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Q4 2014 Presentation – Consol Energy Inc.

Consol Energy Inc. · Jan 30, 2015 · 162 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. Q4 2014 Presentation – Consol Energy Inc. – slide 1
    Company Presentation Q4 2014
  2. Q4 2014 Presentation – Consol Energy Inc. – slide 2
    Agenda Company Overview E&P Division Marcellus Shale Utica Shale Upper Devonian Stacked Pay Potential Other Gas Reserves and Resources Gas Marketing Coal Division Monetization of Non-Core Assets Financial Overview…
  3. Q4 2014 Presentation – Consol Energy Inc. – slide 3
    Company Overview Transformative Journey Ten years ago traditional coal producer, the largest underground producer in the world Eight years ago created CNX Gas Four years ago acquired Dominion Resources Appalachian E&P business and…
  4. Q4 2014 Presentation – Consol Energy Inc. – slide 4
    Company Overview CONSOL Energy Core Values Unwavering focus on Core Values of safety, compliance, and continuous improvement 6
  5. Q4 2014 Presentation – Consol Energy Inc. – slide 5
    Company Overview Strategic Evolution CONSOLs E&P Division represents the greatest portion of EBITDA Natural gas is the de facto choice for new MWh demand as well as for backfilling market share ceded by nuclear and coal, which is a…
  6. Q4 2014 Presentation – Consol Energy Inc. – slide 6
    Company Overview Oil and Gas Acreage Ownership CONSOL % of Legacy Ownership by State and Horizon State Marcellus Utica Burkett Rhinestreet PA 50% 100% 50% 100% WV 50% 100% 50% 100% OH 100% 50% 100% 100% Note: CONSOLs…
  7. Q4 2014 Presentation – Consol Energy Inc. – slide 7
    Company Overview Summary We have tier-one assets across our entire Appalachian-centric portfolio, in both E&P and Coal: - Sweet spots in both the wet and dry portions of the Marcellus and Utica shales - Multiple stacked pay…
  8. Q4 2014 Presentation – Consol Energy Inc. – slide 8
    Company Overview Fourth Quarter 2014 Results Net income for the fourth quarter was 74 million - Includes the following after-tax items related to recent transactions completed by the company: 12.3 million in net income related to the…
  9. Q4 2014 Presentation – Consol Energy Inc. – slide 9
    Company Overview E&P Division: Summary Q-to-Q Q-to-Q E&P Division 4Q2014 4Q2013 Change 4Q2014 3Q2014 Change Average Sales Price ( / Mcfe) 3.90 4.26 (0.36) 3.90 3.97 (0.07) Average Costs ( / Mcfe) 3.19 3.55 (0.36) 3.19 3.12 0.07 Sales…
  10. Q4 2014 Presentation – Consol Energy Inc. – slide 10
    Company Overview Coal Division: Summary Q-to-Q Q-to-Q Coal Division 4Q2014 4Q2013 Change 4Q2014 3Q2014 Change Average Sales Price ( / ton) 61.19 66.85 (5.66) 61.19 62.32 (1.13) Average Costs ( / ton) 45.00 50.05 (5.05) 45.00 49.93…
  11. Q4 2014 Presentation – Consol Energy Inc. – slide 11
    Company Overview Strong Liquidity Position of 2.0 Billion Cash on hand of 177 million Accounts receivable securitization and revolving credit facility of 1.8 billion Amount/ Amount Letters Amount December 31, 2014 ( in million)…
  12. Q4 2014 Presentation – Consol Energy Inc. – slide 12
