Cnx Resources Corporation · NYSE:CNX

Cnx Resources — CONSOL Energy — Q3 2015 Earnings Presentation

71 slides from Cnx Resources's earnings presentation, 2015

  1. Slide 1: Company Presentation Q3 2015

    Company Presentation Q3 2015

  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). Statements that are not historical, are forward-looking, and include our operational and strategic

  3. Slide 3: Q3 2015 Overview

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Q3 2015 Overview

  4. Slide 4: Key Takeaways

    Key Takeaways  CONSOL Energy’s E&P Division has demonstrated that it can stand on its own as a premier Appalachian Basin producer:  Gas production has grown significantly  Capital intensity and costs are down dramatically  Dry Utica has opened up a new opportunity set  Our base plan is achievab

  5. Slide 5: CONSOL Energy: Third Quarter 2015 Results

    Q3 2015 Overview CONSOL Energy: Third Quarter 2015 Results  Net income Attributable to CONSOL Energy Shareholders for the third quarter was $119.0 million - Includes the following pre-tax items:  $100.9 million benefit related to changes in retiree medical OPEB plan  $99.1 million unrealized gain

  6. Slide 6: Net Increase/Decrease in Cash and Guidance

    Q3 2015 Overview CONSOL Energy: Net (Decrease)/Increase in Cash  E&P Division: - 2015 production projected to be between 325- 330 Bcfe, up from 320-330 Bcfe - Production volumes expected to grow approximately 20% in 2016 over 2015 - Capital efficiency improvements, including lean manufacturing, ach

  7. Slide 7: Strong Liquidity Position of ~$1 Billion

    Q3 2015 Overview Strong Liquidity Position of ~$1 Billion Amount/ Amount Letters Amount September 30, 2015 ($ in million) Capacity Drawn of Credit Available Cash and Cash Equivalents(1) $80 - - $80 Revolving Credit Facility(2) $2,000 $945 $281 $774 Total $2,080 $945 $281 $854 (1) Cash and cash equiv

  8. Slide 8: Coal Division: Q3 2015 Results Summary

    Q3 2015 Overview Coal Division: Q3 2015 Results Summary Y/Y Q-to-Q Seq. Q-to-Q Coal Division 3Q2015 3Q2014 Change 3Q2015 2Q2015 Change Average Sales Price ($ / ton) $56.34 $62.32 ($5.98) $56.34 $56.78 ($0.44) Average Costs ($ / ton) $43.39 $49.93 ($6.54) $43.39 $45.69 ($2.30) Coal Production (millio

  9. Slide 9: Coal Division: Marketing Update and Forecasts

    Q3 2015 Overview Coal Division: Q4, FY 2015 and 2016 Marketing Update and Forecasts 2015 Coal Sales Facts and Goals  Contracted tons for 2015: 98% FY 2015 Sales Tons by Segment - Priced: 97%  ~77% of the PA Ops tons are expected to be sold 7% domestically 14%  ~77% of the VA Ops tons are expected

  10. Slide 10: E&P Division: Q3 2015 Results Summary

    Q3 2015 Overview E&P Division: Q3 2015 Results Summary Y/Y Q-to-Q Seq. Q-to-Q E&P Division 3Q2015 3Q2014 Change 3Q2015 2Q2015 Change (1) Average Sales Price ($ / Mcfe) $2.35 $3.97 ($1.62) $2.35 $2.68 ($0.33) (2) Average Costs ($ / Mcfe) $2.63 $3.12 ($0.49) $2.63 $2.90 ($0.27) Sales Volumes (Bcfe) 86

  11. Slide 11: E&P Division: Q3 2015 Operations Summary

    Q3 2015 Overview E&P Division: Q3 2015 Operations Summary Marcellus Shale Quarterly Summary Utica Shale Quarterly Summary Avg. TIL Turned Turned Avg. TIL Sub- Horizontal Lateral Sub- Horizontal Drilled Completed In Line Counties Drilled Completed In Line Lateral Counties Regions Rigs Length Regions

