November 2010 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
CONSOL Energy: Strength in Diversity Coal Low-vol coal High-vol coal Thermal coal Gas CONSOL believes that it can create meaningful shareholder value by responsibly managing this unique portfolio. 3
Common Characteristics of CONSOLs Businesses Emphasis on safety World Class assets Strategic location Good pricing Low costs Bailey Mine Overland Belt High margins CONSOLs 1 performance metric is safety. 5
CONSOL Energy: 2010 Strategy Investing 5 Billion to grow the gas division of CONSOL Acquired Dominion Appalachian E&P assets for 3.475 billion Purchased remaining shares of CNX Gas for 967 million Expect to invest 500 million…
CONSOL Energy: 2010 Investing Strategy CONSOL is spending 600 million in capex to maintain our leading coal position CONSOL has spent 5.5 billion upgrading its mines in the past 7 years With higher pricing, the re-tooled mines…
CONSOL Coals Expanding Margins In Q3, sold 300,000 tons of high-vol coal for Asia at 77 per ton In Q3, booked 330,000 tons of thermal coal for Europe at 62 per ton in 2011, rising above 66 in 2012 CONSOL has 12.4 million tons…
CONSOL: Coal Quarter Ended September 30, 2010 Low-Vol High-Vol Thermal Total Coal Sales (millions of tons) 1.3 0.4 13.9 Average Realized Price Per Ton Company Produced 165.61 71.16 53.55 Total Cost Per Ton, before DD&A 56.75 36.86…
CONSOL: Coals Potential Growth CONSOLs Proposed BMX Mine Could Open in 2013/14 5 MM tons/year of low-cost NAPP coal Potential Markets: Asian mills European generators Brazilian mills CONSOLs Bailey Prep Plant could expand to…
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 has a Leading Acreage Position and . . . Not All Marcellus Acres Are Equal Net Acres (000s) 1,800 98% of the acres are HBP (held by production) Have an average NRI (net revenue interest) of 89% 1,570 1,600 1,400 1,400…
CONSOL has Three Marcellus Shale Operating Areas PA Central Pa. Ops OH SW Pa. Ops MD WV Ops VA WV Former Dominion Marcellus Acreage Legacy CONSOL Energy Marcellus Acreage CONSOL has 750,000 Net Acres in Marcellus…
CONSOL is long FT Through 2013 PA DOMINION OH TETCO MD COLUMBIA DOMINION VA WV Former Dominion Marcellus Acreage Legacy CONSOL Energy Marcellus Acreage CONSOL has +400 MMcf per day of unused take-away capacity. 14
Four Rigs Running on Jan. 1 PA Central Pa. Ops OH SW Pa. Ops MD WV Ops VA WV Former Dominion Marcellus Acreage Legacy CONSOL Energy Marcellus Acreage CONSOL has 750,000 Net Acres in Marcellus Shale. 15
CONSOL has Utica Shale Discovery PA Central Pa. Ops OH SW Pa. Ops MD WV Ops VA WV Former Dominion Marcellus Acreage Legacy CONSOL Energy Marcellus Acreage CONSOL drills vertical well in Belmont County, Ohio. 16
Illustrative Marcellus Well Economics After-Tax IRR At Various Henry Hub Prices (MM, except as noted) Well ATAX IRR Comparison - Type Curve Analysis Gross EUR (Bcfe) (1) 4.3 NRI 87.5% 30.0% Net EUR (Bcfe) 3.7 28.0% Drilling Cost…
Ten Wells Drilled in First Nine Months All in Greene County, Pa.: EURs (p-50 case) range from 3.5 Bcf to 9.9 Bcf Laterals average 2,200 feet D&C Costs average 4.2 million Projected after-tax IRRs range from 22% to 70%…
CONSOLs Gas Reserve Potential Has Doubled Proved Reserves Total Unproved Reserves and Total Resource Potential Potential Resource Base 41.1 38.2 2.9 1.9 38.2 18.1 16.2 16.2 1.9 2.9 Pre-Acquisition Post-Acquisition…
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…
November 2010 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
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