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Howard Weil 40th Annual Energy Conference – Consol Energy Inc.

Consol Energy Inc. · Mar 27, 2012 · 21 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 1
    Howard Weil 40th Annual Energy Conference J. Brett Harvey, Chairman and CEO, CONSOL Energy Inc. March 27, 2012
  2. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 2
    CONSOL Energy Inc Corporate Profile The leading diversified fuel producer in the Eastern United States Ticker: CNX Headquartered in Pittsburgh, Pennsylvania Founded in 1860 9,164 Employees Market Cap = 8.5 Billion EV = 11.4…
  3. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 3
    Coal and Gas: Rich Asset Base With Some Vertical Integration CONSOL Energy Inc Coal Natural Gas . 4.5 billion tons of proven and probable coal 3.5 Tcfe of (net) proved reserves reserves 361,000 net Marcellus Shale acres…
  4. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 4
    Investment Thesis and Scorecard Tier-One Coal and E&P Assets Provide Synergies and Risk Reduction Low cost, high-BTU coal that can travel and transform target markets. Low cost gas assets close to market, with liquids potential in…
  5. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 5
    CONSOL Energy Capital Spending & Flexibility Strategy Relies On Cultivating Our Tier One Long-Lived Assets Consistent operations driven by reinvesting in core business Organic growth projects on both coal and gas projects Capital…
  6. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 6
    E&P Division Goals: Migrating Capital and Activity to High Value Areas Program Goals to Drive CBM and Marcellus Costs Lower Marcellus program through multi-well pads and lengthening laterals Reported 4Q11 fully loaded Marcellus…
  7. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 7
    Drilling Results and Forecast Migrating Capital and Activity to High Value Areas Net Wells Drilled By Formation From 2009 Through 2012E Formation Region 2009 2010 2011 1Q12E 2012E Total Shales 17 24 78 15.0 60.5 Marcellus Shale…
  8. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 8
    CONSOL Energy & Noble Energy JV 2012 Development Plan Six rigs running as of January 2012 (2 in CPA, 3 in SW PA, 1 in WV) 99 (gross) wells to be drilled by the JV, including 39 in the liquids-rich area Guaranteed Net Proceeds (MM)…
  9. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 9
    CONSOL Energy & Hess Corporation JV Total Deal Consideration of 594 million or 6,000 per acre Sold 50% of 200,000 Gross Ohio Utica Cash: 60 Million Carry: 554 million covering 50% of CNXs share of drilling and completion costs.…
  10. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 10
    Marcellus JV Position Significant scale and impact Large Acreage Position Within Marcellus Fairway PA 50% of 628,000 net acres, including: 161,000 acres in the liquids-rich window High NRI (88%) OH 87% of Acreage Held by…
  11. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 11
    Marcellus Sweet Spot Hutchinson Pad results may extend sweet spot further north Industry Recognized Sweet Spot in SW PA Pad Location Key Geologic Attributes SW PA Sweet Spot Systematic Development and Expansion Adds Efficiency…
  12. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 12
    Marcellus Drilling and Completion Cost Lateral lengths increasing while gaining efficiencies Ft. Lateral Length 5,000 4,000 3,000 2,000 1,000 2009 2010 2011 /Ft. Drilling Cost M/Stage Completion Cost 250 350 300 200…
  13. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 13
    Water Sourcing Plan for SW PA Supply established and infrastructure build-out underway Alex Paris Booster Alex Paris Project 800 GPM Sufficient for 16 Frac Stages per Day Ohio River via Shoemaker Mine N. Nineveh 500 GPM…
  14. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 14
    Gas Gathering System Plan for SW PA Systematic expansion to stay ahead of drilling activity PA OH Gas Gathering System Installed or Under Construction to Support 2012 Drilling MD Pad Drilling Allows for Lower Number of WV…
  15. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 15
    Marcellus Wells Improving Over 500-Day Period, CNX Wells in SW PA Yielded 21% More Production Than Competitor Well Average Gross Wellhead Gas Production Mcf/d 4,000 3,000 2,000 1,000 0 0 100 200 300 400 500 600…
  16. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 16
    Coal Division Strategy Participating in Growing World Coal Markets with a Portfolio of Assets that CAN NOT be replicated World Coal Market Participation Growing Coal Exports Cash Generation from Met Products Unique Asset Portfolio…
  17. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 17
    Strength in Market Diversity Produce Locally, Distribute Globally CONSOL Ships To Four Continents Widening of The Panama Canal Should Improve Shipping Costs and Potential Coal Margins 18
  18. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 18
    Marketing: 1Q12 Forecasts and 2011 Coal Statistics Produce Locally, Distribute Globally Sales Tons by Product 1st Quarter 2012 2011 Coal Sales Facts Sales volumes 63.2 MTs for 4.5B of revenue Achieved record annual average 72.24…
  19. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 19
    CONSOL Positioned for EPA Regulations R&D Study of industry coal burn due to regulations - 90% of CONSOL Thermal Coal sold to scrubbed facilities Baseline (2009) 309.0 GW 943.2 MM tpy Coal Regulatory Impact - 40.0 GW - 79.9 MM tpy…
  20. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 20
    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…
  21. Howard Weil 40th Annual Energy Conference – Consol Energy Inc. – slide 21
    CONSOL Energy Inc. Questions 22

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