CONSOL Energy: An Energy Juggernaut COAL GAS Coalbed Methane Thermal Coal Conventional Gas Metallurgical Coal Marcellus Shale Chattanooga Shale CONSOL Energy has chosen to diversify by producing energy from multiple…
Thermal Coal, Met Coal, and Gas 5 Met Coal Overview n Buchanan Mine in southwestern Virginia A low-cost longwall mine +100 mm tons of high quality, low-vol reserves n 2009 sales estimated at 2.3 mm tons; prices just under…
Thermal Coal Overview n CONSOL Energy is the largest producer in Americas premier thermal coal basin: Northern Appalachia n Northern Appalachia has: The highest Btus per pound of any thermal coal Location value, straddling eastern…
Financial Review 9 2009 Second Quarter Results n Net Income of 113 million n GAAP EPS of 0.62 n Net Cash from Operations of 316 million n Coal Production: 14.4 million tons n Margins per ton: 10.94 For the second…
Short Term Financial Flexibility (at June 30, 2009) (MM) Amount / Amount Letters Amount Capacity Drawn of Credit Available Cash and Cash Equivalents - CONSOL 101 - - 101 Cash and Cash Equivalents - CNX Gas 7 - - 7 AR…
Coal Operations 13 Met Coal Outlook n U.S. and international met market is currently strengthening Blast furnaces are re-starting Steel capacity utilization is increasing Buchanan has the potential to help CONSOL…
Thermal Coal Outlook n Cool weather in June and July reduced demand n August weather, in contrast, was near normal n By September 1, CONSOL had restarted all longwalls n Utility stockpiles have been drawn down, but are still…
Scrubber Builds Are Being Completed Since 2006, CONSOL has signed 6 multi-year, multi-million ton agreements with domestic customers that in aggregate 250 million tons of high-Btu coal 10% 28% Percentage of Gigawatts Scrubbed by…
CNX Gas Corporation 19 Leading Appalachian Producer Among Appalachian producers, CNX Gas is: 1 in Sales Revenue 1 in Profitability and Returns 1 in Production Growth 2 in Production Volume 2 in Market Capitalization…
2009 Second Quarter Results Net Income of 33.0 million GAAP EPS of 0.22 Gas Production of 22.5 Bcf Margin per Mcf: 3.14 Zero Lost-Time Incidents for Employees Another quarter of record production enabled us to increase 2009…
Gas Operations Summary Coal Bed Methane: Most experience related to active coal mining Most CBM horizontal drilling experience Marcellus Shale: Successfully adopted state-of-the-art exploration techniques Successfully benefited…
Advances in the Marcellus Reserves per well increasing: From 3.0 Bcf in Dec. 2008 to 3.5 Bcf today Costs dropping: From 5.2 million in Dec. 2008 to 3.5 million today Well spacing dropping: From 160 acres in Dec. 2008 to 40…
CONSOL Energys Value Discount n CONSOL Energy has out-earned the competition, yet trades at a 25% discount (market cap of 10.9 billion vs. 8.7 billion): CONSOL had GAAP net income of 113 mm in Q2 and 196 mm in Q1 Peabody had GAAP…
Credit Suisse 2009 Global Steel & Mining Conference London 15
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