First Quarter 2013 Earnings Call April 25, 2013 J. Brett Harvey, Chairman and CEO Nicholas J. DeIuliis, President David Khani, CFO James C. Grech, EVP, Chief Commercial Officer
First Quarter 2013 Results Summary Posted solid first quarter financial and operational results - Coal sales exceeded guidance due to domestic utilities accepting shipments and exports surging to meet demand - An additional driver was…
Active Coal Division Summary QTR Ended March 31, Q-to-Q 2013 2012 Change EBIT 196 223 (27) Average Costs per ton 50.69 54.60 (3.91) Coal Production (millions of tons) 14.8 15.6 (0.8) Sales Volumes (millions of tons) 15.2 15.1…
Gas Division Summary QTR Ended March 31, Q-to-Q 2013 2012 Change EBIT 0.77 0.89 (0.12) Average Costs per Mcf 3.53 3.37 0.16 Sales Volumes (Bcfe) 39.2 37.7 1.5 Sales Volumes (Bcfe) by Categories CBM 20.7 22.7 (2.0) Marcellus…
CONSOL Energy Overview Net (Decrease) / Increase in Cash - MM Goal is to maintain our strong liquidity position QTR Ended March 31, Q-to-Q 2013 2012 Change Net Cash Provided by Operations 268 229 39 Capital Expenditures (406)…
Strong Liquidity Position of 2.4 Billion Cash on hand of 25 million Accounts receivable securitization and revolving credit facilities of over 2.3 billion Amount/ Amount Letters Amount March 31, 2013 (MM) Capacity Drawn of…
Revolving Credit Facilities Debt Covenants CONSOL Energy and CNX Gas currently maintain strong leverage ratios Both facilities are well within debt covenants March 31, Limit 2013 CONSOL Energy Revolver: Maximum Leverage Ratio…
Gas Division Production Results (in Bcfe) Gas Production 200 (1) 170.0 180.0 175 153.5 156.3 150 127.9 125 100 94.4 76.6 75 56.1 58.2 48.6 48.4 50 44.5 25 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
Drilling Results and Forecast Gross Wells Drilled By Formation From 2011 Through 2013E Formation Region 2011 2012 1Q2013 2013E Coalbed Methane Virginia 214 44 17 65 Total Shales: (Gross) 78 99 28 148 Marcellus Shales Central PA 19 13…
Brett Harvey: Key Points Summary Our strategy shifts towards four main concepts: 1. Coal capital expenditure growth has been completed and we revert to a 5 - 6 per ton maintenance capital level 2. We do not intend to pursue…
Brett Harvey: Key Points CONSOLs Operating Leverage CONSOL benefits when natural gas is over 4.00 per mmBtu by: Higher realizations on unhedged gas positions Starting to receive part of the 2.1 billion carry from Noble Energy as…
Our Assets, Strategy, and People Create An Investment Opportunity Coal and gas operations are long-lived, low-cost, and provide solid growth Our well-capitalized assets and highly trained personnel provide more consistent…
Appendix
Appendix Marketing 2Q13 and 2013 Forecasts 2013 Coal Sales Facts and Goals Sales Tons by Product Contracted tons for 2013: More than 96% Year 2013 - Priced: More than 92% - Unpriced: Less than 8% (primarily met coal) 7% 3% 0%…
Appendix BMX Mine Overview BMX Mine completion: March or April of 2014 - Lowest cost CNX mine 19
Appendix Our Domestic Coal Market Remains Solid PJM Coal Inventory Trailing 12 Months 5 Year Average 30 25 20 Tons (MM) 15 10 5 - May 12 Aug 12 Nov 12 Feb 13 Source: EIA, PIRA, and CONSOL analysis. 20
Appendix Natural Gas Supply: U.S. Production Real-time Production Estimates 2012 2013 70 65 60 Bcf/d 55 50 45 Mar Apr Aug Nov May Jun Jul Oct Dec Feb Sep Jan Although rig counts…
Appendix Natural Gas: Additional Data Lower 48 Working Gas Underground Storage 2013 5 Yr Average 4 3 Tcf 2 1.70 Tcf 1 Jan 13 Apr 13 Jul 13 Oct 13 Storage inventory remains below 5 year average, after injection…
Appendix CONSOL-Operated Wells: Marcellus Drilling and Completions Summary Drilling Summary 2011 2012 1Q 2013 Wells TD'd 78 64 12 Lateral Ft 300,466' 328,428' 70,059' Total MD 922,264' 794,098' 163,914' Average Lateral 3,853'…
Appendix Settlement Accounting Settlement Accounting: Settlement accounting is triggered when lump sum payments from the salaried pension plan exceed the annual service cost and interest cost - The ability to take a lump sum…
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