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BMO Metals and Mining Conference – Consol Energy Inc.

Consol Energy Inc. · Feb 25, 2013 · 26 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. BMO Metals and Mining Conference – Consol Energy Inc. – slide 1
    BMO Metals and Mining Conference February 25-26, 2013
  2. BMO Metals and Mining Conference – Consol Energy Inc. – slide 2
    CONSOL Energy Overview The Leading Diversified Fuel Producer in the Eastern United States Ticker: CNX Headquartered in Pittsburgh, Pennsylvania Company Founded in 1860 Approx. 9,000 Employees Market Cap = 7.8 Billion(2) 2012…
  3. BMO Metals and Mining Conference – Consol Energy Inc. – slide 3
    CONSOL Energy Overview Core Values Safety In 2012, CONSOLs Coal Division saw safety exceptions drop 10%, from 150 to 134 In 2012, CONSOLs Gas Division worked the entire year without having recorded a lost-time incident CONSOL has…
  4. BMO Metals and Mining Conference – Consol Energy Inc. – slide 4
    Key Points Summary Since 2011, CONSOL generated 1B in GAAP net income and 2.3B in operating cash flow CONSOL has executed at a high and consistent level both in both good and challenging times High quality Tier 1 energy assets -…
  5. BMO Metals and Mining Conference – Consol Energy Inc. – slide 5
    CONSOL Energy Overview Net (Decrease) / Increase in Cash - MM Goal is to maintain our strong liquidity position Total Year Ending Y-to-Y 2011- 2012 2011 Change 2012 Revenue - Outside 4,826 5,661 (835) 10,487 Net Income 388 632…
  6. BMO Metals and Mining Conference – Consol Energy Inc. – slide 6
    CONSOL Energy Overview 2013 Capital Budget Expect annual coal investments to approach maintenance-of-production levels following BMX completion Assumes no carry from Noble for drilling in Marcellus, which is dependent on natural gas…
  7. BMO Metals and Mining Conference – Consol Energy Inc. – slide 7
    CONSOL Energy Overview CONSOL Cost Metrics (per Mcfe) Gas: Operating Costs per Mcfe (in US Dollars) 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 CBM Marcellus Shallow…
  8. BMO Metals and Mining Conference – Consol Energy Inc. – slide 8
    Operations Overview Coal Why CNX Coal CONSOL is participating in the growth of world coal markets Low-cost mines Dual rail service from Pittsburgh seam mines to Baltimore 100%-owned Baltimore terminal, with capacity increasing…
  9. BMO Metals and Mining Conference – Consol Energy Inc. – slide 9
    Operations Overview Coal Strength in Market Diversity CONSOL Ships To Four Continents Export Forecast For 2013: 5-10 MTs 10
  10. BMO Metals and Mining Conference – Consol Energy Inc. – slide 10
    Operations Overview Coal Our Domestic Market Remains Solid PJM Coal Inventory Trailing 12 Months 5 Year Average 30 25 20 Tons (MM) 15 10 5 - Feb 12 May 12 Aug 12 Nov 12 Source: EIA, PIRA, and CONSOL…
  11. BMO Metals and Mining Conference – Consol Energy Inc. – slide 11
    Operations Overview Coal Marketing 1Q13 and 2013 Forecasts Sales Tons by Product Year 2013 3% 7% 1% 89% Thermal Low Vol High Vol Mid Vol 1st 1st Quarter Year Quarter Year 2013 2013 2012 2012 (1) Thermal 11.9 50.1 13.2…
  12. BMO Metals and Mining Conference – Consol Energy Inc. – slide 12
    Operations Overview Coal BMX Mine Overview BMX Mine completion: mid Q1 2014 - Lowest cost CNX mine 13
  13. BMO Metals and Mining Conference – Consol Energy Inc. – slide 13
    Operations Overview Gas Gas Operations Summary Marcellus Shale Production has more than doubled in 2012 to 135 MMcfe/d; 64 wells drilled and 51 wells completed in 2012 Well results better than anticipated Well and project costs are…
