Skip to main content 2Q 2019 Earnings Presentation – CNX Resources | Shale Experts
Loading...
Pm

2Q 2019 Earnings Presentation – CNX Resources

CNX Resources · Jul 30, 2019 · 47 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. 2Q 2019 Earnings Presentation – CNX Resources – slide 1
    Earnings Results Second Quarter 2019 July 30, 2019
  2. 2Q 2019 Earnings Presentation – CNX Resources – slide 2
    Competitive Advantages and Philosophy Drive Investment Thesis ADVANTAGES CONSISTENT Marketing Cost Asset PHILOSOPHY Strategy Structure Portfolio Hedge book Strong cash Large stacked- Investments in high rate of return opportunities…
  3. 2Q 2019 Earnings Presentation – CNX Resources – slide 3
    2019 and 2020 Program Drives Capital Allocation Opportunities Marcellus development lays the foundation for the The Companys focus on risk-adjusted rates of returns has program resulted in: - Focus is on SWPA Marcellus where company…
  4. 2Q 2019 Earnings Presentation – CNX Resources – slide 4
    Differentiated by Protection of Equity and Per Share Focus Through the end of Q2 2019, CNX is the Only Appalachian Producers Shares Outstanding Appalachian Producer to Have Fewer Shares % Growth / (Decline) Q4 2013 Q2 2019(1)…
  5. 2Q 2019 Earnings Presentation – CNX Resources – slide 5
    CNX Midstream Free Cash Flow Presents Optionality 2020E CNXM Value to CNX - Comparison EBITDA 260M Multiple(1) 9x 2020E EV 2,340M EBITDA Less: net debt 590M 250M-270M Less: publicly owned units(2) 609M Free Cash Flow Less: CNX…
  6. 2Q 2019 Earnings Presentation – CNX Resources – slide 6
    CNX Better Positioned Than Peers 2020 and Beyond 2020E Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 85%+ Hedged X X X X X Sub-1.10 Prod. Cash Costs X X X X X Minimal FT Obligations X X X X Reduction in S/O since 2014 X X X X X X…
  7. 2Q 2019 Earnings Presentation – CNX Resources – slide 7
    CNX Acreage Position Remains Top-Tier in Appalachia Appalachian Peer Group Net Acres CNX SWPA Central Marcellus Locations(1) 1,400,000 450 Assuming a run rate of 30 36 SWPA Central Marcellus 400 1,200,000 24 TILs per year, CNX…
  8. 2Q 2019 Earnings Presentation – CNX Resources – slide 8
    Q2 2019 Operational Results Summary Y/Y Q/Q Marcellus Shale cash production costs were 1.40 per Mcfe in Q2 (/Mcfe) 2Q 2019 2Q 2018 Change 2Q 2019 1Q 2019 Change 2019, up 0.04 from 1.36 per Mcfe in Q2 2018, or a 2% increase Average…
  9. 2Q 2019 Earnings Presentation – CNX Resources – slide 9
    Low Production Cash Costs Create Competitive Advantage 2.50 TTM Q1/Q2 2019 Production Cash Costs(1) 2.12 2.00 CNXs top-tier 1.68 production cash 1.50 1.25 1.30 costs and 1.09 1.16 substantial hedge 1.00 0.78 0.79 book…
  10. 2Q 2019 Earnings Presentation – CNX Resources – slide 10
    Minimal FT Commitments Reduce Risk and Costs Total FT and Processing Commitments(1) Total FT and Processing Commitments + 1Q19End Net Debt(1) 23.5 27.0 19.1 14.2 14.0 10.2 8.8 10.7 5.8 3.7 4.1 1.7 2.3 2.6 Peer 1 CNX Peer…
  11. 2Q 2019 Earnings Presentation – CNX Resources – slide 11
    SWPA Utica Majorsville 6 Capital Costs Beating Targets Majorsville 6 Deep Dry Utica Total Lateral Total Days Total Length Drilling D&C MAJ6E 6,345 29 11,267,000 MAJ6F 6,214 52 13,408,000 MAJ6G 6,335 33 11,662,000 (2) MAJ6H 6,920…
  12. 2Q 2019 Earnings Presentation – CNX Resources – slide 12
