Earnings Results Fourth Quarter 2018 January 31, 2019
Executive Summary Q4 2018 EXPECTATION STRATEGIC INITIATIVE 2018 Production & Q4 2018 Consolidated Adjusted EBITDAX Per Share(2) Adjusted EBITDAX per share growth remains an output of EBITDAX per Share Growth(1) increased 90%…
Steadfast in Philosophy PHILOSOPHY Maximize RETURNS the Risk-adjusted returns set basis for all capital allocation decisions long-term per share value FLEXIBILITY of the firm Flexibility in development plans and capital deployment…
Confident in Strategy This process, which grew PLAN RISK EBITDAX and Strategy designed to MITIGATION reduced work NAV/SHARE GROWTH shares through HIGH RATES OF through the RETURN 2018, is cycle and SHARE COUNT REDUCTION primed…
The Strategy Drives Significant EBTIDAX per Share Growth Per Share Adjusted EBITDAX Attributable to CNX Resources Shareholders Q1 2017 Q4 2018 1.60 1.41 1.40 1.20 1.08 1.03 1.00 0.96 0.83 0.80 0.60 0.54 0.48 0.45…
Q4 2018 Financial Results Summary Net Income and Adjusted EBITDAX Consolidated net income of 129 million in the 2018 fourth quarter; consolidated adjusted net income of 160 million(1); adjusted net income excludes the following pre- Q4…
E&P Standalone Costs and Margins Drive Rates of Return Production Cash Costs(1) and Margins FY2018 2.50 Total Production Cash Costs Total Production Cash Margin 2.00 2.09 1.50 1.79 1.78 1.88 CNX has the lowest per unit cash…
Capital Efficiency Driving Down Total Costs Over Time Current DD&A charges (0.89/Mcfe in Q4 2018) account for legacy operations Based on up-to-date per well capital expenditures and expected type curves, capital per Mcfe in SWPA…
Debt Discipline and EBITDAX Growth Drive Available Capacity Net Debt Attributable to CNX Shareholders Shares Repurchased Since Program Announced 250.0 6.4 5.8 in millions December 31, 2018 5.3 8.3 6.8 0.5 200.0 E&P Midstream…
Only E&P of the Peer Group to have Reduced Shares Since 2013 Peer Share Count Percent Change: YE2013-YE2018 140% 120% 103% 100% 80% 69% 60% 64% 53% Peer Avg 50% 40% 38% 20% 21% 4% 0% -14% -20% -40% Peer 1…
Flexibility in Development Mitigates Risk and Grows NAV/Share Share Repurchases Equity Price Forward Strip Pricing Supply/Demand Indicators M&A Opportunities Multiyear: DISCRETIONARY CAPITAL Utica Data Set Through the Cycle:…
2019 Minimum Guidance Update 2019E Minimum Capital Expenditures Capital budget represents a minimum set of D&C activity Low High ( millions) Throughout the year, the company will evaluate a series Drilling & Completions 575 625 of…
LP and GP Distributions Help Grow Balance Sheet Capacity LP + GP/IDR Distributions FY2017-FY2019E 60 55 50 Distributions Received in Each Year ( millions) LP distributions from CNX Midstream 39 40 have consistently grown…
Natural Gas Hedging and Basis Protection 500 450 44.2 Layering in hedges out to 2023 to protect Gas Volumes Hedged (Bcf) 400 margins on proved developed production 6.7 58.8 350 and a portion of PUDs 300 250 59.9 200 424.4…
Q4 and FY2018 Activity Q4 2018 FY2018 Average HZ Rigs Lateral at Period TD FRAC TIL Length(1) End TD FRAC TIL SWPA Marcellus 19 12 11 8,316 2 61 43 41 Central Utica - - - - 1 - 1 1 WV Marcellus - - - - - 5 5 5 Shirley-Penns…
Q4 2018 Operational Results Summary Y/Y Q/Q Marcellus Shale costs were 1.98 per Mcfe in Q4 2018, a decrease of (/Mcfe) 0.34 from 2.32 per Mcfe vs. Q4 2017, or a 15% decline 4Q 2018 4Q 2017 Change 4Q 2018 3Q 2018 Change Average Sales…
Production Costs by Segment Show Ongoing Improvement Marcellus Utica CBM & Other TOTAL 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 4Q18 4Q17 Production Volumes (Bcfe) 87.0 64.0 23.0 34.0 33.8 0.2 15.1 21.1 (6.0) 136.1 118.9 17.2 Lease Operating…
Dry Gas Marcellus Wells Exceeding Expectations and Peers SWPA Dry Type Curves vs. Greene & Washington County State Data Actuals: 2017-2018 TILs(1) 10,000,000 9,000,000 Recent CNX dry gas wells 8,000,000 currently outperforming…
CPA Deep Utica Bell Point 6 Producing In-Line with Past Successes Bell Point 6 Performance vs. Existing Mamont Wells Geologic and 5,000,000 Cumulative Mcf Normalized to 7000' fracture 4,500,000 Aikens 5J Aikens 5M CPA Dry Utica…
Ohio River Waterline to Supply Core SWPA Development Ohio River Water Line: Planned Route Water Infrastructure Benefits 70% of CNX water is transferred 80% cost savings compared to through pipeline trucking infrastructure Water…
Appendix
Marketing Highlights and Liquids Realizations Marketing Highlights Natural Gas Liquids, Oil and Condensate Directly-marketed ethane volumes were 251,400 Q4 2018 liquids sold: 7.5 Bcfe barrels in Q4 and, on an equivalent basis, yielded a…
2019E Gas Hedging Gain/Loss Projections CY2019 CY2020 Hedged Volumes Hedged Forward Forecasted Gain/(Loss) (1) (000 MMBtu) Price Market (/MMBtu) ( in 000's) (/MMBtu) NYMEX 386,088 2.83 3.07 (0.23) (90,344) In addition to NYMEX and…
Non-GAAP Reconciliation Three Months Ended December 31, 2018 2018 2018 2018 2017 E&P (1) Total Total Midstream Unallocated ( in thousands) Division Company Company Net Income (Loss) 48,250 39,309 41,856 129,415 276,643 Less:…
Attributable Share Reconciled to Consolidated Results Attributable to CNX Shareholders + Noncontrolling Interest = Consolidated Inside the MLP Outside the MLP 63.91% of CNXM E&P Attributable to Total Attributable to Attributable to…
Non-GAAP Reconciliation Three Months Three Months Three Months Three Months Twelve Months Ended Ended Ended Ended Ended March 31, June 30, September 30, December 31, December 31, ( in thousands) 2018 2018 2018 2018 2018 Net Income…
Non-GAAP Reconciliation Three Months Three Months Three Months Three Months Twelve Months Ended Ended Ended Ended Ended March 31, June 30, September 30, December 31, December 31, ( in thousands) 2017 2017 2017 2017 2017 Net Income…
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