Skip to main content April 2016 Investor Presentation – Consol Energy Inc. | Shale Experts
Loading...
Pm

April 2016 Investor Presentation – Consol Energy Inc.

Consol Energy Inc. · Apr 28, 2016 · 64 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. April 2016 Investor Presentation – Consol Energy Inc. – slide 1
    Company Presentation Q1 2016
  2. April 2016 Investor Presentation – Consol Energy Inc. – slide 2
    CONSOL Energy: Execution of Our Game Plan In 2013 CONSOL set out to shift focus to being a pure play E&P company - Sold 5 West Virginia mines - Dramatically improved our E&P metrics - Lowered capital intensity - Lowered unit…
  3. April 2016 Investor Presentation – Consol Energy Inc. – slide 3
    CONSOL Energy: Company Overview Transformative Journey Towards a Pure Play E&P Company Late 2013 transaction with Murray Energy Corp. that transitioned half of coal assets and related assets April 19, 2014 CONSOL Energy 150th…
  4. April 2016 Investor Presentation – Consol Energy Inc. – slide 4
    E&P Division 5
  5. April 2016 Investor Presentation – Consol Energy Inc. – slide 5
    E&P Operations E&P Division: Q1 2016 Operations Summary Marcellus Shale Quarterly Summary Utica Shale Quarterly Summary Avg. TIL Turned Turned Avg. TIL Sub- Horizontal Lateral Sub- Horizontal Drilled Completed In Line Counties…
  6. April 2016 Investor Presentation – Consol Energy Inc. – slide 6
    E&P Operations 2016 Planned E&P Activity Overview E&P Activity Summary 2016 Plan Drilled Drilled 2016 2016 Uncompleted Completed Completions TIL's Inventory Inventory Remaining Remaining Marcellus SW PA Operated 18 17 6 23 SW PA…
  7. April 2016 Investor Presentation – Consol Energy Inc. – slide 7
    E&P Operations Bridging to Growth 400 71 378 350 329 -50 23 5 300 250 Bcfe 200 150 100 50 0 2015 Total Production 2016 Base decline 2016: Gathering De- 2016: Non-Op (Ex NBL/HES) 2016: Production Adds…
  8. April 2016 Investor Presentation – Consol Energy Inc. – slide 8
    E&P Operations: Capital Expenditures Efficiencies Driving Reduced E&P Capital Expenditures Without Sacrificing Growth Deferring activity, increasing capital efficiency 2016 E&P Capital Budget: improvements and identification of…
  9. April 2016 Investor Presentation – Consol Energy Inc. – slide 9
    E&P Operations Average Completed Lateral Length Average Stage Length 8,000 300 282.9 279.2 7,004 7,118 252.7 7,000 250 6,000 5,483 5,137 194.7 200 5,000 168.7 Feet Feet 4,000 3,366 150 3,000 100 2,000 50 1,000 0 0…
  10. April 2016 Investor Presentation – Consol Energy Inc. – slide 10
    E&P Operations - Benchmarking vs Peers Beginning to outperform peers on growth and unit cost performance E&P Production Volumes Indexed Production Growth 450 260 Production by Area 400 15% 2015A 2016E 240 350 Marcellus 51% 54%…
  11. April 2016 Investor Presentation – Consol Energy Inc. – slide 11
    E&P Operations - Benchmarking vs Peers Full-cycle Breakeven Operating Metrics Declined from 3.51 To 2.00 Per Mcfe, a 43% decline 4.00 Hired Tim Dugan to run E&P operations 3.50 3.00 1.17 1.11 2.50 0.82 2.00 Cash OpEx 0.84…
  12. April 2016 Investor Presentation – Consol Energy Inc. – slide 12
    E&P Operations Utica Shale Overview: A Leading Position in the Utica Shale 622,000 CONSOL net acres(1) Over 3,500 gross locations 97 wells online, as of 3/31/2016 10 wells TIL in Q1 2016 8,574 ft average TIL laterals in Q1 2016 4…
  13. April 2016 Investor Presentation – Consol Energy Inc. – slide 13
    E&P Operations RRC Zahn 1 Utica Shale: PA/WV Dry Gas IP Gas: 4,500 Mcf/d REXX Cheeseman 1 IP Oil: 0 Bbl/d IP Gas: 9,200 Mcf/d CHK Hubbard 3H IP Oil: 0 Bbl/d IP Gas: 11,00 Mcf/d CHK Thompson 3H IP Oil: 0 Bbl/d IP Gas: 6,400 Mcf/d CNX…
