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Earnings ResultsFirst Quarter 2018
May 3, 2018
Cautionary Language
2
Risk Factors. This presentation, including the oral statements made in connection herewith, contains forward-looking statements, estimates and projections within the meaning of the federal
securities laws. Statements that are not historical are forward-looking and may include our operational and strategic plans; estimates of gas reserves and resources; 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, estimates and projections. Investors should not place undue reliance on forward-looking statements as a prediction of future
actual results. 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.
Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions "Forward Looking Statements" and "Risk
Factors" in our annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC, as supplemented by our quarterly reports on Form 10-Q. Those risk factors discuss, among
other matters, pricing volatility or pricing decline for natural gas and NGLs; our operational relationship with other parties, including midstream facilities; operational risks relating to pipeline
systems, drilling natural gas wells, and customer interactions; the impact of laws and regulations on our business and industry; competitive and economic concerns; risks associated with our debt
and hedging strategy; our ability to acquire economically recoverable natural gas reserves; challenges associated with strategic determinations, including the allocation of capital to strategic
opportunities; our development and exploration projects, as well as CNXM's midstream system development.
Reserves. 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.
Title. 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.
Reconciliation. As it relates to the disclosures within this presentation of projected Adjusted EBITDA and EBITDAX for fiscal or quarterly periods in 2018-2022, for CNX or CNXM, CNX
Resources is unable to provide a reconciliation of such metrics to projected operating income, the most directly comparable financial measure calculated in accordance with GAAP, due to the
unknown effect, timing, and potential significance of certain income statement items for each of CNX and CNXM, respectively.
Data. This presentation has been prepared by CNX and includes market data and other statistical information from sources believed by CNX to be reliable, including independent industry
publications, government publications and other published independent sources. Some data are also based on CNX’s good faith estimates, which are derived from its review of internal sources as
well as the independent sources described above. Although CNX believes these sources are reliable, it has not independently verified the information and cannot guarantee its accuracy or
completeness. This presentation does not constitute an offer to sell or a solicitation of offers to buy securities of CNX Resources Corporation or CNX Midstream Partners LP.
Executive Summary
3
Q1 2018 EXPECTATION
STRATEGIC INITIATIVE
Operational Execution▪ Total production in the quarter of 129.5 Bcfe or average of
1.439 Bcfe/d exceeded YE2017 average monthly exit rate
of 1.390 Bcfe/d
▪ Reaffirming production guidance of 520-525 Bcfe for
FY2018
Stacked Pay Development▪ Turned-in-line RHL11E deep dry Utica well with positive
early results
▪ Transferring completion design and spacing lessons from
Monroe County and Green Hill to Richhill stacked pay
Share Repurchases ▪ Bought back ~$200 million of common stock since Oct. ‘17▪ Approximately $250 million remaining on outstanding
repurchase authorization through 3Q18
Debt Repayment ▪ Payed down ~$391 million in debt in the period ▪ Continue to target steady state 2.5x net debt/EBITDAX
CNX Midstream Integration
and Shirley-Penns Drop
▪ Closed GP transaction in early January and rebranded as
CNX Midstream; closed Shirley-Pennsboro asset drop for
$265 million helping to pay for a large portion of the cost of
the GP
▪ Fully aligned management teams with a clear
development plan and well commitments sets the stage
for steady and prolonged distribution growth
SOG and Other Asset Sales▪ Sold SOG assets for ~$88 million in cash proceeds; sold an
additional ~$14 million in scattered acreage and other
miscellaneous assets
▪ Further focuses development activity on top-tier
Marcellus and Utica assets; reduces legacy liabilities and
cash servicing costs to de minimis levels
HG Exchange Transaction
▪ On May 2, 2018, executed a transaction with HG Energy II;
CNX received 11,400 DevCo I Marcellus acres and $5
million in cash in exchange for 95% interest in DevCo II
midstream assets and scattered acres in DevCo III; CNXM
received additional well commitments from both parties
▪ Transaction and revised GGA results in further de-risked
15% distribution growth based on minimum well
commitments alone
SOG Sale Drives Continued Reduction in Legacy Liabilities
(1) Excludes wells located in the Murray and CONSOL Energy development area.
