Cnx Resources Corporation · NYSE:CNX
Cnx Resources — CONSOL Energy — Q4 2015 Earnings Presentation
66 slides from Cnx Resources's earnings presentation, 2016
Slide 1: Company Presentation Q4 2015
Company Presentation Q4 2015
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, as amended). Statements that are not historical, are forward-looking, and include our operational and strategic
Slide 3: Key Takeaways
Key Takeaways CONSOL Energy’s E&P Division has demonstrated that it can stand on its own as a premier Appalachian Basin producer: Gas production has grown significantly Capital intensity and costs are down dramatically Dry Utica has opened up a new opportunity set Our base plan is achievab
Slide 4: Q4 2015 Overview
(= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Q4 2015 Overview
Slide 5: Q4 2015 Overview: Fourth Quarter 2015 Results
Q4 2015 Overview CONSOL Energy: Fourth Quarter 2015 Results Net income Attributable to CONSOL Energy Shareholders for the fourth quarter was $30.4 million - Includes the following pre-tax items: $109.9 million benefit related to changes in retiree medical OPEB plan $62.4 million unrealized gai
Slide 6: Q4 2015 Overview: Net Change in Cash
Q4 2015 Overview CONSOL Energy: Net (Decrease)/Increase in Cash E&P Division: - 2015 production of 328.7 Bcfe, up approximately 93.0 Bcfe from 2014, a 39.5% increase - Production volumes expected to grow approximately 15% in 2016 over 2015 - Capital efficiency improvements, including lean manufact
Slide 7: Solid Liquidity Position of ~$856 Million
Q4 2015 Overview Solid Liquidity Position of ~$856 Million Amount/ Amount Letters Amount December 31, 2015 ($ in million) Capacity Drawn of Credit Available Cash and Cash Equivalents(1) $66 - - $66 Revolving Credit Facility(2) $2,000 $952 $258 $790 Total $2,066 $952 $258 $856 (1) Cash and cash equiv
Slide 8: E&P Division: Q4 2015 Results Summary
Q4 2015 Overview E&P Division: Q4 2015 Results Summary Y/Y Q-to-Q Seq. Q-to-Q E&P Division 4Q2015 4Q2014 Change 4Q2015 3Q2015 Change (1) Average Sales Price ($ / Mcfe) $2.78 $3.90 ($1.12) $2.78 $2.35 $0.43 (2) Average Costs ($ / Mcfe) $2.45 $3.19 ($0.74) $2.45 $2.63 ($0.18) Sales Volumes (Bcfe) 95.5
Slide 9: E&P Division: Q4 2015 Operations Summary
Q4 2015 Overview E&P Division: Q4 2015 Operations Summary Marcellus Shale Quarterly Summary Utica Shale Quarterly Summary Avg. TIL Turned Turned Avg. TIL Sub- Horizontal Lateral Sub- Horizontal Drilled Completed In Line Counties Drilled Completed In Line Lateral Counties Regions Rigs Length Regions
Slide 10: Coal Division: Q4 2015 Results Summary
Q4 2015 Overview Coal Division: Q4 2015 Results Summary Y/Y Q-to-Q Seq. Q-to-Q Coal Division 4Q2015 4Q2014 Change 4Q2015 3Q2015 Change Average Sales Price ($ / ton) $52.37 $61.19 ($8.82) $52.37 $56.34 ($3.97) Average Costs ($ / ton) $41.97 $44.99 ($3.02) $41.97 $43.39 ($1.42) Coal Production (millio
Slide 11: Coal Division: FY 2016 and FY 2017 Marketing Forecasts
Q4 2015 Overview Coal Division: FY 2016 and FY 2017 Marketing Forecasts FY 2016E Sales Tons by Segment 2016E Coal Sales Facts and Goals 6% Contracted tons for 2016: 97% 13% - Priced: 94% ~96% of the PA Ops tons are expected to be sold domestically 81% ~60%-65% of the VA Ops tons are expected t