  12. Slide 12: E&P Production Volumes and Guidance

    E&P Division Gas Division Production Growth E&P Production Volumes 450 450 Production by Area 400 ~20% 400 2015E 2016E 350 Marcellus 51% 50% 325-330 350 CBM 23% 18% 300 300 Utica (Wet & Dry) 19% 26% 250 Other 7% 6% 236 250 Bcfe 200 200 172 154 156 128 150 150 100 100 50 50 0 0 2010 2011 2012 2013 20

  13. Slide 13: Bridging to Growth

    E&P Division Bridging to Growth 450 ~390 ~83 400 ~328 350 ~104 15 300 14 Bcfe 236 -50 250 15 8 200 -38 150 100 50 0 2014 Total 2015 Base 2015: Gathering 2015: Non-Op 2015: Production 2015 Total 2016 Base 2016: Gathering 2016: Non-Op 2016: Production 2016 Total Production decline De-bottlenecking (Ex

  14. Slide 14: F&D/Mcfe: Continued Operational Efficiency Improvements

    E&P Division F&D/Mcfe: Continued Operational Efficiency Improvements 2010-2014 Drill-bit F&D Cost: 5-Year Average vs. E&P Peers $3.50 $3.00 Average $2.06 $2.50 $2.00 $/Mcfe $1.50 $1.00 $0.50 $0.00 CNX 2012-2014 Drill-bit F&D Cost: 3-Year Average vs. E&P Peers $4.00 $3.50 $3.00 Average $2.14 $2.50 $/

  15. Slide 15: Financial: E&P Capital Expenditures

    Financial: E&P Capital Expenditures Efficiencies Driving Reduced E&P Capital Expenditures Without Sacrificing Growth  High-grading locations, capital efficiency improvements and cost reductions driving further E&P capital spending reductions  2015 E&P capital budget of $800 million a 20% reduction

  16. Slide 16: E&P Division

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. E&P Division 16

  17. Slide 17: Utica Shale Overview

    Utica Shale Utica Shale Overview: A Leading Position in the Utica Shale  ~614,000 CONSOL net acres(1)  Over 3,000 gross locations ─ 77 wells online, as of 9/30/2015 ─ 11 wells TIL in Q3 2015 ─ 7,525 ft average TIL laterals in Q3 2015 ─ 4 wells per pad on average ─ 120-acre spacing (assuming 7,000

  18. Slide 18: Utica Shale: PA/WV Dry Gas

    E&P Division RRC– Zahn #1 Utica Shale: PA/WV Dry Gas IP Gas: ~4,500 Mcf/d REXX – Cheeseman 1 IP Oil: 0 Bbl/d IP Gas: 9,200 Mcf/d CHK– Hubbard 3H IP Oil: 0 Bbl/d IP Gas: 11,00 Mcf/d CHK – Thompson 3H IP Oil: 0 Bbl/d IP Gas: 6,400 Mcf/d CNX – Gaut 4IH IP Oil: 0 Bbl/d 61.4 MMcf/d @ 7,968 psig CHK – Bro

  19. Slide 19: Utica Shale: Gaut 4IH

    Utica Shale: Gaut 4IH – Westmoreland County, PA CONSOL – GAUT4IH 61.4 MMcf/d 24-hr test rate  ~ 5,800’ single lateral; 100% WI to CONSOL  30 stage completion  200’ stages with 500k# proppant : 160k# 100 mesh + 200k # 40/80 ceramic + 140k# 30/50 ceramic  Ready supply of water  Production facilit

  20. Slide 20: Utica Shale: Gaut 4IH Flow Rate and Pressure

    Utica Shale: Gaut 4IH Westmoreland County, PA Flow Rate MCf/Day Casing Pressure PSIG 30,000 10000.00 25,000 9000.00 20,000 8000.00 Flowing Casing Pressure (psig)  Conducting a Modified Gas Rate (Mscf/d) Isochronal Test with planned 15,000 extended drawdown and 7000.00 build-up  Consists of alterna

  21. Slide 21: Utica Shale: GH 9 Greene County, PA

    Utica Shale: GH 9 Greene County, PA Range Resources - Claysville Sportsman’s Club #1 IP Gas – 59.0 MMcf/d EQT – Pettit 593066 Spud in Aug. 2015 13,400 ft. TVD 4,000-4,500 ft. lateral  100% WI to CONSOL EQT – Scotts Run 24 hr IP – 72.9 MMcf/d.  TVD: 13,400’ 3,221’ Treated interval.  Currently wait

