February 2011 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
CONSOL Energy: Strength in Product Diversity Coal Low-vol coal High-vol coal PCI coal Thermal coal Gas CONSOL believes that it can create meaningful shareholder value by responsibly managing this unique portfolio. 3
CONSOL Energy: Strength in Product Diversity (2) Wall Street Journal headline, Feb. 22: BHP to Buy Shale Assets The worlds largest mining company validates CONSOL Energys strategy. 4
CONSOL Energy: Strength in Market Diversity U.S. China Europe Brazil CONSOL Energys Pittsburgh seam coal is now being sold on four continents. 5
CONSOL Energy: The Nations Largest Coal Exporter 2010 Exports Europe: 2.2 China: 3.0 Brazil: 1.6 Total: 6.8 mm tons CONSOL Energy aspires to increase its export sales in 2011, with India and S. Korea representing…
Transshipping our Coal off the Coast of Nova Scotia Coal in the Panamax-size vessel (on the left) is loaded onto the Cape-size vessel (on the right). 7
CONSOL: Coals Q4 Cash Generation Low-Vol High-Vol Quarter Ended December 31, 2010 Met Met Thermal Total Coal Sales (millions of tons) 1.1 0.5 15.4 Average Realized Price Per Ton Company Produced 164.62 72.69 52.98 Total Cost Per…
CONSOLs BMX Mine Opens in Early 2014 5 MM tons/year of low-cost NAPP coal Potential Markets: Asian mills European generators Brazilian mills Domestic generators CONSOLs Bailey Prep Plant will be expanding to serve the BMX…
CONSOL: Managing the Coal Portfolio Potential to Monetize CAPP Met Reserves in Southern West Virginia Amonate, Elk Creek, and Itmann properties 5 MM tons/year of low- vol, medium-vol, and high-vol Potential EBITDA of 350 MM,…
CONSOL Energys 2011 Gas Strategy Investing 675 million to grow the gas division of CONSOL 215 mm: delineate Dominion acreage 225 mm: grow production to 150-160 Bcf 35 mm: Utica Shale exploration program CONSOL believes that…
2010 Drill Bit Finding Cost /Mcf CONSOL Energy 0.41 Range Resources 0.60 Ultra Petroleum 1.48 CONSOL posts Best in Class finding cost.
Growth in Marcellus Shale Program 140 12/31 Exit Rate: MMcf/day 125 120 100 80 70 Wells Drilled 60 40 40 24 20 14 6 0 Estimated 2007 2008 2009 2010 2011 Our Marcellus Shale program is growing rapidly. 14
CONSOL has Three Marcellus Shale Operating Areas Central Pa. Ops Southwest Pa. Ops WV Ops CONSOL has 750,000 Net Acres in Marcellus Shale. 15
CONSOL is Long FT through 2013 DOMINION TETCO COLUMBIA DOMINION CONSOL has +400 MMcf per day of unused take-away capacity. 16
2010 Marcellus Shale Results All in Greene County, Pa.: EURs (p-50 case) range from 3.5 Bcf to 9.9 Bcf; 5.5 Bcf average Laterals average 3,400 feet D&C Costs average 4.1 million Maximum 24-hour production averaged 3.7 MMcf…
Marcellus Economic Assumptions Illustrative Well Parameters (MM, except as noted) Base 2011 Type 2011 Type (10%D&C Efficiency) Gross EUR (Bcfe) 4.3 5.7 5.7 NRI 87.5% 87.5% 87.5% Net EUR (Bcfe) 3.7 4.9 4.9 Drilling Cost 1.9 2.1…
Illustrative Marcellus Well Economics Well ATAX IRR Comparison - Type Curve Analysis 100.0% 95.0% 90.0% 85.0% 80.0% Base 75.0% 2011 Type (10% D&C Eff iciency) 70.0% 2011 Type 65.0% Internal Rate of Return % 60.0%…
CONSOL Plans 6-Well Utica Shale Exploration Program Central Pa. Ops Southwest Pa. Ops WV Ops CONSOL drills vertical well in Belmont County, OH. 20
CONSOL Energy: Summary CONSOL has the asset and customer base that makes it the leading diversified fuel producer in the Northeast. CONSOL Coal Ops industry leading assets, margins and cash flows will allow the Gas business to…
February 2011 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
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