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DUG East 2016 – Consol Energy Inc.

Consol Energy Inc. · Jun 22, 2016 · 12 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. DUG East 2016 – Consol Energy Inc. – slide 1
    DUG East 2016 Tim Dugan Chief Operating Officer, CONSOL Energy
  2. DUG East 2016 – Consol Energy Inc. – slide 2
    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…
  3. DUG East 2016 – Consol Energy Inc. – slide 3
    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…
  4. DUG East 2016 – Consol Energy Inc. – slide 4
    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.…
  5. DUG East 2016 – Consol Energy Inc. – slide 5
    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…
  6. DUG East 2016 – Consol Energy Inc. – slide 6
    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…
  7. DUG East 2016 – Consol Energy Inc. – slide 7
    Lessons Learned: Proppant Testing Dry Utica: Monroe County, Ohio Switz 6D well: Switz 6F well: Switz 6H well: Lateral length: 9,859' Lateral length: 10,122 Lateral length: 9,157 Proppant: Proppant: Proppant: 100-mesh 100-mesh 40/70…
  8. DUG East 2016 – Consol Energy Inc. – slide 8
    Land Economic Uplift 2.00 Realized Gas Price CAPEX (MM) CONSOL benefits from high NRI acreage position 10.0 12.5 15.0 17.5 20.0 70,000 Utica fee acres 100% 38% 21% 15% 10% 8% 3.0 BCF/1000' Expect to reduce dry Utica D&C costs…
  9. DUG East 2016 – Consol Energy Inc. – slide 9
    Type Curve Economic Uplift Model centric approach accelerates optimization of: Completion proppant / foot, spacing Optimal design is determined by reservoir characteristics Volume Production Protocol Managing pressure has…
  10. DUG East 2016 – Consol Energy Inc. – slide 10
    Operational Efficiencies Economic Uplift Completions Cycle Time Efficiency Gains 35 2,500 32 30 26 2,000 25 Average Days/Well Feet / Day 20 1,500 16 Stimulation Efficiency 15 Drillout Efficiency 1,000 Flowback Efficiency…
  11. DUG East 2016 – Consol Energy Inc. – slide 11
    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…
  12. DUG East 2016 – Consol Energy Inc. – slide 12
    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…

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