PITTSBURGH, March 13, 2015 /PRNewswire/ -- CONSOL Energy Inc.
(NYSE: CNX) announced today a revised 2015 E&P capital
expenditure (CAPEX) forecast of $920
million, excluding business development, permitting, and
land acquisitions, which is a decrease from the initial
$1.0 billion E&P capital plan
that was announced in January 2015.
The revised budget reflects a continued focus to high-grade the
development plan to further reduce capital in a lower commodity
price environment, while maintaining the E&P production growth
target of 30% in 2015. In addition to reducing capital, CONSOL also
continues to make significant progress on driving operating costs
lower through cutting costs and implementing efficiency
improvements with the goal of keeping its year-end 2015 leverage
ratio flat, when compared to 2014. Excluding Marcellus gathering
capital of approximately $100
million, CONSOL expects to allocate approximately 52% of the
remaining E&P capital budget towards dry-gas development.
CONSOL is retaining the flexibility to increase activity levels in
the second half of 2015 if the forward trend in gas prices
justifies increasing production. Whether CONSOL increases its
activity levels in 2015 will largely determine the production
growth in 2016, which the company expects to exceed 20% over 2015
production levels.
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About CONSOL Energy
CONSOL Energy Inc. (NYSE: CNX) is
a Pittsburgh-based producer of
natural gas and coal. The company is one of the largest independent
natural gas exploration, development and production companies, with
operations centered in the major shale formations of the
Appalachian basin. CONSOL Energy deploys an organic growth strategy
focused on rapidly developing its resource base. As of December 31, 2014, CONSOL Energy had 6.8 trillion
cubic feet equivalent of proved natural gas reserves. The company's
premium coals are sold to electricity generators and steel makers,
both domestically and internationally. CONSOL Energy is a member of
the Standard & Poor's 500 Equity Index and the Fortune 500.
Additional information can be found 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 following with respect to our capital
investment in 2015: deterioration in economic conditions in any of
the industries in which our customers operate or a worldwide
financial downturn; an extended decline in prices we receive for
our coal, gas and natural gas liquids; the disruption of rail,
barge, gathering, processing and transportation facilities and
other systems that deliver our coal and gas to market; the impact
of potential, as well as any adopted regulations relating to
greenhouse gas emissions on the demand for coal and natural gas, as
well as the impact of any adopted regulations on our coal mining
operations due to the venting of coalbed methane which occurs
during mining; the risks inherent in coal and gas operations being
subject to unexpected disruptions, including geological conditions,
equipment failure, timing of completion of significant construction
or repair of equipment, fires, explosions, accidents and weather
conditions; decreases in the availability of, or increases in, the
price of commodities and services used in our mining and gas
operations; obtaining and renewing governmental permits and
approvals for our coal and gas operations; the effects of
government regulation on the discharge into the water or air, and
the disposal and clean-up of, hazardous substances and wastes
generated during our coal and gas operations; the effects of
stringent federal and state employee health and safety regulations,
including the ability of regulators to shut down a mine or well;
the outcomes of various legal proceedings, which are more fully
described in our reports filed under the Securities Exchange Act of
1934; actions taken by our joint venture partners in existing joint
ventures and acquisitions or joint ventures that we may enter into
in the future; our ability to acquire water supplies needed for gas
drilling, or our ability to dispose of water used or removed from
strata in connection with our gas operations at a reasonable cost
and within applicable environmental rules; provisions of our debt
agreements; failure by Murray Energy Corporation to satisfy the
liabilities it assumed from us as well as to perform its
obligations under various agreements; and other factors
discussed in the 2014 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.