Slide 12: E&P Division
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Slide 13: 2016 Planned E&P Activity Overview
E&P Division 2016 Planned E&P Activity Overview E&P Activity Summary – 2016 Plan Drilled Drilled Uncompleted Completed 2016 2016 Inventory Inventory Completions TIL Marcellus SW PA Operated 29 23 25 42 SW PA Non-Op 5 10 - 10 WV Operated 7 - - - WV Non-Op 49 - - - Total Marcellus 90 33 25 52 Utica SW
Slide 14: Gas Division Production Growth
E&P Division Gas Division Production Growth E&P Production Volumes 450 450 Production by Area 400 ~15% 400 2015A 2016E 350 Marcellus 51% 54% 329 350 CBM 23% 19% 300 300 Utica (Wet & Dry) 17% 21% 250 Other 9% 6% 236 250 Bcfe 200 200 172 154 156 128 150 150 100 100 50 50 0 0 2010 2011 2012 2013 2014 2
Slide 15: Bridging to Growth
E&P Division Bridging to Growth 400 ~71 ~378 350 ~104 ~329 5 23 300 -50 250 236 Bcfe 15 8 200 -38 150 100 50 0 2014 Total 2015 Base 2015: Gathering 2015: Non-Op 2015: Production 2015 Total 2016 Base 2016: Gathering 2016: Non-Op 2016: Production 2016 Total Production decline De-bottlenecking (Ex NBL/
Slide 16: E&P Division: Capital Expenditures
E&P Division: Capital Expenditures Efficiencies Driving Reduced E&P Capital Expenditures Without Sacrificing Growth Deferring activity, increasing capital efficiency 2016 E&P Capital Budget: improvements and identification of additional de- $205-$325 Million bottlenecking activities Revised 2016
Slide 17: Utica Shale Overview: A Leading Position in the Utica Shale
E&P Division Utica Shale Overview: A Leading Position in the Utica Shale ~622,000 CONSOL net acres(1) Over 3,000 gross locations ─ 87 wells online, as of 12/31/2015 ─ 14 wells TIL in Q4 2015 ─ 8,082 ft average TIL laterals in Q4 2015 ─ 4 wells per pad on average ─ 120-acre spacing (assuming 7,00
Slide 18: Utica Shale: PA/WV Dry Gas
E&P Division RRC– Zahn #1 Utica Shale: PA/WV Dry Gas IP Gas: ~4,500 Mcf/d REXX – Cheeseman 1 IP Oil: 0 Bbl/d IP Gas: 9,200 Mcf/d CHK– Hubbard 3H IP Oil: 0 Bbl/d IP Gas: 11,00 Mcf/d CHK – Thompson 3H IP Oil: 0 Bbl/d IP Gas: 6,400 Mcf/d CNX – Gaut 4IH IP Oil: 0 Bbl/d 61.4 MMcf/d @ 7,968 psig CHK – Bro
Slide 19: Utica Shale: Gaut 4IH – Westmoreland County, PA
Utica Shale: Gaut 4IH – Westmoreland County, PA CONSOL – GAUT4IH 61.4 MMcf/d 24-hr IP rate @ 7,968 psi; 5,840 ft. lateral ~ 5,800’ single lateral; 100% WI to CONSOL 30 stage completion 200’ stages with 500k# proppant: 160k# 100 mesh + 200k # 40/80 ceramic + 140k# 30/50 ceramic Ready supply o
Slide 20: Utica Shale: Gaut 4IH Westmoreland County, PA
Utica Shale: Gaut 4IH Westmoreland County, PA Flow Rate MCf/Day Casing Pressure PSIG 30,000 10000 9500 25,000 9000 Casing Flowing Pressure (psig) 8500 20,000 Gas Rate (Mcf/d) 8000 15,000 7500 7000 10,000 6500 6000 5,000 5500 0 5000 9/25/2015 10/15/2015 11/4/2015 11/24/2015 12/14/2015 1/3/2016 Cond
Slide 21: Utica Shale: GH9 Greene County, PA
Utica Shale: GH 9 Greene County, PA Range Resources - Claysville Sportsman’s Club #1 IP Gas – 59.0 MMcf/d EQT – Pettit Spud in Aug. 2015 13,400 ft. TVD 4,000-4,500 ft. lateral 100% WI and 96% NRI to CONSOL EQT – Scotts Run 24 hr IP – 72.9 MMcf/d. TVD: 13,400’ 3,221’ Treated interval. Frac’d in
