DUG East 2016 Tim Dugan Chief Operating Officer, CONSOL Energy
The CONSOL Energy Evolution Transformative Journey Into 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 Anniversary…
E&P Operations: Radical Rate of Change Beginning to outperform peers on growth and unit cost performance E&P Production Volumes 450 Focused on reaching critical mass with the Production by Area 400 2015A 2016E 15% ability to be a…
Utica Success 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 6 wells per pad 180-acre spacing (1,100 ft.…
Model Centric Approach 3D Unconventional Reservoir / Frac Model Earth Model Performance Forecasting Performance Dashboards Advanced Planning Tool Shortens decision timeline and reduces the number of wells to…
Utica Success Normalized Well-to-Well Productivity Comparison 70 66 62 k: Additional benchmark metric, which in 60 a way, replaces initial production, or IP, testing, by normalizing: 50 46 Lateral length Normalized Stage…
Midstream Economic Uplift Access to Dry Marcellus gathering systems help both E&P and midstream service providers lower cost and maximize the value of existing assets Diversified Marcellus operators have an advantage Dry Utica…
Conclusions: Game Changer Expected CPA Dry Utica Economic Progression 70% 5% 61%+ 60% 6% 30%+ 50% ATAX IRR (%) 40% 30% 5% 20% 15% 10% 0% Industry Land Type Curve Efficiencies Midstream Total Expected Average ATAX…