Earnings Results Second Quarter 2020 July 30, 2020
The CNX Philosophy and Approach to Making Decisions Our Approach: 1. We optimize long term intrinsic value per share above all else 2. The best metric for optimizing intrinsic value per share is free cash flow (FCF); maximizing free…
6 Reasons Why CNX is a Non-Replicable Best-In-Class E&P Production cash costs lowest in basin and declining over time The Lowest Cost E&P 1 Fully burdened cash costs expected to drop significantly over time Company Cost position drives…
Track Record of Success Constructed critical Implemented water infrastructure CNX has been a first Programmatic Hedging Program projects to drive water mover in basin and efficiencies for years No meaningful to come gone against…
Drilling and Completion Improvements Driving Capital Efficiencies SWPA Marcellus Drilling Efficiencies SWPA Marcellus Completions Efficiencies Most Recent 2 Well Results: 1.1 SWPA Marcellus: 720/ft Drilling Days/1,0000 ft Frac…
Most Recent CPA Dry Utica Well Producing Above Type Curve CPA Dry Utica Results 50 45 Increased EUR for Bell Point 6 40 Utica well to range of 4.55.0 Bcfe 35 per 1,000, Daily Production (MMcf) Most productive Utica well to…
Current F&D At Much Higher Capital Efficiency Than Historical D&C DD&A 1.20 Marcellus Well Cost per Mcfe DD&A ( / Mcfe) 2019 1.00 Land 0.10 Gathering/Water Infrastructure 0.07 0.80 Well (D&C, Water, Pad/Facilities) 0.68 Well Closing…
Best-In-Class Production Cash Costs TTM Production Cash Costs per Mcfe(1) 2.25 2.12 The CNXM 1.61 transaction 1.50 1.36 lowered 1.14 1.26 CNXs production 0.75 0.73 0.77 cash costs by 0.40 per Mcfe - CNX Peer 6 Peer 5…
Fully Burdened Cash Costs Under 0.90 Per Mcfe 2020E-2026E Average Prices 2020E-2026E Fully Burdened Costs /MMBtu 1.40 NYMEX 2.40 1.22 In Basin Price 1.95 1.20 CNX Realized Price (/Mcfe) 2.38 0.34 1.01 1.00 0.93 BTU Conversion…
Best Downside Protection in the E&P Space 2021E(1) Hedged Gas Production 2022E(1) Hedged Gas Production 3.00 3.00 104% 2.94 38% of 2023(1) production 63% 100 % 2.90 2.90 hedged under maintenance 2.85 60 % scenario at 2.81 NYMEX…
Flexibility to Modify Production Profile to Capture Higher Prices Expected Daily Production 1,800 Flowing Now December 2020 CNX shut in certain wells in May 2020 1,600 due to pricing contango 1,400 1,200 CNX has the…
Q2 2020 Activity Summary Q2 2020 Average Rigs at Lateral Period ( in millions) TD FRAC TIL Length (1) End SWPA Marcellus 7 8 6 8,560 1 Central Utica 1 - - - - WV Marcellus - - - - - Shirley-Penns Utica - - - - - CPA South Utica…
A Balance Sheet Strengthening Convertible Notes Offering Senior Unsecured / Non-callable for 3.5 years Opportunistically issued convertible notes on April 28, 2020 Total Issuance 345MM Continued to de-risk balance sheet by further…
Updated 2020 Guidance Previous UPDATED Started deferring volumes on May 1, 2020 2020E 2020E Capital Expenditures Plan to turn wells back online November 1, driving Low High Low High ( millions) production volumes towards low end of…
Substantial Cumulative Free Cash Flow and Yield 3 billion of cumulative FCF over 7-year plan Cumulative Free Cash Flow (1) 2020E-2026E Cumulative Free Cash Flow (1) FCF Yield at Current Share Price(2) 3,500 30% 3,000 CNX Pro Forma…
Why Invest in the New CNX Lowest cost Appalachian E&P Average annual go forward FCF of 500 million assuming current 2.40 NYMEX Safety in paying down debt to increase equity value Immense upside in normal or high gas price…
Appendix
CNX Overview Total Net Shale Acres 1.1 million Total Marcellus Net Acres 519,300 Net Undeveloped Marcellus Locations in SWPA 328 Total Utica Net Acres 608,300 Net Undeveloped Utica Locations in CPA 439 2020E Total Production 490-530…
Relative Free Cash Flow Yield 2021E Free Cash Flow Yield(1) CNX Appalachia Peers Top 10 XOP S&P 500 Sectors CNX 2021E-2026E Average Expected FCF Yield: 26% Implied CNX share price of 35 assuming a 6.5% yield Source: Public…
Q2 2020 Financial Results Summary Quarter Quarter Quarter Quarter Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 % Increase/ % Increase/ ( in millions, except per share data) Stand-alone…
Financial Guidance PREVIOUS UPDATED (4/27/2020) (7/30/2020) Revenue and Other Operating Income 2020E 2020E Production Volumes: Natural Gas (Bcf) 465-500 465-500 NGLs (MBbls) 3,485-4,400 3,485-4,400 Condensate (MBbls) 110-170…
Low Base Decline Rate Drives Low Capital Intensity Capital plan 2022E - 2026E (annual avg.) As PDPs build over time, base decline shallows to TIL Count 25 average 20% in 2022E-2026E Net production (Bcfe) 560 Capital Expenditures ( in…
Natural Gas Hedging and Basis Protection 500 450 Despite cashing in Gas Volumes Hedged (Bcf) 400 350 84MM of value YTD 300 and resetting 2022- 250 200 459.7 435.9 2024 hedges, still 150 285.9 maintain strong 100 50 170.3…
Natural Gas Hedging and Basis Protection (Contd) For financial hedging, CNX utilizes over-the-counter swaps to manage its exposure to natural gas price fluctuations. Typically, CNX sells swaps under which it receives a fixed price from…
Natural Gas and Liquids Realizations Natural Gas Price Reconciliation Natural Gas Liquids, Oil and Condensate 2020 2019 Q2 2020 liquids sold: 5.0 Bcfe Q2 Q2 Total weighted average price of all liquids decreased 54% to 8.73 per…
Financial Guidance: 2020E Natural Gas Marketing Mix and Basis 2020E CY 2020 Northeast Pipeline Projects Market Michcon Gas Sold (%) Basis 2020E Gas: 11% DOM South 8% (0.42) CY20 Basis: (0.13) ETNG Mainline 4% 0.13 DOM South TETCO…
YE2019 Type Curve Area and Acreage Update Note: As of year-end 2019 as identified in 2019 10-K filed February 10, 2020. 29
YE2019 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 88,300 30,600 118,900 Total Net Acres 114,800 57,100…
Non-GAAP Reconciliation Price and Cost Data per Mcfe (/Mcfe) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Average Sales Price - Total Company 2.97 2.63 2.51 2.54 2.59 2.52 Lease Operating Expense 0.14 0.15 0.11 0.09 0.07 0.09…
Non-GAAP Reconciliation Source: Company filings. 33
Non-GAAP Reconciliation Source: Company filings. 34
Non-GAAP Reconciliation Source: Company filings. 35
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