Slide 1: Earnings Results Fourth Quarter 2016
EARNINGS RESULTS FOURTH QUARTER 2016
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). Statements that are not historical, are forward-looking, and include our operational and strategic
Slide 3: E&P: Q4 2016 Operations Summary
E&P: Q4 2016 Operations Summary Marcellus Shale Quarterly Summary Production Update: Asset Region SWPA • OPEX Efficiencies: Reduced Q4 2016 OPEX cash costs by $2.1 million while increasing production by 4.9 Bcfe Horizontal Rigs - in the same period, improving units costs by Drilled - $0.09/Mcfe Comp
Slide 4: E&P: Q4 2016 Results
E&P: Q4 2016 Results E&P Results Summary Y/Y Q/Q (1) E&P Results 4Q 2016 4Q 2015 Change 4Q 2016(1) 3Q 2016 Change (1) Average Sales Price ($/Mcfe) $2.77 $2.78 ($0.01) $2.77 $2.54 $0.23 (2) Total Production Costs ($/Mcfe) $2.27 $2.37 ($0.10) $2.27 $2.36 ($0.09) Sales Volumes (Bcfe) 101.3 95.5 5.8 101
Slide 5: E&P Marketing: Highlights
E&P Marketing: Highlights Q4 2016 E&P Realization and Marketing Natural Gas Price Reconciliation Highlights 2016 2015 • During the quarter, CONSOL successfully Q4 Q3 Q2 Q1 Q4 completed the majority of its planned firm NYMEX Natural Gas ($/MMBtu) $2.98 $2.81 $1.95 $2.09 $2.27 Average Differential (0.
Slide 6: E&P Marketing: Gas Hedges
E&P Marketing: Gas Hedges 320 Hedge Position 300 NYMEX Only Hedges Exposed to Basis (Outer ring = NYMEX; Inner ring = Basis) 280 (2) NYMEX + Basis (2) 260 Gas Volumes Hedged (Bcf) 240 220 200 180 160 140 120 2017 100 80 60 40 20 0 FY2017 2017 FY2018 2018 FY2019 2019 FY2020 2020 FY2020 2021 Hedged Op
Slide 7: E&P Marketing: Liquids Realizations
E&P Marketing: Liquids Realizations Natural Gas Liquids, Oil, and Condensate Wet Gas Flexibility • Q4 2016 liquids sold: 10.0 Bcfe Gas $ High • Total weighted average price of all liquids increased Avoid Processing Optimize 38% to $21.34 per Bbl in Q4 2016, from $15.48 per Bbl in Q3 2016(1) • Liquid
Slide 8: Finance: Q4 2016 Review
Finance: Q4 2016 Review Fourth Quarter 2016 Results • Adjusted net income from continuing operations in the 2016 fourth quarter of $0.5 million, or $0.00 per diluted share(1); on a GAAP basis, net loss from continuing operations of $321 million or ($1.42) per diluted share - Adjusted net income excl
Slide 9: Finance: Q4 2016 Review - Cash Flow
Finance: Q4 2016 Review Net (Decrease) / Increase in Cash • Generated positive free cash flow - Organic free cash flow from continuing operations in Q4 2016 of $118 million; full-year 2016 total organic free cash flow of $306 million - Total free cash flow in Q4 2016 of $349 million; full-year 2016
Slide 10: Finance: Liquidity
Finance: Liquidity Strong Liquidity Position of ~$1.7 Billion Amount/ Amount Letters Amount December 31, 2016 ($ in millions) Capacity Drawn of Credit Available (1) Cash and Cash Equivalents $51 - - $51 Revolving Credit Facility(2) $2,000 $0 $326 $1,674 Total $2,051 $0 $326 $1,725 (1) Cash and cash
Slide 11: Finance: Debt and Liquidity Profile
Finance: Liquidity Debt and Liquidity Profile CNX CNXC: CNX CNX Unit Market Consolidated 100% Attributable Equity Value of Ownership in Affiliated Public MLPs Owned (5) Price Value Capitalization and Liquidity 12/31/2016 12/31/2016 12/31/2016 LP Units (5) Capitalization CNX Coa l Res ources LP (CNXC
Slide 12: Leverage Ratio and Liquidity Projection
Finance: Leverage Ratio and Liquidity Projection Leverage Ratio 2016-2018E(1) • Year-end 2016 leverage ratio below prior forecast; 2017E and 5.0 2018E targets reduced by 0.2x and 0.3x, respectively 4.4 4.0 • Path to reaching and maintaining a sub-2.5x leverage ratio • Liquidity rises by estimated $1
Slide 13: Legacy Liabilities
Finance: Legacy Liabilities Significant legacy liability reductions over Balance Sheet Liability Long-Term Liability Guidance past three years: 12/31/2016 FY 2017E FY 2018E LTD $19 • Miller Creek/Fola transaction drove WC 80 substantial reduction in legacy liabilities CWP 119 OPEB 700 in 2016 Salary
Slide 14: Finance: E&P Guidance
Finance: E&P Guidance E&P Segment Guidance 2017E 2018E Production Volumes: Natural Gas (Bcf) 375 445 NGLs (MBbls) 5,800 5,950 Oil (MBbls) 45 40 Condensate (MBbls) 740 730 Total Production (Bcfe) 415 485 % Liquids 10% 8% Open Natural Gas Basis Differential to NYMEX ($/Mcf) ($0.63) ($0.50) NGL Realize
Slide 15: Finance: PA Mining Operations Guidance
Finance: PA Mining Operations Guidance PA Mining Operations – Consolidated 100% Basis 2017E 2018E Estimated Total Coal Sales Volumes (in millions of tons) 26.0 26.0 Total Committed Volumes (Contracted & Priced) 25.4 % Committed 98% Capital Expenditures ($ in millions): Production $120 Other (Land/Wa
Slide 16: Finance: Raising 2017E EBITDA Guidance
Finance: Raising 2017E EBITDA Guidance EBITDA Guidance by Segment – 2017E Current Prior ($ in millions) E&P(1) Coal Other Total Total (1/31/17) (12/13/16) Earnings Before Interest, Taxes and $705 $390 ($15) $1,080 $840 DD&A (EBITDA) Adjustments: Unrealized Loss/(Gain) on Commodity (200) - - (200) (5
Slide 17: Appendix
APPENDIX 17
Slide 18: Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
Finance: Q4 2016 Review Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA Three Months Ended December 31, 2016 2016 2016 2016 2015 PA Mining E&P Division Operations Other(1) Total Company Total Company ($ in thousands) Division Net (Loss) Income ($222,454) $50,121 ($129,301) ($301,634) $34,325 Les
Slide 19: Non-GAAP Reconciliation: Trailing Twelve Months EBITDA
Finance: Q4 2016 Review Non-GAAP Reconciliation: Trailing Twelve Months EBIT, EBITDA, and Adjusted EBITDA Three Months Three Months Three Months Three Months Year Ended Ended Ended Ended Ended March 31, June 30, September 30, December 31, December 31, ($ in thousands) 2016 2016 2016 2016 2016 Net In
Slide 20: Free Cash Flow Reconciliation
Finance: Q4 2016 Review Free Cash Flow Reconciliation Three Months Ended Year Ended December 31, December 31, ($ in thousands) 2016 2016 Net Cash provided by Continuing Operations $87,139 $459,350 Capital Expenditures (47,431) (226,820) Net Investment in Equity Affiliates 78,298 73,743 Organic Free