    SWPA Stacked Pay Strategy Happening Now Damp Marcellus to Dry Outlets Blending Strategy in Full Swing Blending Marcellus and Utica volumes generates meaningful returns and unique optionality within Appalachia Three SWPA dry Utica pads…
  13. 2Q 2019 Earnings Presentation – CNX Resources – slide 13
    State Record Long Lateral Drilled on Richhill 71 Pad Richhill 71 Marcellus Highlights Richhill 71 Pad Layout RHL71B: PA record longest drilled lateral: 19,609 - Drilled 100% in target Pad average lateral length (6 wells): 15,744…
  14. 2Q 2019 Earnings Presentation – CNX Resources – slide 14
    Integrating and Optimizing Operations To Drive Efficiencies Integrated Real-Time Operations Center Objective Functionality Key Results 99.5% production uptime 24/7 real time surveillance 60% reduction in NPT since 2016 Remote…
  15. 2Q 2019 Earnings Presentation – CNX Resources – slide 15
    Q2 2019 Financial Results Summary Quarter Quarter Quarter Quarter Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2019 2018 2019 2018 % Increase/ % Increase/ ( in millions, except per share data) Stand-alone…
  16. 2Q 2019 Earnings Presentation – CNX Resources – slide 16
    Our Strategy Drives Significant EBITDAX per Share Growth E&P Stand-Alone Adjusted EBITDAX per Share 1.50 Q1 2017 Q2 2019 1.36 1.30 CNX Adjusted 1.10 1.15 EBITDAX per 1.03 0.92 0.99 0.93 share has grown 0.90 0.83 145% in…
  17. 2Q 2019 Earnings Presentation – CNX Resources – slide 17
    Debt Discipline and EBITDAX Growth Drive Available Capacity Shares Repurchased Since Program Announced Stand-Alone and Consolidated Net Debt 250.0 6.4 in millions June 30, 2019 25.9 3.1 8.8 200.0 Stand-Alone Midstream Total…
  18. 2Q 2019 Earnings Presentation – CNX Resources – slide 18
    Guidance Update
  19. 2Q 2019 Earnings Presentation – CNX Resources – slide 19
    Updated 2019 and 2020 Guidance PREVIOUS UPDATED 2020E D&C capital expected to decline 2019E 2019E 2020E 33% midpoint to midpoint while production expected to grow over 12% Capital Expenditures Low High Low High Low High ( millions)…
  20. 2Q 2019 Earnings Presentation – CNX Resources – slide 20
    Hedge Book Reduces EBITDAX Sensitivity to Commodity Swings 2020E EBITDAX and FCF Sensitivity(1) (0.30) (0.20) (0.10) Base (2) 0.10 0.20 0.30 Average NYMEX (/MMBtu) 2.25 2.35 2.45 2.55 2.65 2.75 2.85 Each 0.10 move in 2020 NYMEX E&P…
  21. 2Q 2019 Earnings Presentation – CNX Resources – slide 21
    Production Cadence and Hedge Advantage 2019-2020 Expected Daily Production 2019-2020(1) CNX One of Most Hedged Producers and with 1.8 Strongest Realization Heading into 2020(3) 1.6 2020 Hedged Gas Production 100% 1.4 Average…
  22. 2Q 2019 Earnings Presentation – CNX Resources – slide 22
    2019 AMT Credit and Additional Refunds June 30, December 31, 2019 2018 Combined AMT refund and additional tax refunds to Current Assets Cash and Cash Equivalents 32,611 17,198 drive total cash tax inflow of 146 million in 2019…
  23. 2Q 2019 Earnings Presentation – CNX Resources – slide 23
    Updated 2019 and 2020 Guidance 2019E 2020E Revenue and Other Operating Income E&P Consolidated E&P Consolidated Production Volumes: Natural Gas (Bcf) 480-500 535-560 NGLs (MBbls) 4,685-4,875 5,175-5,400 Condensate (MBbls) 205-215 460-480…
  24. 2Q 2019 Earnings Presentation – CNX Resources – slide 24
