Consolidated Energy (CNX)

[Timothy Smith]

CNX’s JV agreement with Noble Energy includes a $2.1B working interest carry, where one-third of CNX’s drilling and exploration costs will be paid by Noble once natural gas prices are sustained over $4/mmbtu for three consecutive months.

Once the carry is in effect, we expect CNX to increase its focus on the Marcellus region, adding drill rigs and increasing production to recapture the carry quickly.