4
Conventional Shallow Oil and Gas (SOG) assets sold in
West Virginia and Pennsylvania, including CBM(1)
▪ Agreement signed mid-February
- Closed on March 30, 2018
▪ ~11,000 wells
▪ Cash proceeds of $88 million
▪ Buyer assumed liabilities of ~$200 million
- Primarily asset retirement obligations
▪ Associated annual production of ~20 Bcfe
SOG Wells Included in Sale
-
50
100
150
200
250
2017 2018E 2019E 2020E 2021E 2022E
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Sh
are
s O
uts
tan
din
g (
mill
ion
s)
Ma
rket C
ap
($
in m
illio
ns)
Market Cap
Shares Outstanding - Including Drop Proceeds
Shares Outstanding - No Additional Sales/Drops
Share Buybacks To-Date and Potential Capacity
5
Share Reduction230.1 million 223.7 million
Additional
85+ million share
reduction(2)
Q3 2017 End Year-End 20172018E-2022E
Buyback PotentialAs of:
S/O: 217.9 million
As of 4/20/2018
Potential share count reduction of ~60%
by year-end 2022 including additional drop proceeds
▪ Prior to spin (~$100 million):
- 6.4 million shares repurchased at a volume
weighted average price of $16.08(3)
▪ Since spin (~$100 million):
- 6.7 million shares repurchased at a volume
weighted average price of $14.61(4)
▪ Approximately $250 million remaining on share
repurchase authorization for 2018
(1) Stock repurchase price assumes static year-forward EV/EBITDAX multiple of 5.9x on guided adjusted EBITDAX and net debt levels. Market cap estimate includes
deployment of ~$1.8 billion related to potential drop proceeds and tax refunds. See CNX Analyst Day materials dated March 13, 2018 for full details.
(2) Not including deployment of ~$1.8 billion of potential drop proceeds and tax refunds.
(3) Shares repurchased from October-November 2017. Included rights to CEIX share distribution at a ratio of 1 share of CEIX for every 8 shares held of CNX.
(4) Shares repurchased as of market close 4/20/2018.
~$110/share
with drop
proceeds(1)
0
50
100
150
200
250
300
350
400
450
500
Entering 2018 2018 2019 2020 Year End 2020
Exchange Agreement Expands SWPA Central Marcellus Inventory
6
Prior
Net SWPA
Central
Marcellus
Inventory
391Prior
Net SWPA
Central
Marcellus
Inventory
217
Additional
Locations from
HG Exchange
70
TILs 46
TILs 55
TILs 73
Additional
Locations from
HG Exchange
70
SWPA Central Marcellus Inventory 2018E-2020E
SWPA Central Marcellus
locations remaining at
YE2020 based on current
development schedule287
Increase in remaining
SWPA Central Marcellus
locations due to Asset
Exchange Agreement 32%
461SWPA Central Marcellus
locations entering 2018
7
“Attributable Share” Reconciled to Consolidated Results
(1) CNX's unallocated expenses include other expense, gain on sale of assets, loss on debt extinguishment, and income taxes.
(2) MLP cash flow from operations and CNX Gathering calculated using same percentage mix of gross adjusted EBITDA and adjusted EBITDA net to the MLP, which
as of Q1 2018 was 85.6% and 14.4%, respectively. Consolidated cash flow from operations for CNX Midstream for Q1 2018 was $42.258 million.
Attributable to CNX Shareholders + Noncontrolling Interest = Consolidated
Inside the MLP Outside the MLP 63.91% of CNXM
Q1 2018
E&P
Standalone +
Attributable to
CNXM LP & GP + Unallocated(1)
+ CNX Gathering =
Total "Attributable to
CNX Shareholders" +
Attributable to
Noncontrolling Interest =
Total
Consolidated
Adj. EBITDAX $208 $13 $8 $8 $236 $22 $259
Total Debt $1,824 $149 -- $1,973 $264 $2,237
Total Cash $77 $2 $79 $4 $82
Net Debt $1,747 $147 $1,894 $260 $2,155
($ in millions)
Q1 2018
E&P
Standalone +
CNX
Gathering(2)
= CNX + MLP(2)
=
Total
Consolidated
Cash from Operations $217 $6 $223 $36 $259
Capital Expenditure $216 $2 $218 $14 $232
($ in millions)
Cash from Operations and Capital Expenditures
CNX LP ownership 34.09%
GP ownership 2.00%
Total CNX ownership 36.09%
NCI 63.91%
100.00%
Attributable Portion Calculation
Q1 2018 Results
8
Note: The terms “adjusted net income attributable to CNX Shareholders”, “adjusted EBITDA attributable to CNX Shareholders”, and “adjusted EBITDAX from continuing
operations" are non-GAAP financial measures, which are reconciled to the GAAP net income below, under the caption “Non-GAAP Reconciliation."