  22. Slide 22: Utica Shale: Ohio Dry Gas

    Utica Shale: Ohio Dry Gas CNX Activity and Recent IP Rates In-and-Around Monroe County, OH CVX Conner well (Utica): GPOR Irons 1-4H (Utica): 25.0 MMcf/d – Avg 24-hr rate 30.3 MMcf/d – Avg 24-hr rate NBL / CNX MND 6H (Utica): 1 Utica Well CNX SWITZ 6 Pad (Utica) : Waiting on flowback 4 Utica Wells &

  23. Slide 23: Utica Shale: Switz 6 Monroe County, OH

    Utica Shale: Switz 6 Monroe County, OH CONSOL – SWITZ 6 Pad (Utica): 4 Utica wells & 1 Marcellus well CNX – Switz 6D: 24-hr test rate 44.7 MMcf/d @ 6,835 psig Remaining wells flowing back  4 Utica Wells and 1 Marcellus Well  Avg. Utica Lateral Length = 8,821’  Longest Utica Lateral = 10,122’  10

  24. Slide 24: Utica Shale: Switz 6D Monroe County, OH

    Utica Shale: Switz 6D Monroe County, OH Gas Rate Casing Pressure 50,000 10000 The limited decline in flowing casing pressure bodes well for a strong stabilized production 40,000 rate going forward 8000 Flowing Casing Pressure (psig) Gas Rate (Mcf/d) 30,000 6000 20,000 4000 Currently temporarily shut

  25. Slide 25: Dry Utica: Monroe County Cost Improvements

    Dry Utica: Monroe County Cost Improvements Days vs. Depth (Well in order of Horizontal TD Date) 0 5,000 Measured Depth (ft.) 10,000 Switz-6B-HSU Switz-6F-HSU 15,000 ~60+% Reduction in Days to Drill Switz-6H-HSU 20,000 Switz-6D-HSU Switz-16J-HSU 25,000 0 20 40 60 80 100 120 Days Switz Drilling Cost/F

  26. Slide 26: PA Utica: Drilling & Completion Cost Reductions

    PA Utica: Drilling & Completion Cost Reductions Waterfall Diagram - PA Dry Utica Drilling and Completion Costs Per Well Assume 7000' lateral on a development 4-well pad ($ in millions) $30.0 $26.2 (8.2) $25.0 (2.2) $20.0 (0.4) (0.8) (1.2) (1.1) $15.0 $12.4 $10.0 $5.0 $0.0 (2) Prior AFE Per Well Dril

  27. Slide 27: Gas Marketing

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Gas Marketing 27

  28. Slide 28: E&P Marketing Highlights

    Gas Marketing E&P Marketing Highlights  Average gas price for the third quarter of 2015, including hedging, was a $(0.43) per MMBtu differential to NYMEX ($2.34 vs. $2.77); excluding hedging, gas price was $(1.00) per MMBtu below NYMEX ($1.77 vs. $2.77)  CONSOL basin exports increased ~100,000 Dth

  29. Slide 29: Gas Marketing: Firm Transportation

    Gas Marketing Firm Transportation 1,600 NEXUS  Targeting pipeline projects that 1,400 access favorable markets at ANR 1,200 favorable rates Columbia 1000s MMBtu/day 1,000 East Tennessee  Will supplement direct FT with firm 800 sales to customers that have matching firm capacity 600 Dominion 400 

  30. Slide 30: Natural Gas Sales

    Gas Marketing Natural Gas Sales Midwest TETCO M3 Dominion South TCO Pool Updated estimated natural TETCO M2 gas sales mix for FY 2016 reflects an improved expected East Tennessee realization position, including a greater percentage of out- Gas Sales CY 2015 Est. CY 2016 Est. of-basin sales, compared

  31. Slide 31: Natural Gas Processing

    Gas Marketing Natural Gas Processing  Contracted capacity meets Contracted Capacity at Processing Plants current requirements 500 450 ─ Inlet wet gas volumes to processing plants were ~145 400 MMcf/d above CONSOL’s 350 minimum committed volume 300 in Q3 2015 MMcf/d 250  Maintained the flexibility

