ro wth. 4 Glo b a l L NG

Glo bal L NG o ve r supply is o ve r Pr i c e si gnal s bal anc e the mar ket Glo b a l L NG ma rke t JK M a nnua l a ve ra g e pric e s Asia L NG impo rts Bc f/ d $/ mmBtu Bc f/ d 45 18 29 I nfra struc ture c o nstra int 16 28 40 14 27 35 12 26 30 10 25 8 24 25 6 23 20 4 22 15 2 21 10 0 20 2001 2003 2005 2007 2009 2011 2013 2015 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 So urc e : Wo o d Ma c ke nzie , Pla tts, I HS. 5 Glo b a l L NG

Ne w lique fac tio n c apac ity r e quir e d  Ac c e le ra te d de ma nd g ro wth  2017 e ffe c tive c a pa c ity (1)  Hig he r pric e s sig na l ne e d fo r mo re L NG  E drive n b y lo w L NG pric e s utiliza tio n >97% me rg ing indic e s pro vide tra nspa re nc y L NG de ma nd g ro wth L NG c a pa c ity utiliza tio n Ne tb a c k pric e s to US Gulf Co a st (2) $/ mmBtu Ne tb a c k fro m E uro pe $ 10 11% 12% Ne tb a c k fro m Asia 111% Pla tts Gulf Co a st Ma rke r $ 8 He nry Hub $ 6 101% 100% 99% 6% 98% 97% 97% $ 4 3% $ 2 1% $ 0 Ja n-15 Jul-15 Ja n-16 Jul-16 Ja n-17 Jul-17 Ja n-18 2014 2015 2016 2017 2018 2015 2016 2017 2018 2019 2020 2021 So urc e s: I CE via Ma rke tvie w, Wo o d Ma c ke nzie , Pla tts via CME , F e a rnle ys, T e lluria n Re se a rc h. No te s: (1) E ffe c tive c a p a c ity is d e fine d a s to ta l c a p a c ity le ss unp la nne d o uta g e s a nd g a s c o nstra ints. I mp lie d utiliza tio n ra te s a ssume d e ma nd g ro wth o f 11% p e r a nnum. (2) Histo ric a l p ric e s fro m Pla tts; ne tb a c ks b a se d o n ship p ing c o sts b a se d o n histo ric a l a nd c urre nt d a y ra te s. 6 Glo b a l L NG

Dr iftwo o d L NG te r minal Driftwood L NG te rmina l  ~1,000 a c re s ne a r L a ke Cha rle s, L A L a nd  ~27.6 mtpa Ca pa c ity  Up to 20 tra ins o f ~1.38 mtpa e a c h  Cha rt he a t e xc ha ng e rs T ra ins  GE L M6000 PF + c o mpre sso rs  3 sto ra g e ta nks Stora g e  235,000 m 3 e a c h  3 ma rine b e rths Ma rine  ~$550 pe r to nne Ca pe x  ~$15.2 b illio n (1) Ar tist r e ndition No te s: (1) Be fo re o wne rs’ c o sts, fina nc ing c o sts a nd c o nting e nc ie s. 7 Driftwo o d L NG

12 Bc f/ d So uthwe st L o uisiana gas de mand Co re o f U.S. na tura l g a s e xpo rts o uisia na firm de ma nd (1)(2) So uthwe st L Te x a s L o u i s i a n a Bc f/ d E unic e , L A 12 Bc f/ d 12 Gillis, L A 10 L ake Char le s 8 Pe tr oc he mic al c omple x De mand Dr iftwood tr iple s in 6 L NG 7 ye ar s Came r on L NG 4 2 Sabine Pass L NG 0 G u l f o f M e x i c o 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3 4 5 6 7 8 No te s: (1) L NG de ma nd inc lude s a mb ie nt c a pa c ity. (2) Inc lude s: Driftwo o d L NG, Sa b ine Pa ss L NG T 1-3, Ca me ro n L NG T 1-3, SASOL , L a ke Cha rle s CCGT , G2X Big L a ke F ue ls, L ACC – L o tte a nd We stla ke Che mic a l. So urc e : Co mpa ny da ta , T e lluria n e stima te s. 8 T e lluria n Pipe line Ne two rk