Cheniere Energy Partners, L.P. Q1 FY2020 earnings call

• Jack Fusco noted the first quarter was historic due to COVID-19, highlighted Cheniere's resilient business model, first quarter financial results, progress on Corpus Christi Train 3 (84% complete) and Sabine Pass Train 6 (54% complete), and Cheniere's response to COVID-19 including emergency teams, safety measures, and community contributions. • Anatol Feygin provided an update on the global LNG market, noting growth in LNG imports in Asia and Europe, impact of COVID-19, and reduced FIDs for LNG projects. • Michael Wortley reviewed financial results, including net income, consolidated adjusted EBITDA, distributable cash flow, LNG production and sales, and discussed liquidity, financing, and capital allocation.

For the first quarter of 2020, Cheniere generated a record consolidated adjusted EBITDA of $1.04 billion, distributable cash flow of approximately $250 million on revenues of $2.7 billion, and net income attributable to common stockholders of $375 million. They produced and exported 128 cargoes of LNG, including the 100th cargo from Corpus Christi and the 1,000th cumulative cargo. Since start-up, over 75 million tonnes of LNG have been exported to 35 countries and regions.

• Reaffirmed 2020 full year guidance of consolidated adjusted EBITDA $3.8 billion to $4.1 billion and distributable cash flow $1.0 billion to $1.3 billion. • Highlighted over 95% of 2020 LNG production is presold, making financial results less exposed to market pricing fluctuations. • Discussed plans for debt maturities, including refinancing of notes and evaluating options for convertible notes.

• Impact of COVID-19 on business operations and market conditions. • Market volatility affecting LNG prices and demand. • Potential FM claims and speculation around force majeure clauses in contracts. • Uncertainty around economic recovery and its impact on LNG demand.

Q: About international spreads and U.S. gas pricing, will there be long-term market structure change?

A: Anatol Feygin said over medium term associated gas production will be modest, expects NYMEX to stabilize between $2.5 and $3, and North American gas pricing will remain attractive relative to global levels.

Q: Any opportunities for Cheniere to benefit from market structure?

A: Michael Wortley said they are working on options for debt maturities and evaluating ways to deal with convertible notes.

Q: How is Cheniere handling cargo cancellations?

A: Jack Fusco and Anatol Feygin stated no unexpected surprises, customers give substantial notice, and teams are coordinated to handle cancellations.

Q: Thoughts on FM claims in other projects?

A: Jack Fusco said Cheniere feels comfortable with their contracts, no risk of FM in their portfolio, and Anatol Feygin noted FOB SPAs are different from other contracts with less flexibility.

Q: Long-term strategy on greenfields?

A: Jack Fusco said they have enough organic growth from existing projects, and Michael Wortley echoed that they haven't found better opportunities than their existing projects.

Q: Operational seasonality and revenue lifting?

A: Anatol Feygin said Sabine has some seasonality, SPAs are ratable with some winter loading, and revenue from canceled cargoes is recognized upon notice.

Q: NGPL force majeure and CapEx?

A: Anatol Feygin said NGPL force majeure was a nonissue, Michael Wortley discussed CapEx for Corpus Christi Train 3 and Sabine Pass Train 6.

Q: CMI flexibility and Henry Hub pressure?

A: Anatol Feygin said CMI can lift canceled cargoes, and market is uncertain on Henry Hub pressure.

Q: OpEx and SG&A optimization?

A: Michael Wortley and Jack Fusco discussed reworking budgets, deferring spending, and SG&A being a small expense with telecommuting reducing travel.

Q: U.S. LNG interest from China?

A: Anatol Feygin said there is more interest, and they expect to transact more with China in the future.

Q: FIDs for LNG projects and Corpus Christi Stage 3?

A: Anatol Feygin discussed criteria for FIDs and that Corpus Christi Stage 3 is an attractive project.

Q: Marketing and potential third-party deals?

A: Anatol Feygin said Cheniere is taking advantage of market volatility and opportunities, and Jack Fusco noted they offer premium product and will capitalize on post-pandemic recovery