Dahlman Rose Global Metals, Mining & Materials Conference CONSOL Energy Inc. � William J. Lyons, EVP and CFO
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 the timing and rates of return of future projects, and our future production, revenues, income and capital spending. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those statements, estimates and projections. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of future actual results. Factors that could cause future actual results to differ from the forward-looking statements are described in detail under the captions "Forward Looking Statements" and "Risk Factors" in CONSOL Energy Inc. � s annual report on Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission (SEC), as updated by any subsequent Form 10-Qs. The forward- looking statements in this presentation speak only as of the date of this presentation; we disclaim any obligation to update the statements, and we caution you not to rely on them unduly. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible oil and gas reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We may use certain terms in this press release, such as EUR (estimated ultimate recovery), unproved reserves and total resource potential, that the SEC's rules strictly prohibit us from including in filings with the SEC. These measures are by their nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly are less certain. We also note that the SEC strictly prohibits us from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category. Except for proved reserve data, the information this presentation is based on a summary review of the title to the gas rights we hold, as well as a summary review of the title to the coal from which many of our coalbed methane rights derive. As is customary in the gas industry, prior to the commencement of gas drilling operations on our properties, we conduct a thorough title examination and perform curative work with respect to significant defects. We are typically responsible for curing any title defects at our expense. This curative work may include the acquisition of additional property rights in order to perfect our ownership for development and production of the gas estate. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc. 2
CONSOL Energy Inc � Corporate Profile The leading diversified fuel producer in the Eastern United States � Ticker: CNX � Headquartered in Pittsburgh, Pennsylvania � Founded in 1860 � 8,900 Employees � Market Cap = $9.3 Billion � EV = $12.5 Billion � 2010 Revenue = $5.2 Billion 3
The Investment Thesis � Long-lived, low-cost coal and natural gas assets with solid growth potential � Expanding our product mix and market reach to drive margin expansion � Highly contracted thermal position for 2012; natural gas approx. 50% hedged � Conservative balance sheet with $2.8 billion of liquidity � Sum of the Parts Valuation & Discount Versus Peer Group 4
CONSOL Energy - Overview CONSOL Energy Inc. Coal Natural Gas � Over 4.4 billion tons of proven and probable � Over 3.7 Tcfe of proved reserves (as of coal reserves (as of 12/31/10) 12/31/10) � 2011 estimated coal exports of approximately � Approx. 737,000 gross Marcellus shale acres 10.0 - 10.5 MTs � Approx. 200,000 gross Utica /Point Pleasant � 4Q11 Production Guidance of 14.7 - 15.3 MTs acres (as of October 27, 2011) � 4Q11 Production Guidance of 36 - 38 billion cubic feet (as of October 27, 2011) Other CNX Land Fairmont CNX Marine Research & River & Dock Resources, Supply Terminals, Development Services Inc. Company Inc. Fleet of 620 R&D facility Distributor of Baltimore Port Manages land barges, 22 devoted mining, gas with capacity to assets of the towboats and 5 exclusively to drilling, and load 14 million Company harbor boats coal, gas, and industrial tons of coal per energy utilization supplies year and production 5
Product Diversity and Expanding Our Reach � COAL � Low-Vol Coal � High-Vol Coal � PCI Coal � Thermal Coal � Adding Mid-Vol � GAS � Marcellus Shale � Utica Shale � Coalbed Methane � Shallow Conventional � Adding Oil/Liquids 6