Slide 22: Utica Shale: Ohio Dry Gas
Utica Shale: Ohio Dry Gas CNX Activity and Recent IP Rates In-and-Around Monroe County, OH CVX Conner well (Utica): GPOR Irons 1-4H (Utica): 25.0 MMcf/d – Avg 24-hr rate 30.3 MMcf/d – Avg 24-hr rate NBL / CNX MND 6H (Utica): 1 Utica Well 39.1 MMcf/d 24-hr IP @7,126 psi CNX SWITZ 6 Pad (Utica) : 9,34
Slide 23: Utica Shale: Switz Monroe County, OH
Utica Shale: Switz 6 Monroe County, OH CONSOL – SWITZ 6 Pad (Utica): 4 Utica wells & 1 Marcellus well CNX – Switz 6D: 24-hr test rate 44.7 MMcf/d @ 6,835 psig Remaining wells flowing back 4 Utica Wells and 1 Marcellus Well Avg. Utica Lateral Length = 8,821’ Longest Utica Lateral = 10,122’ 10
Slide 24: Utica Shale: Switz 6D Monroe County, OH
Utica Shale: Switz 6D Monroe County, OH Gas Rate Casing Pressure 50,000 10000 The limited decline in flowing casing pressure bodes well for a strong stabilized production 40,000 rate going forward 8000 Flowing Casing Pressure (psig) Gas Rate (Mcf/d) 30,000 6000 20,000 4000 Temporarily shut-in to flo
Slide 25: Utica Shale: Monroe Cty, OH Cost Improvements
Utica Shale: Monroe Cty, OH Cost Improvements Days vs. Depth (Well in order of Horizontal TD Date) 0 5,000 Measured Depth (ft.) 10,000 Switz-6B-HSU Switz-6F-HSU 15,000 ~60+% Reduction in Days to Drill Switz-6H-HSU 20,000 Switz-6D-HSU Switz-16J-HSU 25,000 0 20 40 60 80 100 120 Days Switz Drilling Cos
Slide 26: Utica Shale: PA Utica D&C Cost Reduction Plan
Utica Shale: PA Utica D&C Cost Reduction Plan Waterfall Diagram - PA Dry Utica Drilling and Completion Costs Per Well Assume 7000' lateral on a development 4-well pad ($ in millions) $30.0 $26.2 (8.2) $25.0 (2.2) $20.0 (0.4) (0.8) (1.2) (1.1) $15.0 $12.4 $10.0 $5.0 $0.0 (2) (3) Prior AFE Per Well Dr
Slide 27: Gas Marketing
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Slide 28: E&P Marketing Highlights
Gas Marketing E&P Marketing Highlights Average gas price for the fourth quarter of 2015, including hedging, was a +$0.36 per MMBtu differential to NYMEX ($2.63 vs. $2.27); excluding hedging, gas price was $(0.54) per MMBtu below NYMEX ($1.73 vs. $2.27) ─ Q4 2015 saw one of the warmest starts to wi
Slide 29: Gas Marketing: Firm Transportation
Gas Marketing Firm Transportation 1,600 NEXUS Targeting pipeline projects that 1,400 access favorable markets at ANR 1,200 favorable rates Columbia 1000s MMBtu/day 1,000 East Tennessee Will supplement direct FT with 800 firm sales to customers that have matching firm capacity 600 Dominion 400
Slide 30: Gas Marketing: Natural Gas Sales
Gas Marketing Natural Gas Sales Midwest TETCO M3 Dominion South TCO Pool TETCO M2 East Tennessee Gas Sales CY 2016 Est. Columbia (TCO) 21% TETCO (M2) 20% TETCO (M3) 16% Dominion (DTI) 12% East Tennessee 10% TETCO ELA TETCO ELA & WLA 8% TETCO WLA Midwest (Chicago) 13% 100% Current sales portfolio of
Slide 31: Gas Marketing: Natural Gas Processing
Gas Marketing Natural Gas Processing Contracted capacity meets Contracted Capacity at Processing Plants current requirements 500 ─ Inlet wet gas volumes to 450 processing plants were ~176 400 MMcf/d above CONSOL’s aggregate minimum 350 committed volume in Q4 2015 300 MMcf/d 250 Maintained the fl
Slide 32: Gas Marketing: Firm Transport–Asset or Liability?
