Cnx Resources Corporation · NYSE:CNX
Cnx Resources — Consol Energy — 2008 Credit Suisse Energy Summit
22 slides from Cnx Resources's conference presentation, Feb 5, 2008
Slide 1: 2008 Credit Suisse Energy Summit
2008 Credit Suisse Energy Summit February 5, 2008 Vail, CO Filed by CONSOL Energy Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 and Rule 14d-2(b) of the Securities Exchange Act of 1934 Subject Company: CNX Gas Corporation Commission File No. 001-
Slide 2: Cautionary Statements and Safe Harbor Disclosure
2 Cautionary Statements and Safe Harbor Disclosure This presentation contains certain financial measures, such as EBIT and EBITDA. As required by Securities and Exchange Commission Regulation G, reconciliations of these measures to amounts reported in CONSOL Energy’s consolidated financial statement
Slide 3: CONSOL Energy's Advantages
3 Coal Reserves Large, contiguous blocks owned-in fee Heat content Location Transportation River transportation subsidiary Dual rail access at most mines Coal export terminal Gas Company CONSOL Energy’s Advantages – – – – – –
Slide 4: Slide 4
Slide 5: Reserves Owned-in-fee
5 Reserves Owned-in-fee Advantages of ownership: • Leverage to higher pricing • Ability to forecast and control future costs – no LBA payments Coal Reserves Approx. Company (billions of tons) % Owned CONSOL Energy 4.5 70% Patriot Coal 1.2 55% Foundation Coal 1.6 45% Peabody excl. Patriot 8.8 42% Mas
Slide 6: Heating Value
6 Approx. 80% of CONSOL’s coal production Heating Value 8,400 13,000 12,500 8,800 11,500 5,000 10,000 15,000 PRB PRB ILB CAPP NAPP Btu’s per pound of coal
Slide 7: Close Proximity to Customers
7 149% increase in market opportunity How the numbers stack up: Close Proximity to Customers By year-end 2012, approx. 142 gigawatts East of MS. River are scheduled to be scrubbed Nearly 60 generating units are within 50 miles of CONSOL’s Pitt8 coal reserves
Slide 8: Percentage of Gigawatts Scrubbed by Year
8 Percentage of Gigawatts Scrubbed by Year Since 2006, CONSOL has signed 6 multi-year, multi-million ton agreements with domestic customers that in aggregate ~ million tons of high-Btu coal 62% 28% 10% Thru 12/31/08 2009-2010 2011+
Slide 9: NAPP Pricing Has Converged with CAPP
9 NAPP Pricing Has Converged with CAPP Source: EIA
Slide 10: Margin Focused and Production Disciplined
10 $2.45 $6.91 Margin Focused and Production Disciplined $10 $15 $20 $25 $30 $35 $40 2001 2002 2003 2004 2005 2006 2007 Avg. Production Cost Coal Margin Coal Production $35.61 $24.66 $26.76 $27.61 $30.06 $38.99 Avg. Realized Pricing $40. 66 As of December 31, 2007
Slide 11: Our Coal is Traveling Farther
11 Our Coal is Traveling Farther Export Duke (North Carolina) Santee Cooper (South Carolina) We Energies (Wisconsin) Overseas
Slide 12: 100% Ownership of Export Terminal
12 100% Ownership of Export Terminal Largest exporter of coal in the U.S. Only E. Coast terminal served by two rail lines – Norfolk Southern – CSX Transport Capacity – Practical : 12 million tons Export Terminal at the Port of Baltimore Export Terminal at the Port of Baltimore Ground storage – 1.2 m
Slide 13: + go-uer
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Slide 14: Forecast: Coal Exports Up
14 Forecast: Coal Exports Up 20 million tons in 2 years Coal Exports 69.6 57.6 49.6 20,000 40,000 60,000 80,000 100,000 120,000 Sources: EIA, PIRA, company estimates.
Slide 15: Long-Term Demand for Coal (Thru 2030)
15 Long-Term Demand for Coal (Thru 2030) OECD Coal Consumption by Region North America OECD Europe OECD Asia Total OECD 1980 2004 2015 2030 World Coal Consumption 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 2020 2024 2028 OECD Non-OECD Total Coal Consumption in China by Sector Electricity Indu
Slide 16: Ability to Capitalize on Up Cycle
16 33.4 4.5 53.1 5.1 62.8 5.2 Ability to Capitalize on Up Cycle 2009 2010 2011 Unpriced Steam Coal Unpriced Low-Vol Met Coal 2009 2010 2011 Production Guidance 70 – 76.6 – 80.6 76.7 – 80.7 (mm of Tons)
Slide 17: Appalachian Brownfield Opportunities
17 Appalachian Brownfield Opportunities Longwall Face Extensions Birch Shoemaker Additional Longwalls Potential to grow Appalachian production through brownfield expansion by ~ million tons over next years
Slide 18: River Transportation Subsidiary
18 River Transportation Subsidiary Assets on the inland waterways of Northern Appalachia 750 Barges 25 Tow Boats 5 Harbor Boats 24+ Million tons per year capability Alicia Dock
Slide 19: Transportation Flexibility
19 CSX NS Barge Rail-to-Barge Railroads Coal Delivery Options Transportation Flexibility (Millions of tons) 2006 Northern Appalachia Production Enlow Fork 10.7 X X X McElroy 10.5 X Bailey 10.2 X X X Loveridge 6.4 X X X Robinson Run 5.7 X X Blacksville 5.0 X X X Mine 84 3.5 X X Shoemaker 1.0 X X Cent
Slide 20: Unique Investment Proposition
20 Coal Reserves Large, contiguous blocks owned-in fee Location Transportation River transportation subsidiary Coal export terminal Gas Company Unique Investment Proposition – – – –
Slide 21: 2008 Credit Suisse Energy Summit
2008 Credit Suisse Energy Summit February 5, 2008 Vail, CO
Slide 22: Safe Harbor Disclosure
Safe Harbor Disclosure Forward-Looking Statements Various statements in this document, including those that express a belief, expectation, or intention, as well as those that are not statements of historical fact, are forward-looking statements (as defined in Section 21E of the Securities Exchange A