(1) Income tax effect of Total Pre-tax Adjustments (excluding exploration expense) was ($180,679) for the three months ended March 31, 2018. Adjusted net income
attributable to CNX Resources Shareholders for the three months ended March 31, 2018 is calculated as GAAP net income attributable to CNX Shareholders of
$527,563 less total pre-tax adjustments of ($666,221), plus the associated tax expense of ($180,679) equals the adjusted net income attributable to CNX Resources
Shareholders of $42,021.
Q1 2018 Summary
($ in millions, except per share data) 1Q 2018 1Q 2017
Y/Y
Change 1Q 2018 4Q 2017
Q/Q
Change
Adjusted Net Income / (Loss) Attributable to CNX Shareholders $42 $37 $5 $42 $222 ($180)
Adjusted Earnings / (Loss) Per Share $0.19 $0.16 $0.03 $0.19 $0.98 ($0.79)
Revenue and Other Income from Continuing Operations $496 $320 $176 $496 $477 $19
Adjusted EBITDAX Attributable to CNX Shareholders $236 $124 $112 $236 $187 $49
Adjusted EBITDAX attributable
to CNX Shareholders increased
90%compared to Q1 2017
Net Income and Adjusted EBITDAX
▪ On a GAAP basis, net income attributable to CNX shareholders of $528 million in the 2018 first quarter or $2.35 per diluted share; adjusted net income attributable to CNX shareholders of $42 million, or $0.19 per diluted share(1); adjusted net income excludes the following pre-tax items:
- $624 million gain on company’s previously held equity interest in CNX Gathering in connection with acquisition of 50% of GP
- $52 million unrealized gain on commodity derivative instruments
- $9 million in gains on certain asset sales
▪ Total company adjusted EBITDAX attributable to CNX Shareholders in the first quarter of $236 million; on a consolidated basis, adjusted EBITDAX from continuing operations was $259 million in the first quarter
Balance Sheet and Hedge Book Drive Capacity to Retire Shares
9
(1) Includes current portion.
(2) Calculated by taking an average minority interest percentage of 63.91%
Total Debt (GAAP)(1)
E&P MidstreamNet Debt Attributable to CNX Shareholders
Less: Cash and Cash Equivalents
Net Debt (Non-GAAP)
Net Debt Attributable to CNX Resources Shareholders
$1,824 $413
$77 $6
$1,747 $407
$ in millions
Less: Net Debt Attributable to Noncontrolling Interest(2)
March 31, 2018
Total
$2,237
$83
$2,154
- $261 $261
$1,747 $147 $1,894
Target
<2.5x net debt
/ EBITDAX
During the quarter, CNX purchased $391 million of its
outstanding 5.875% senior notes due in April 2022
374.5
312.8
205.6 194.6
112.0
23.0
29.3
56.0
0
50
100
150
200
250
300
350
400
2018 2019 2020 2021 2022
Gas V
olu
mes H
edged (
Bcf)
NYMEX Only Hedges Exposed to Basis NYMEX + Basis (2)
Marketing: Natural Gas Hedging and Basis Protection
10
▪ Systematically layering in
hedges out to 2022 to protect
margins on proved developed
production and a portion of
PUDs (capex)
▪ Locking-in revenue and de-
risking capital decisions by
matching NYMEX and basis
hedge volumes
▪ Protecting from in-basin blowout
through regional basis hedges
▪ Approximately 81% of total
2018E gas volumes hedged(3)
▪ NYMEX hedges added during
Q1: 167.5 Bcf (2019-2022)
▪ Basis hedges added during Q1:
193.2 Bcf (2018-2022)
(1) Hedge positions as of 4/23/2018. Q2 2018, 2018, and 2021 exclude 2.3 Bcf, 14.2 Bcf, and 4.0 Bcf of physical basis sales not matched with NYMEX hedges.