  14. April 2016 Investor Presentation – Consol Energy Inc. – slide 14
    Utica Shale: Gaut 4IH Westmoreland County, PA CONSOL GAUT4IH 61.4 MMcf/d 24-hr IP rate 7,968 psi; 5,840 ft. lateral 5,800 single lateral; 100% WI to CONSOL 30 stage completion 200 stages with 500k proppant: 160k 100 mesh +…
  15. April 2016 Investor Presentation – Consol Energy Inc. – slide 15
    Utica Shale: Gaut 4IH Westmoreland County, PA Flow Rate Mcf/Day Casing Pressure 30,000 10,000 9,000 25,000 8,000 7,000 20,000 6,000 15,000 5,000 4,000 10,000 3,000 2,000 5,000 1,000 0 0 9/25/2015 10/25/2015 11/25/2015…
  16. April 2016 Investor Presentation – Consol Energy Inc. – slide 16
    Utica Shale: GH 9 Greene County, PA Range Resources - Claysville Sportsmans Club 1 IP Gas 59.0 MMcf/d EQT Pettit Spud in Aug. 2015 13,400 ft. TVD 4,000-4,500 ft. lateral 100% WI and 96% NRI to CONSOL EQT Scotts Run 24 hr…
  17. April 2016 Investor Presentation – Consol Energy Inc. – slide 17
    Utica Shale: Ohio Dry Gas CNX Activity and Recent IP Rates In-and-Around Monroe County, OH CVX Conner well (Utica): GPOR Irons 1-4H (Utica): 25.0 MMcf/d Avg 24-hr rate 30.3 MMcf/d Avg 24-hr rate NBL / CNX MND 6H (Utica): 1…
  18. April 2016 Investor Presentation – Consol Energy Inc. – slide 18
    Utica Shale: Switz 6 Monroe County, OH CONSOL SWITZ 6 Pad (Utica): 4 Utica wells & 1 Marcellus well CNX Switz 6D: 24-hr test rate 44.7 MMcf/d 6,835 psig 4 Utica Wells and 1 Marcellus Well Avg. Utica Lateral Length = 8,821…
  19. April 2016 Investor Presentation – Consol Energy Inc. – slide 19
    Dry Utica: Switz 6 Pad Monroe County, OH 50,000 6D Gas Rate (Mcf/d) 6D Casing Pressure (psig) 45,000 6F Gas Rate (Mcf/d) 6F Casing Pressure (psig) 6H Gas Rate (Mcf/d) 6H Casing Pressure (psig) 40,000 35,000 30,000 25,000…
  20. April 2016 Investor Presentation – Consol Energy Inc. – slide 20
    Utica Shale: Monroe Cty, OH Cost Improvements Days vs. Depth (Well in order of Horizontal TD Date) 0 5,000 Measured Depth (ft.) 10,000 Switz-6B-HSU Switz-6F-HSU 15,000 60+% Reduction in Days to Drill Switz-6H-HSU 20,000…
  21. April 2016 Investor Presentation – Consol Energy Inc. – slide 21
    Utica Shale: PA Utica D&C Cost Reduction Plan Waterfall Diagram - PA Dry Utica Drilling and Completion Costs Per Well Assume 7000' lateral on a development 4-well pad ( in millions) 30.0 26.2 (8.2) 25.0 (2.2) 20.0 (0.4) (0.8) (1.2)…
  22. April 2016 Investor Presentation – Consol Energy Inc. – slide 22
    Gas Marketing 23
  23. April 2016 Investor Presentation – Consol Energy Inc. – slide 23
    E&P Marketing Q1 2016 Gas Realization and Marketing Highlights CONSOL basin exports are projected to increase approximately 73,000 Dth /day for FY 2016 over FY 2015 as TETCOs U2GC and TEAM OPEN projects were put into service in late…
  24. April 2016 Investor Presentation – Consol Energy Inc. – slide 24
    Gas Marketing Natural Gas Sales Midwest TETCO M3 Dominion South TCO Pool TETCO M2 East Tennessee Gas Sales CY 2016 Est. Columbia (TCO) 20% TETCO (M2) 26% TETCO (M3) 16% Dominion (DTI) 14% East Tennessee 10% TETCO ELA…
  25. April 2016 Investor Presentation – Consol Energy Inc. – slide 25
    Gas Marketing Firm Transportation 1,800 Targeting FT opportunities that 1,600 access favorable markets at NEXUS favorable rates 1,400 1,200 1000S MMBtu/day ANR Will supplement direct FT with Columbia 1,000 firm sales to…
  26. April 2016 Investor Presentation – Consol Energy Inc. – slide 26
    Large Pipelines Are Coming to Debottleneck Gas Northeast Pipeline Projects Regional prices should improve as pipelines are built to take ProjectID Markets Year Mo. Status MMcf/d excess supply out of the region Leidy Southeast…
