Co rpo rate pre se ntatio n June 2018 Cautio nar y state me nts - - PowerPoint PPT Presentation

▶
co rpo rate pre se ntatio n
SMART_READER_LITE
LIVE PREVIEW

Co rpo rate pre se ntatio n June 2018 Cautio nar y state me nts - - PowerPoint PPT Presentation

Dec 22, 2022 138 likes •496 views

Co rpo rate pre se ntatio n June 2018 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

slide-1
SLIDE 1

Co rpo rate pre se ntatio n

June 2018

slide-2
SLIDE 2

Cautio nar y state 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 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

  • f the Se c uritie s E

xc ha ng e 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 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,” “fo re c a st,” “initia l,” “inte nd,” “ma y,” “mo de l,” “pla n,” “po te ntia l,” “pro je c t,” “sho uld,” “will,” “wo uld,” a nd 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 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 a nd c o ntra c t te rms, ma rg ins, re turns a nd pa yb a c k pe rio ds, future c a sh flo ws a nd pro duc tio n, e stima te d ultima te re c o ve rie s, we ll pe rfo rma nc e a nd de live ry o f L NG, future c o sts, pric e s, fina nc ia l re sults, ne t a sse t va lue s, ra te s o f re turn, liq uidity a nd fina nc ing , re g ula to ry a nd pe rmitting 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 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 a nd tho se o f o the r industry pa rtic ipa nts. 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 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 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 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 F a c to rs” se c tio n o f o ur Annua l Re po rt o n F

  • rm 10-K

fo r the fisc a l ye a r e nde d De c e mb e r 31, 2017 file d with the Se c uritie s a nd E xc ha ng e Co mmissio n (the “SE C”) o n Ma rc h 15, 2018 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-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 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. 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 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, 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 , 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 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 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 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. T he info rma tio n o n slide s 7, 8, 9, 10, 11 a nd 12 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 pe rfo rma nc e . Simila rly, NAV a nd o the r e stima te s o f future e q uity va lue s a re pre se nte d fo r illustra tive purpo se s a nd do no t purpo rt to sho w future tra ding va lue s o f a ny se c uritie s. 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 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, 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.

Re se rve s a nd re so urc e s

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 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.

F

  • rwa rd-lo o king sta te me nts

2 Disc la ime r

slide-3
SLIDE 3
  • Busine ss mode l
  • Driftwo o d a sse ts
  • Ma rke t funda me nta ls
  • Additio na l de ta il

Co nte nts

3

slide-4
SLIDE 4

344 49 46 565 127

2017 2025 Ne w c a pa c ity

49 382 532 101

2017 2025 Gro wth

Glo bal c all o n U.S. natur al gas

Busine ss mo de l

U.S. supply push… … and global de mand pull

So urc e : Wo o d Ma c ke nzie , T e lluria n Re se a rc h. No te s: (1) Inc lude s the Pe rmia n, Ha yne sville , Utic a , Ma rc e llus, Ana d a rko , E a g le F
  • rd .
(2) Ba se d o n a d e ma nd g ro wth e stima te o f 4.5% po st-2020. (3) Ca pa c ity re q uire d to me e t d e ma nd g ro wth po st-2020.

4

51 71 20 46 75 Bc f/ d

Output fro m se le c te d sha le b a sins(1) mtpa Glo b a l L NG pro duc tio n c a pa c ity mtpa

T a ke a wa y infra struc ture

Re q uire d Unde r c o nstruc tio n Othe r U.S.

Supply infra struc ture

Re q uire d (3)

29

(2)

150

Unde r c o nstruc tio n

221

slide-5
SLIDE 5

Building a lo w-c o st glo bal gas busine ss

5 Busine ss mo de l

Pipe line L iq ue fa c tio n Ma rke ting Upstre a m 11,620 a c re s in the Ha yne sville with 1.4 T c f re so urc e ~$7 b illio n(1) o f pipe line infra struc ture pro je c ts in de ve lo pme nt ~$15 b illio n o f liq ue fa c tio n infra struc ture in de ve lo pme nt I nte rna tio na l de live ry o f L NG c a rg o e s sta rte d in 2017 Driftwood Holding s pa rtne rship – inte g ra te d, low- c ost

No te : (1) HGAP a nd PGAP pro je c ts a re in e a rly sta g e s a nd re ma in und e r re vie w.
slide-6
SLIDE 6