    Company Overview CONSOL Energy: Net (Decrease)/Increase in Cash Goal is to maintain our strong liquidity position Cash Flow Summary Q-to-Q Q-to-Q ( in millions) 4Q2014 4Q2013 Change 4Q2014 3Q2014 Change Net Cash Provided by…
  13. Q4 2014 Presentation – Consol Energy Inc. – slide 13
    Company Overview Marketing 1Q15 and 2015 Forecasts 2015 Coal Sales Facts and Goals Sales Tons by Product Year 2015 Contracted tons for 2015: 78% - Priced: 76% 7% 12% Approximately 89% of the PA Ops tons are expected to be sold…
  14. Q4 2014 Presentation – Consol Energy Inc. – slide 14
    E&P Division 16
  15. Q4 2014 Presentation – Consol Energy Inc. – slide 15
    E&P Division Q4 2014 Operations Summary Marcellus Shale Quarterly Summary Utica Shale Quarterly Summary Avg. TIL Avg. TIL Turned Turned Sub- Horizontal Lateral Sub- Horizontal Lateral Drilled Completed In Line Counties Drilled…
  16. Q4 2014 Presentation – Consol Energy Inc. – slide 16
    E&P Division Continuous Improvement in the Marcellus Shale Average Completed Lateral Length Average Max IP and Average 30-Day Rate 9,000 14,000 7,807 8,000 11,555 12,000 7,000 10,000 9,297 6,000 5,483 8,298 5,137 8,000…
  17. Q4 2014 Presentation – Consol Energy Inc. – slide 17
    E&P Division CONSOL Energy is a Low Cost Leader 2011-2013 All Sources Reserve Replacement: 3-Year Average vs. E&P Peers 2,000% 1,500% Average: 316% 1,000% 515% 500% 0% CONSOL Energy 2011-2013 All Sources F&D Cost: 3-Year…
  18. Q4 2014 Presentation – Consol Energy Inc. – slide 18
    E&P Division Large and Growing E&P Reserves YE 2013 Proved Reserves Proved Reserves Growth 6,000 172 105 (172) 1,633 5,731 6,000 5,731 5,000 5,000 3,993 4,000 3,993 4,000 3,732 3,480 3,000 44% increase in proved…
  19. Q4 2014 Presentation – Consol Energy Inc. – slide 19
    E&P Division Resource and Opportunity Rich Portfolio Proved Estimated Potential Locations (Gross) Tcfe Proved(2) Unproven Total Marcellus Shale 3.4 1,414 8,024 9,438 Utica Shale(1) 0.1 45 3,030 3,075 Upper Devonian 0.0 5…
  20. Q4 2014 Presentation – Consol Energy Inc. – slide 20
    E&P Division Summary Marcellus Shale Utica Shale Future Development Growth engine over next 3-5 Growing portion of Stacked pay production years of development production mix over next 3 3 stacked play pads in years Over 60% CAGR…
  21. Q4 2014 Presentation – Consol Energy Inc. – slide 21
    E&P Division 2014 Activity Overview Marcellus Shale Utica Shale Upper Devonian PA/W North South Ohio Ohio SWPA CPA WV Ohio(1) Total V Total SWPA WV Total Wet Wet Wet Dry(1) Dry Drilled 44 10 23 1 67 24 169 38 1 -- 39 9 2 11…
  22. Q4 2014 Presentation – Consol Energy Inc. – slide 22
    E&P Division Gas Division Production Growth Gas Production 450 400 +30% 350 300-310 300 250 235.7 Bcfe 200 172.4 153.5 156.3 150 127.9 94.4 100 76.6 56.1 58.2 44.5 48.6 48.4 50 0 2003 2004 2005 2006 2007…
  23. Q4 2014 Presentation – Consol Energy Inc. – slide 23
    Marcellus Shale 25
  24. Q4 2014 Presentation – Consol Energy Inc. – slide 24
    Marcellus Shale Overview 436,000 CONSOL net acres 88% NRI 87% HBP 21.9 Tcfe 3P Over 8,900 gross potential wells(1) 2014 drilled wells: 169(2) 93% Marcellus production growth in 2014 compared to 2013 Liquids growth from 2%…
  25. Q4 2014 Presentation – Consol Energy Inc. – slide 25
