Ann: Shareholder Presentation, page-63

OK, version 1,

An MLP (a Master Limited Partnership) is a corporate structure in the US that shares many of the financial properties of a basic Partnership entity. In simple terms, they are treated as a financial flow through for tax purposes: partners (shareholders) are responsible for all taxes payable on profits made by the MLP but partners (shareholders) also get all taxable deductions of the MLP (including depreciation etc etc). This is hugely tax effective for investors (it's basically the best deal you are ever going to get assuming you are on one of the higher rates of tax), and so MLP's attract a higher than normal PE. The other component of an MLP is that they must essentially define up front a yearly income stream to be distributed to partners, which is essentially almost all income of the MLP. This defines a very predictable investment for investors, and so MLP's attract a higher than normal PE. Fosters have suggested a 16X PE for company's in our field and potentially even higher for a MLP structure (Cheniere is claimed to be closer to 36X but I think that number might be a little off). Because of the income stream distribution requirements of an MLP, MLP's are only allowed for a very small number of business types: mostly infrastructure businesses, and in particular energy pipelines (and LNG tollers), since these can provide the required guaranteed earnings.

As to a structure that would involve an MLP for us, this is where Cheniere comes in. Here's the complex corporate structure of Cheniere (page 3): http://media.corporate-ir.net/media_files/IROL/10/101667/LNG-May_2014.pdf. As I said, I'm assuming LNG want to duplicate a similar structure to position the main income producing stream as an MLP. Here are my comments on this might look from before:

As you can see Cheniere (NYSE: LNG) is the Mother company (listed on the NYSE). It hold an 84.5% Interest in Cheniere Energy Partners LP Holdings, LLC (listed as NYSE: CQH) and the other 15.5% is held by the public. CQH holds a 55.9% Interest in Cheniere Energy Partners, L.P. (NYSE: CQP) and the rest is held by Blackstone (BX) 29.0% and the public 13.1%. CQH also holds a 100% Interest in Cheniere Energy Partners GP, LLC (a private company) which receives payments from CQP. CQP then owns the projects.

Replace CQP with a holding company over our US projects (or just Magnolia), replace Blackstone with Stonepeak, replace Cheniere Energy, Inc. (NYSE: LNG) with LNG.ASX and you start to see how our corporate structure might become similar. Add in the public selloff at the CQH level as selloff of the US company I'm suggesting we'd do and you have the plan essentially as I described they might follow.