Gas Marketing: Firm Transport–Asset or Liability? Total Off Balance Sheet Firm Transportation, Gathering and Processing Commitments $20.0 180% 167% $18.0 152% 160% $16.0 140% $17.5 FT Commitments as % of EV $14.0 $14.3 120% $12.0 $ Billions 100% 95% $10.0 Average: $6.3 Bn 80% $8.0 71% 70% 60% $6.0 5
Slide 33: Gas Marketing: Hedges
Gas Marketing: Hedges Gas Hedges 250 E&P Hedge Program: 225 Physical Sales With Fixed Basis Exposed to NYMEX Program and actively NYMEX Only Hedges Exposed to Basis 200 monitored hedges NYMEX + Basis (1) Gas Volumes Hedged (Bcf) 175 ─ Program Hedge - protect margins on up to 90% of our 150 Proved
Slide 34: Natural Gas Liquids, Oil, and Condensate
Gas Marketing Natural Gas Liquids, Oil, and Condensate Q4 2015 Avg. “NGL Barrel” Composition Q4 2015 liquids sold: 12.0 Bcfe 4Q15 Actual Natural (~100% gasoline Ethane Ethane Total weighted average price of liquids increased 15% 0% Rejection) ~64% to $16.34 in Q4 2015 from $9.99 in Q3 2015 N- Bu
Slide 35: Coal Division
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Slide 36: High Quality, Low Cost Assets with Long Mine Life
Coal Division High Quality, Low Cost Assets with Long Mine Life Pennsylvania (“PA”) Operations Virginia (“VA”) Operations Other Type of Coal Primarily Thermal Primarily Met Primarily Thermal 5 Longwalls and 1 Longwall System and Stripping Shovels and Method Continuous Mining Machines Continuous Mini
Slide 37: Pennsylvania Mining Complex
Coal Division Pennsylvania Mining Complex Pennsylvania mining complex consists of three like-new underground mines and related infrastructure with high-Btu bituminous coal (785.6 million tons proven and probable(1)) Train loadout facility (up to 9,000 tons per hour) with dual rail access with No
Slide 38: Not All NAPP Longwalls Are Created Equal
Coal Division Not All NAPP Longwalls Are Created Equal 25 5.0 2015 Production - CNX/CNXC Assets 2015 Production - Other Longwalls 2015 Sulfur 4.5 20 4.0 Production (million tons) Sulfur (% as received) 3.5 15 3.0 2.5 10 2.0 1.5 Closed 5 in 2015 Closed 1.0 in 2015 0.5 0 0.0 Marion County (1) Emerald
Slide 39: Financial
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Slide 40: Financial: Focused on Free Cash Flow
Financial: Focused on Free Cash Flow Solid liquidity position CNXC and CONE Asset monetization program Reduction in legacy liabilities Guidance: Production, price realizations, operating and capital costs - Growing E&P production volumes - Reductions to operating and overhead costs - Reduc
Slide 41: Financial: Liquidity
Financial: Liquidity Debt and Liquidity Profile CNX CNXC: CNX CNX Unit Market Consolidated 100% Attributable Equity Value of Ownership in Affiliated Public MLPs Onwed LP (5) Price (5) Value Capitalization and Liquidity 12/31/2015 12/31/2015 12/31/2015 Units CNX Coal Resources LP (CNXC:NYSE) 12.7 $6.
Slide 42: Financial: Legacy Liabilities
Financial: Legacy Liabilities Significant Legacy Liability Reductions Over Past 3 Years $4,500 $375 $370 $4,345 $4,000 $350 $325 Annual Cash Servicing Cost $3,500 Projected $107MM Annual Cash $300 Servicing Cost for FY 2016, a Legacy Liabilities $3,000 $28MM reduction from the year- $275 $2,500 end
Slide 43: Financial: CNX Coal Resources LP (CNXC:NYSE)
Financial: CNX Coal Resources LP (CNXC:NYSE) CNXC: Organizational Structure and CNX Ownership CONSOL Energy Inc. CNXC owns a 20% undivided interest(1) in, and ("CONSOL Energy") operational control over, CONSOL Energy’s Pennsylvania NYSE: CNX mining complex (Bailey, Enlow Fork and Harvey mines) 100%
Slide 44: Financial: CONE's Growing Cash Contribution
