CONSOL Energy Inc. Second Quarter 2012 Earnings Call J. Brett Harvey, Chairman and CEO Nicholas J. DeIuliis, President William J. Lyons, CFO Robert F. Pusateri, EVP, Sales, Marketing, & Transportation July 26, 2012
Investment Thesis and Scorecard Tier One coal, gas, and land assets provide synergies and risk reduction Low cost, high-BTU coal that can travel and transform target markets Low cost gas assets; adding liquid targets to the 2012…
Posted Solid Quarterly Results Our coal and gas operations ran safely and efficiently We faced challenging thermal and metallurgical coal markets We continued to sell non-core assets, which generated earnings and cash flow As a…
Strong Liquidity Position of 2.6 Billion Cash on hand of 200 Million Accounts receivable securitization and revolving credit facilities of nearly 2.4 billion Amount/ Amount Letters Amount June 30, 2012 (MM) Capacity Drawn of…
Operating Cash Flow - MM Goal is to Maintain our Strong Liquidity Position QTR Ended QTR-Over June 30, QTR 2012 2011 Change Net Cash Provided by Operations 138 360 (222) Capital Expenditures (408) (331) (77) Proceeds From…
Revolving Credit Facilities Debt Covenants CONSOL Energy and CNX Gas currently maintain strong leverage ratios Both facilities are well within debt covenants June 30, Limit 2012 CONSOL Energy Revolver: Maximum Leverage Ratio…
Gas Division Goals Migrating Capital and Activity to High Value Areas Program goals to drive CBM and Marcellus costs lower Marcellus: multi-well pads and lengthening laterals CBM: lower contractor and field service costs Marcellus…
2012 Drilling Focuses on Liquids Exposure 18 (Gross) Utica Shale Wells 91 (Gross) Marcellus Shale Wells PA OH MD WV VA Wet Gas Dry Gas 9
Drilling Results and Forecast Gross Wells Drilled By Formation From 2009 Through 2012E Formation Region 2009 2010 2011 1Q12A 2Q12A 2012E Coalbed Methane Virginia 204 181 214 14.0 8.0 52.0 Total Shales: (Gross) 17 24 78 27.0 23.0…
Marketing 3Q12 and 2012 Forecasts Sales Tons by Product 2012 Coal Sales Facts and Goals Contracted tons for 2012: 96% Year 2012 Priced: About 95% with more under negotiation 7% 1% Unpriced: Almost all is Metallurgical Coal 7%…
Adjusting To Weak Energy Markets Energy Markets Experienced a slowdown in both sides of our business and CONSOL is adjusting Coal Largely matched production and sales in order to minimize inventory increases Gas Reduced…
Bringing 4.31 Billion in Value Forward Since 2010 2011 Marcellus Shale JV with Noble Energy: 3.3 billion in aggregate payments of cash and carry 2011 Antero Resources ORRI sale: 193 million in cash 2011 Utica Shale JV with Hess…
Investing in Metallurgical Coal Production Developing metallurgical coal assets organically at a cost (/ton) well below competitors recent acquisition rates When added to existing production, met capacity increases to over 14 MM tons…
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 provide more consistent operational execution Our emphasis on…
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