T e llur ian’s diffe r e ntiating fac to r s

Busine ss mo de l 6

  • Ma na g e me nt

tra c k re c o rd a t Che nie re a nd BG Gro up

  • 45% o f T

e lluria n

  • wne d b y

fo unde rs a nd ma na g e me nt

  • Gua ra nte e d

lump sum turnke y c o ntra c t with Be c hte l

  • $15.2 b illio n fo r

27.6 mtpa c a pa c ity

  • F

E RC sc he duling no tic e indic a te s pe rmits will b e re c e ive d b y Ja nua ry 2019

  • I

nte g ra te d:

― Upstre a m re se rve s ― Pipe line ne two rk ― L

NG te rmina l

  • L

NG de live re d F OB U.S. Gulf Co a st a t $3.00/ mmBtu

Wor ld c lass par tne r s F ixe d c ost E PC c ontr ac t Re gulator y c e r tainty E xpe r ie nc e d manage me nt Unique busine ss mode l

slide-7
SLIDE 7
  • T

e lluria n will o ffe r e q uity inte re st in Driftwo o d Ho lding s

  • Driftwo o d Ho lding s will c o nsist o f a Pro duc tio n

Co mpa ny, a Pipe line Ne two rk a nd a n L NG T e rmina l (~27.6 mtpa )

  • E

quity will c ost ~$1,500 pe r tonne

  • Custo me r/ Pa rtne r will re c e ive e q uity L

NG a t ta ilg a te o f Driftwo o d L NG te rmina l a t c o st

  • Var

iable and ope r ating c osts e xpe c te d to b e ~$3.00/ mmBtu F OB (inc luding ma inte na nc e )

Busine ss mo de l

7

T e llur ian Mar ke ting Pipe line Ne twor k Pr

  • duc tion

Company

E quity owne rship

~40% ~16 mtpa ~12 mtpa

Custome r / Par tne r

~60%

Custome r s

100%

Busine ss mo de l

Na sda q : T E L L

L NG T e r minal

  • T

e llur ian will r e tain ~12 mtpa and ~40% of the asse ts

  • E

stimate d ~$2 billion annual c ash flow to T e llur ian Dr iftwood Holdings

slide-8
SLIDE 8

8

No te s: (1) Pha se 1 o f the E PC a g re e me nt re fle c ts 2 pla nts, 1 b e rth, a nd 2 ta nks; full d e ve lo pme nt re fle c ts 5 pla nts, 3 b e rths, a nd 3 ta nks. (2) Re so urc e ne e d fo r 30-ye a r pe rio d . (3) Pipe line a sse t fund ing to b e re vie we d fo llo wing re sults o f o pe n se a so n; illustra tive fina nc ia ls inc lud e Driftwo o d pipe line o nly. (4) F
  • r Pha se 1, d rilling c a pita l e xpe nd iture s o f $3.4 b illio n, ne t o f $2.2 b illio n o f g a s sa le s.

Sc e nar io Phase 1(1) F ull de ve lopme nt(1) Capac ity (mtpa) 11.0 27.6

Upstre a m re so urc e ne e d (2), T c f ~15 ~40

Inve stme nt ($ billions)

― T

e rmina l $ 7.6 $ 15.2

― Pipe line (3)

$ 1.1 $ 2.2

― Owne r's c o sts a nd o the r

$ 1.1 $ 2.1

― Upstre a m – a c q uisitio n

$ 1.0 $ 2.0

― Upstre a m – drilling c a pe x (ne t o f sa le s)(4)

$ 1.2 $ 2.5

T

  • tal

$ 12.0 $ 24.0 T r ansac tion pr ic e ($ pe r tonne ) $1,500 $1,500 Capac ity split mtpa % mtpa %

─ Pa rtne r

8.0 72% 16.0 58%

─ T

e lluria n 3.0 28% 11.6 42%

Busine ss mo de l

Dr iftwo o d Ho ldings’ c o nstr uc tio n budge t

slide-9
SLIDE 9

Dr iftwo o d Ho ldings’ o pe r ating c o sts

Busine ss mo de l

T

  • tal cost of ~$3/ mmB

tu locks i n low cost of supply

$0.88 $0.36 $0.79 $0.22

$2.25

$0.75

$3.00

Drilling a nd c o mple tio n(1) Ope ra ting Ga the ring , pro c e ssing a nd tra nspo rta tio n(2) Co nting e nc y De live re d c o st L iq ue fa c tio n c o st T