Financial: CONE’s Growing Cash Contribution CONSOL owns 32.1% of CONE Midstream Partners LP’s CONE Midstream's and Gathering's Pro Rata Net (CNNX:NYSE) LP units and 50% of the General Partner Income Contribution to CNX (“GP”), which has a 2% interest in CNNX (and rights to $16 IDRs) $13 $12 CNNX
Slide 45: Financial: Guidance Summary (E&P)
Financial: Guidance Summary E&P Segment Guidance 2016E Production Volumes: Natural Gas (Bcf) 335 NGLs (MBbls) 6,000 Oil (MBbls) 65 Condensate (MBbls) 1,000 Total Production (Bcfe) ~+15% Natural Gas Basis Differential to NYMEX ($/Mcf) ($0.35) - ($0.45) NGL Realized Price ($/Bbl) $7.00 - $9.00 Condens
Slide 46: Financial: Guidance Summary (Coal)
Financial: Guidance Summary Coal Segment 2016E Total Coal Operations Estimated Total Coal Sales Volumes 27.0 - 32.0 Total Committed Volumes (Contracted & Priced) 27.8 % Committed 94% Estimated Total Average Price ($/Ton) $50.00 - $55.00 Capital Expenditures: Production $140 - $155 Other (Land/Water/
Slide 47: Financial: Summary
Financial: Summary Plans and Goals Aligned to Drive Increased Valuation Milestones: Improving E&P performance from high-grading activities, improving completion techniques, reducing cycle times, and service deflation Benefits from recent long-term contracting activities and operating cost redu
Slide 48: Appendix
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Slide 49: Non-GAAP Reconciliation: Quarter-over-Quarter EBITDA and Adj. EBITDA
Appendix Non-GAAP Reconciliation: Quarter-over-Quarter EBITDA and Adj. EBITDA Three Months Ended December 31 ($ in thousands) 2015 2014 Net Income $34,325 $73,666 Add: Interest Expense 49,082 53,025 Less: Interest Income (431) (476) Add: Tax Valuation Allowance 65,395 - Add: Income Taxes (Benefit) 5
Slide 50: Non-GAAP Reconciliation: Trailing Twelve Months EBITDA
Appendix Non-GAAP Reconciliation: Trailing Twelve Months EBITDA and Adj. EBITDA Three Months Ended Three Months Ended Three Months Ended Three Months Ended Twelve Months Ended March 31 June 30 September 30 December 31 December 31 ($ in thousands) 2015 2015 2015 2015 2015 Net Income / (Loss) $79,031
Slide 51: Joint Ventures
Appendix Joint Ventures Summary of JV Carry Eligible Capital Description Marcellus / Noble Energy Inc. Utica / Hess Corporation Ownership 50/50 50/50 (1) Acreage 349,541 79,266 (2) Zones PA and WV Marcellus, Burkett to Onondaga OH Utica Noble to pay 1/3 of CNX 50% share of eligible charges Hess to p
Slide 52: Marcellus Shale: Overview
Appendix Marcellus Shale: Overview ~436,000 CONSOL net acres ─ ~88% NRI ─ ~91% HBP 23.9 Tcfe 3P Over 8,900 gross potential wells(1) Marcellus production grew at a 71% CAGR from 2013 to 2015 Producing Pads Note: Townships are shown in yellow and purple (acres owned in fee) where CONSOL holds
Slide 53: Marcellus Shale: Growth Runway and Depth of Inventory
Appendix Marcellus Shale: Growth Runway and Depth of Inventory Marcellus Shale Upside Potential Total Gross Prospective Marcellus Acreage ~785,000 - Gross Acres within JV ~699,000 - Acres outside JV – 100% CONSOL ~86,000 Acreage per well (assumed 750 ft spacing) ~86 Gross Producing wells (JV -
Slide 54: Marcellus Shale: Sub-Regions Summary
Appendix Marcellus Shale: Sub-Regions Summary Marcellus Shale North South SWPA CPA WV Ohio(1) Total Wet Wet Net Acres ~44,000 ~108,000 ~111,000 ~14,000 ~52,000 ~107,000 ~436,000 Approximate Gross 800 2,000 2,400 100 1,400 2,200 ~8,900 Locations(2) Avg EURs/1,000 ft 2.1 1.6 1.8 -- 1.8 2.1 -- (Bcfe) M
Slide 55: Marcellus Shale: Southwest PA Overview