(2) Includes the impact of NYMEX and basis-only hedges as well as physical sales agreements.
(3) Based on midpoint of total gas production guidance of 450-475 Bcf in 2018E.
(2)
Hedge Volumes and Pricing Q2 2018 2018 2019 2020 2021 2022
NYMEX Hedges
Volumes (Bcf) 89.5 357.2 323.0 223.9 173.3 154.2
Average Prices ($/Mcf) $3.13 $3.15 $3.03 $3.09 $3.01 $3.05
Physical Fixed Price Sales
Volumes (Bcf) 4.3 17.3 12.8 11.0 21.3 13.8
Average Prices ($/Mcf) $2.60 $2.62 $2.49 $2.44 $2.46 $2.54
Total Volumes Hedged (Bcf)(1) 93.8 374.5 335.8 234.9 194.6 168.0
NYMEX + Basis (fully-covered volumes)(2)
Volumes (Bcf) 93.8 374.5 312.8 205.6 194.6 112.0
Average Prices ($/Mcf) $2.75 $2.77 $2.68 $2.72 $2.54 $2.49
NYMEX Hedges Exposed to Basis
Volumes (Bcf) - - 23.0 29.3 - 56.0
Average Prices ($/Mcf) - - $3.03 $3.09 - $3.05
Total Volumes Hedged (Bcf)(1) 93.8 374.5 335.8 234.9 194.6 168.0
Financial Guidance: 2018E
11
2018E
Revenue and Other Operating Income E&P Consolidated
Production Volumes:
Natural Gas (Bcf) 450-475
NGLs (MBbls) 7,500-7,700
Oil (MBbls) 15-20
Condensate (MBbls) 590-610
Total Production (Bcfe) 500-525
% Liquids 9%-10%
Natural Gas Basis Differential to NYMEX ($/Mcf) ($0.30)-($0.40)
NGL Realized Price ($/Bbl) $23.00-$24.00
Condensate Realized Price % of WTI 70%
Oil Realized Price % of WTI 100%
Realized Hedging Gain/(Loss) ($ in millions) (1) $85-$90
Other Operating Income (3rd party water income and resold FT) ($ in millions) $15-$20
CNXM 3rd Party Gathering Revenue $80-$85
Costs
Average per unit operating expenses ($/Mcfe):
Lease Operating Expense $0.15-$0.18
Production, Ad Valorem, and Other Fees $0.06-$0.08
Transportation, Gathering and Compression $0.80-$0.85 $0.60-$0.65
Total Cash Production and Gathering Costs $1.01-$1.11 $0.81-$0.91
($ in millions)
Selling, General, and Administrative Costs(2) $85-$95 $95-$110
Exploration Expense $10-$15
Other Operating Expense (unutilized FT and processing, idle rig fees, and other misc.) $65-$70
Other Non-Operating Expense $15-$20
Total Capital Expenditures $790-$915 $875-$1,005
CNXM EBITDA Attributable to CNX $60-$65
EBITDAX Attributable to CNX $825-$850
CNX Resources is unable to provide a reconciliation of projected Adjusted EBITDAX to projected operating income, the most comparable financial measure calculated in
accordance with GAAP, due to the unknown effect, timing, and potential significance of certain income statement items.
(1) Refer to Appendix on hedging gain/(loss) assumptions. Forward pricing date as of 2/16/2018. Anticipated hedging activity is not included in projections.
(2) Excludes stock-based compensation.
Transportation, gathering and compression costs
expected to decline $0.15-$0.20 year-over-year
primarily due to increased contribution of lower
cost dry Utica volumes in Monroe County, OH
Unutilized FT and Processing Fees: $50 million
Idle Rig Fees: $5 million
Basis calculated on 2018 market mix.
