CNX Resources Corporation · NYSE:CNX
CNX Resources — Earnings Presentation (February 2019)
14 slides from CNX Resources's earnings presentation, Feb 19, 2019
Slide 1: Disclosure Update: 2019 Guidance Details
Disclosure Update 2019 Guidance Details February 19, 2019
Slide 2: Cautionary Language
Cautionary Language Risk Factors. This presentation, including the oral statements made in connection herewith, contains forward-looking statements, estimates and projections within the meaning of the federal securities laws. Statements that are not historical are forward-looking and may include our
Slide 3: Disclosure Update
Disclosure Update 2019 minimum guidance issued in the Q4 2018 earnings materials is unchanged This presentation provides further clarification and transparency related to that guidance ▪ Specifically, these materials outline the expected well counts and production volumes associated with D&C capital
Slide 4: FY2019 Minimum Activity by Quarter
FY2019 Minimum Activity by Quarter Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 FY 2020 TD FRAC TIL TD FRAC TIL TD FRAC TIL TD FRAC TIL TD FRAC TIL TD FRAC TIL Carryover Program 2019 Marcellus 10 13 18 12 11 10 5 15 13 6 6 13 33 45 54 - 6 6 Utica 3 - - 2 4 - 2 2 5 5 3 2 12 9 7 - 3 5 Total 13 13 18 14 15
Slide 5: Expected Cadence of Daily Production for 2019 Minimum Program
Expected Cadence of Daily Production for 2019 Minimum Program Expected Daily Production 2019E-2021E Based on 2019 Development Program Only Five-year average all-in maintenance capital (D&C + non-D&C): ~$300 million(1) 2019 1.6 Min. Production ~77% Hedged YE2019 Exit to YE2018 Exit +6% YE2019 to YE20
Slide 6: 2019 Minimum Program Supports Production Equal to ~30 Months Flat
2019 Minimum Program Supports Production Equal to ~30 Months Flat FY2018 pro forma daily Daily Production Example 2019E-2021E average production of 1.6 1.315 Bcfe/d held flat 1.4 1.2 Production adds from 2019 Production (Bcfe/d) 1.0 program would be enough to hold 2018 pro forma daily average produc
Slide 7: 2019 Minimum Development Program and Capital Breakdown
2019 Minimum Development Program and Capital Breakdown Average CPA Utica Shaw Pad CapEx(1) TILs Lateral Length ▪ The Shaw 1G well that experienced ($ in issues in early 1Q 2019 has been 2019E 2020E 2019E 2020E 2019E 2020E millions) successfully contained Marcellus $515 $40 54 6 9,950’ 10,550’ - Appr
Slide 8: 2019 AMT Credit and Additional Refunds
2019 AMT Credit and Additional Refunds December 31, 2018 2017 Combined AMT refund and additional tax refunds to Current Assets Cash and Cash Equivalents $ 17,198 $ 509,167 drive cash tax inflow of ~$149 million in 2019 Accounts and Notes Receivable Trade 252,424 156,817 Other Receivables 11,077 48,9
Slide 9: Reaffirmed 2019 Minimum Guidance
Reaffirmed 2019 Minimum Guidance 2019E Capital budget represents a minimum set of D&C activity Minimum Capital Expenditures Throughout the year, the company will evaluate a series Low High ($ millions) of factors to determine incremental activity and will Drilling & Completions $575 $625 update capi
Slide 10: Reaffirmed 2019 Minimum Guidance
Reaffirmed 2019 Minimum Guidance 2019E Revenue and Other Operating Income E&P Consolidated Production Volumes: Natural Gas (Bcf) 465-485 NGLs (MBbls) 4,500-4,600 Condensate (MBbls) 350-400 Total Production (Bcfe) 495-515 % Liquids 6% Natural Gas Basis Differential to NYMEX ($/Mcf) ($0.20)-($0.25) NG
Slide 11: Financial Guidance: 2019E E&P Revenue Buildup
Financial Guidance: 2019E E&P Revenue Buildup 2019E Revenue Revenue Volumes Realized Price ($ in millions) Natural Gas 475.0 Bcf $3.05 /Mcf $1,449 NGLs 4,550.0 MBbls $21.00 /Bbl $96 Condensate 375.0 MBbls $38.00 /Bbl $14 Realized Hedging Gain/(Loss) ($127) Total 505.0 Bcfe $2.84 /Mcfe $1,432 Average
Slide 12: Financial Guidance: 2019E Natural Gas Marketing Mix and Basis
Financial Guidance: 2019E Natural Gas Marketing Mix and Basis Volumes 2019E CY 2019 Market (000 MMBtu) Gas Sold (%) Basis Michcon Northeast Pipeline Projects DOM South 45,975 9% ($0.38) 2019E Gas: 9% ETNG Cascade Creek TZ5 5,106 1% $0.45 CY19 Basis: ($0.18) ETNG Mainline 1,899 0% $0.23 DOM South TCO
Slide 13: Q1 2019E Gas Hedging Gain/Loss Projections
Q1 2019E Gas Hedging Gain/Loss Projections Q1 2019 CY2019 Hedged Volumes Hedged Forward Forecasted Gain/(Loss) (000 MMBtu) Price Market(1) ($/MMBtu) ($ in 000's) ($/MMBtu) NYMEX 89,775 $2.86 $3.45 ($0.60) ($53,685) Basis: DOM South (DOM) 10,800 ($0.59) ($0.27) ($0.32) ($3,489) TCO Pool (TCO) 10,800
Slide 14: 2019E Gas Hedging Gain/Loss Projections
2019E Gas Hedging Gain/Loss Projections CY2019 CY2020 Hedged Volumes Hedged Forward Forecasted Gain/(Loss) (1) (000 MMBtu) Price Market ($/MMBtu) ($ in 000's) ($/MMBtu) NYMEX 386,088 $2.83 $3.07 ($0.23) ($90,344) ▪ In addition to NYMEX and basis financial hedges, CNX has physical fixed basis sales a
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