Appendix Marcellus Shale: Southwest PA Overview ~44,000 CONSOL net acres NV56 Pad Over 800 gross locations(1) 6 Wells 8,753’ Avg Lateral Length per well 9,230 Mcfe Avg 30-day IP per well ─ 189 wells online, as of NV36 Pad NV57 Pad 12/31/2015 8 Wells 7 Wells 8,914’ Avg Lateral Length per well 5,0
Slide 56: Marcellus Shale: North Wet Gas Overview
Appendix Marcellus Shale: North Wet Gas Overview ~52,000 CONSOL net acres Over 1,400 gross locations(1) ─ 136 wells online as of 12/31/2015 ─ 0 wells TIL in Q4 2015 ─ 6 wells per pad on average 1.8 Bcfe EUR/1,000 ft of lateral Increasing use of RCS/SSL 750 ft inter-lateral spacing SHL13 Pa
Slide 57: Marcellus Shale: South Wet Gas Overview
Appendix Marcellus Shale: South Wet Gas Overview ~107,000 CONSOL net SHR1 Pad 6 Wells acres ~8,741’ Avg Lateral Length per well WEESE (Triad Hunter) 3 Wells PENS1 Pad 10,143 Mcfe Avg 30-day IP per well Over 2,200 gross 9 Wells 3,711’ Avg Lateral Length per well ~6,824’ Avg Lateral Length per wel
Slide 58: Marcellus Shale: Northern WV Dry Overview
Appendix Marcellus Shale: Northern WV Dry Overview ~111,000 CONSOL net acres Over 2,400 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’ Avg Lateral Length per well ─ 49 wells online, as of 3,148 Mcf
Slide 59: Marcellus Shale: Central PA Overview
Appendix Marcellus Shale: Central PA Overview ~108,000 CONSOL net acres CRAWFORD 5 Pad Over 2,000 gross 2 Wells 7,305’ Avg Lateral Length per well locations(1) 13,586 Mcfe Avg 24-hr IP per well 624 Mmcfe/well – 60 day Cum ─ 56 wells online, as of MARCHAND 3I Well 12/31/2015 6,418’ Lateral Length
Slide 60: Utica Shale: Growth Runway and Depth of Inventory
Appendix Utica Shale: Growth Runway and Depth of Inventory Utica Shale Upside Potential Total Gross Prospective Utica Acreage ~701,000 - Gross Acres within JV ~158,000 - Acres outside JV – 100% CONSOL ~543,000 Acreage spacing per well (assumed 750 ft spacing) ~86 Gross Producing wells (JV - YE
Slide 61: Utica Shale: Sub-Regions Summary
Appendix Utica Shale: Sub-Regions Summary Utica Shale Ohio Wet Ohio Dry PA/WV Dry Total Net Acres ~89,000 ~30,000 ~503,000 ~622,000 Approximate Gross 500 300 2,200 3,000 Locations(1) Avg EURs/1,000 ft 2.1 2.4 2.4 -- (Bcfe) Potential resource of ~30 Tcfe Note: Acreage as of December 31, 2015, locatio
Slide 62: Utica Shale: Offset Peer Acreage
Appendix Utica Shale: Offset Peer Acreage ~622,000 CONSOL net acres in Utica ─ ~306,000 net acres in PA ─ ~197,000 net acres in WV ─ 30,000 net acres in OH Dry ~14,000 net acres in Monroe County, OH ─ 89,000 net acres in OH Wet Majority of acreage offset to peers with strong results ─ The main
Slide 63: Utica Shale: CNX Acreage Position in the Core OH Wet Gas Utica
Appendix Utica Shale: CNX Acreage Position in the Core OH Wet Gas Utica HES – Cadiz B HES – Cadiz A IP GAS: 10,254 Mcf/d ~85,000 CONSOL net acres GPOR - Boy Scout 33H CHK - Buell 8H IP OIL: 191 Bbl/d IP GAS: 9,500 Mcf/d IP GAS: 8,006 Mcf/d ~34,000 CONSOL net acres IP GAS: 5,300 Mcf/d IP OIL: 1,4
Slide 64: Stacked Pay Potential: Appalachian Shale Acreage
Appendix 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 Shale Burkett Shale Tully Limestone Hamilton Shale Marcellus Marcellus 173,000
Slide 65: CONE Corporate Structure
Appendix CONE Corporate Structure 65 Source: CONE Midstream Partners LP.
Slide 66: Coal Division: Low-cost, Highly Productive Longwall Mining Operations
Appendix Coal Division: Low-cost, Highly Productive Longwall Mining Operations During 2014, the PA mining complex generated the h i g h e s t c a s h m a r g i n o f a n y o f i t s c o a l p e e r s (1)(2) The design of the Pennsylvania mining complex is optimized to 2014 Average Cash Margin ($ /