    Marcellus Shale Growth Runway and Depth of Inventory Marcellus Shale Upside Potential Total Prospective Marcellus Acreage 790,000 - Acres within JV 690,000 - Acres outside JV 100% CONSOL 100,000 Acreage per well (assumed 750 ft…
  26. Q4 2014 Presentation – Consol Energy Inc. – slide 26
    Marcellus Shale Actual Well Costs vs. Lateral Length 2012 and 2013 Combined Well Costs RCS/SSL Well Costs 12,000,000 12,000,000 Actual RCS/SSL well costs 10,000,000 10,000,000 8,000,000 8,000,000 6,000,000 6,000,000…
  27. Q4 2014 Presentation – Consol Energy Inc. – slide 27
    Marcellus Shale Increasing Economics By Drilling Longer Laterals IRR w/Carry IRR w/Eff IRR Hist. CONSOL consistently 160% 154% drills industry leading 145% long laterals 136% 2011: 3,853 ft 126% 115% 2012: 5,514 ft 120% 111% 105%…
  28. Q4 2014 Presentation – Consol Energy Inc. – slide 28
    Marcellus Shale: Drilling 30
  29. Q4 2014 Presentation – Consol Energy Inc. – slide 29
    Marcellus Shale: Drilling CONSOL-Operated Summary Drilling Summary 2011 2012 2013 2014 Wells TDd 78 64 46 89 Lateral ft 300,466 328,428 366,615 663,718 Total MD ft 92,264 794,098 730,316 1,360,752 Average Lateral ft 3,853 5,514…
  30. Q4 2014 Presentation – Consol Energy Inc. – slide 30
    Marcellus Shale: Drilling Cost Efficiencies and Improvements Air Directional: Expect a two-day reduction in horizontal cycle times Technological Advances: One-run RSS tools; drilling optimization, and evaluating 7-7/8 production…
  31. Q4 2014 Presentation – Consol Energy Inc. – slide 31
    Marcellus Shale: Completions 33
  32. Q4 2014 Presentation – Consol Energy Inc. – slide 32
    Marcellus Shale: Completions CONSOL-Operated Summary Completions Summary 2011 2012 2013 2014 Wells Completed 57 51 59 73(1) Lateral Completed ft 188,800 270,256 333,895 569,919 Total Stages 684 940 1,527 3,374 Average Stage/Well 12…
  33. Q4 2014 Presentation – Consol Energy Inc. – slide 33
    Marcellus Shale: Completions Cost Efficiencies and Improvements Completions Pricing Reduction: Service cost reductions expected in 2015. Efficiency Increases: Increases the number of stages per day: Have achieved 11 RCS/SSL stages in…
  34. Q4 2014 Presentation – Consol Energy Inc. – slide 34
    Marcellus Shale: Completions Cost Efficiencies and Improvements Entire pad average stages per day Increasing from 4 to 8 stages per day equates to capital savings of 430,000 and reduces cycle time by 7 days Capital Savings vs.…
  35. Q4 2014 Presentation – Consol Energy Inc. – slide 35
    Marcellus Shale: Sub-Regions 37
  36. Q4 2014 Presentation – Consol Energy Inc. – slide 36
    Marcellus Shale: Sub-Regions Summary Marcellus Shale North South SWPA CPA WV Ohio(1) Total Wet Wet Net Acres 45,000 110,000 105,000 11,000 60,000 105,000 436,000 Approximate Gross 700 2,000 2,300 100 1,600 2,200 8,900…
  37. Q4 2014 Presentation – Consol Energy Inc. – slide 37
    Marcellus Shale: Southwest PA Southwest PA Overview 45,000 CONSOL net acres NV56 Pad Over 700 gross locations(1) 6 Wells 8,753 Avg Lateral Length per well 9,230 Mcfe Avg 30-day IP per well 155 wells online, as NV36 Pad NV57 Pad…
  38. Q4 2014 Presentation – Consol Energy Inc. – slide 38