Coal Division � s Growth Strategy Growth Projects Targeting Expanding Export Market � Growing Production Through 2015 � Amonate - 400,000 tons in 2012 - 800,000 tons in 2015 � BMX - 5 million tons annually beginning in 2014 � Growing Exports � Exports to Rise 50% in 2011 � 2010 Exports of 6.8 million tons � 2011 Exports expected to be 10 � 10.5 million tons � Expanding Baltimore Port in 2012 � Growing Margins � Expanded Margins to $20.38 / ton in 3Q11 from $13.83 / ton in 3Q10 � Rebranding Thermal coal as Met Coal � Exporting Thermal Coal to Europe � Coal Capital Expenditures of $615 Million for 2011 Reserves by Coal Type (million tons) 2010 Coal Revenue by Coal Type ($ mm) 4,401 Million Tons $3,853 Million Thermal 3,839 Thermal 87% 3,001 78% High Vol 172 4% Low Vol High Vol Low Vol 146 416 680 3% 10% 18% 7
Strength in Market Diversity � CONSOL Ships To Four Continents � Widening of The Panama Canal Should Improve Shipping Costs and Potential Coal Prices 8
Expanding our Exports to 10 - 10.5 MTs in 2011 2010 Coal Exports by Geography (million tons) 2011 Est. Coal Exports by Geography (million tons) 6.8 Million Tons 10 � 10.5 Million Tons Europe 2.2 Europe 32% 30% Asia Asia 3.0 50% 44% S. America 1.6 S. America 24% 20% 9
CONSOL � s Industry-Leading Coal Margins Low-Vol High-Vol Met Met Thermal Quarter Ended September 30, 2011 1.5 1.0 12.4 Total Coal Sales (millions of tons) Average Realized Price Per Ton � $208.51 $83.76 $59.97 Company Produced $65.97 $54.93 $46.60 Total Cost Per Ton, before DD&A $6.73 $7.15 $6.19 DD&A Per Ton $72.70 $62.08 $52.79 Total Cost Per Ton � Company Produced $142.54 $28.83 $13.37 Average Margin Per Ton, before DD&A Sales (millions of tons) times Average Margin $214 $29 $166 Per Ton, before DD&A ($ MM) 10
CONSOL 2011-2013 Coal Sales Guidance (as of October 27, 2011) 4Q 2011 2011 2012 2013 Estimated Coal Sales (millions of tons) 14.7-15.3 62.0-62.6 59.5-61.5 60.5-62.5 Met Coal Sales at Midpoint 2.6 52 10.15 10.35 Percentage Firm Pricing 100% 100% 23% 4% Thermal Coal Sales at Midpoint 12.4 10.5 50.5 51 Percentage Firm Pricing 100% 93% 83% 42% � Solid Contracted Position Heading into 2012 � Mine Inventory Levels Declined 24% to 1.6 MTs from 2.1 MTs in 3Q10 11
Our Gas Division Strategy Pulling Value Forward: CNX sold an interest in its Marcellus and Utica Shales � Economically Develop Our 3P Reserves � Marcellus Drilling � JV with Noble Energy � Coalbed Methane � Further Delineate Key Operational Areas � West Virginia Marcellus � Explore To Set Up Future Development Drilling � Utica Shale � JV with Hess � Upper Devonian � Non-Ohio Utica � Increase our Exposure to Liquids/Oil � Utica and Marcellus Partnerships Total Proved Reserves by Gas Type (Bcfe) Proved Reserves by Category (Bcfe) 3.7 Trillion Cubic Feet 3.7 Trillion Cubic Feet Marcellus 859 23% Other Shale PD PUD 100 CBM 1,931 3% 1,800 1,789 52% 48% 48% Conventional 984 26% 12
Notable Achievements in Shale Formations � Second to produce from a horizontal well in the Marcellus Shale (October 2008) � First to announce a discovery in the Utica Shale (October 2010) � First to use rotary steering tools in the Marcellus Shale � First to use fully-lined sites � First to use closed loop drilling � First to use check valve plugs, incase of wellhead leaks � Possibly the first to use 24-hour employee coverage on all drilling and frac operations 13
�� .First to drill a 10-Well Pad in the Marcellus Shale Driving CONSOL � s goal to be a Low-Cost Leader in the Marcellus 14
Capital Program De-Risked Through Joint Ventures and Asset Sales � Partnering with Noble Energy in the Marcellus Shale, for $3.3 billion � Partnering with Hess Corporation in the Utica Shale in Ohio, for $0.6 billion � Sold ORRI in 115,000 acres in the Marcellus Shale to Antero for $0.2 billion � Continuing to grow production to 350 Bcf (net to CONSOL) in 2015 15
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