  32. Slide 32: Gas Marketing: Firm Transport–Asset or Liability?

    Gas Marketing: Firm Transport–Asset or Liability? Total Off Balance Sheet Firm Transportation, Gathering and Processing Commitments $20.0 160% 147% $18.0 140% $16.0 $17.5 $16.0 120% 118% FT Commitments as % of EV $14.0 100% $ Billions $12.0 88% $10.0 80% Average: $6.3 $8.0 60% 54% $6.0 46% 38% 40% 3

  33. Slide 33: Gas Marketing: Hedges

    Gas Marketing: Hedges Gas Hedges 250 E&P Hedge Program: NYMEX + Basis (1)  Program and actively 225 NYMEX Only Hedges Exposed to Basis monitored hedges 200 ─ Program Hedge - protect Gas Volumes Hedged (Bcf) 175 margins on up to 90% of our 150 Proved Developed Production 125 100 ─ Active Hedge Proce

  34. Slide 34: Natural Gas Liquids, Oil, and Condensate

    Gas Marketing Natural Gas Liquids, Oil, and Condensate Q3 2015 Avg. “NGL Barrel” Composition  Q3 2015 liquids sold: 12.1 Bcfe 3Q15 Actual Natural (~100% ─ Assuming maximum ethane recovery scenario gasoline Ethane Ethane Q3 total production volumes would have been 15% 0% Rejection) 2.7 Bcfe higher N

  35. Slide 35: Coal Division

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Coal Division 35

  36. Slide 36: High Quality, Low Cost Assets with Long Mine Life

    Coal Division High Quality, Low Cost Assets with Long Mine Life Pennsylvania (“PA”) Operations Virginia (“VA”) Operations Other Type of Coal Primarily Thermal Primarily Met Primarily Thermal 5 Longwalls and 1 Longwall System and Stripping Shovels and Method Continuous Mining Machines Continuous Mini

  37. Slide 37: Pennsylvania Mining Complex

    Coal Division Pennsylvania Mining Complex  Pennsylvania mining complex consists of three like-new underground mines and related infrastructure with high-Btu bituminous coal (785.6 million tons proven and probable(1)) - PA mining complex– 785.6 million tons reserves / 28.5 million tons annual capaci

  38. Slide 38: Not All NAPP Longwalls Are Created Equal

    Coal Division Not All NAPP Longwalls Are Created Equal 30 5.0 2014 Production - CNXC Assets 2014 Production - Other Longwalls 2014 Sulfur 4.5 25 4.0 Production (million tons) Sulfur (% as received) 3.5 20 3.0 15 2.5 2.0 10 Closed 1.5 in 2015 1.0 5 0.5 0 0.0 Federal (1) Leer (1) Cumberland (1) Ohio C

  39. Slide 39: Minor MATS Impact

    Coal Division Minor MATS Impact – Limited Sales Loss, Potential Remaining Customer Gain MATS compliance deadlines Surviving 2014 CNX Customers 20,000 (after 2015-2019 retirements) 18,000 2014 coal burn 16,000 Actual and Demonstrated capability (2008) Announced U.S. Coal Retired Capacity (MW) 14,000

  40. Slide 40: Financial

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Financial 40

  41. Slide 41: Financial: Focused on Free Cash Flow

    Financial: Focused on Free Cash Flow  Strong and improving liquidity  CNXC and CONE - CONE Midstream cash flows and EBITDA growing  Asset monetizations  Reduction in legacy liabilities  Guidance: Production, price realizations, operating and capital costs - Growing E&P production volumes - Redu

  42. Slide 42: Financial: Liquidity

    Financial: Liquidity Debt and Liquidity Profile CNX CNXC: CNX CNX Unit Market Consolidated 100% Attributable Equity Value of Ownership in Affiliated Public MLPs Onwed LP (4) Price (4) Value Capitalization and Liquidity 9/30/2015 9/30/2015 9/30/2015 Units CNX Coal Resources LP (CNXC:NYSE) 12.7 $12.19

  43. Slide 43: Financial: Asset Monetizations

    Financial: Asset Monetizations Assets available for sale  Engaged several investment bankers and advisors to assist in the sale process - In early Oct. announced $101 million of divestitures of non-core coal assets with projected 2016 EBITDA of $6 million, a nearly 17x multiple  Actively engaged i