Hedge gain/(loss) calculated on
NYMEX and financial basis hedges
Royalty income, right of way sales, interest income
and ‘other’ all netted against bank fees, other
corporate expense, and other land rental expense
Operations: Q1 2018 Results Summary
12
▪ Marcellus Shale costs were $2.30 per Mcfe in Q1
2018, an increase of $0.12 from $2.18 per Mcfe vs.
Q1 2017, or a 6% impairment
- Water disposal costs increased and processing
costs were higher related to Shirley-Pennsboro
wells turned-in-line in second half of 2017
▪ Utica Shale costs were $1.60 per Mcfe in Q1 2018, a
decrease of $0.56 from $2.16 per Mcfe in Q1 2017, or
a 26% improvement
- Transportation, gathering and compression
expenses improved as lower cost Monroe Country
dry Utica volumes increased
▪ E&P capital expenditures decreased in Q1 2018 to
$216 million from $233 million spent in Q4 2017
(1) Average sales prices for 1Q2018, 1Q2017, and 4Q2017 include (loss)/gain on commodity derivative
instruments (cash settlements) of ($0.14), ($0.55), and $0.19, respectively.
(2) Average Costs for 1Q2018, 1Q2017, and 4Q2017 include DD&A of $0.89, $1.01, and $1.01, respectively.
($/Mcfe) 1Q 2018 1Q 2017
Y/Y
Change 1Q 2018 4Q 2017
Q/Q
Change
Average Sales Price(1)
$3.00 $2.85 $0.15 $3.00 $2.80 $0.20
Total Production Costs(2)
$2.10 $2.32 ($0.22) $2.10 $2.17 ($0.07)
Sales Volumes (Bcfe) 129.5 95.0 34.5 129.5 118.9 10.6
Sales Volumes by Category (Bcfe)
Marcellus 65.9 58.0 7.9 65.9 64.0 1.9
Utica 43.5 15.3 28.2 43.5 33.8 9.7
CBM 15.9 16.7 (0.8) 15.9 16.0 (0.1)
Other 4.2 5.0 (0.8) 4.2 5.1 (0.9)
Operations: Q1 2018 Activity and 2018 Development Plan
13
(1) Measured in lateral feet from perforation to perforation.
(2) 50% working interest.
Q1 2018 2018E
($ in millions) TD FRAC TIL
Average
Lateral
Length(1)
Rigs at
Period End TD FRAC TIL
SWPA
Central
Marcellus 17 3 6 9,281 2 62 48 46
Utica - 1 1 6,213 3 1 1
WV
Shirley-Penns
Marcellus - - - - 5 5 5
Utica - - - - - - -
CPA South Utica - 1 1 6,741 4 4 2
OH DryUtica
2 - 6 8,641 1 8 10 15
OH Wet(2) - - - - - 5 5
Total 19 5 14 3 82 73 74
Richhill 11E and Marchand 3M deep dry Utica
wells currently undergoing testing
1 additional CPA deep
dry Utica TIL planned for
2H18Notable Wells
▪ Applied learnings in SWPA Central is demonstrating consistent
production results with capital efficiency increases
Consistent SWPA Marcellus Performance Sets Richhill Baseline
14
1,000
10,000
0 50 100 150 200Daily
Pro
duction N
orm
aliz
ed @
10,0
00’ (
Mcf/
d)
Production Days
GH Legacy GH Modern GH-55
0.92
2.89
4.02
0.00
1.00
2.00
3.00
4.00
5.00
GH Legacy (2008-2011) GH Modern (2015-2016) GH-55 (2018)
Capital E
ffic
iency (
Mcf/
$)
Green Hill Production Comparison Over Time
Green Hill Capital Efficiency Over Time
GH Legacy(2008-2011)
GH Modern(2015-2016)
GH-55(2018)