    Workflow Efficiency Efforts to Drive SG&A, Capital, LOE Savings 1 Cash SG&A per Mcfe Trending Favorably with Upside to Come Upstream/Midstream Integration Combined construction teams Upside to Streamlined to one monitoring Consolidated…
  25. 2Q 2019 Earnings Presentation – CNX Resources – slide 25
    Financial Guidance: 2019E Natural Gas Marketing Mix and Basis Volumes 2019E CY 2019 Market Michcon Northeast Pipeline Projects (000 MMBtu) Gas Sold (%) Basis 2019E Gas: 10% DOM South 36,029 7% (0.37) CY19 Basis: (0.17) ETNG Mainline…
  26. 2Q 2019 Earnings Presentation – CNX Resources – slide 26
    Financial Guidance: 2020E Natural Gas Marketing Mix and Basis Volumes 2020E CY 2020 Market Michcon Northeast Pipeline Projects (000 MMBtu) Gas Sold (%) Basis 2020E Gas: 9% DOM South 59,002 10% (0.41) CY20 Basis: (0.18) ETNG Mainline…
  27. 2Q 2019 Earnings Presentation – CNX Resources – slide 27
    Q3 2019, 2019E, and 2020E Gas Hedging Gain/Loss Projections Q3 2019 CY2019 CY2020 Wtd. Avg. Avg. Forecasted Wtd. Avg. Avg. Forecasted Wtd. Avg. Avg. Forecasted (2)(4) (4) Hedged Volumes Hedged Forward Gain/(Loss) Hedged Volumes…
  28. 2Q 2019 Earnings Presentation – CNX Resources – slide 28
    Appendix
  29. 2Q 2019 Earnings Presentation – CNX Resources – slide 29
    Q2 Activity Summary Q2 2019 YTD 2019 Average Rigs at Lateral Period ( in millions) TD FRAC TIL Length(1) End TD FRAC TIL Currently three rigs in operation which SWPA Marcellus 17 5 4 10,123 2 23 19 22 Central are under contract…
  30. 2Q 2019 Earnings Presentation – CNX Resources – slide 30
    Natural Gas Hedging and Basis Protection 500 450 25.9 Gas Volumes Hedged (Bcf) 400 15.7 22.2 350 The substantial hedge 300 250 35.5 book de-risks rates of 200 380.9 444.6 394.0 return and creates 150 9.4 100 243.9 time to…
  31. 2Q 2019 Earnings Presentation – CNX Resources – slide 31
    Marketing Highlights and Liquids Realizations Marketing Highlights Natural Gas Liquids, Oil and Condensate Directly-marketed ethane sales volumes to Marcus Q2 2019 liquids sold: 8.1 Bcfe Hook were limited in the quarter due primarily to…
  32. 2Q 2019 Earnings Presentation – CNX Resources – slide 32
    CPA Dry Utica Results Remain Consistent and Strong CPA Dry Utica Results CPA Dry Utica Cumulative Production Pressure Drawdown vs 7,000 Norm. Cumulative Production 16,000 Normalized to 7000 100% 14,000 90% Cumulative Production…
  33. 2Q 2019 Earnings Presentation – CNX Resources – slide 33
    CPA Deep Utica Wells Payback in 10 Months at 2.59/Mcf (Q2 2019 Price) At 20 MMcf/d held flat, a 3.5 Bcf/1000 EUR CPA deep dry Utica well pays for itself after just 10 months(1) (1) Assumes Q2 2019 average realized dry gas…
  34. 2Q 2019 Earnings Presentation – CNX Resources – slide 34
    Stacked Pay Development Providing Economic Uplift Premier stacked pay field in SWPA Central type curve region Richhill Development Case Study CNX is developing the Richhill field, which provides optionality: - Send to processing 30%…
  35. 2Q 2019 Earnings Presentation – CNX Resources – slide 35
    Drilling and Completion Efficiency Continues to Improve Drilling Days per Lateral by Formation Completion Efficiency Feet per Day Marcellus Total Total Portfolio 1200 28 26 Drilling Days (10k Lateral) 24 22 1000 20 18 16…
  36. 2Q 2019 Earnings Presentation – CNX Resources – slide 36