  • ta l
So urc e s: Wo o d Ma c ke nzie , T e lluria n Re se a rc h. No te s: (1) Drilling a nd c o mple tio n b a se d o n we ll c o st o f $10.2 millio n, 15.5 Bc f E UR, a nd 75.00% ne t re ve nue inte re st (“NRI”) (8/ 8ths). (2) Ga the ring , pro c e ssing a nd tra nspo rta tio n inc lud e s tra nspo rta tio n c o st to Driftwo o d pipe line to ma rke t.

9

Upstre a m c ost

$/ mmBtu

L ique fa c tion c ost

(1) (2)

slide-10
SLIDE 10

$- $5 $10 $15 $20 $25 Ja n Jul Ja n Jul Ja n Jul Ja n Jul Ja n Jul Ja n Jul $5 $6 $7 $8 $9 $10 $11 $12 Ma y-18 Ja n-18 Se p-17

Mar gins and pr ic e signals

Busine ss mo de l

Netback pr i ces to the Gulf Coast

(1)

So urc e s: Pla tts, CME , T e lluria n Re se a rc h. No te s: (1) F
  • rwa rd pric e s fo r 2018 a ssuming $1.79/ mmBtu shipping c o st fro m USGC to E
a st Asia using Pla tts JK M. (2) Pla tts Gulf Co a st Ma rke r.

10

2018 J K M for war d pr i ces up $3.40 si nce September 2017

  • Avg. 2018

JKM pr ic e up 54% sinc e Se pt- 17 July 2018 GCM(2) 5 June 2018: $8.41/ mmBtu 2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 2018

$/ mmBtu $/ mmBtu

slide-11
SLIDE 11

Re tur ns to Dr iftwo o d Ho ldings’ par tne r s(1)

Busine ss mo de l 11

U.S. Gulf Coast ne tbac k pr ic e ($/ mmBtu) $6.00 $10.00 $15.00 Dr iftwood L NG, F OB U.S. Gulf Coast

$(3.00) $(3.00) $(3.00)

Mar gin ($/ mmBtu)

3.00 7.00 12.00

Annual par tne r c ash flow ($ millions)(2)

156 364 624

Cash on c ash r e tur n

10% 24% 42%

Paybac k (ye ar s)(3)

10 4 2

Unle ve r e d IRR

(4)

9% 18% 26%

No te s: (1) Ba se d o n 1 mtpa o f c a pa c ity in Driftwo o d Ho ld ing s; a ll e stima te s b e fo re fe d e ra l inc o me ta x; d o e s no t re fle c t po te ntia l impa c t o f ma na g e me nt fe e s pa id to T e lluria n. (2) Annua l pa rtne r c a sh flo w e q ua ls the ma rg in multiplie d b y 52 mmBtu pe r to nne . (3) Pa yb a c k pe rio d b e g ins a t sub sta ntia l c o mple tio n o f Driftwo o d L NG te rmina l. (4) IRR c a lc ula te d o ve r 20 ye a rs a fte r inve stme nt pe rio d b e fo re fe d e ra l inc o me ta x, a nd inc lud ing a te rmina l va lue b a se d o n a c a p ra te o f 8.0% b a se d o n a $1.5 b illio n inve stme nt in e xc ha ng e fo r 1 mtpa o f c a pa c ity.
slide-12
SLIDE 12

Value to T e llur ian I nc .

Busine ss mo de l 12

No te s: (1) $3.00/ mmBtu c o st o f L NG F OB Gulf Co a st. (2) Annua l c a sh flo w e q ua ls the ma rg in multiplie d b y 52 mmBtu pe r to nne ; d o e s no t re fle c t po te ntia l impa c t o f ma na g e me nt fe e s pa id to T e lluria n no r G&A. (3) Inc lude s Se a po rt Glo b a l, Stife l, Co we n a nd T uo hy Bro the rs e stima te s. (4) Ca lc ula te d b y multiplying to ta l c a pa c ity re ta ine d b y T e lluria n in e a c h pha se b y $1,500 pe r to nne , d isc o unting a t a ra te o f 10% fo r o ne ye a r a nd d ivid ing b y to ta l numb e r o f sha re s o utsta nd ing (228 millio n a s o f Ma y 4, 2018 plus 6 millio n pre fe rre d sha re s). (5) As o f June 5, 2018.