    Marcellus Shale: Southwest PA Southwest PA 5,000 ft Type Curve and Economics 1,000 100 MMcfe/Mo 10 1 0 50 100 150 200 Months IRR w/Carry IRR w/Eff IRR Hist. 160% 159% Southwest PA 131% Assumptions Type Curve 2014…
  39. Q4 2014 Presentation – Consol Energy Inc. – slide 39
    Marcellus Shale: Southwest PA Southwest PA Production vs. 5,000 ft Type Curve 8.5 Bcfe Type Curve 7.2 Bcfe Type Curve Projecting 18% improvement in EURs utilizing RCS/SSL 41
  40. Q4 2014 Presentation – Consol Energy Inc. – slide 40
    Marcellus Shale: Southwest PA Southwest PA Production vs. 5,000 ft Type Curve 11.6 Bcfe Type Curve 9.6 Bcfe Type Curve In our core Southwest PA area of Green Hill, Morris, and Nineveh, we drilled 53 laterals in 2014 and…
  41. Q4 2014 Presentation – Consol Energy Inc. – slide 41
    Marcellus Shale: Northern WV Dry Northern WV Overview 105,000 CONSOL net acres Over 2,300 gross ANDERSON (PDC Mountaineer) 3 Wells PHL10 Pad locations(1) 4,859 Avg Lateral Length per well 6 Wells 595 MMcf/well 1st 6-Month Cum 4,636…
  42. Q4 2014 Presentation – Consol Energy Inc. – slide 42
    Marcellus Shale: Northern WV Dry Northern WV 5,000 ft Type Curve and Economics 1,000 100 MMcfe/Mo 10 1 0 50 100 150 200 Months IRR w/Carry IRR w/Eff IRR Hist. 100% Northern WV Dry Assumptions Type Curve 2014 85%…
  43. Q4 2014 Presentation – Consol Energy Inc. – slide 43
    Marcellus Shale: Northern WV Dry Northern WV Production vs. 5,000 ft Type Curve 7.9 Bcfe Type Curve 6.6 Bcfe Type Curve Faulting has hampered early pads in this area but new 3D seismic will allow better targeted drilling…
  44. Q4 2014 Presentation – Consol Energy Inc. – slide 44
    Marcellus Shale: Northern WV Dry Northern WV - Dominion Transmission Storage Field Antero Activity(1) Within 2 miles of DTI northern border AUD7 Pad Average EURs: 1.7 Bcfe/1,000 lateral 1 Well Delineation utilizing RCS/SSL 8,904Avg…
  45. Q4 2014 Presentation – Consol Energy Inc. – slide 45
    Marcellus Shale: Central PA Central PA Overview 110,000 CONSOL net acres CRAWFORD 5 Pad Over 2,000 gross 2 Wells 7,305 Avg Lateral Length per well NARDELL Pad Currently drilling 2 Marcellus wells locations(1) 13,586 Mcfe Avg 24-hr…
  46. Q4 2014 Presentation – Consol Energy Inc. – slide 46
    Marcellus Shale: Central PA Central PA 5,000 ft Type Curve and Economics 1,000 100 MMcfe/Mo 10 1 0 50 100 150 200 Months IRR w/Carry IRR w/Eff IRR Hist. 80% Central PA 78% Assumptions Type Curve 2014 63% Lateral…
  47. Q4 2014 Presentation – Consol Energy Inc. – slide 47
    Marcellus Shale: Central PA Central PA Production vs. 5,000 ft Type Curve 7.2 Bcfe Type Curve 6.0 Bcfe Type Curve Eleven RCS/SSL wells are included 49
  48. Q4 2014 Presentation – Consol Energy Inc. – slide 48
    Marcellus Shale: North Wet Gas New Project Areas Pittsburgh Airport 45 planned Marcellus laterals 45 potential Upper Devonian laterals 15 planned 30 potential 45 potential Utica Shale laterals 9,000 contiguous acres have…
  49. Q4 2014 Presentation – Consol Energy Inc. – slide 49
    Marcellus Shale: North Wet Gas North Wet Gas Overview 60,000 CONSOL net acres Over 1,600 gross locations(1) 110 wells online as of 12/31/2014 IMPERIAL LAND (Range 52 wells brought Resources) online in 2014 4 Wells BARE WARREN…
