PITTSBURGH, April 7, 2014 /PRNewswire/ -- CONSOL Energy
Inc. (NYSE: CNX) is providing a production update for the quarter
ended March 31, 2014.
"Despite operating during the coldest winter in the past thirty
years, CONSOL Energy's gas operations and coal mines again
demonstrated strong performance," commented Nicholas J. DeIuliis, president.
In natural gas, CONSOL Energy produced a record 48.4 Bcfe in the
2014 first quarter, which was within the guidance range of 47 – 49
Bcfe. Gas production was 23% higher than the 39.2 Bcfe produced in
the year-earlier quarter. The growth engine for gas production is
the Marcellus Shale, where 2014 first quarter production of 20.7
Bcfe was nearly double the 10.7 Bcfe produced in the year-earlier
quarter. CONSOL Energy re-affirms its annual gas production
guidance of 215 – 235 Bcfe.
CONSOL Energy has been hedging more of its 2014 gas production.
Currently, the company has 155 Bcf of gas hedged at $4.73 per Mcf. Approximately 34 Bcf was hedged in
the first quarter, with approximately 40 Bcf hedged in each of the
last three quarters, all at a quarterly average price of between
$4.72 - $4.73 per Mcfe.
Meanwhile in coal, CONSOL's coal mines produced 8.1 million tons
in the first quarter of 2014, including 1.1 million tons of low-vol
coking coal at Buchanan Mine. Coal sales approximated production.
The company's new BMX Mine began longwall production, as scheduled,
in mid-March, and is running normally.
On the demand side, thermal coal demand has been strong, while
met coal demand, especially in Asia, has been weak. CONSOL may soon have to
exert some additional production discipline at its Buchanan Mine.
In accounting for the difference in market strength between met and
thermal coal markets, CONSOL Energy is raising its annual coal
production guidance range from 30.1 – 32.1 million tons to 31 – 33
million tons.
Separately, CONSOL Energy will be presenting its income
statement for the 2014 first quarter in a new format that separates
coal expenses from gas expenses. The newly recast income statement
is being presented to increase transparency and understanding of
the company's businesses. Quarterly historical income statements
(pro forma, to reflect the sale of five mines) for 2012 and
2013 in the new format have been posted to the investor relations
section of the company's website, at www.consolenergy.com.
Earnings Release Information
CONSOL Energy will report a fuller disclosure of its operational
results, along with financial results, for the quarter ended
March 31, 2014 at 6:45 a.m. ET on Tuesday,
April 29, followed by a conference call at 10:00 a.m. ET. The call can be accessed at the
investor relations section of the company's website, at
www.consolenergy.com.
Cautionary Statements:
Various statements in this release, including those that express
a belief, expectation or intention, may be considered
forward-looking statements (as defined in Section 21E of the
Exchange Act) that involve risks and uncertainties that could cause
actual results to differ materially from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. The
forward-looking statements may include projections and estimates
concerning the timing and success of specific projects and our
future production, revenues, income and capital spending.
When we use the words "believe," "intend," "expect," "may,"
"should," "anticipate," "could," "estimate," "plan," "predict,"
"project," or their negatives, or other similar expressions, the
statements which include those words are usually forward-looking
statements. When we describe strategy that involves risks or
uncertainties, we are making forward-looking statements. The
forward-looking statements in this press release, if any, speak
only as of the date of this press release; we disclaim any
obligation to update these statements. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. These risks, contingencies and uncertainties relate to,
among other matters, the factors discussed in the 2013 Form 10-K
under "Risk Factors," as updated by any subsequent Form 10-Qs,
which are on file at the Securities and Exchange Commission.
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SOURCE CONSOL Energy Inc.