USGC ne tbac k

($/ mmBtu)

Mar gin(1)

($/ mmBtu)

Phase 1(2) F ull de ve lopme nt(2) Annual c ash flows

($ millio ns) $ 6.00 $10.00 $15.00 $ 3.00 $ 7.00 $12.00 $ 470 $1,090 $1,870 $1,810 $4,220 $7,240 Analyst e stimate s, NAV and tr ading r ange Cash flow analysis

$0 $10 $20 $30 $40 $50 $60 $70 $80 E q uity a na lyst ta rg e t pric e NAV 52-we e k tra ding ra ng e (5)

(4) (3)

Pha se 1 F ull de ve lo pme nt

$ pe r sha re

slide-13
SLIDE 13

Mar ke ting pr

  • c e ss – Dr

iftwo o d Ho ldings

Busine ss mo de l

Ac tivity 2018 Q1 Q2 Q3 Q4 L aunc h mar ke ting Nar r

  • w c andidate s

Ne gotiate agr e e me nts

13

~25 c usto me r/partne rs in data ro o m F e b 15 Comme rc ia lize Pha se 1 by Q3 or Q4 2018

slide-14
SLIDE 14
  • A g lo b a l L

NG de mand pull has c oinc ide d with a supply push fro m the U.S., sig na ling the ne e d fo r a dditio na l liq ue fa c tio n c a pa c ity

  • T

e lluria n’ s b usine ss mo de l pro vide s inve sto rs with a c c e ss to the U.S. inte g ra te d g a s va lue c ha in, de live ring low- c ost, fle xible L

NG globally

  • E

xpe r ie nc e d manage me nt a nd str ate gic par tne r s

  • Co nsiste ntly e xe c uting on time line o f de ve lo pme nt
  • Sig nific a nt ne a r-te rm e quity upside

Co nc lusio ns

14 Busine ss mo de l

slide-15
SLIDE 15
  • Busine ss mo de l
  • Dr

iftwood asse ts

  • Ma rke t funda me nta ls
  • Additio na l de ta il

Co nte nts

15

slide-16
SLIDE 16

Dr iftwo o d L NG te r minal

No te : (1) E ng ine e ring , pro c ure me nt a nd c o nstruc tio n c o sts b e fo re o wne rs’ c o sts, fina nc ing c o sts a nd c o nting e nc ie s.

16

Dr iftwood L NG te r minal L and

  • ~1,000 a c re s ne a r L

a ke Cha rle s, L A

Capac ity

  • ~27.6 mtpa

T r ains

  • 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
  • GE

L M6000 PF + c o mpre sso rs

Stor age

  • 3 sto ra g e ta nks
  • 235,000 m3 e a c h

Mar ine

  • 3 ma rine b e rths

E PC Cost

  • ~$550 pe r to nne
  • ~$15.2 b illio n(1)

Ar tist r e ndition

Driftwo o d L NG

slide-17
SLIDE 17

Re gulato r y and c o st c e r tainty

Driftwo o d L NG

Re gulator y sc he dule c lar ity Guar ante e d lump sum tur nke y c ontr ac t with Be c hte l

17

Catalyst E stimate d time line

Dra ft E nviro nme nta l I mpa c t Sta te me nt 1H 2018 F ina l E nviro nme nta l I mpa c t Sta te me nt 12 Oc to b e r 2018 F E RC o rde r a nd F e de ra l Autho riza tio n De a dline 10 Ja nua ry 2019 Driftwo o d fina l inve stme nt de c isio n 1H 2019 Be g in c o nstruc tio n 1H 2019 Be g in o pe ra tio ns 2023

11.0 27.6 $700 $550

Pha se 1 F ull de ve lo pme nt

$ pe r tonne mtpa

slide-18
SLIDE 18

Pr

  • duc tio n Co mpany str

ate gy

  • Ac q uire a nd de ve lo p long- life , low- c ost natur

al gas r e sour c e s

― L

  • w g e o lo g ic a l risk

― Sc a la b le po sitio n ― Pro duc tio n o f ~1.5 Bc f/ d sta rting in 2022 ― T

  • ta l re so urc e s o f ~15 T

c f fo r Pha se 1

― Ope ra to rship ― L

  • w o pe ra ting c o sts

― F

le xib le de ve lo pme nt

  • I

nitia lly fo c use d o n Hayne sville b a sin; in c lo se pro ximity to sig nific a nt de ma nd g ro wth, lo w de ve lo pme nt risk, a nd fa vo ra b le e c o no mic s

