Cnx Resources Corporation · NYSE:CNX

Cnx Resources — CONSOL Energy — Raymond James 35th Annual Institutional Investors Conference (March 2014)

23 slides from Cnx Resources's conference presentation, Mar 5, 2014

  1. Slide 1: Raymond James 35th Annual Institutional Investors Conference

    Raymond James 35th Annual Institutional Investors Conference March 5, 2014

  2. 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

  3. Slide 3: Appalachian E&P Transformation Creating Value

    Appalachian E&P Transformation Creating Value CONSOL acquires CONSOL announces gas 90,000 acres in W. Va. reserves increase 44% CONSOL announces sale of five mines CONSOL recruits new COO – Gas CONSOL announces CONSOL announces Upper Devonian possible structural changes success Premier E&P entity ba

  4. Slide 4: 2013 Was a Year of Accomplishment

    2013 Was a Year of Accomplishment  Upgraded the C-suite with three executives having skill sets needed for the company’s transformation  Ended 2013 with a record eight rigs running in the Marcellus Shale  Improved our capital efficiencies  Reduced drilling cost per thousand lateral feet by nearl

  5. Slide 5: Strong Liquidity Position of $2.1 Billion

    Strong Liquidity Position of $2.1 Billion  Cash on hand of $327 million  Accounts receivable securitization and revolving credit facilities of $1.8 billion Amount/ Amount Letters Amount December 31, 2013 ($ in million) Capacity Drawn of Credit Available Cash and Cash Equivalents $327 $0 $0 $327 Ac

  6. Slide 6: Pittsburgh Airport: ~9,000 Contiguous Acres

    Pittsburgh Airport: ~9,000 Contiguous Acres Marcellus Shale, Upper Devonian, and Dry Utica Shale Potential Economics justified on 6 pads with up to 49 Marcellus Shale wells. Additional value from potential Upper Devonian and Utica Shale wells. First Marcellus Shale well to be drilled by February 201

  7. Slide 7: Dominion Transmission: ~90,000 Contiguous Acres

    Dominion Transmission: ~90,000 Contiguous Acres West Virginia Fink-Kennedy ~46,000 net Racket- acres Newberne: (wet gas) ~9,000 net acres (wet gas) Lost Creek ~33,000 net acres (dry gas) Farm-in acquired for only $2,000 per acre. Acreage allows for +350 Marcellus Shale wells, with stacked play poten

  8. Slide 8: Projected Dual Pay - The Appeal of Monroe County

    Projected Dual Pay - The Appeal of Monroe County  ~11k highly contiguous acres  100% WI to CONSOL Energy  Acquired for dual wet Marcellus and dry Utica development  Very close to water, pipelines, and gas processing  Multiple cost sharing opportunities Marcellus 5,700’ TVD include: ─ Roads ─ Lo

  9. Slide 9: Recent IP rates in and around Monroe County, OH

    Recent IP rates in and around Monroe County, OH 30.3 MMcf/d Avg 24-hr rate 32.5 MMcf/d Avg 24-hr rate Recent nearby Utica Shale and Marcellus Shale IP rates have been very encouraging. 9

  10. Slide 10: Recent West Virginia Results are Impressive

    Recent West Virginia Results are Impressive PHL13 (*completed using RCS/SSL) 6 wells – 7,999’ average length 13.0 MMcfd – 24 hr IP on first two wells, all wells IP’d greater than 10.0 MMcfd AUD3 1 well – 8,396’ 6.95 MMcfd – 24 hour IP CENT3 1 well – 7,470’ 8.5 MMcfd – 24 hour IP Recent results by CO

  11. Slide 11: Improved Marcellus Drilling and Completion Results

    Improved Marcellus Drilling and Completion Results Drilling Summary 2011 2012 2013 Wells TD'd 78 64 46 Lateral Ft 300,466 328,428 366,615 Total MD 92,264' 794,098' 730,316' Average Lateral 3,853' 5,514' 7,970' Average TMD 11,824' 13,280' 15,876' Average Drill Cost $180/ft $220/ft $190/ft Average Lat

  12. Slide 12: Pre vs. Post RCS/SSL Results

    Pre vs. Post RCS/SSL Results  SWPA are actual results - Seeing 10mmcf/d 30-day average production results in area  W.Va. results are for the PHL pad - Only 2 wells of data due to curtailment resulting from too much production  In CPA, post RCS/SSL results are theoretical since program has been fo