  27. April 2016 Investor Presentation – Consol Energy Inc. – slide 27
    Regional Basis Location, Location, Location Dawn Northeast Pipeline Projects CY 2016: 0.07 CY 2019: 0.08 Leidy CY 2016: -0.90 Chicago CY 2019: -0.72 CY 2016: - 0.02 CY 2019: 0.04 Dominion South TETCO M3 CY 2016: -0.83 Dawn…
  28. April 2016 Investor Presentation – Consol Energy Inc. – slide 28
    Gas Marketing: Firm TransportAsset or Liability Total Off Balance Sheet Firm Transportation, Gathering and Processing Commitments 20.0 180% 167% 18.0 152% 160% 16.0 140% 17.5 FT Commitments as % of EV 14.0 14.3 120%…
  29. April 2016 Investor Presentation – Consol Energy Inc. – slide 29
    Gas Marketing Natural Gas Processing 500 Contracted capacity meets 450 current requirements 400 Inlet wet gas volumes to processing plants were 115 350 MMcf/d above CONSOLs 300 aggregate minimum MMcf/day committed volume…
  30. April 2016 Investor Presentation – Consol Energy Inc. – slide 30
    Gas Marketing: Hedges Gas Hedges 280 Physical Sales With Fixed Basis Exposed to NYMEX E&P Hedge Program: 260 NYMEX Only Hedges Exposed to Basis Program and actively 240 NYMEX + Basis (1) monitored hedges 220 200 Gas Volumes…
  31. April 2016 Investor Presentation – Consol Energy Inc. – slide 31
    Gas Marketing: Liquids Realizations Natural Gas Liquids, Oil, and Condensate Q1 2016 Avg. NGL Barrel Composition Q1 2016 liquids sold: 11.4 Bcfe 1Q16 Est Natural NGL Sales gasoline Ethane Comp Total weighted average price of liquids…
  32. April 2016 Investor Presentation – Consol Energy Inc. – slide 32
    Financial 33
  33. April 2016 Investor Presentation – Consol Energy Inc. – slide 33
    Financial: Focused on Free Cash Flow Strong liquidity position CNXC and CONE Asset monetization program Reduction in legacy liabilities Guidance: Production, price realizations, operating and capital costs - Growing E&P…
  34. April 2016 Investor Presentation – Consol Energy Inc. – slide 34
    Corporate Cost Reductions Zero-Based Budgeting Includes key SG&A line items such Total Company SG&A as: ( in Millions) Wages and Salaries 110 107 Payroll Taxes 105 Employee Benefits 100 Professional/Consulting 95 Telephone &…
  35. April 2016 Investor Presentation – Consol Energy Inc. – slide 35
    Financial: Liquidity Debt and Liquidity Profile CNX CNXC: CNX CNX Unit Market Consolidated 100% Attributable Equity Value of Ownership in Affiliated Public MLPs Owned LP (5) Price (5) Value Capitalization and Liquidity 3/31/2016…
  36. April 2016 Investor Presentation – Consol Energy Inc. – slide 36
    Financial: Legacy Liabilities Significant Legacy Liability Reductions Over Past 3 Years 4,500 400 Annual Cash Servicing Cost ( in Millions) 4,345 370 4,000 350 Projected 109MM Annual Cash Legacy Liabilities ( in Millions)…
  37. April 2016 Investor Presentation – Consol Energy Inc. – slide 37
    Financial: CNX Coal Resources LP (CNXC:NYSE) CNXC: Organizational Structure and CNX Ownership CONSOL Energy Inc. CNXC owns a 20% undivided interest(1) in, and (CONSOL Energy) operational control over, CONSOL Energys Pennsylvania NYSE:…
  38. April 2016 Investor Presentation – Consol Energy Inc. – slide 38
    Financial: CONEs Growing Cash Contribution CONSOL owns 32.1% of CONE Midstream Partners LPs (CNNX:NYSE) LP units and 50% of the General Partner CONE Midstream's and Gathering's Pro Rata Net (GP), which has a 2% interest in CNNX (and…
  39. April 2016 Investor Presentation – Consol Energy Inc. – slide 39
