Skip to main content Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc.

Consol Energy Inc. · Jun 7, 2017 · 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. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 1
    BANK OF AMERICA MERRILL LYNCH 2017 ENERGY CREDIT CONFERENCE June 6-7, 2017
  2. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 2
    CONSOL Energys Evolution With the sale of the Looking to the future Buchanan mine and working towards other remaining legacy complete separation Announces sale of coal assets, CONSOLs from coal; monetizing five thermal coal…
  3. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 3
    Who We Are: Differentiating Ourselves Through Three Pillars Values: Never compromised regardless of circumstance Operate daily free of injuries and environmental incidents Pursuit of perfection driving towards best-in-class…
  4. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 4
    1Q17 Highlights: Growth While Generating FCF Is Credit Enhancing Generated about 1 billion in FCF in 2016; continue to expect annual Free Cash Flow production growth and free cash flow generation in 2017 and 2018 Raising 2017 and…
  5. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 5
    Operations: Operations Summary SWPA SWPA WV OH Q1 2017 Summary Marcellus Upper Devonian Marcellus Dry Utica TOTAL Horizontal Rigs 1 - - 1 2 Drilled 2 - - 7 9 Completed 5 - 2 4 11 Turned In Line (TIL) 5 1 - - 6 Avg. TIL Lateral…
  6. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 6
    Operations: Drilling Cycle Time Efficiencies Utica Q1 2017 drilling days/1,000 lateral length improved 23% compared to 2016 helping to Monroe County Drilling Cost Savings reduce cost per lateral foot by 11% 1.4 450 1.3 The…
  7. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 7
    Operations: Completions Cycle Time Efficiencies Marcellus Efficiency Q1 2017 lateral feet/day stimulated increased Marcellus Frac Efficiency 56% compared to 2016 1,400 1,245 Faster total completion activities: 27% 1,200…
  8. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 8
    Operations: Revised Type Curves Monroe County, OH Dry Utica Revised Type Curve Shape vs. Prior Plan Better-than-expected reservoir performance driving accelerated production forecast, but EUR unchanged Accelerated production…
  9. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 9
    Operations: Gaut 4IH Update as of Q1 2017 End Gaut 4IH IP: 61.4 MMcf/d Initial InitialSICP: SICP:9,921 9,921psig psig Lateral Length: 5,808 EUR: EUR:3.53.5Bcf/1,000 Bcf/1,000lateral lateral Cum. Production as of 3/31/2017:…
  10. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 10
    CONSOL Full-Cycle Breakeven Cost Decline CONSOLs Full-Cycle Breakeven Operating Metrics Declined from 3.51 to 1.77E per Mcfe 4.00 3.51 3.50 3.27 3.00 1.17 2.56 1.11 2.50 0.82 1.96 2.00 1.77 0.84 0.59 0.48 1.50 0.37 0.46…
  11. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 11
    Marketing: Gas Hedges 350.0 Gas Hedges 2017-2021 5.2 300.0 Gas Volumes Hedged (Bcf) 29.4 250.0 200.0 37.7 150.0 307.2 253.8 15.1 100.0 170.0 50.0 109.8 25.0 - Approximately 73% of total 2017E 2017 2018 2019 2020 2021…
  12. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 12
    Marketing: Natural Gas Sales Market Mix MIDWEST TETCO M3 DOMINION SOUTH TCO POOL TETCO M2 EAST TENNESEE Natural Gas Sales Market Mix 2017E 2018E Columbia (TCO) 11% 9% TETCO (M2) 42% 44% TETCO (M3) 11% 8% Dominion…
  13. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 13
    Marketing: Pipeline Projects will Make a Difference Regional Export by Delivery Market Forecast New Pipeline Projects Changing the Landscape 20 Regional Export Capacity (Bcf/d) 18 16 14 12 Southwest 10 8 Midwest 6…
  14. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 14
    Strengthening Balance Sheet Repurchased about 100 million of debt in 1Q17; have paid down 1.3 Debt Reduction billion since 2015 when total debt peaked at 3.7 billion Leverage Ratio On pace to reduce leverage ratio by about half…
  15. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 15
    Finance: Strong Liquidity Position of 1.7 Billion Amount/ Amount Letters Amount March 31, 2017 ( in millions) Capacity Drawn of Credit Available (1) Cash and Cash Equivalents 55 - - 55 Revolving Credit Facility(2) 2,000 0 333…
  16. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 16
    Finance: Debt and Liquidity Profile CNX CNXC: CNX CNX Unit Market Consolidated 100% Attributable Equity Value of Ownership in Affiliated Public MLPs Owned (5) Price(5) Value Capitalization and Liquidity 3/31/2017 3/31/2017…
  17. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 17
    Finance: Leverage Ratio and Liquidity Projection Leverage Ratio 2016-2018E(1) Reduced 2017 and 2018 expected leverage ratio targets by an 5.0 4.4 additional 0.2x each since the end of 4Q16 4.0 Path to reaching and maintaining a…
  18. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 18
    Finance: Legacy Liabilities Significant legacy liability reductions over Balance Sheet Liability Long-Term Liability Guidance past three years: 3/31/2017 FY 2017E FY 2018E LTD 19 Miller Creek/Fola transaction drove WC 79 substantial…
  19. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 19
    Financial Outlook: NAV/Share Value Drivers Accelerating We expect growth while generating free cash flow: Stringent focus on capital allocation to drive the highest NAV per share decisions Become a leader in capital allocation, when…
  20. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 20
    Q&A 21
  21. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 21
    APPENDIX 22
  22. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 22
    Finance: Segment Guidance E&P Segment Guidance 2017E 2018E PA Mining Operations Consolidated 100% Basis 2017E Production Volumes: Coal Sales Volumes: Natural Gas (Bcf) 380-400 Total Coal Sales Volumes (millions of tons) 25.6-27.6 NGLs…
  23. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 23
    Finance: 2017E EBITDA Guidance EBITDA Guidance by Segment 2017E Current Prior PA Mining ( in millions) E&P(1) Other Total Total Operations (5/2/17) (1/31/17) Earnings Before Interest, Taxes and DD&A 705 410 (20) 1,095 1,080…
  24. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 24
    Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA Three Months Ended March 31, 2017 2017 2017 2017 2016 PA Mining (1) E&P Division Operations Other Total Company Total Company ( in thousands) Division Net (Loss) Income (93,502)…
  25. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 25
    Non-GAAP Reconciliation: TTM EBIT, EBITDA and Adjusted EBITDA Three Months Three Months Three Months Three Months Twelve Months Ended Ended Ended Ended Ended June 30, September 30, December 31, March 31, March 31, ( in thousands)…
  26. Bank of America Merrill Lynch Energy Credit Conference – Consol Energy Inc. – slide 26
    Free Cash Flow Reconciliation Three Months Ended Three Months Ended March 31, March 31, ( in thousands) 2017 2016 Net Cash provided by Continuing Operations 205,194 119,808 Capital Expenditures (112,978) (78,968) Net Distributions…

From the store

Browse maps, data & reports in the Shale Experts store