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CNX > SEC Filings for CNX > Form 8-K on 7-Apr-2014All Recent SEC Filings

Show all filings for CONSOL ENERGY INC



Regulation FD Disclosure, Other Events, Financial Statements and Exhibits

Item 7.01 Regulation FD Disclosure.

On April 7, 2014, CONSOL Energy Inc. (CONSOL Energy) issued two press releases.

The first press release announced CONSOL Energy's 2014 first quarter operational results. A copy of the operational results release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The second press release announced that CONSOL Energy intends, subject to market and other conditions, to offer and sell to eligible purchasers $1.6 billion of senior notes due 2022 in a private offering. A copy of the press release is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.

Additionally, CONSOL Energy is furnishing the following information pursuant to Regulation FD:

1. Potential Drilling Locations. The following table sets forth the potential drilling locations by play for CONSOL Energy's proved and unproved acreage.

                  Play               Proved      Unproven        Total
                  Marcellus Shale      1,414         8,024         9,438
                  Utica Shale             45         1,929         1,974
                  Upper Devonian           5         2,884         2,889
                  CBM                  3,806         5,603         9,409
                  Conventional         9,997        71,871        81,868

                  Total               15,267        90,311       105,578

Note: All drilling locations are as of December 31, 2013 and exclude Huron, Chattanooga, and New Albany Shales. Locations are based on acreage prospective to each reservoir/play risked for culture and geography and allocated based on expected drainage areas.

2. Wet/Dry Shale Acreage. The following table sets forth the number of CONSOL Energy's wet and dry net acres by play.

                                   Wet Net Acres       Dry Net Acres
                 Upper Devonian           190,000              155,00
                 Marcellus                175,000             262,000
                 Utica                     84,000              25,000

                 Total                    449,000             442,000

3. 2014 Well Data Estimates. The following table sets forth certain well data estimates for 2014 by operating region.

                                       Southwest PA       Central PA       Northern WV
   2014E Average EUR/Well (Bcfe)(1)             13.2              9.4              10.5
   2014E EUR/1,000 Ft Lateral (Bcfe)             2.0              1.4               1.7
   2014E Average Lateral Length (ft)           6,600            6,700             6,200
   2014E Wells To Be Drilled                      44                9                23

(1) These estimates assume utilization of reduced cluster spacing (RCS)/short stage length (SSL) completions and are based on well results through March 31, 2014 utilizing such completion techniques.

4. Price Uplift from Wet Gas.

By applying the March 2014 NYMEX settlement of $4.885 per MMBtu and February realized pricing for natural gas liquids (NGLs) and condensate in the Marcellus Shale, we compute, for illustration purposes only, $5.23 per Mcf for 1,070 Btu of dry gas, and $8.57 per Mcf for wet gas, both in the Marcellus Shale production regions. Our wet gas pricing of $8.57 per Mcf consists of the sum of:
(i) $5.16 per Mcf assuming 1,057 MBtu of residue gas (including ethane);
(ii) $2.95 per Mcf assuming 43 Bbl/MMcf NGLs at 69% West Texas Intermediate (WTI) pricing of $100 per barrel; and (iii) $0.46 per Mcf assuming 5 Bbl/MMcf condensates at 85% WTI pricing of $100 per barrel.

5. Forecasted Coal Sales and Contracted Positions. The following table sets forth our estimated coal sales for the first quarter 2014 and for the twelve months ending 2014 for each of thermal, low volatile and high volatile coal.

                                  1st Quarter 2014         2014
                                     (estimate)         (estimate)
                  Thermal                       6.5       25.5-27.1
                  Low Volatile                  1.1         4.2-4.4
                  High Volatile                 0.5         1.3-1.5

                  Total                         8.1       31.0-33.0

For 2014, CONSOL Energy notes the following. More than 90% of its estimated production is under contract to be sold, with more than 85% of such tonnage already priced. Approximately 80% of the low volatile and high volatile metallurgical coal tons are forecasted to be shipped overseas. Approximately 93% of its thermal coal tons are forecasted to be delivered domestically.

6. Producing Wells. CONSOL Energy has the following producing gross wells as of December 31, 2013: 460 producing gross wells in the Marcellus Shale; 11 producing gross wells in the Utica Shale; and one producing well in the Upper Devonian Shale. Producing gross wells include wells that CONSOL Energy has a working interest or royalty interest as of December 31, 2013.

The information included in this Item 7.01, Exhibit 99.1 and Exhibit 99.2 attached hereto are being furnished and shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information included in this Item 7.01, Exhibit 99.1 and Exhibit 99.2 attached hereto shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 8.01 Other Events.

Typographical Error in Exhibit 95 for Form 10-K. Exhibit 95, to CONSOL Energy's Annual Report on Form 10-K for the year ended December 31, 2013, which was filed on February 7, 2014, inadvertently indicated under the column heading "Total Dollar Value for MSHA Assessments," that the data was in thousands.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

   Number                             Description of Exhibit

Exhibit 99.1    Press Release dated April 7, 2014 announcing 2014 first quarter
                operational results of CONSOL Energy Inc.

Exhibit 99.2    Press Release dated April 7, 2014 announcing the proposed notes
                offering by CONSOL Energy Inc.

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