    Guidance E&P Segment Guidance 2016E Production Volumes: Natural Gas (Bcf) 335 NGLs (MBbls) 6,000 Oil (MBbls) 65 Condensate (MBbls) 1,000 Total Production (Bcfe) +15% Natural Gas Basis Differential to NYMEX (/Mcf) (0.35) -…
  40. April 2016 Investor Presentation – Consol Energy Inc. – slide 40
    Guidance Coal Segment Guidance 2016E Estimated Total Consolidated Coal Division Sales Volumes (in millions of tons) 23.9 - 27.4 Total Volumes Sold 25.0 % Committed 98% Total Consolidated Coal Division Capital Expenditures ( in…
  41. April 2016 Investor Presentation – Consol Energy Inc. – slide 41
    Key Takeaways Plans and Goals Aligned to Drive Increased Valuation Milestones: Improving E&P performance from high-grading activities, improving completion techniques, reducing cycle times, and service deflation Benefits from…
  42. April 2016 Investor Presentation – Consol Energy Inc. – slide 42
    Appendix 43
  43. April 2016 Investor Presentation – Consol Energy Inc. – slide 43
    Appendix Non-GAAP Reconciliation: Quarter-over-Quarter EBITDA and Adj. EBITDA Three Months Ended March 31 2016 2016 2016 2016 2015 E&P Coal Total Total ( in thousands) Other Division Division Company Company Net (Loss)/Income…
  44. April 2016 Investor Presentation – Consol Energy Inc. – slide 44
    Appendix Non-GAAP Reconciliation: Trailing Twelve Months EBITDA and Adj. EBITDA Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended June 30 September 30 December 31 March 31 March 31 ( in…
  45. April 2016 Investor Presentation – Consol Energy Inc. – slide 45
    Appendix Free Cash Flow Reconciliation Three Months Ended March 31 2016 Organic Free Cash Flow From Continuing Operations: Net Cash provided by Continuing Operations 119,806 Capital Expenditures (78,968) Net Investment in…
  46. April 2016 Investor Presentation – Consol Energy Inc. – slide 46
    Appendix Joint Ventures Summary of JV Carry Eligible Capital Description Marcellus / Noble Energy Inc. Utica / Hess Corporation Ownership 50/50 50/50 (1) Acreage 349,541 79,266 (2) Zones PA and WV Marcellus, Burkett to Onondaga OH…
  47. April 2016 Investor Presentation – Consol Energy Inc. – slide 47
    Appendix Marcellus Shale: Overview 436,000 CONSOL net acres 88% NRI 91% HBP 23.9 Tcfe 3P Over 8,900 gross potential wells(1) Marcellus production grew at a 71% CAGR from 2013 to 2015 Producing Pads Note: Townships are…
  48. April 2016 Investor Presentation – Consol Energy Inc. – slide 48
    Appendix Marcellus Shale: Growth Runway and Depth of Inventory Marcellus Shale Upside Potential Total Gross Prospective Marcellus Acreage 785,000 - Gross Acres within JV 699,000 - Acres outside JV 100% CONSOL 86,000 Acreage per…
  49. April 2016 Investor Presentation – Consol Energy Inc. – slide 49
    Appendix Marcellus Shale: Sub-Regions Summary Marcellus Shale North South SWPA CPA WV Ohio(1) Total Wet Wet Net Acres 44,000 108,000 111,000 14,000 52,000 107,000 436,000 Approximate Gross 900 2,200 2,250 150 1,000 2,200…
  50. April 2016 Investor Presentation – Consol Energy Inc. – slide 50
    Appendix Marcellus Shale: Southwest PA Overview 44,000 CONSOL net acres Over 900 gross locations(1) 206 wells online, as of 3/31/2016 17 wells TIL in Q1 2016 8 wells per pad on average in 2016 2.1 Bcfe EUR/1,000 ft of lateral…
  51. April 2016 Investor Presentation – Consol Energy Inc. – slide 51
    Appendix Marcellus Shale: North Wet Gas Overview 52,000 CONSOL net acres Over 1,000 gross locations(1) 144 wells online as of 3/31/2016 8 wells TIL in Q1 2016 8 wells per pad on average 1.8 Bcfe EUR/1,000 ft of lateral…
  52. April 2016 Investor Presentation – Consol Energy Inc. – slide 52