  44. Slide 44: Financial: Legacy Liabilities

    Financial: Legacy Liabilities Significant Legacy Liability Reductions Over Past 3 Years $4,500 $375 $370 $4,345 $4,000 $350 $325 Annual Cash Servicing Cost $3,500 Projected $107MM Annual Cash $300 $3,000 Legacy Liabilities Servicing Cost for FY 2016, a $275 $46MM reduction from the year- $2,500 end

  45. Slide 45: CNX Coal Resources LP (CNXC:NYSE)

    Financial: CNX Coal Resources LP (CNXC:NYSE) CNXC: Organizational Structure and CNX Ownership CONSOL Energy Inc. CNXC owns a 20% undivided interest(1) in, and ("CONSOL Energy") operational control over, CONSOL Energy’s Pennsylvania NYSE: CNX mining complex (Bailey, Enlow Fork and Harvey mines) 100%

  46. Slide 46: CONE's Growing Cash Contribution

    Financial: CONE’s Growing Cash Contribution  CONSOL owns 32.1% of CONE Midstream Partners LP’s CONE Midstream's and Gathering's Pro Rata Net (CNNX:NYSE) LP units and 50% of the General Partner Income Contribution to CNX (“GP”), which has a 2% interest in CNNX (and rights to $12 IDRs) $10 $9 $9 $8 

  47. Slide 47: Guidance Summary: E&P Segment

    Financial: Guidance Summary E&P Segment Guidance 2015E 2016E Production Volumes:(1) Natural Gas (Bcf) ~285 ~20% NGLs (MBbls) 5,500 - 5,900 6,600 - 7,080 Oil (MBbls) 85 - 95 102 - 114 Condensate (MBbls) 1,150 - 1,450 1,380 - 1,740 Total Production (Bcfe) 325 - 330 ~20% Natural Gas Basis Differential

  48. Slide 48: Guidance Summary: Coal Segment

    Financial: Guidance Summary Coal Segment 2015E 2016E Total Coal Operations (in millions of tons) Estimated Total Coal Sales Volumes 28.9 - 29.9 30.6 - 33.4 Total Committed Volumes (Contracted & Priced) 28.6 20.2 % Committed 97% 63% Estimated Total Average Price ($/Ton) $57.00 - $59.00 $50.00 - $55.0

  49. Slide 49: Financial: Summary

    Financial: Summary Plans and Goals Aligned to Drive Increased Valuation  Milestones:  Improving E&P performance from high-grading activities, improving completion techniques, reducing cycle times, and service deflation  Benefits from recent long-term contracting activities and operating cost redu

  50. Slide 50: Appendix

    (= CONSOL ENERGY AMERICA’S ENERGY STARTS HERE. Appendix 50

  51. Slide 51: Quarter-over-Quarter EBITDA and Adj. EBITDA

    Appendix Non-GAAP Reconciliation: Quarter-over-Quarter EBITDA and Adj. EBITDA Three Months Ended September 30 ($ in thousands) 2015 2014 Net Income / (Loss) $125,470 ($1,645) Add: Interest Expense 48,558 55,397 Less: Interest Income (361) (527) Add: Income Taxes (Benefit) 58,143 (1,388) Earnings Bef

  52. Slide 52: Trailing Twelve Months EBITDA and Adj. EBITDA

    Appendix Non-GAAP Reconciliation: Trailing Twelve Months EBITDA and Adj. EBITDA Twelve Months Ended September 30 ($ in thousands) 2015 Net Income / (Loss) ($325,135) Add: Interest Expense 203,212 Less: Interest Income (2,344) Add: Income Taxes (Benefit) (253,357) Earnings Before Interest & Taxes (EB

  53. Slide 53: Joint Ventures

    Appendix Joint Ventures Summary of JV Carry Eligible Capital Description Marcellus / Noble Energy Inc. Utica / Hess Corporation Ownership 50/50 50/50 (1) Acreage 350,904 76,132 (2) Zones PA and WV Marcellus, Burkett to Onondaga OH Utica Noble to pay 1/3 of CNX 50% share of eligible charges Hess to p