  50. Q4 2014 Presentation – Consol Energy Inc. – slide 50
    Marcellus Shale: North Wet Gas Moundsville Field: Combined Utica Development During Q4 - CONSOL and Noble closed on 3,400 Utica acres in Moundsville Field AMI only covers Moundsville Development and combines 1,000+ acres already…
  51. Q4 2014 Presentation – Consol Energy Inc. – slide 51
    Marcellus Shale: North Wet Gas North Wet Gas 5,000 ft Type Curve and Economics 1,000 5 Wellhead Sold Gas 4 100 Condensate MMcf/Mo MBbl/Mo NGL 3 2 10 1 1 0 0 50 100 150 200 Months IRR w/Carry IRR w/Eff IRR Hist.…
  52. Q4 2014 Presentation – Consol Energy Inc. – slide 52
    Marcellus Shale: North Wet Gas North Wet Gas Production vs. 5,000 ft Type Curve Increasing productivity Limited use of RCS/SSL First 12 wells of 2014 2014 IP rates significantly above 2012 and 2013 levels with increased use of…
  53. Q4 2014 Presentation – Consol Energy Inc. – slide 53
    Marcellus Shale: South Wet Gas South Wet Gas Overview SHR1 Pad 105,000 CONSOL net 6 Wells 8,741 Avg Lateral Length per well WEESE (Triad Hunter) 3 Wells acres PENS1 Pad 10,143 Mcfe Avg 30-day IP per well 9 Wells 3,711 Avg Lateral…
  54. Q4 2014 Presentation – Consol Energy Inc. – slide 54
    Marcellus Shale: South Wet Gas South Wet Gas 5,000 ft Type Curve and Economics 1,000 5 Wellhead Sold Gas 4 100 Condensate MMcf/Mo MBbl/Mo NGL 3 2 10 1 1 0 0 50 100 150 200 Months IRR w/Carry IRR w/Eff IRR Hist.…
  55. Q4 2014 Presentation – Consol Energy Inc. – slide 55
    Marcellus Shale: South Wet Gas South Wet Gas Production vs. 5,000 ft Type Curve Condensate yield: 5 Bbls/MMcf NGLs yield: 33 Bbls/MMcf 7.0 Bcfe Type Curve 5.0 Bcfe Type Curve 57
  56. Q4 2014 Presentation – Consol Energy Inc. – slide 56
    Utica Shale 58
  57. Q4 2014 Presentation – Consol Energy Inc. – slide 57
    Utica Shale Overview: A Leading Position in the Utica Shale 581,000 CONSOL net acres(1) Over 3,000 gross locations 48 wells online, as of 12/31/2014 41 wells brought online in 2014 7,510 ft average laterals in 2014 4-5 wells…
  58. Q4 2014 Presentation – Consol Energy Inc. – slide 58
    Utica Shale Growth Runway and Depth of Inventory Utica Shale Upside Potential Total Prospective Utica Acreage 650,000 - Acres within JV 137,000 - Acres outside JV 100% CONSOL 513,000 Acreage per well (assumed 750 ft spacing) 86…
  59. Q4 2014 Presentation – Consol Energy Inc. – slide 59
    Utica Shale Utica Production Growth Production 50 45.0 40.0 40 30 Bcfe 20 16.7 10 0.7 0 2013 2014 2015E 2016E Utica Net Production Utica Shale 2014 production exceeded original guidance; Utica expected…
  60. Q4 2014 Presentation – Consol Energy Inc. – slide 60
    Utica Shale: Drilling 62
  61. Q4 2014 Presentation – Consol Energy Inc. – slide 61
    Utica Shale: Drilling CONSOL-Operated Summary Drilling Summary 2013 2014 Wells TDd 9 14 Lateral ft 63,167 79,079 Total MD ft 137,769 195,793 Average Lateral ft 7,019 5,649 Average TMD ft 15,308 13,985 Average Drill Cost/ft 366…
  62. Q4 2014 Presentation – Consol Energy Inc. – slide 62
    Utica Shale: Drilling Cost Efficiencies and Improvements Shortened Intermediate Casing: Potential to reduce cycle times by 8 days with revised casing program; could result in reduction in cost of 900k per well Technological Advances:…