    Appendix Marcellus Shale: South Wet Gas Overview 107,000 CONSOL net acres Over 2,200 gross locations(1) 31 wells online, as of 3/31/2016 6 wells per pad on average 2.1 Bcfe EUR/1,000 ft of lateral 750 ft inter-lateral spacing…
  53. April 2016 Investor Presentation – Consol Energy Inc. – slide 53
    Appendix Marcellus Shale: Northern WV Dry Overview 111,000 CONSOL net acres Over 2,250 gross locations(1) 49 wells online, as of 3/31/2016 0 wells TIL in Q1 2016 1.8 Bcfe EUR/1,000 ft of lateral 750 ft inter-lateral spacing…
  54. April 2016 Investor Presentation – Consol Energy Inc. – slide 54
    Appendix Marcellus Shale: Central PA Overview 108,000 CONSOL net acres Over 2,200 gross locations(1) 56 wells online, as of 3/31/2016 0 wells TIL in Q1 2016 5 wells per pad on average 1.6 Bcfe EUR/1,000 ft of lateral 750 ft…
  55. April 2016 Investor Presentation – Consol Energy Inc. – slide 55
    Appendix Utica Shale: Growth Runway and Depth of Inventory Utica Shale Upside Potential Total Gross Prospective Utica Acreage 701,000 - Gross Acres within JV 158,000 - Acres outside JV 100% CONSOL 543,000 Acreage spacing per well…
  56. April 2016 Investor Presentation – Consol Energy Inc. – slide 56
    Appendix Utica Shale: Sub-Regions Summary Utica Shale Ohio Wet Ohio Dry PA/WV Dry Total Net Acres 89,000 30,000 503,000 622,000 Approximate Gross 1,050 350 2,400 3,800 Locations(1) Avg EURs/1,000 ft 2.3 2.8 3.0 --…
  57. April 2016 Investor Presentation – Consol Energy Inc. – slide 57
    Appendix Utica Shale: Offset Peer Acreage 622,000 CONSOL net acres in Utica 306,000 net acres in PA 197,000 net acres in WV 30,000 net acres in OH Dry 14,000 net acres in Monroe County, OH 89,000 net acres in OH Wet…
  58. April 2016 Investor Presentation – Consol Energy Inc. – slide 58
    Appendix Utica Shale: CNX Acreage Position in the Core OH Wet Gas Utica HES Cadiz B HES Cadiz A IP GAS: 10,254 Mcf/d 85,000 CONSOL net acres GPOR - Boy Scout 33H CHK - Buell 8H IP OIL: 191 Bbl/d IP GAS: 9,500 Mcf/d IP GAS: 8,006…
  59. April 2016 Investor Presentation – Consol Energy Inc. – slide 59
    Appendix Stacked Pay Potential: Appalachian Shale Acreage P a y Formation Name Wet Dry Total Net Acres Net Acres Net Acres Rhinestreet Shale Upper Cashaqua Shale Devonian 190,000 155,000 345,000 Middlesex Shale West…
  60. April 2016 Investor Presentation – Consol Energy Inc. – slide 60
    CONSOL Energy: Corporate Structure CONSOL Energy CONE MLP E&P PA Complex Other Operations Marcellus Utica CBM CNXC (MLP) SOG and Other* CONSOL structure moving toward a pure play E&P * Includes Other Midstream 61
  61. April 2016 Investor Presentation – Consol Energy Inc. – slide 61
    Appendix CONE Corporate Structure 62 Source: CONE Midstream Partners LP.
  62. April 2016 Investor Presentation – Consol Energy Inc. – slide 62
    Coal Division Pennsylvania Mining Complex Pennsylvania mining complex consists of three like-new underground mines and related infrastructure with high-Btu bituminous coal (785.6 million tons proven and probable(1)) Train loadout…
  63. April 2016 Investor Presentation – Consol Energy Inc. – slide 63
    Our Core Values Drive Corporate Responsibility Developed Absolute Zero Program in 2009 Measure and report all our key performance indicators within our Corporate Responsibility Report (CRR) Spent 167 million during 2015 alone on…
  64. April 2016 Investor Presentation – Consol Energy Inc. – slide 64
    Environmental Management System (EMS) Founding, certified member of the Center for Sustainable Shale Development (CSSD) Compliance at 99.9% with NPDES effluent limits Recycled and repurposed over 500 million gallons of water…

From the store

Browse maps, data & reports in the Shale Experts store