Cnx Resources Corporation · NYSE:CNX
Cnx Resources — CONSOL Energy — Merger or Acquisition (August 2011)
9 slides from Cnx Resources's merger presentation, Aug 18, 2011
Slide 1: Shareholder Presentation: CONSOL Energy / Noble Energy Marcellus Joint Venture
August 18, 2011 Shareholder Presentation CONSOL Energy Inc. CONSOL Energy / Noble Energy Marcellus Joint Venture
Slide 2: Cautionary Language
Cautionary Language Forward looking statements 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, projection
Slide 3: CONSOL Energy & Noble Energy JV
CONSOL Energy & Noble Energy JV CNX to sell an interest in Marcellus Shale asset to Noble Energy § Total deal valuation of $3.4 billion § CNX selling 50% interest in Marcellus Shale position (663,350 acres in PA & WV) for $3.20 billion ($9,650 / net acre) § Cash: $1.07 Billion paid in 3 annual insta
Slide 4: Transaction Rationale
CONSOL Energy & Noble Energy JV Transaction Rationale § Marks to market entire Marcellus position at $9,650 / acre § Validates legacy CNX Gas and Dominion asset base § Partners with a highly respected, world class E&P partner § Shared values and cultural alignment § Shared belief in developing acrea
Slide 5: Marcellus Shale JV Acreage
CONSOL Energy & Noble Energy JV Marcellus Shale JV Acreage § CNX/NBL Operating Areas § CONSOL – Dry Gas Areas § ~ 570K acres § ~ 3,700 horizontal locations § Noble Energy – Wet Gas Areas § ~ 95K acres § ~ 630 horizontal locations § High net revenue interest (88%) § Over 85% of acres held-by producti
Slide 6: Development Plan
CONSOL Energy & Noble Energy JV Development Plan § Rig schedule ramps up to 16 by 2015 Rig Schedule 20 16 16 15 § Accelerated development of acreage 12 12 8 8 4 4 § Substantial cash generation throughout plan - 2011 2012 2013 2014 2015 Net Proceeds ($MM) Gross Wells Drilled Includes cash and carry 4
Slide 7: Retains Growth Targets
CONSOL Energy & Noble Energy JV CONSOL Retains Growth Targets § CONSOL is maintaining our 2015 Production Goal of 350 Bcf § The original goal was established at this level post Dominion acquisition § 50% sale of current and future Marcellus production offset by § Production benefits from: § Accelera
Slide 8: Dominion Comparison: Tremendous Value Creation in Months
CONSOL Energy & Noble Energy JV Tremendous Value Creation in 15 Months § In 2010, CNX paid $1.880 billion for Dominion’s Marcellus acres, or $3,827 per acre § Over the past 15 months, CNX has largely de-risked these acres § As the acreage continues to appreciate, we still own half Dominion Compariso
Slide 9: Shareholder Presentation
CONSOL Energy & Noble Energy JV August 18, 2011 Shareholder Presentation 9