  63. Q4 2014 Presentation – Consol Energy Inc. – slide 63
    Utica Shale: Completions 65
  64. Q4 2014 Presentation – Consol Energy Inc. – slide 64
    Utica Shale: Completions CONSOL-Operated Summary Completions Summary 2012 2013 2014 Wells Completed 4 10 16 Lateral Completed ft 18,160 50,916 95,808 Total Stages 63 200 610 Average Stg/Well 16 20 38 Average Stage Cost 310k 224k…
  65. Q4 2014 Presentation – Consol Energy Inc. – slide 65
    Utica Shale: Completions Cost Efficiencies and Improvements Completions Pricing Reduction: Service cost reductions are expected in 2015. Efficiency Increases: Increases the number of stages per day Stimulation Design Optimization:…
  66. Q4 2014 Presentation – Consol Energy Inc. – slide 66
    Utica Shale: Sub-Regions 68
  67. Q4 2014 Presentation – Consol Energy Inc. – slide 67
    Utica Shale: Sub-Regions 2014 Activity Overview Utica Shale Ohio Wet Ohio Dry PA/WV Dry Total Net Acres 84,000 25,000 472,000 581,000 Approximate Gross 500 300 2,200 3,000 Locations(1) Avg Drilled Lateral 7,535 6,559 -- --…
  68. Q4 2014 Presentation – Consol Energy Inc. – slide 68
    Utica Shale: Ohio Wet Gas The Utica Sweet Spot Evolves HES Cadiz A HES Cadiz B IP GAS: 8,006 Mcf/d IP GAS: 10,254 Mcf/d CHK - Buell 8H IP OIL: 399 Bbl/d IP OIL: 191 Bbl/d IP GAS: 9,500 Mcf/d IP OIL: 1,425 Bbl/d HES Athens A GPOR - Boy…
  69. Q4 2014 Presentation – Consol Energy Inc. – slide 69
    Utica Shale: Ohio Wet Gas CONSOLs Historic Core: Noble, Harrison, Belmont, Guernsey, and Jefferson Counties 84,000 CONSOL net acres 36,000 CONSOL net acres in core Type curve reflects core area Over 500 gross core area…
  70. Q4 2014 Presentation – Consol Energy Inc. – slide 70
    Utica Shale: Ohio Dry Gas Recent IP Rates In-and-Around Monroe County, OH CVX Conner well (Utica): 25.0 MMcf/d Avg 24-hr rate GPOR Irons 1-4H (Utica): ECR Shroyer 2-well pad (Utica): 30.3 MMcf/d Avg 24-hr rate 7,819 Avg later…
  71. Q4 2014 Presentation – Consol Energy Inc. – slide 71
    Utica Shale: Ohio Dry Gas Ohio Dry Gas Area Production vs. 5,000 ft Type Curve 25,000 CONSOL net acres 11,000 net acres in Monroe County, OH 14,000 net acres in eastern portion of Jefferson, Belmont and Harrison counties Over…
  72. Q4 2014 Presentation – Consol Energy Inc. – slide 72
    Utica Shale: PA/WV Dry Gas Utica PA/WV Dry Gas Area Overview REXX Cheeseman 1 RRC Zahn 1 IP Gas: 9,200 Mcf/d IP Gas: 4,500 Mcf/d IP Oil: 0 Bbl/d IP Oil: 0 Bbl/d CHK Thompson 3H CHK Hubbard 3H IP Gas: 6,400 Mcf/d IP Gas: 11,00 Mcf/d…
  73. Q4 2014 Presentation – Consol Energy Inc. – slide 73
    Utica Shale: PA/WV Dry Gas Utica PA/WV Dry Gas Production vs. 5,000 ft Type Curve 472,000 CONSOL net acres 300,000 prospective net acres in PA (80,000 net acres located within Greene and Washington counties) 172,000…
  74. Q4 2014 Presentation – Consol Energy Inc. – slide 74
    Upper Devonian 76
  75. Q4 2014 Presentation – Consol Energy Inc. – slide 75
    Upper Devonian Burkett Shale Sweet Spot CONSOL is well situated in the best part of the Burkett fairway, with an estimated 345,000 net acres of potential across the entire Upper Devonian 77
  76. Q4 2014 Presentation – Consol Energy Inc. – slide 76
