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Credit Suisse 19th Annual Energy Summit – Consol Energy Inc.

Consol Energy Inc. · Feb 12, 2014 · 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. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 1
    Credit Suisse 19th Annual Energy Summit February 12, 2014
  2. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 2
    Summary of Changes in Proved Reserves (in Bcfe) 6,000 172 105 (172 ) 1,633 5,731 5,000 3,993 4,000 3,000 44% increase in proved reserves 87% increase in Marcellus Shale proved 2,000 reserves 948% reserve replacement…
  3. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 3
    Use of Cash Proceeds ( in millions) 1,000 900 850 8 (361 ) 800 700 600 (115 ) 500 (31 ) 400 (37 ) 327 300 200 100 13 0 Beginning Receipt from Tetrick Credit DTI Acres / Fees Other Ending Cash Cash Balance Murray Override…
  4. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 4
    Pre-Transaction vs. Post-Transaction Credit Metrics CONSOL Energy ( in millions) 12/31/2011 12/31/2012 12/31/2013 Cash and Cash Equivalents 376 22 327 Available Liquidity 2,733 2,351 2,081 Total Debt 3,198 3,188 3,175 Net Debt 2,822…
  5. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 5
    Executing Our Game Plan Centralizing our key managers Hired key personnel over the past few months Focused on executing a lean manufacturing model to squeeze out inefficiencies Raised the intensity and success of both JV…
  6. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 6
    Marcellus Cost and Quality Drivers CONSOL-Operated Wells: Marcellus Drilling and Completions Summary Drilling Summary 2011 2012 2013 Average Lateral 3,853' 5,514' 7,970' Average Wells/Pad 4.8 6.3 7.0 Average Lateral Cost 552/ft…
  7. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 7
    Gas Division Production Results and Forecast Gas and Liquids Production (Bcfe) CONSOL is rapidly growing its natural gas production Total 2013 natural gas production: 172.4 Bcfe Total 2014 natural gas production guidance: 215 235 Bcfe…
  8. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 8
    Drilling Results and Forecast Formation Region 2011 2012 2013 2014E Marcellus Shale: Southwest Pa. (incl NBL) 50 70 97 129 West Virginia 9 6 10 23 Central Pa. 19 13 10 9 Ohio 0 0 0 1(1) Total: 78 89 117 162 Utica Shale (incl Hess):…
  9. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 9
    CNX Active Hedge Program Actively Monitored Hedge Program: 2013 Hedge Positions Production Coal Production Hedge + Priced Coal Recently increased hedge position for 2014 and 1,000,000 84% 62% 59% 74% 51% 90% will add incremental…
  10. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 10
    Allegheny County Airport Authority Marcellus Shale, Upper Devonian (and Dry Utica Shale Potential) 8,700 Contiguous Acres: 6 pads with Up to 49 Marcellus and a Potentially Similar Number of Upper Devonian Wells to be Drilled.…
  11. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 11
    Dominion Transmission: 90,000 Contiguous Acres Fink-Kennedy 46,000 net Racket- acres Newberne: (wet gas) 9,000 net acres (wet gas) Lost Creek 33,000 net acres (dry gas) 90,000 Net Acres Available in the…
  12. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 12
    Surrounding Marcellus and Utica Activity Protg: Eisenbarth 3H test 6.9 MMcfd (Marcellus) Chevron Utica Well GPOR Irons 1-4H: 23 stage Utica well tested 30 MMcfd. Recently TIL, producing 28 MMcfd. CONSOL WI Moundsville Noble JV…
  13. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 13
    Projected Dual Pay - The Appeal of Monroe County 11k highly contiguous acres 100% WI to CONSOL Energy Acquired for dual wet Marcellus and dry Utica development Very close to water, pipelines, and gas processing Multiple cost…
  14. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 14
    Upper Devonian Exploration Well NV39F 5 Underlying Marcellus Wells on Pad OH PA CONSOL MD WV Area Nineveh Core VA Washington County, PA Wet Gas Dry Gas Drilled lateral length of 4,889 Fracd 17 stages in Burkett Shale…
  15. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 15
    Upper Devonian Burkett Shale Sweet Spot CONSOL and Noble are Well Situated Within Best Part of Burkett Fairway 16
  16. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 16
    Gas Operations: Capital Expenditure ( in millions) 1,200 1,110 1,000 953 800 600 528 400 200 0 2012 2013 2014E Land Capex Other Gas Capex 2014E Total Gas Capex Estimate Natural Gas Operations: ( in millions) 2014E Capex…
  17. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 17
    CONSOL Energy Overview Summary Gas and coal operations are long-lived, low-cost, and provide solid growth Our well-capitalized assets and highly trained personnel provide more consistent operational execution Our emphasis on safety…
  18. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 18
    Appendix 19
  19. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 19
    Appendix Gas Division Summary Impact of gas hedging for Q4 2013 was 0.40/Mcf compared to 0.84/Mcf from the year-earlier quarter Q-to-Q Gas Division 4Q2013 4Q2012 Change Average Sales Price ( / Mcfe) 4.26 4.44 (0.18) Average Costs…
  20. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 20
    Appendix CONSOL Cost Metrics Gas: Operating Costs per Mcfe ( per Mcfe) 6 5 4 3 2 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 CBM Marcellus Shallow Oil & Gas Coal: Cost per Ton Sold…
  21. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 21
    Appendix CONSOL-Operated Wells: Marcellus Drilling and Completions Summary Drilling Summary 2011 2012 2013 Wells TD'd 78 64 46 Lateral Ft 300,466' 328,428' 366,615' Total MD 92,264' 794,098' 730,316' Average Lateral 3,853' 5,514'…
  22. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 22
    Appendix Recent WV Results Further Validate DTI Storage Farm-In PHL13 (*completed using RCS/SSL) 6 wells 7,999 average length 13.0 MMcfd 24 hr IP on first two wells, all wells IPd greater than 10.0 MMcfd AUD3 1 well 8,396 6.95…
  23. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 23
    Appendix Coal Division Summary Q-to-Q Coal Division 4Q2013 4Q2012 Change Average Sales Price ( / ton) 66.85 75.84 (9.00) Average Costs ( / ton) 50.05 49.19 0.86 Coal Production (millions of tons) 7.1 6.6 0.5 Sales Volumes…
  24. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 24
    Appendix Marketing 1Q14 and 2014 Forecasts Sales Tons by Product Year 2014 2014 Coal Sales Facts and Goals Contracted tons for 2014: more than 82% - Priced: more than 78% 8% 14% Approximately 80% of the Low-Vol & High-Vol met coal…
  25. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 25
    Appendix BMX Mine Overview BMX Mine: Begin operations in mid-March 2014 - Lowest cost CNX mine 26
  26. Credit Suisse 19th Annual Energy Summit – Consol Energy Inc. – slide 26
    Appendix Our Domestic Coal Market Remains Solid PJM Coal Inventory Trailing 12 Months 5 Year Average 30 25 20 Tons (MM) 15 10 5 - Jan 13 Apr 13 Jul 13 Oct 13 Source: EIA, PIRA, and CONSOL analysis. 27

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