I am pleased to present CONSOL Energy’s 2015 Corporate Responsibility Report. During the past year, we were confronted with unprecedented challenges in the industries we operate within – perhaps the most challenging environment the energy industry has faced in a generation.
Yet, when we reflect back on 2015, it is clear that the accomplishments of our employees and contractors were nothing short of extraordinary. Sea change occurred on many fronts, which has positioned the company for continued success, both financially and strategically.
We focused on prudently managing our balance sheet and liquidity position through a volatile commodity price environment. We accomplished this, in part, by aggressively de-risking our revenue through hedging gas volumes and contracting our coal production. We also focused on cost control measures such as zero-based budgeting, operating cost and capital intensity efficiencies. We took an important step in bringing forward the long-term value of our enterprise by creating CNX Coal Resources LP (NYSE: CNXC) to own interests in our Pennsylvania thermal coal mines. And, looking toward the future, we continued to delineate our industry-leading position in the deep dry Utica Shale where we hold over 500,000 net acres and have posted three out of the top ten test well results across the entire E&P space. The dry Utica holds the potential to open a vast, new frontier of opportunity for CONSOL as markets begin to recover.
But most importantly, our fifth annual report also highlights key accomplishments in terms of our commitment to our core values including:
- Achieving zero Occupational Safety and Health Administration violations during the year;
- Ninety eight percent of the Company’s employees working the entire year without a reportable accident;
- Continuous improvement in safety performance – overall recordable incident rate for 2015 was 1.35, down from 1.62 in 2014 – a 17% decrease; and
- Recycling and repurposing over 500 million gallons of water from our E&P and coal operations.
Through the hard work of our dedicated employees and contractors across our operational footprint, and their proven commitment to responsible business practices, we are positioned to deliver increased value for all of our stakeholders.
I firmly believe that CONSOL’s best days lie ahead, and I invite you to explore this report to learn more about CONSOL Energy’s corporate responsibility efforts, which are rooted in our core values and woven throughout the fabric of our corporate culture.
President and Chief Executive Officer