Consol Energy has announced a loss of US$603 million in 2Q15 following a US$829 million writedown of its shallow oil and natural gas assets on depressed gas prices.
On the coal side, the company produced 7.5 million short in the quarter – 5.7 million short t from its Pennsylvania operations and producing 5.9 million short t, the Buchanan mine in Virginia producing 1 million short t and the balance from other sources.
Coal sales totaled US$414.5 million for the quarter, down from US$536.3 million in 2Q14. Coal costs were US$393.5 million.
The company also executed a thermal coal master limited partnership (MLP) IPO in the quarter, raising about US$345 million in net proceeds. Following the IPO, Consol offered the new MLP, which is known as CNX Coal Resources LP, the right of first offer for Consol’s remaining 80% interest in the Pennsylvanie mining complex, along with the Baltimore Marine Terminal, Cardinal States Gathering System and the Buchanan mine.
For the full year, Consol now expects reduced sales of 28.4 – 29.9 million short t as it moves to a reduced four-day operating schedule at its Pennsylvania operations.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/29072015/consol-energy-announces-2q15-loss-2650/