  14. BMO Metals and Mining Conference – Consol Energy Inc. – slide 14
    Operations Overview Gas Drilling Results and Forecast - Adding Balance With Liquids Focus Gross Wells Drilled By Formation From 2010 Through 2013E Formation Region 2010 2011 2012 2013E Coalbed Methane Virginia 181 214 44 63 Total…
  15. BMO Metals and Mining Conference – Consol Energy Inc. – slide 15
    Operations Overview Gas Marcellus Drilling and Completions Summary CNX Operated Wells Drilling Summary by Year 2011 2012 Wells TD'd 78 64 Lateral Ft 300,466' 328,428' Total MD 922,264' 794,098' Average Lateral 3,853' 5,514'…
  16. BMO Metals and Mining Conference – Consol Energy Inc. – slide 16
    Operations Overview Gas 2012-2013 Marcellus Shale Drilling Program: 89 Wells Large Acreage Position within Marcellus Fairway PA 87% of Acreage HBP Allowing for Development OH Flexibility 50% of 628,000 gross acres NBL Operated…
  17. BMO Metals and Mining Conference – Consol Energy Inc. – slide 17
    Operations Overview Gas Price Uplift for Wet Gas: Nearly Doubles Value to Over 7 per Mcf of Wellhead Gas /Mcf 8 7.10 15 Bbl/MMcf condensate at 80% WTI 6 50 Bbl/MMcf NGLs at 55% WTI 4 3.60 1,050 MMBtu 1,130 MMBtu residue…
  18. BMO Metals and Mining Conference – Consol Energy Inc. – slide 18
    Operations Overview Gas Ohio Utica Shale Acreage Update: Hess JV in the Ohio Utica Shale Core acres: 70,000 gross acres; 35,000 net acres to CONSOL Core acres include the following counties: - Guernsey - Jefferson - Harrison -…
  19. BMO Metals and Mining Conference – Consol Energy Inc. – slide 19
    Operations Overview Gas A Leading Position in the Ohio Utica Shale CONSOL-Operated County Well Lateral Length Stages Results Tuscarawas TUSC 3A 5,020 17 400 Bbls of oil/day & 386 Mcfd gas TUSC 8A 7,568 24 Expected Completion: Q1…
  20. BMO Metals and Mining 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 and highly trained personnel provide more consistent…
  21. BMO Metals and Mining Conference – Consol Energy Inc. – slide 21
    Appendix
  22. BMO Metals and Mining Conference – Consol Energy Inc. – slide 22
    Appendix: Key Highlights Asset Rich: Bringing 4.29 Billion in Value Forward Since 2010 In 2011, CONSOL sold the following assets for 3.94 billion(1) - Marcellus assets to Noble Energy - Utica assets to Hess Corporation - Royalty…
  23. BMO Metals and Mining Conference – Consol Energy Inc. – slide 23
    Appendix: Management Transition Complete The New Team Bill Lyons and Bob Pusateri: Dedicated leaders that have successfully navigated the company through tumultuous times - Bill has been steadfast in maintaining our financial…
  24. BMO Metals and Mining Conference – Consol Energy Inc. – slide 24
    Appendix Revolving Credit Facilities Debt Covenants CONSOL Energy and CNX Gas currently maintain strong leverage ratios Both facilities are well within debt covenants December 31, Limit 2012 CONSOL Energy Revolver: Maximum…
  25. BMO Metals and Mining Conference – Consol Energy Inc. – slide 25
    CONSOL Energy Overview Strong Liquidity Position of 2.4 Billion Cash on hand of 22 million Accounts receivable securitization and revolving credit facilities of over 2.3 billion Amount/ Amount Letters Amount December 31, 2012…
  26. BMO Metals and Mining Conference – Consol Energy Inc. – slide 26
    Appendix Asset Sales 2011 Marcellus Shale JV with Noble Energy: 3.3 billion in expected aggregate payments of cash and carry 2011 Antero Resources ORRI sale: 193 million in cash 2011 Utica Shale JV with Hess Corporation: 447(1)…

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