  • T

a rg e t is to de live r g a s fo r $2.25/ mmBtu

  • T

e lluria n a c q uire d 11,620 ne t ac r

e s in the Ha yne sville

sha le fo r $87.8 million in Q4 2017

  • Prima rily lo c a te d in De So to a nd Re d Rive r pa rishe s
  • 80% HBP
  • 94% o pe ra te d
  • 100% g a s
  • Curre nt ne t pro duc tio n – 4 mmc f/ d
  • Ope ra te d pro duc ing we lls – 19
  • I

de ntifie d de ve lo pme nt lo c a tio ns – ~178

  • T
  • ta l ne t re so urc e – ~1.4 T

c f o r ~10% o f to ta l re so urc e

re q uire d fo r Pha se 1

Upstre a m

Obje c tive s Cur r e nt asse ts

18

slide-19
SLIDE 19

<~9 T c f ~9 to ~15 T c f >~15 T c f

>100 T c f available r e so ur c e s in Hayne sville

Upstre a m

So urc e s: IHS E ne rd e q ; 1De rric k; inve sto r pre se nta tio ns; T e lluria n re se a rc h. No te : (1) E stima te d re so urc e s b a se d o n a c re a g e .

19

Dr iftwood Holdings plans to fund and pur c hase 15 T c f

Pote ntial ac quisition tar ge ts: Range of r e sour c e s pe r tar ge t (T c f)(1): T ar ge t size : L ar ge Me dium Small

15 15 9 9

slide-20
SLIDE 20

Pipe line ne two r k

No te s: (1) Inc lude d in Driftwo o d Ho ld ing s. (2) Curre ntly no t inc lud e d in Driftwo o d Ho ld ing s illustra tive fina nc ia ls (slid e s 7, 8, 9, 11 a nd 12); c o mme rc ia l a nd re g ula to ry in pro g re ss a nd fina nc ia l struc turing und e r re vie w.

20 Pipe line ne two rk

Driftwood Pipe line (1)

Ca pa c ity (Bc f/ d) 4.0 Co st ($ b illio ns) $2.2 L e ng th (mile s) 96 Dia me te r (inc he s) 48 Co mpre ssio n (HP) 274,000 Sta tus F E RC a ppro va l pe nding

Ha yne sville Globa l Ac c e ss Pipe line (2)

Ca pa c ity (Bc f/ d) 2.0 Co st ($ b illio ns) $1.4 L e ng th (mile s) 200 Dia me te r (inc he s) 42 Co mpre ssio n (HP) 23,000 Sta tus Ope n se a so n: 2/ 21/ 18

Pe rmia n Globa l Ac c e ss Pipe line (2)

Ca pa c ity (Bc f/ d) 2.0 Co st ($ b illio ns) $3.7 L e ng th (mile s) 625 Dia me te r (inc he s) 42 Co mpre ssio n (HP) 258,000 Sta tus Ope n se a so n: 3/ 20/ 18

Br inging low- c ost gas to Southwe st L

  • uisiana

1 2 3 1 2 3

slide-21
SLIDE 21
  • Busine ss mo de l
  • Driftwo o d a sse ts
  • Mar

ke t fundame ntals

  • Additio na l de ta il

Co nte nts

21

slide-22
SLIDE 22

100 200 300 400 500 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

De mand pull

Glo b a l L NG

De mand outlook

So urc e s: Wo o d Ma c ke nzie , T e lluria n Re se a rc h. No te s: (1) Assume s 85% utiliza tio n ra te . (2) Ba se d o n a ssumptio n tha t L NG d e ma nd g ro ws a t 4.5% p.a . po st-2020.