Average lateral length (ft) 1,800 5,750 9,500
Costs/ft $3,384 $1,170 $903
EUR (Bcf/1,000’) 2.5 3.6 3.6
96% of the lateral
footage was placed in
the 10’ target zone
Comingled flowback
operations accelerated
production by 20 days
along with reduced
capital
Replicating these techniques and results in Richhill
Marcellus will compound stacked pay efficiencies
Q1 2018 SWITZ Dry Utica Optimized Field Development Informs Richhill
15
1,000
10,000
0 50 100 150 200 250 300 350
8,0
00’ N
orm
aliz
ed P
roduction
(Mcf/
d)
Days
1100' vs 1350' Spacing
1100' Spacing 1350' Spacing
Ohio Dry Utica Field Spacing Changes
Richhill Compared to Switz:
▪ Similar geophysical density
responses
▪ Higher reservoir pressure
▪ Same landing point
▪ Optimized managed pressure
drawdown strategy
Decreased
Cycle Times
Proppant
Selection
and Loading
Full Field
Optimization
with Wider
Spacing
However, Richhill benefits
from:
▪Stacked pay efficiencies
▪Drilling guided by 3-D Seismic
1100’ Spacing 1350’ Spacing Δ
Costs/ft $1,534 $1,328 -13%
Capital Efficiency (Mcfe/$) 1.46 2.41 +65%
Extending inter-lateral spacing from 1100’ to 1350’ reduced total
field capital as fewer wells were required to recover comparable
volumes
▪ This concept is being deployed in Richhill SWPA Utica
▪ Optimized completion design and process have driven further
efficiencies as seen here:
Appendix
Marketing: Highlights and Liquids Realizations
17
(1) Calculation includes the impact of gas hedging cash settlements.
(2) Excludes propane hedging impact.
Marketing Highlights
▪ Directly-marketed ethane volumes were 439,000 barrels in
Q1 and, on an equivalent basis, yielded a $1.24 per
MMBtu premium over CNX Resources’ residue natural gas
alternative
▪ $0.18/Mcfe uplift(1) from liquids for total average realization
of $3.00 per Mcfe in Q1 2018
2018 2017
Q1 Q1
NYMEX Natural Gas ($/MMBtu) $3.00 $3.32
Average Differential (0.21) (0.30)
BTU Conversion (MMBtu/Mcf)* 0.17 0.16
Loss on Commodity Derivative
Instruments-Cash Settlement(0.14) (0.55)
Realized Gas Price per Mcf $2.82 $2.63
* Conversion factor 1.06 1.05
Natural Gas Price Reconciliation
Natural Gas Liquids, Oil and Condensate
▪ Q1 2018 liquids sold: 12.0 Bcfe
▪ Total weighted average price of all liquids decreased 2% to
$29.15 per Bbl in Q1 2018 from $29.72 per Bbl in Q1 2017(2) and
decreased 8% from $31.82 per Bbl in Q4 2017
▪ In Q1, liquids comprised approximately 9% of 2018 production
volumes and 12% of total revenue and other operating income
Average Price Realization ($ per Bbl)(2)
2018 2017
Q1 Q1
NGLs $27.48 $29.16
Oil $56.46 $44.40
Condensate $49.32 $33.84
Natural Gas Hedging – Gain/Loss Projections
18
Note: Forward market prices are as of 4/12/2018. Hedged volumes and prices are as of 4/23/2018. Anticipated hedging activity is not included in projections.
(1) April prices are settled.