    Upper Devonian NV39F Upper Devonian Exploration Well Drilled in Southwest PA 5 underlying Marcellus wells on pad Washington County, PA Drilled lateral length of 4,889 ft Fracd 17 stages in Burkett Shale Tested 3.0 MMcf/d, TIL…
  77. Q4 2014 Presentation – Consol Energy Inc. – slide 77
    Upper Devonian Upper Devonian Production vs. 5,000 ft Type Curve First Upper Devonian well demonstrating very shallow decline compared to type curve Currently producing above type curve: Forecasted EUR 9 Bcfe Drilled 9 Burkett…
  78. Q4 2014 Presentation – Consol Energy Inc. – slide 78
    Stacked Pay Potential 80
  79. Q4 2014 Presentation – Consol Energy Inc. – slide 79
    Stacked Pay Potential Appalachian Shale Acreage P a y Formation Name Wet Dry Total Net Acres Net Acres Net Acres Rhinestreet Shale Upper Cashaqua Shale Devonian 190,000 155,000 345,000 Middlesex Shale West River…
  80. Q4 2014 Presentation – Consol Energy Inc. – slide 80
    Stacked Pay Potential CONSOLs Shale Fairway PIT Airport Rhinestreet = 5,340 Burkett = 5,460 Marcellus = 5,690 Utica = 10,760 Monroe County/Moundsville Rhinestreet = 5,930 Burkett = 6,110 Southwest PA Marcellus = 6,190…
  81. Q4 2014 Presentation – Consol Energy Inc. – slide 81
    Stacked Pay Potential Gas Factory Development Stacked laterals provide economies of scale to access up to 4 pays from 1 pad 83
  82. Q4 2014 Presentation – Consol Energy Inc. – slide 82
    Stacked Pay Potential Southwest PA Stack Pay Potential: 9.0 Tcfe Resource Potential Potential Lateral Spacing Well CapEx EUR Liquids Resource Pay Wells Length (ft) (acre) (MM) (Bcfe) (%) (Bcfe) Burkett 235 6,400 110 7.6 9.5 - 2,226…
  83. Q4 2014 Presentation – Consol Energy Inc. – slide 83
    Stacked Pay Potential Pittsburgh Airport Stack Pay Potential: 1.6 Tcfe Resource Potential Potential Lateral Spacing Well CapEx EUR Liquids Resource Pay Wells Length (ft) (acre) (MM) (Bcfe) (%) (Bcfe) Upper Devonian (Burkett) 45 8,000…
  84. Q4 2014 Presentation – Consol Energy Inc. – slide 84
    Stacked Pay Potential Stacked Pay Model CONSOL is executing in Southwest PA NV-20 Marcellus Wells NV-48 Burkett Wells NV-48 Rhinestreet Well NV-48 Burkett Wells Existing Marcellus Wells on NV-20 Pad Existing Marcellus…
  85. Q4 2014 Presentation – Consol Energy Inc. – slide 85
    Other Gas Reserves and Resources 87
  86. Q4 2014 Presentation – Consol Energy Inc. – slide 86
    Other Gas Reserves and Resources Virginia Coalbed Methane (CBM) 350,000 net acres(1) Origin of CNX Gas Associated with mining at Buchanan mine Advantageous gas marketing location for basis Over 2,700 gross locations 3,000 wells…
  87. Q4 2014 Presentation – Consol Energy Inc. – slide 87
    Other Gas Reserves and Resources Conventional Wells 2,294,000 net acres(1) HBP position creates substantial flexibility to explore and develop other pays Mostly acquired with Dominion E&P acquisition in 2010 70,000 gross…
  88. Q4 2014 Presentation – Consol Energy Inc. – slide 88
    Other Gas Reserves and Resources Chattanooga Shale, Monteagle SOG, and Conasauga Shale 243,000 CONSOL net acres 2,170 gross locations 93 wells online as of 12/31/2014 8 wells online in 2014 Chattanooga: 1.5 million/Hz well 1.0…