22

127 mtpa of ne w lique fac tion c apac ity r e quir e d by 2025(1)

mtpa Unde r c o nstruc tio n I n o pe ra tio n De ma nd (2) 107 mtpa

slide-23
SLIDE 23

13 Bc f/ d

6 1 8 1 4

U.S. natur al gas ne e ds glo bal mar ke t ac c e ss

Glo b a l L NG 23

13 B cf/ d of i ncr ement al pr

  • duct

i

  • n; associ

at ed gas at r i sk of flar i ng wi t hout i nfr ast r uct ur e i nvest ment

So urc e s: E IA; ARI; T e lluria n a na lysis. No te : (1) $1,000 pe r to nne a ve ra g e .
  • L

NG e xpo rt c a pa c ity re q uire d:

―At le a st 100 mtpa : 13 Bc f/ d (20

Bc f/ d le ss ~7 unde r c o nstruc tio n)

― ~$100 b illio n(1)

  • Pipe line c a pa c ity re q uire d:

―Aro und 20 Bc f/ d ―~$70 b illio n

L NG lique fac tion te r minal

Ope ra ting / unde r c o nstruc tio n F uture E xpo rt c a pa c ity

20

T

  • tal e stimate d 2017- 2025

pr

  • duc tion gr
  • wth, Bc f/ d

Re quire d future inve stme nt:

  • ~$170 b illio n
  • Up to 13 Bc f/ d e xpo rt c a pa c ity
slide-24
SLIDE 24 So urc e s: K ple r, Ma ra n Ga s, IHS, Wo o d Ma c ke nzie . 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 pa c ity pe r ve sse l. Ave ra g e c a rg o size ~2.9 Bc f, a ssuming 150,000 m 3 ship. In 2017, a ppro 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 spo t vo lume s. Ba se d o n line o f sig ht supply thro ug h 2020.

De e pe r physic al liquidity fr

  • m infr

astr uc tur e

24 Glo b a l L NG

Bc f o f L NG sto ra g e # o f L NG ve sse ls # o f c a rg o e s lo a de d pe r da y

L e ge nd

L NG c a rrie r – la de n L NG c a rrie r – unla de n

L NG Stor age - 2017

Ja pa n + K

  • re a te rmina ls: 633 Bc f

L NG ve sse ls: 751 Bc f

13 17

2017 2020

507 609

751 902

2017 2020

slide-25
SLIDE 25

Co ntac t us

  • Amit Mar

waha

Dire c to r, I nve sto r Re la tio ns & F ina nc e +1 832 485 2004 a mit.ma rwa ha @ te lluria ninc .c o m

  • Joi L

e c znar

SVP, Pub lic Affa irs & Co mmunic a tio n +1 832 962 4044 jo i.le c zna r@ te lluria ninc .c o m @ T e lluria nL NG

25 Co nta c ts

slide-26
SLIDE 26

2017

Additio nal de tail

slide-27
SLIDE 27

2018

Pipe line

  • pe n

se a so ns $50 millio n $25 millio n $60 millio n $207 millio n Me rg e r $100 millio n Upstre a m a c q uisitio n L ST K

April De c e mbe r Ja nua ry F e brua ry June Nove mbe r De c e mbe r F e b/ Ma rc h Ma rc h

Ma na g e me nt, frie nds a nd fa mily inve st $60 millio n in T e lluria n GE inve sts $25 millio n in T e lluria n T OT ALinve sts $207 millio n in T e lluria n Me rg e with Ma g e lla n Pe tro le um, g a ining a c c e ss to pub lic ma rke ts Be c hte l, Cha rt I ndustrie s a nd GE c o mple te the fro nt-e nd e ng ine e ring a nd de sig n (F E E D) study fo r Driftwo o d L NG Ac q uire Ha yne sville a c re a g e , pro duc tio n a nd ~1.4 T c f E xe c ute L ST K E PC c o ntra c t with Be c hte l fo r ~$15 b illio n Ra ise a ppro xima te ly $100 millio n pub lic e q uity Anno unc e

  • pe n se a so ns

fo r Ha yne sville Glo b a l Ac c e ss Pipe line a nd Pe rmia n Glo b a l Ac c e ss Pipe line Be c hte l inve sts $50 millio n in T e lluria n

2017 2016

Building a lo w-c o st glo bal gas busine ss

27 Additio na l de ta il

slide-28
SLIDE 28

Mg mt, fa mily a nd frie nds, $60 GE inve stme nt, $25 T

  • ta l

inve stme nt, $207 Pub lic e q uity

  • ffe ring ,

$115 AT M pro g ra m, $10 Be c hte l inve stme nt, $50

F unding and o wne r ship

Additio na l de ta il

Sour ces (1) ($ mi lli

  • n)
No te : (1) As o f April 2018.

