CONSOL Energy Inc. operates as an integrated energy company. The company is also a party to two strategic joint ventures, one with Noble Energy, Inc. (Noble or Noble Energy) in the Marcellus Shale and one with a subsidiary of Hess Corporation (Hess) in the Utica Shale. Divisions The company operates through two primary divisions, Oil and Gas Exploration and Production (E&P) and Coal Mining. The E&P division is focused on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. The Coal division is focused on the extraction and preparation of coal, also in the Appalachian Basin. DETAIL GAS OPERATIONS The company’s Gas operations are located throughout Appalachia and include the following plays: Marcellus Shale: The company has the rights to extract natural gas in Pennsylvania, West Virginia, Ohio and New York from approximately 446,000 net Marcellus Shale acres, as of December 31, 2013. CONSOL Energy and Noble Energy, its joint venture partner, drilled a record 117 gross wells in the Marcellus Shale in 2013. CONSOL Energy drilled 46 of those wells in the dry gas area of the formation. Utica: The company also controls approximately 109,000 net acres of Utica Shale potential in eastern Ohio, as of December 31, 2013. In 2013, CONSOL Energy and Hess, its joint venture partner, drilled 24 gross wells in the Utica. Coalbed Methane (CBM): The company has the rights to extract CBM in Virginia from approximately 267,000 net CBM acres, which cover a portion of its coal reserves in Central Appalachia. The company also has the right to extract CBM in West Virginia, southwestern Pennsylvania, and Ohio from approximately 965,000 net CBM acres. In central Pennsylvania the company has the right to extract CBM from approximately 263,000 net CBM acres. In addition, the company controls 808,000 net CBM acres in Illinois, Kentucky, Indiana, and Tennessee. The company also has the right to extract CBM on 139,000 net acres in the San Juan Basin, and 20,000 net acres in the Powder River Basin. Shallow Oil and Gas: The shallow oil and gas acreage position of the company is approximately 906,000 net acres mainly in Illinois, Indiana, Kentucky, West Virginia, Pennsylvania, Virginia, and New York, as of December 31, 2013. Other Gas Upper Devonian: The Upper Devonian Shale formation lies above the Marcellus Shale formation in southwestern Pennsylvania and northern West Virginia. The company’s Marcellus Shale joint venture partner owns a 50% interest in the Burkett Shale formation within the joint venture area of mutual interest, while the company controls a 100% interest in the Rhinestreet Shale formation. Chattanooga: The Chattanooga Shale in Tennessee is a Devonian-age shale found at a depth of approximately 3,500 feet. The shale thickness is between 40-80 feet. The company has 243,000 net acres of Chattanooga Shale and is the operator of all of its Chattanooga Shale wells. Huron: The company has 406,000 net acres of Huron Shale potential in Kentucky, West Virginia, and Virginia. Midstream Gas Services: The company has designed, built and operated natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points. The company owns or operates approximately 4,600 miles of gas gathering pipelines, as well as 250,000 horsepower of compression. The company also owns 50% of CONE Gathering, LLC (CONE) along with Noble Energy owning the other 50% interest. CONE develops, operates and owns both Noble Energy's and the company's Marcellus Shale gathering system needs. DETAIL COAL OPERATIONS Coal Reserves: As of December 31, 2013, the company had an estimated 3.0 billion tons of proven and probable reserves, excluding equity affiliates. The company also has 2.5 million net acres in its coalbed methane play, primarily in Virginia. Coal Capital: The company intends to invest to complete the BMX Mine. This underground mine is adjacent to the company’s Bailey and Enlow Fork mines in southwestern Pennsylvania. Other Operations The company provides other services both to its own operations and to others. These include land services, industrial supply services, terminal services, and water services. Non-Core Mineral Assets and Surface Properties: The company owns significant gas and coal assets that are not in its short or medium term development plans. Industrial Supply Services: Fairmont Supply Company, a subsidiary company, is a general-line distributor of mining, drilling, and industrial supplies in the United States. Fairmont Supply Company has 27 customer service centers nationwide. Fairmont Supply Company also provides integrated supply procurement and management services. Fairmont Supply Company provides mine and drilling supplies to the company’s mining and gas operations. Terminal Services: In 2013, approximately 10.2 million tons of coal was shipped through the company’s subsidiary, CNX Marine Terminals Inc.'s, exporting terminal in the Port of Baltimore. The terminal can either store coal or load coal directly into vessels from rail cars. Water Services: CNX Water Assets LLC, a subsidiary company, acquires and develops existing sources of water in order to support its gas and coal operations, develop business in water sales, promote cutting edge water technologies, treat both acid mine drainage (AMD) water and fracturing water, and reduce its environmental liabilities. CNX Water Assets LLC operates an advanced waste water treatment plant in support of coal operations, as well as fresh water reservoirs. Strategy The company’s strategy is to increase shareholder value through growth of its existing gas assets, selective acquisition of gas and liquids acreage leases within its footprint, and through participation in the forecasted global growth of thermal and metallurgical coal markets. Reserves As of December 31, 2013, the company had 5.7 Tcfe (one trillion cubic feet of natural gas equivalent) of proved reserves comprising 97.5% natural gas. History CONSOL Energy Inc. was founded in 1991. The company was incorporated in Delaware in 1991.
consol energy inc (CNX:New York)
1000 Consol Energy Drive
Canonsburg, PA 15317
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