  89. Q4 2014 Presentation – Consol Energy Inc. – slide 89
    Other Gas Reserves and Resources Illinois Basin 277,000 net acres(1) 1,400 gross locations Stacked pay potential Mississippian and Devonian sandstones and carbonate New Albany shale Maquoketa shale Currently producing: 0.2…
  90. Q4 2014 Presentation – Consol Energy Inc. – slide 90
    E&P Division Summary 30% gas production growth Implemented asset teams Driving costs down with efficiencies and lean manufacturing Stacked pay potential Solid production with conventional assets Joint ventures with established…
  91. Q4 2014 Presentation – Consol Energy Inc. – slide 91
    Gas Marketing 93
  92. Q4 2014 Presentation – Consol Energy Inc. – slide 92
    Gas Marketing Appalachia Energy Basin - Stacked Reserves Upper Devonian Utica Shale Marcellus Shale Pittsburgh 8 Coalbed Methane Conventional SOG Reserves Pocahontas Coalbed Methane CONSOL Energy is located in…
  93. Q4 2014 Presentation – Consol Energy Inc. – slide 93
    Gas Marketing CONSOL Energy Stacked Assets CNX Assets Marcellus Shale Utica Shale Upper Devonian Conventional SOG Upper Coalbed Methane Devonian Utica Coal Reserves Shale Marcellus Shale Bailey Complex Conventional…
  94. Q4 2014 Presentation – Consol Energy Inc. – slide 94
    Gas Marketing Market Opportunities - Stacked Customers Power Plants Natural Gas Plants Coal Plants Our ability to produce both natural gas and coal allows us the flexibility to provide an energy solution to utilities that burn…
  95. Q4 2014 Presentation – Consol Energy Inc. – slide 95
    Gas Marketing Shared Value Opportunities Land Thermal Coal Gathering NGL Sales Processing Export Ethane Met Coal Pipelines Domestic Ethane Power Purchases Export Coal Dry Gas Sales Export LNG Actively pursuing…
  96. Q4 2014 Presentation – Consol Energy Inc. – slide 96
    Gas Marketing Summary Natural Gas Sales - Current NYMEX hedges cover 45% of total estimated volumes for 2015 - Sales portfolio of 80 customers in five index markets (32% basin exports currently) Firm Transportation - FT capacity…
  97. Q4 2014 Presentation – Consol Energy Inc. – slide 97
    Gas Marketing Firm Transportation CNX's Firm Transportation and Sales* 1,600,000 Total company FT capacity supports the majority of plan 1,400,000 NEXUS production through 2016 1,200,000 ANR 1,000,000 Columbia (TCO)…
  98. Q4 2014 Presentation – Consol Energy Inc. – slide 98
    Gas Marketing Firm Transportation - Current Portfolio ANR Pipeline Dominion (DTI) Columbia (TCO) East Tennessee Pipeline (MMcf/d) YE 2014 YE 2017 Dominion (DTI) 255 354 East Tennessee 282 282 Texas Eastern (TETCO)…
  99. Q4 2014 Presentation – Consol Energy Inc. – slide 99
    Gas Marketing Firm Transportation - Recent Projects ANR Capacity Nexus Capacity Volume: 47,000 Mcf/d Volume: 150,000 Mcf/d Start Date: November 2015 Start Date: November 2017 Market: MichCon/Chicago Market: MichCon MichCon…
  100. Q4 2014 Presentation – Consol Energy Inc. – slide 100
    Gas Marketing Natural Gas Sales Gas Sales 2014 2016* Midwest In-Basin 68% 50% TETCO M3 Exports 32% 50% Dominion South 100% 100% * CY2016 Targets TCO Pool TETCO M2 East Tennessee Gas Sales CY 2015 Est. TETCO (M3) 29%…

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