    A Decade of Rapid E&P Growth CNX forged its identity over 150 years as a leader in energy production in Appalachia and is now a top-ten natural gas producer in the United States Corporate Premier modern thermal Renewed focus on…
  37. 2Q 2019 Earnings Presentation – CNX Resources – slide 37
    Acreage and Infrastructure Drive Risk-Adjusted Returns Net Marcellus Acres Reserves to % Operated Proved Reserves Large / Net Utica Acres(1) Production(2) Contiguous Acreage 539,000 / Position 95.5% 15.6 years 7.9 Tcfe 627,000…
  38. 2Q 2019 Earnings Presentation – CNX Resources – slide 38
    YE2018 Acreage and Undeveloped Location Update MARCELLUS UTICA TYPE CURVE AREAS TYPE CURVE AREAS SWPA Central Greater TOTAL SWPA SWPA Central Greater TOTAL SWPA Total Net Acres 98,100 33,700 131,800 Total Net Acres 120,500 55,100…
  39. 2Q 2019 Earnings Presentation – CNX Resources – slide 39
    YE2018 Type Curve Area and Acreage Update Note: As of year-end 2018 as identified in 2018 10-K filed February 7, 2019. 40
  40. 2Q 2019 Earnings Presentation – CNX Resources – slide 40
    Non-GAAP Reconciliation Three Months Ended June 30, 2019 2018 2019 2018 Total Total Stand-alone(1) Stand-alone(1) ( in thousands) Company Company Net Income from EBITDAX Reconciliation 148,281 33,614 192,694 61,394 Adjustments…
  41. 2Q 2019 Earnings Presentation – CNX Resources – slide 41
    Non-GAAP Reconciliation Price and Cost Data per Mcfe (/Mcfe) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Average Sales Price - Total Company 2.85 2.47 2.50 2.80 3.00 2.87 2.92 3.09 2.97 2.63 Lease…
  42. 2Q 2019 Earnings Presentation – CNX Resources – slide 42
    Non-GAAP Reconciliation Twelve Months Ended June 30, 2019 2019 2019 Total Stand-alone(1) Midstream ( in thousands) Company Net Income 256,735 147,479 404,214 Interest Expense 115,837 29,031 144,868 Interest Income (834) - (834)…
  43. 2Q 2019 Earnings Presentation – CNX Resources – slide 43
    Non-GAAP Reconciliation Three Months Ended June 30, 2019 2019 2019 (1) Total Stand-alone Midstream ( in thousands) Company Net Income 148,281 44,413 192,694 Interest Expense 32,467 7,685 40,152 Interest Income (71) - (71) Income…
  44. 2Q 2019 Earnings Presentation – CNX Resources – slide 44
    Non-GAAP Reconciliation Three Months Ended June 30, 2018 2018 2018 (1) Total Stand-alone Midstream ( in thousands) Company Net Income 33,614 27,780 61,394 Interest Expense 31,320 7,118 38,438 Interest Income - - - Income Tax…
  45. 2Q 2019 Earnings Presentation – CNX Resources – slide 45
    Non-GAAP Reconciliation Three Months Ended March 31, 2019 2019 2019 (1) Total Stand-alone Midstream ( in thousands) Company Net (Loss) Income (97,235) 32,584 (64,651) Interest Expense 28,432 7,339 35,771 Interest Income (722) -…
  46. 2Q 2019 Earnings Presentation – CNX Resources – slide 46
    Non-GAAP Reconciliation Three Months Ended Twelve Months Ended Stand-alone(1) March 31, June 30, September 30, December 31, December 31, ( in thousands) 2018 2018 2018 2018 2018 Net Income 510,012 33,614 115,583 90,106 749,315 Interest…
  47. 2Q 2019 Earnings Presentation – CNX Resources – slide 47
    Non-GAAP Reconciliation Twelve Months Attributable to CNX Shareholders Three Months Ended Ended March 31, June 30, September 30, December 31, December 31, ( in thousands) 2017 2017 2017 2017 2017 Net (Loss) Income (38,966) 169,511…

From the store

Browse maps, data & reports in the Shale Experts store