  54. Slide 54: Marcellus Shale: Overview

    Appendix Marcellus Shale: Overview  ~441,000 CONSOL net acres ─ ~88% NRI ─ ~91% HBP  23.9 Tcfe 3P  Over 8,900 gross potential wells(1)  ~93% Marcellus production growth in 2014 compared to 2013  Liquids growth from 2% in 2013 to 8% of total production in 2014 Producing Pads Note: Townships are

  55. Slide 55: Marcellus Shale: Offset Peer Acreage

    Appendix Marcellus Shale: Offset Peer Acreage Notes: CNX acreage position as of 12/31/2014. CNX acreage shown in yellow and purple (acres owned in fee) where CONSOL holds 3,000 or more acres. Source: Third party acreage positions based on GIS data from Western Land Services. 55

  56. Slide 56: Marcellus Shale: Growth Runway and Depth of Inventory

    Appendix Marcellus Shale: Growth Runway and Depth of Inventory Marcellus Shale Upside Potential  Total Gross Prospective Marcellus Acreage ~790,000 - Gross Acres within JV ~701,000 - Acres outside JV – 100% CONSOL ~89,000  Acreage per well (assumed 750 ft spacing) ~86  Gross Producing wells (JV -

  57. Slide 57: Marcellus Shale: Sub-Regions Summary

    Appendix Marcellus Shale: Sub-Regions Summary Marcellus Shale North South SWPA CPA WV Ohio(1) Total Wet Wet Net Acres ~45,000 ~110,000 ~117,000 ~13,000 ~54,000 ~102,000 ~441,000 Approximate Gross 800 2,000 2,400 100 1,400 2,200 ~8,900 Locations(2) Avg EURs/1,000 ft 2.1 1.6 1.8 -- 1.8 2.1 -- (Bcfe) M

  58. Slide 58: Marcellus Shale: Southwest PA Overview

    Appendix Marcellus Shale: Southwest PA Overview  ~45,000 CONSOL net acres NV56 Pad  Over 800 gross locations(1) 6 Wells 8,753’ Avg Lateral Length per well 9,230 Mcfe Avg 30-day IP per well ─ 190 wells online, as of NV36 Pad NV57 Pad 9/30/2015 8 Wells 7 Wells 8,914’ Avg Lateral Length per well 5,02

  59. Slide 59: Marcellus Shale: North Wet Gas Overview

    Appendix Marcellus Shale: North Wet Gas Overview  ~54,000 CONSOL net acres  Over 1,400 gross locations(1) ─ 139 wells online as of 9/30/2015 ─ 16 wells TIL in Q3 2015 ─ 8,038 ft average laterals in Q3 2015 ─ 6 wells per pad on average ─ 136-acre spacing (assuming 7,900 ft lateral) SHL13 Pad 7 Well

  60. Slide 60: Marcellus Shale: South Wet Gas Overview

    Appendix Marcellus Shale: South Wet Gas Overview  ~102,000 CONSOL net SHR1 Pad 6 Wells acres ~8,741’ Avg Lateral Length per well WEESE (Triad Hunter) 3 Wells  PENS1 Pad 10,143 Mcfe Avg 30-day IP per well Over 2,200 gross 9 Wells 3,711’ Avg Lateral Length per well ~6,824’ Avg Lateral Length per wel

  61. Slide 61: Marcellus Shale: Northern WV Dry Overview

    Appendix Marcellus Shale: Northern WV Dry Overview  ~117,000 CONSOL net acres  Over 2,400 gross ANDERSON (PDC Mountaineer) 3 Wells PHL10 Pad locations(1) 4,859’ Avg Lateral Length per well 6 Wells 595 MMcf/well – 1st 6-Month Cum 4,636’ Avg Lateral Length per well ─ 49 wells online, as of 3,148 Mcf

  62. Slide 62: Marcellus Shale: Central PA Overview

    Appendix Marcellus Shale: Central PA Overview  ~110,000 CONSOL net acres CRAWFORD 5 Pad  Over 2,000 gross 2 Wells 7,305’ Avg Lateral Length per well locations(1) 13,586 Mcfe Avg 24-hr IP per well 624 Mmcfe/well – 60 day Cum ─ 58 wells online, as of MARCHAND 3I Well 9/30/2015 6,418’ Lateral Length

