ANALYST AND INVESTOR DAY December 13, 2016
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 plans; estimates of coal and gas reserves and resources; the projected timing and rates of return of future investments; and projections and estimates of 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, plans, 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 materially from the forward-looking statements include risks, contingencies and uncertainties that relate to, among other matters, the following: we may not receive the prices we expect to receive for our natural gas, natural gas liquids, and coal, including due to oversupply relative to the demand available for our products; we may not obtain on a timely basis the permits required for drilling and mining; we may not accurately estimate the volume of hydrocarbons that are recoverable from our oil and natural gas assets; we may encounter unexpected operational issues or disruptions when we drill and mine, including equipment failures, geological conditions, and higher than expected costs for equipment, supplies, services and labor, including with respect to third-party contractors; we may not achieve the efficiencies we expect to realize in our drilling and completion operations, and as a result, our projected cost savings may not be fully realized; our joint venture partner, who operate assets in which we have a significant interest, may not perform as we expect and these and other circumstances could cause us not to realize the benefits we anticipate from our joint venture; we may not be able to sell non-core assets on acceptable terms; divestitures that we anticipate making or have made may not occur or produce anticipated benefits, or may cause disruptions to our business operations; we may be subject to environmental and other government regulations that adversely impact our operating costs and the market for our natural gas and coal; failure by Murray Energy to satisfy liabilities it acquired from us, or failure to perform its obligations under various arrangements, which we guaranteed, could materially or adversely affect our results of operations, financial position, and cash flows; we may be unable to incur indebtedness on reasonable terms; provisions in our multi-year sales contracts may provide limited protection and may result in economic penalties to us or permit the customer to terminate the contract; our common units in CNX Coal Resources LP are subordinated, and we may not receive related distributions; and other factors, many of which are beyond our control. Additional factors 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, 2015 filed with the Securities and Exchange Commission (SEC), as updated by any subsequent quarterly reports on 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. Currently, 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 presentation, 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. We caution you that the SEC views such estimates as inherently unreliable and these estimates may be misleading to investors unless the investor is an expert in the natural gas industry. 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 included in this presentation is based on a summary review of the title to the gas rights we hold. As is customary in the gas industry, prior to the commencement of natural 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. As a result of our title review or otherwise, we may be required to acquire property rights from third parties at our expense in order to effectively drill and produce the gas rights we control and third parties may participate in the wells we drill, thereby reducing our working interest in those wells. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CONSOL Energy Inc. or CNX Coal Resources LP. 2
Agenda Company Overview Nick DeIuliis, President and CEO Tim Dugan, COO Exploration & Production Andrea Passman, VP-E&P Development Don Rush, VP-E&P Marketing Steve Johnson, EVP-DBU Diversified Business Units Rodney Wilson, Director-Business Development Marshall Roberts, Director-CONVEY Water Systems Katharine Fredriksen, SVP-DBU & Environmental Affairs Dave Khani, CFO Financial Overview Chuck Hardoby, VP-Finance Regulatory Update Tommy Johnson, VP-Government & Public Relations Closing Remarks Nick DeIuliis Q&A Lunch / CNX Coal Resources LP Breakout Session CONE Midstream Partners LP Breakout Session 3
CONSOL Energy’s Evolution With the sale of the Looking to the future – Buchanan mine and working towards other remaining legacy complete separation coal assets , CONSOL’s Announces sale of from coal; monetizing transformation into a five thermal coal mines assets where possible; premier natural gas in West Virginia to continuous operational Company is completed Murray Energy improvement 2010 2013 2014-2015 2016 2017+ 2016 Acquisition of Dominion CONE Midstream Partners CONSOL and Noble Energy LP (NYSE: CNNX) formed Resources E&P assets announce separation of tripling Marcellus Shale with Noble Energy to Marcellus JV, providing acreage position provide gathering services CONSOL with additional in the Marcellus Shale operational flexibility and CNX Coal Resources and the ability to reach LP (NYSE: CNXC) formed leverage targets to house and manage more rapidly CONSOL’s PA coal assets 4
CONSOL Energy Has Continued to Transform Itself in 2016 Restructured Turned DUC Agreement Inventory with RBL Online Zero-Based Penguins Reaffirmation P2AA Asset Integrated P2AA Asset Budgeting Optimization Optimization Model (Phase 1) (Phase 2) Today NBL JV Jan 2016 Re-org Buchanan Restarted Resolution (Streamlined Sale Drilling Miller Creek & Operations & Capital Cash (Accelerated CNXC/ Fola Sale Planning) Allocation Schedule) Stabilization Driven CNNX Drops CNX Share Price YTD 2016 (1) $25 +179% YTD $20 $15 $10 $5 $0 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 (1) As of 12/7/2016 5
Who We Are: Differentiating Ourselves Through Three Pillars Values: • Never compromised regardless of circumstance • Operate daily free of injuries and environmental incidents • Pursuit of perfection driving towards best-in-class performance • Mitigates business risk profile and supports license to operate in an industry that is subject to intense public scrutiny Business philosophy: • NAV/share focused • Production growth is a byproduct • Capital allocation process drives decision-making • Delivering responsible, long-term value Asset base: • Substantial drilling inventory equates to scalable advantages • Considerable percentage of held by production (HBP) acreage provides unique flexibility in development plans • Largest stacked pay opportunity set in the lowest cost basin in the U.S. • Marcellus JV separation unlocks significant stacked pay opportunities 6
Business Philosophy: Zero-Based Budgeting in Action Transformed balance sheet: Reductions in Expenses 2012-2016E • Reduced legacy liabilities by $3 billion Reduced expenses: Overhead (1) • Cash servicing costs reduced by more than Executive Pay $250 million since 2012 Legacy Liabilities (2) Selling G&A Transformed culture: -61% • Executive compensation less than half 2012 levels - Compensation widely aligned with shareholders’ interests • Executive perks and benefits eliminated; exited arena naming rights agreement, providing significant cost savings 2016E 2012 (1) Includes corporate jets/hangar, membership fees, and arena naming fees (2) Annual legacy liability cash servicing costs 7
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