Bank of America/Merrill Lynch Leveraged Finance Conference CONSOL Energy Inc. Bill Lyons, EVP and CFO
CONSOL Energy Inc Corporate Profile The leading diversified fuel producer in the Eastern United States Ticker: CNX Headquartered in Pittsburgh, Pennsylvania Founded in 1860 8,900 Employees Market Cap = 9.3 Billion EV = 12.5…
The Investment Thesis Long-lived, low-cost coal and natural gas assets with solid growth potential Expanding our product mix and market reach to drive margin expansion Highly contracted thermal position for 2012; natural gas…
CONSOL Energy - Overview CONSOL Energy Inc. Coal Natural Gas Over 4.4 billion tons of proven and probable Over 3.7 Tcfe of proved reserves (as of coal reserves (as of 12/31/10) 12/31/10) 2011 estimated coal exports of…
Coal Divisions Growth Strategy Growth Projects Targeting Expanding Export Market Growing Production Through 2015 Amonate - 400,000 tons in 2012 - 800,000 tons in 2015 BMX - 5 million tons annually beginning in 2014 Growing Exports…
Strength in Market Diversity CONSOL Ships To Four Continents Widening of The Panama Canal Should Improve Shipping Costs and Potential Coal Prices 8
Expanding our Exports to 10 - 10.5 MTs in 2011 2010 Coal Exports by Geography (million tons) 2011 Est. Coal Exports by Geography (million tons) 6.8 Million Tons 10 10.5 Million Tons Europe 2.2 32% Europe 30% Asia Asia 3.0…
CONSOLs Industry-Leading Coal Margins Low-Vol High-Vol Quarter Ended September 30, 2011 Met Met Thermal Total Coal Sales (millions of tons) 1.5 1.0 12.4 Average Realized Price Per Ton Company Produced 208.51 83.76 59.97…
CONSOL Coal Sales Guidance (as of October 27th, 2011) 4Q 2011 2011 2012 2013 Estimated Coal Sales (millions of tons) 14.7-15.3 62.0-62.6 59.5-61.5 60.5-62.5 Met Coal Sales at Midpoint 2.6 10.5 10.15 10.35 Percentage Firm Pricing…
Our Gas Division Strategy Pulling Value Forward: CNX sold an interest in its Marcellus and Utica Shales Economically Develop Our 3P Reserves Marcellus Drilling JV with Noble Energy Coalbed Methane Further Delineate Key Operational…
Notable Achievements in Shale Formations Second to produce from a horizontal well in the Marcellus Shale (October 2008) First to announce a discovery in the Utica Shale (October 2010) First to use rotary steering tools in the…
.First to drill a 10-Well Pad in the Marcellus Shale Driving CONSOLs goal to be a Low-Cost Leader in the Marcellus 14
Capital Program De-Risked Through Joint Ventures and Asset Sales Partnering with Noble Energy in the Marcellus Shale, for 3.3 billion Partnering with Hess Corporation in the Utica Shale in Ohio, for 0.6 billion Sold ORRI in…
CONSOL Energy & Noble Energy JV Pulling Value Forward: CNX sold an interest in Marcellus Shale to Noble Energy Total deal consideration of 3.3 billion or 9,650 per net acre Sold 50% interest in Marcellus Shale (628,000 gross acres…
CONSOL Energy & Noble Energy JV Marcellus Shale JV Acreage CNX/NBL Operating Areas 85% HBP CONSOL Dry Gas Areas 467K acres 3,100 horizontal locations (85%) Noble Energy Wet Gas Areas 161K acres 1,000 horizontal locations…
CONSOL Energy & Noble Energy JV Development Plan Rig schedule ramps up to 16 by 2015 Accelerated development of acreage Substantial cash generation throughout plan Note: The net proceeds can change with the carry moving in…
CONSOL Energy & Hess Corporation JV Raising Exploration and Oil Exposure: CNX sold an interest in Utica Shale to Hess Corporation Total deal consideration of 594 million or 6,000 Per Acre Sold 50% interest in Utica Shale position…
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 Asset rich…
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