Cnx Resources Corporation · NYSE:CNX
Cnx Resources — CONSOL Energy — Investor Presentation (February 2011)
22 slides from Cnx Resources's investor presentation, February 2011
Slide 1: The leading diversified fuel producer in the Eastern U.S.
February 2011 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
Slide 2: Cautionary Language
Cautionary Language This presentation contains statements, estimates and projections which are forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934). These statements, which are described in detail in our annual report form 10-K filed with the Securities and E
Slide 3: CONSOL Energy: Strength in Product Diversity
CONSOL Energy: Strength in Product Diversity ü Coal ü Low-vol coal ü High-vol coal ü PCI coal ü Thermal coal ü Gas CONSOL believes that it can create meaningful shareholder value by responsibly managing this unique portfolio. 3
Slide 4: BHP to Buy Shale Assets
CONSOL Energy: Strength in Product Diversity (2) Wall Street Journal headline, Feb. 22: BHP to Buy Shale Assets The world’s largest mining company validates CONSOL Energy’s strategy. 4
Slide 5: CONSOL Energy: Strength in Market Diversity
CONSOL Energy: Strength in Market Diversity ü U.S. ü China ü Europe ü Brazil CONSOL Energy’s Pittsburgh seam coal is now being sold on four continents. 5
Slide 6: CONSOL Energy: The Nation's Largest Coal Exporter
CONSOL Energy: The Nation’s Largest Coal Exporter 2010 Exports Europe: 2.2 China: 3.0 Brazil: 1.6 Total: 6.8 mm tons CONSOL Energy aspires to increase its export sales in 2011, with India and S. Korea representing potential new markets. 6
Slide 7: Transshipping our Coal off the Coast of Nova Scotia
Transshipping our Coal off the Coast of Nova Scotia Coal in the Panamax-size vessel (on the left) is loaded onto the Cape-size vessel (on the right). 7
Slide 8: CONSOL: Coal's Q4 Cash Generation
CONSOL: Coal’s Q4 Cash Generation Low-Vol High-Vol Quarter Ended December 31, 2010 Met Met Thermal Total Coal Sales (millions of tons) 1.1 0.5 15.4 Average Realized Price Per Ton – Company Produced $164.62 $72.69 $52.98 Total Cost Per Ton, before DD&A $61.20 $36.64 $38.22 DD&A Per Ton $5.03 $5.72 $5
Slide 9: CONSOL's BMX Mine Opens in Early 2014
CONSOL’s BMX Mine Opens in Early 2014 ü 5 MM tons/year of low-cost NAPP coal ü Potential Markets: ü Asian mills ü European generators ü Brazilian mills ü Domestic generators CONSOL’s Bailey Prep Plant will be expanding to serve the BMX Mine CONSOL can expand production of its premium product if worl
Slide 10: CONSOL: Managing the Coal Portfolio
CONSOL: Managing the Coal Portfolio Potential to Monetize CAPP Met Reserves in Southern West Virginia ü Amonate, Elk Creek, and Itmann properties ü 5 MM tons/year of low- vol, medium-vol, and high-vol ü Potential EBITDA of $350 MM, assuming $150 per ton sales price CONSOL is assessing options, inclu
Slide 11: CONSOL Energy's 2011 Gas Strategy
CONSOL Energy’s 2011 Gas Strategy ü Investing $675 million to grow the gas division of CONSOL ü $215 mm: delineate Dominion acreage ü $225 mm: grow production to 150-160 Bcf ü $35 mm: Utica Shale exploration program CONSOL believes that its shareholders will reap substantial value from these investm
Slide 12: CONSOL Nearly Doubled Proved Reserves in 2010
CONSOL Nearly Doubled Proved Reserves in 2010 4,000 3,732 3,500 3,000 PDPs 2,500 1,911 Bcf 2,000 1,500 1,343 1,422 1,265 1,000 500 0 2006 2007 2008 2009 2010 CONSOL added 621 Bcf from extensions and discoveries. 12
Slide 13: 2010 Drill Bit Finding Cost
2010 Drill Bit Finding Cost $/Mcf CONSOL Energy $0.41 Range Resources $0.60 Ultra Petroleum $1.48 CONSOL posts “Best in Class” finding cost.
Slide 14: Growth in Marcellus Shale Program
Growth in Marcellus Shale Program 140 12/31 Exit Rate: MMcf/day 125 120 100 80 70 #Wells Drilled 60 40 40 24 20 14 6 0 Estimated 2007 2008 2009 2010 2011 Our Marcellus Shale program is growing rapidly. 14
Slide 15: CONSOL has Three Marcellus Shale Operating Areas
CONSOL has Three Marcellus Shale Operating Areas Central Pa. Ops Southwest Pa. Ops WV Ops CONSOL has 750,000 Net Acres in Marcellus Shale. 15
Slide 16: CONSOL is Long FT through 2013
CONSOL is Long FT through 2013 DOMINION TETCO COLUMBIA DOMINION CONSOL has +400 MMcf per day of unused take-away capacity. 16
Slide 17: 2010 Marcellus Shale Results
2010 Marcellus Shale Results All in Greene County, Pa.: ü EURs (p-50 case) range from 3.5 Bcf to 9.9 Bcf; 5.5 Bcf average ü Laterals average 3,400 feet ü D&C Costs average $ 4.1 million ü Maximum 24-hour production averaged 3.7 MMcf ü 30-day production averaged 3.4 MMcf per day CONSOL is achieving r
Slide 18: Marcellus Economic Assumptions
Marcellus Economic Assumptions Illustrative Well Parameters ($MM, except as noted) Base 2011 Type 2011 Type (10%D&C Efficiency) Gross EUR (Bcfe) 4.3 5.7 5.7 NRI 87.5% 87.5% 87.5% Net EUR (Bcfe) 3.7 4.9 4.9 Drilling Cost 1.9 2.1 1.9 Completion Cost 1.3 2.8 2.5 Total D&C 3.2 4.9 4.4 Gathering 0.4 0.4
Slide 19: Illustrative Marcellus Well Economics
Illustrative Marcellus Well Economics Well ATAX IRR Comparison - Type Curve Analysis 100.0% 95.0% 90.0% 85.0% 80.0% Base 75.0% 2011 Type (10% D&C Eff iciency) 70.0% 2011 Type 65.0% Internal Rate of Return % 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% - $2.00 $2.50 $3.00 $3
Slide 20: CONSOL Plans 6-Well Utica Shale Exploration Program
CONSOL Plans 6-Well Utica Shale Exploration Program Central Pa. Ops Southwest Pa. Ops WV Ops CONSOL drills vertical well in Belmont County, OH. 20
Slide 21: CONSOL Energy: Summary
CONSOL Energy: Summary ü CONSOL has the asset and customer base that makes it the leading diversified fuel producer in the Northeast. ü CONSOL Coal Ops’ industry leading assets, margins and cash flows will allow the Gas business to reach a critical mass and become self funding. ü CONSOL Gas Ops’ adv
Slide 22: The leading diversified fuel producer in the Eastern U.S.
February 2011 Investor Presentation The leading diversified fuel producer in the Eastern U.S.
CONSOL Energy — Investor Presentation (February 2011) on 6ix