  63. Slide 63: Utica Shale: Growth Runway and Depth of Inventory

    Appendix Utica Shale: Growth Runway and Depth of Inventory Utica Shale Upside Potential  Total Gross Prospective Utica Acreage ~690,000 - Gross Acres within JV ~153,000 - Acres outside JV – 100% CONSOL ~537,000  Acreage spacing per well (assumed 750 ft spacing) ~86  Gross Producing wells (JV - YE

  64. Slide 64: Utica Shale: Sub-Regions Summary

    Appendix Utica Shale: Sub-Regions Summary Utica Shale Ohio Wet Ohio Dry PA/WV Dry Total Net Acres ~88,000 ~30,000 ~496,000 ~614,000 Approximate Gross 500 300 2,200 3,000 Locations(1) Avg EURs/1,000 ft 2.1 2.4 2.4 -- (Bcfe) Potential resource of ~30 Tcfe Note: Acreage as of December 31, 2014 unless o

  65. Slide 65: Utica Shale: Offset Peer Acreage

    Appendix Utica Shale: Offset Peer Acreage  ~614,000 CONSOL net acres in Utica ─ ~302,000 net acres in PA ─ ~194,000 net acres in WV ─ 30,000 net acres in OH Dry  ~13,000 net acres in Monroe County, OH ─ 88,000 net acres in OH Wet  Majority of acreage offset to peers with strong results ─ The main

  66. Slide 66: Utica Shale: CNX Acreage Position in the Core OH Wet Gas Utica

    Appendix Utica Shale: CNX Acreage Position in the Core OH Wet Gas Utica HES – Cadiz B HES – Cadiz A IP GAS: 10,254 Mcf/d  ~88,000 CONSOL net acres GPOR - Boy Scout 33H CHK - Buell 8H IP OIL: 191 Bbl/d IP GAS: 9,500 Mcf/d IP GAS: 8,006 Mcf/d  ~34,000 CONSOL net acres IP GAS: 5,300 Mcf/d IP OIL: 1,4

  67. Slide 67: Stacked Pay Potential: CONSOL's Shale Fairway

    Appendix Stacked Pay Potential: CONSOL’s Shale Fairway PIT Airport Rhinestreet = 5,340’ Burkett = 5,460’ Marcellus = 5,690’ Utica = 10,760’ Monroe County/Moundsville Rhinestreet = 5,930’ Burkett = 6,110’ Southwest PA Marcellus = 6,190’ Rhinestreet = 6,730’ Utica = 10,680 Burkett = 7,000’ Marcellus =

  68. Slide 68: Stacked Pay Potential: Appalachian Shale Acreage

    Appendix Stacked Pay Potential: Appalachian Shale Acreage P a y Formation Name Wet Dry Total Net Acres Net Acres Net Acres Rhinestreet Shale Upper Cashaqua Shale Devonian 190,000 155,000 345,000 Middlesex Shale West River Shale Burkett Shale Tully Limestone Hamilton Shale Marcellus Marcellus 176,000

  69. Slide 69: E&P Division: Resource and Opportunity Rich Portfolio

    Appendix E&P Division: Resource and Opportunity Rich Portfolio Proved Estimated Potential Locations (Gross) Tcfe Proved(2) Unproven Total Marcellus Shale 4.2 1,633 8,000 9,633 Utica Shale(1) 0.5 171 3,000 3,171 Upper Devonian 0.02 11 2,700 2,711 CBM 1.5 3,833 5,200 9,033 Conventional 0.5 11,672 66,0

  70. Slide 70: CONE Corporate Structure

    Appendix CONE Corporate Structure 70 Source: CONE Midstream Partners LP.

  71. Slide 71: Coal Division: Low-cost, Highly Productive Longwall Mining Operations

    Appendix Coal Division: Low-cost, Highly Productive Longwall Mining Operations During 2014, the PA mining complex generated the h i g h e s t c a s h m a r g i n o f a n y o f o u r c o a l p e e r s (1)(2)  The design of the Pennsylvania mining complex is optimized to 2014 Average Cash Margin ($ /

CONSOL Energy — Q3 2015 Earnings Presentation on 6ix