28

T

  • ta l

20%

  • C. So uki

24%

  • M. Ho usto n

11%

  • M. Ge ntle

5% E mplo ye e s a nd Dire c to rs 5% F re e F lo a t 35%

Owner shi p(1) (%) $467 million 228 million shar e s

slide-29
SLIDE 29

Dr iftwo o d vs. c o mpe tito r s – c o st pe r to nne

So urc e s: Wo o d Ma c ke nzie , T he Wo rld Ba nk, T e lluria n Re se a rc h. No te : (1) T he Wo rld Ba nk b a se s the L
  • g istic s Pe rfo rma nc e Ind e x (L
PI) o n surve ys o f o pe ra to rs to me a sure lo g istic s “frie nd line ss” in re spe c tive c o untrie s whic h is supple me nte d b y q ua ntita tive d a ta o n the pe rfo rma nc e o f c o mpo ne nts o f the lo g istic s c ha in.

29 $1,428 $1,500 $1,603 $1,654 $2,083 $2,657 $3,774 $4,144 $5,025 Qa ta r Ne w Me g a tra in Driftwo o d Mo za mb iq ue Are a 4 Ya ma l L NG Ca na da APL NG Go rg o n Whe a tsto ne I c hthys $ pe r to nne

Capac ity, mtpa

9.5 27.6 10.0 16.5 13.0 9.0 15.6 9.0 8.9

L PI global r anking (1):

3.6 4.0 2.7 2.6 3.9 3.8 3.8 3.8 3.8 Additio na l de ta il

slide-30
SLIDE 30

I nte gr ate d mo de l pr e vale nt inte r natio nally

So urc e : IHS.

30

Pr

  • je c ts inc lude :

Austra la sia

APL NG, Da rwin, GL NG, Go rg o n, I c hthys, NWS, Pluto , No rthwe st She lf, QCL NG, Whe a tsto ne , PNG L NG, T a ng g uh, Brune i L NG, Do ng g i-Se no ro , ML NG, Ya ma l L NG

Mide a st/ Afric a

Ang o la L NG, E G L NG, Da mie tta , E L NG, Ye me n L NG, Mo za mb iq ue L NG, Co ra l L NG, Oma n L NG, Qa lha t L NG, Qa ta rg a s I

  • I

V, Ra sGa s I

  • I

I I , ADGAS

Ame ric a s

Atla ntic L NG, Pe ru L NG, L NG Ca na da

E uro pe

Sno hvit, Ya ma l L NG

E urope Austra la sia NOC IOC

Additio na l de ta il

slide-31
SLIDE 31
  • 12

24 36 48

Sa b ine Ca me ro n Co ve Po int Co rpus So uthe rn F re e po rt DWL NG Ma g no lia Go lde n Pa ss L a ke Cha rle s Ve nture Glo b a l Pre -filing F E RC a pplic a tio n

Dr iftwo o d sc he dule

Additio na l de ta il

No te : (1) Pro je c ts und e r E nviro nme nta l Asse ssme nt (E A), a ll o the r pro je c ts re q uire d a n E nviro nme nta l Impa c t Sta te me nt (E IS), whic h e nta ils a lo ng e r re vie w pro c e ss with the F E RC.

31

Se c ond wa ve F irst wa ve Mo nths

(1) (1) (1)

slide-32
SLIDE 32

K e y te rms o f E PC a g re e me nts with Be c hte l

Additio na l de ta il 32

T ra ins 8 4 4 4 20 Sto ra g e fa c ilitie s 2 1 3 Be rths 1 1 1 3 $700 pe r to nne $490 $500 $380

