Cnx Resources Corporation · NYSE:CNX
Cnx Resources — CONSOL Energy — Barclays CEO Energy-Power Conference 2012
21 slides from Cnx Resources's conference presentation, Sep 6, 2012
Slide 1: Barclays CEO Energy-Power Conference
Barclays CEO Energy-Power Conference September 6, 2012
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). Such statements include estimates of reserves and resources, projections and estimates concerning
Slide 3: CONSOL Energy Inc – Corporate Profile
CONSOL Energy Inc – Corporate Profile The leading diversified fuel producer in the Eastern United States Ticker: CNX Headquartered in Pittsburgh, Pennsylvania Founded in 1860 9,164 Employees Market Cap = $7.2 Billion EV = $9.9 Billion 2011 Revenue = $6.1 Billion 3
Slide 4: Core Values
Core Values Safety CONSOL has invested over $1 billion since 2006 on coal-related safety projects Commitment to “Absolute Zero” Compliance Continuous Improvement 4
Slide 5: Conveyor Belts at Bailey Prep Plant Return to Service
Conveyor Belts at Bailey Prep Plant Return to Service 5
Slide 6: Coal Division Strategy
Coal Division Strategy Invest in Organic Coal Projects to Participate in Growing World Coal Markets Organic Coal Projects Amonate Mining Complex (300,000 tons of mid-vol) Baltimore Terminal Expansion (14 MT going to 16 MTs in Q4) BMX Mine (5 MT of high-vol) opening in Q1 2014 Unique Asset Port
Slide 7: Investing in Metallurgical Coal Production
Investing in Metallurgical Coal Production Developing metallurgical coal assets organically at a cost ($/ton) well below competitors’ recent acquisition rates When added to existing production, met capacity increases to over 14 MM tons by 2015 An expanded product mix will better enable CONSOL
Slide 8: CONSOL's 100%-Owned Baltimore Terminal
CONSOL’s 100%-Owned Baltimore Terminal 8
Slide 9: Strength in Market Diversity
Strength in Market Diversity CONSOL Ships To Four Continents Widening of The Panama Canal Should Improve Shipping Costs and Potential Coal Margins 9
Slide 10: Gas Operations: Horizontal Rigs Running
Gas Operations: Horizontal Rigs Running Ohio 10
Slide 11: Record Results in Westmoreland County, Pa.
Record Results in Westmoreland County, Pa. Gaut-4 Pad Peak 24-Hour Rates (MMcf/d) # Stages Gaut 4A 18.3 29 Gaut 4B 12.1 29 Gaut 4C 11.1 28 Gaut 4D 23.7 24 Total 65.2 109 11
Slide 12: Marcellus Wells Improving: Drilling Summary by Year
Marcellus Wells Improving Drilling Summary by Year 2012 2011 (8/9/12) Wells TD’d 78 45 Total Ft MD 922,264’ 607,584’ Lateral Ft 300,466’ 255,901’ Average Lateral 3,853’ 5,687’ Average Total MD 11,824’ 13,501’ Average Lateral Cost $552/ft $504/ft 12
Slide 13: Marcellus Wells Improving: Baker Hughes AutoTrak System
Marcellus Wells Improving Baker Hughes AutoTrak System RSS for Faster Curve Drilling >200 fph Aggressive Curve Drilling More Wellbore Information Better Reservoir Navigation Smoother Well Profile Extended Reach Drill Entire Well in One Run Reduced Days on Well Cost Efficiency 13
Slide 14: Marcellus Wells Improving: Completions Summary by Year
Marcellus Wells Improving Completions Summary by Year 2012 2011 (8/9/12) Wells Completed 54 46 Lateral Ft Completed 188,800’ 229,651’ Total Stages 630 809 Average Stg/Well 12 18 Average Stage Cost $205k $181k 14
Slide 15: 2012 Marcellus Shale Drilling Program: 91 Wells
2012 Marcellus Shale Drilling Program: 91 Wells PA CONSOL Drills in Dry Gas 13 wells in Central Pa. 41 wells in Southwest Pa. OH 6 wells in Northern W. Va. ******* Noble Energy Drills in Wet Gas 31 wells in West Virginia MD WV VA Wet Gas Dry Gas 15
Slide 16: First Liquids-Rich Pad: Marshall County, WV
First Liquids-Rich Pad: Marshall County, WV SHL1 Completion & Production 5 Well Pad Avg. Lateral length – 3770’ 4 of 5 Wells Currently Producing SHL1F Shut in for adjacent SHL6 frac 69 Stage Completion Job All Stages successfully completed Results: 22 Bbls of condensate, and 56 Bbl
Slide 17: Second Pad
Second Pad SHL3 Completion & Production 8 Well Pad Avg. Lateral length – 3801’ Frac completed: 122 Stages All plugs drilled out Tubing landed in all wells Flowed well back and shut-in Current Status Installing production facilities Installing CONE line & meter skid 17
Slide 18: Bi-Fuel Conversion on Patterson 324
Bi-Fuel Conversion on Patterson 324 Expect to fuel drilling rigs with 50-60% natural gas in place of diesel fuel Reduced fuel costs by $1 per substituted gallon of diesel fuel Reduce NOx emissions by 20-30% Reduce SOx, PM and CO2
Slide 19: Bringing $4.31 Billion in Value Forward Since 2010
Bringing $4.31 Billion in Value Forward Since 2010 2011 Marcellus Shale JV with Noble Energy: $3.3 billion in aggregate payments of cash and carry 2011 Antero Resources ORRI sale: $193 million in cash 2011 Utica Shale JV with Hess Corporation: $593 million in aggregate payments of cash and car
Slide 20: Our Assets, Strategy, and People Create An Investment Opportunity
Our Assets, Strategy, and People Create An Investment Opportunity Coal and gas operations are long-lived, low-cost, and provide solid growth Our well-capitalized assets – and highly trained personnel − provide more consistent operational execution Our emphasis on safety and compliance increase
Slide 21: CONSOL Energy Inc. – Questions?
CONSOL Energy Inc. – Questions?
CONSOL Energy — Barclays CEO Energy-Power Conference 2012 on 6ix