Increased demand for power after a severe winter in the US, a dip in inventory levels at utilities and a ramp up in natural gas prices are boosting demand for thermal coal: thus boosting Consol Energy’s coal Q1 coal results.
Consol Energy’s coal mines produced 8.1 million t in Q1 of 2014, including 1.1 million t of low-volume metallurgical coal at Buchanan Mine. 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 metallurgical coal demand, especially in Asia, has been weak. The company said it might soon have to exert some additional production discipline at its Buchanan Mine. In accounting for the difference in market strength between metallurgical and thermal coal markets, the company said it would raise its annual coal production guidance range from 30.1 – 32.1 million t to 31 – 33 million t.
"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, Consol Energy president.
Consol Energy shares closed at US$ 39.74 on the New York Stock Exchange on Monday.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/08042014/consol_posts_strong_quarterly_coal_results_698/