~$550 Phase 1 Phase 2 Phase 3 Phase 4 T

  • tal

11.0 5.5 5.5 5.5 27.6

Capac ity

slide-33
SLIDE 33

Pipe line Ne two r k

33

Gillis Mar ke t Ar e a

  • K

MPL

  • T

E T CO

  • T

runkline

  • T

ra nsc o

  • T

e nn Ga s

  • CT

PL

  • Ca me ro n
  • F

GT

  • DWPL
  • E

GAN

  • T

e xa s Ga s

  • Pine Pra irie
  • ANR
  • CGT

Inte rc onne c ts

Pe r mian Supply Ar e a

  • E

T C –Co ma nc he T ra il

  • E

T C – T ra ns-Pe c o s

  • E

T C – Oa sis

  • Va q ue ro
  • One OK

We sT e x

  • OXY
  • E

nte rprise

  • Ja l
  • E

l Pa so

  • White Wa te r
  • NGPL
  • No rthe rn Na tura l

Ga s

  • T

ra nsWe ste rn

  • Atmo s

Inte rc onne c ts

Hayne sville Supply Ar e a

  • Cro sste x
  • Re g e nc y (RI

GS)

  • Ac a dia n
  • ME

P

  • Gulf Cro ssing
  • Ce nte rPo int
  • T

e lluria n Pro duc tio n Co .

  • T

e nn Ga s

  • E

T C – T ig e r

  • T

e xa s Ga s

  • Gulf So uth

Inte rc onne c ts

Pr
  • pose d pipe line s
DWPL DWPL inte rc o nne c ts

Additio na l de ta il

Pr
  • pose d pipe line s
PGAP PGAP inte rc o nne c ts Pr
  • pose d pipe line s
HGAP HGAP inte rc o nne c ts
slide-34
SLIDE 34

PGAP c o nne c ts c o nstr aine d gas to SWL A

Additio na l de ta il

T ake away c onstr aints in the Pe r mian Southwe st L

  • uisiana de mand
So urc e s: Co mpa ny d a ta , Go ld ma n Sa c hs, We lls F a rg o E q uity Re se a rc h, RBN E ne rg y, T e lluria n e stima te s. No te s: (1) L NG d e ma nd b a se d o n 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
  • tte a nd We stla ke Che mic a l.

34

L o u i s i a n a Te x a s G u l f o f M e x i c o

Gillis, L A E unic e , L A

Driftwood L NG Ca me ron L NG Sa bine Pa ss L NG 4 12 2017 2024 Southwe st L

  • uisia na firm

de ma nd(1)(2) (bc f/ d)

2 4 6 8 10 12 14 16 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Bc f/ d

No rth Me xic o E a st We st Pe rmia n pro duc tio n

slide-35
SLIDE 35

Hayne sville type c ur ve c o mpar iso n

Compar ative type c ur ve statistic s Cumulative pr

  • duc tion nor

malize d to 7,500’(3)

So urc e : Co mpa ny inve sto r pre se nta tio ns. No te s: (1) Assume s 75.00% ne t re ve nue inte re st (“NRI”) (8/ 8ths). (2) Assume s g a s pric e s o f $3.00/ mc f b a se d o n NRI a nd re turns pub lishe d spe c ific to e a c h o pe ra to r. (3) 7,500’ e stima te d ultima te re c o ve ry (“E UR”) = o rig ina l la te ra l le ng th E UR + ((7,500’ -o rig ina l la te ra l le ng th) * 0.75 * (o rig ina l la te ra l le ng th E UR / o rig ina l la te ra l le ng th)).

35

0.0 1.0 2.0 3.0 4.0 5.0 6.0 30 60 90 120 150 180 210 240 270 300 Bcf Days

Peer B Peer D Peer A Peer C Tellurian T e llur ian Pe e r A Pe e r B Pe e r C Pe e r D T ype c ur ve de tail

Are a De So to / Re d Rive r No rth L

  • uisia na

De So to NL A De So to c o re NL A c o re / b le nde d de ve lo pme nt pro g ra m Co mple tio n (lb s. / ft.)

  • 4,000

3,800 2,700 3,000

Single we ll stats

L a te ra l le ng th (ft.) 6,950' 7,500' 7,500' 4,500' 9,800' Gro ss E UR (Bc f) 15.5 18.8 18.6 9.9 19.9

E UR pe r 1,000' ft. (Bc f) 2.20 2.50 2.48 2.20 2.03

Gro ss D&C ($ millio ns) $10.20 $10.20 $8.50 $7.70 $10.30 F &D ($/ mc f)(1) $0.88 $0.73 $0.61 $1.04 $0.69

T ype c ur ve e c onomic s

Be fo re -ta x I RR (%)(2) 43% 60% 90%+ 54%

  • Additio na l de ta il