Q2 2018 CY2018 CY2019
Hedged Volumes Hedged Forward Forecasted Gain/(Loss) Hedged Volumes Hedged Forward Forecasted Gain/(Loss)
(000 MMBtu) Price Market ($/MMBtu) ($ in 000's) (000 MMBtu) Price Market ($/MMBtu) ($ in 000's)
($/MMBtu)
NYMEX 94,185 $2.98 $2.70 $0.28 $26,560 377,775 $2.98 $2.84 $0.14 $54,620
Basis:
DOM South (DOM) 7,280 ($0.59) ($0.57) ($0.02) ($168) 30,100 ($0.60) ($0.63) $0.03 $939
ETNG Cascade Creek TZ5 0 $0.00 $0.00 $0.00 $0 0 $0.00 $0.45 $0.00 $0
ETNG Mainline 0 $0.00 $0.00 $0.00 $0 0 $0.00 $0.23 $0.00 $0
Chicago 0 $0.00 ($0.25) $0.00 $0 0 $0.00 ($0.14) $0.00 $0
TCO Pool (TCO) 9,100 ($0.27) ($0.20) ($0.07) ($623) 36,500 ($0.27) ($0.26) ($0.01) ($376)
Michcon (NMC) 3,640 ($0.03) ($0.16) $0.13 $485 14,448 ($0.03) ($0.22) $0.18 $2,663
TETCO ELA (TEB) 1,365 ($0.09) ($0.09) $0.00 $2 5,475 ($0.09) ($0.09) $0.00 $18
TETCO WLA (TWB) 0 $0.00 ($0.08) $0.00 $0 0 $0.00 ($0.07) $0.00 $0
TETCO M3 (TMT) 4,550 ($0.12) ($0.48) $0.37 $1,666 19,895 ($0.05) $0.25 ($0.31) ($6,094)
TETCO M2 (BM2) 47,548 ($0.60) ($0.59) ($0.01) ($263) 191,613 ($0.60) ($0.63) $0.03 $6,387
Total Financial basis 73,483 $1,099 298,031 $3,537
Total Projected Gain/(Loss) $27,659 $58,157
(1)
Non-GAAP Reconciliation
19
Source: Company filings.
(1) CNX's unallocated expenses include other expense, gain on sale of assets, loss on debt extinguishment and income taxes.
(2) Adjusted EBITDA Attributable to Noncontrolling Interest for the three months ended March 31, 2018 is Net Income Attributable to Noncontrolling interest of $17,983
plus Depreciation, Depletion and Amortization of $2,707, plus Interest Expense of $1,699, plus Stock-based compensation of $374.
Note: Income tax effect of Total Pre-tax Adjustments (excluding exploration expense) was ($180,679) and $40,306 for the three months ended March 31, 2018 and March
31, 2017, respectively. Adjusted net income attributable to CNX Resources Shareholders for the three months ended March 31, 2018 is calculated as GAAP net income
attributable to CNX Shareholders of $527,563 less total pre-tax adjustments from the above table of ($666,221), plus the associated tax expense of ($180,679) equals the
adjusted net income attributable to CNX Resources Shareholders of $42,021.
Three Months Ended
March 31,
2018 2018 2018 2018 2017
($ in thousands)
E&P
DivisionMidstream Unallocated
(1) Total
Company
Total
Company
Net Income (Loss) $99,809 $35,534 $410,203 $545,546 ($38,966)
Less: Loss from Discontinued Operations - - - - (36,269)
Add: Interest Expense 36,062 2,489 - 38,551 41,606
Less: Interest Income (76) - - (76) (953)
Add: Income Taxes - - 213,694 213,694 (63,194)
Earnings/(Loss) Before Interest & Taxes (EBIT) 135,795 38,023 623,897 797,715 (97,776)
Add: Depreciation, Depletion & Amortization 115,866 8,801 - 124,667 95,678
Earnings/(Loss) Before Interest, Taxes and DD&A (EBITDA) from Continuing
Operations $251,661 $46,824 $623,897 $922,382 ($2,098)
Adjustments:
Unrealized Gain on Commodity Derivative Instruments (52,078) - - (52,078) (24,640)
Gain on Certain Asset Sales - (4,737) (4,750) (9,487) -
Gain on Previously Held Equity Interest - - (623,663) (623,663) -
Severance Expense 749 65 - 814 230
Put Option Fair Value - Reversal from Prior Year - - (3,500) (3,500) -
Other Transaction Fees 1,149 - - 1,149 -
Loss (Gain) on Debt Extinguishment - - 15,635 15,635 (822)
Stock-Based Compensation 4,330 579 - 4,909 3,754
Impairment of E&P Properties - - - - 137,865
Exploration Expense 2,380 - - 2,380 9,785
Total Pre-tax Adjustments ($43,470) ($4,093) ($616,278) ($663,841) $126,172
Adjusted EBITDAX from Continuing Operations $208,191 $42,731 $7,619 $258,541 $124,074
Less: Adjusted EBITDA Attributable to Noncontrolling Interest(2)
- 22,763 - 22,763 -
Adjusted EBITDAX Attributable to CNX Resources Shareholders $208,191 $19,968 $7,619 $235,778 $124,074