  13. Slide 13: Upper Devonian Exploration Well – NV39F

    Upper Devonian Exploration Well – NV39F 5 Underlying Marcellus Wells on Pad OH PA CONSOL MD WV Area Nineveh Core VA  Washington County, PA Wet Gas Dry Gas ─ Drilled lateral length of 4,889’ ─ Frac’d 17 stages in Burkett Shale ─ Tested 3.0 MMcfd, TIL 6/21/13 ─ Currently producing 2.9 MMcfd ─ Great i

  14. Slide 14: Upper Devonian Burkett Shale Sweet Spot

    Upper Devonian Burkett Shale Sweet Spot CONSOL is well situated within what could be the best part of the Burkett fairway, with an estimated 345,000 net acres of potential. 14

  15. Slide 15: Increased Proved Reserves by 44%

    Increased Proved Reserves by 44% (in Bcfe) 6,000 172 105 (172 ) 1,633 5,731 5,000 3,993 4,000 3,000  44% increase in proved reserves  87% increase in Marcellus Shale 2,000 proved reserves  948% reserve replacement 1,000 0 YE 2012 Extensions & Performance Price Revisions Production YE 2013 Discove

  16. Slide 16: Achieving 30% Gas Production Growth

    Achieving 30% Gas Production Growth  Hired Timothy Dugan as COO – Gas  30 years experience in shales:  Barnett  Utica  Marcellus  Operational roles at:  Chesapeake  Cabot  EQT  Experience in:  Reservoir Engineering  Field Operations  Airport acreage drilling Tim will ensure that CONSOL

  17. Slide 17: 2014 Strategy: Grow Gas Production by 30%

    2014 Strategy: Grow Gas Production by 30% (in Bcfe) Gas Production 400 +30% 300 +30% 215.0 - 235.0 200 172.4 153.5 156.3 127.9 94.4 100 76.6 48.6 48.4 56.1 58.2 44.5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2014 Marcellus Shale production expected to grow 87%. Sourc

  18. Slide 18: 2014 Marcellus Shale Drilling Program: 162 wells

    2014 Marcellus Shale Drilling Program: 162 wells  Large Acreage Position within Marcellus Fairway: approximately 446,000 net acres  87% of Acreage HBP Allowing for Development Flexibility ─ 50% of approximately 690,000 gross acres NBL Operated ─ Approximately 100,000 net acres outside of 170,000 G

  19. Slide 19: CNX Active Hedge Program

    CNX Active Hedge Program Actively Monitored Hedge Program: 2013 Hedge Positions Production Coal Production Hedge + Priced Coal  Recently increased hedge position for 2014 and 1,000,000 84% 62% 59% 74% 51% 90% will add incremental hedges for 2015 Hedged Hedged Hedged Hedged Hedged Hedged 800,000 + P

  20. Slide 20: Firm Transportation and Firm Sales

    Firm Transportation and Firm Sales Total Marcellus/Utica Shale, CBM and Conventional 1,200,000 1,000,000 800,000 MMBtu/d 600,000 400,000 200,000 - 2014 2015 2016 Columbia Dominion Texas Eastern East Tennessee Texas Eastern Firm Sale #1 Texas Eastern Firm Sale #2 CONSOL is currently “long” FT and is

  21. Slide 21: Processing Position: Marcellus / Utica

    Processing Position: Marcellus / Utica  CONSOL’s current position has allowed for the development of Marshall County, W.Va. acreage, in partnership with Noble Energy  Future processing capacity under negotiation and expansion rights will allow for significant growth of liquids-rich Marcellus/Utica

  22. Slide 22: Coal Segment

    Coal Segment  Successfully concluded expansion:  Completed BMX Mine  Completed Enlow Fork overland belt project  Completed new Buchanan Mine portal  Segment should begin producing substantial cash flow: Low-Vol High-Vol Thermal Coal Margins 2014E Sales Guidance 4.2 - 4.7 2.3+ 23.8+ Q4 2013 Tota

  23. Slide 23: Summary

    Summary  We have the team  We have the assets  We have the balance sheet  We have the culture and value system, and  We have the skill set to be successful Our Assets, Strategy, and People Create An Investment Opportunity. 23

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