CONSOL Energy Inc.NYSE
Consol Energy: Deep Dive Into Gas Assets' Profitability Confirms Value Even At Current Prices
Value Pickings • 13 Comments
Value Pickings • 13 Comments
Mon, Oct. 3, 3:09 PM
- CNX Coal Resources (CNXC +4.8%) agrees to acquire an additional 5% interest in the Pennsylvania Mining Complex from Consol Energy (CNX +1.3%) for $88.8M, bringing its total ownership stake to 25%.
- The companies say the deal moves CNX a step closer to its goal of fully separating the coal and gas businesses, while strengthening CNXC's balance sheet and liquidity position.
- CNXC says it funded the deal with a combination of available borrowings under its credit facility and the issuance of convertible preferred units.
Mon, Sep. 26, 2:09 PM
Thu, Aug. 25, 10:51 AM
- Natural gas production from the Marcellus and Utica shales remains surprisingly strong and defying predictions that output would fall, averaging 22.63B cf/day so far in August, up 2% from last month and the most since February’s all-time high of 22.78B cf/day.
- Even though the number of drilling rigs has declined, new production per rig now averages ~11.4M cf of gas in the Marcellus, up 18% Y/Y, as producers have managed to maintain volumes by tapping inventories of drilled but uncompleted wells and burrowing deeper, longer wells that yield more gas.
- Production has been strong despite regional prices at ~$1.2757/MMBtu, less than half the price for benchmark gas in Louisiana.
- Top Marcellus/Utica producers include EQT, RRC, RICE, CVX, CNX, VTG, REXX, XOM, NBL, COG, CHK.
Fri, Aug. 5, 10:21 AM
- Consol Energy (CNX +0.6%) agrees to pay $3M to settle a claim that its Bailey coal mining complex in Pennsylvania repeatedly polluted nearby streams beyond limits set by federal and state law.
- The U.S. Department of Justice had filed a federal lawsuit on behalf of the EPA and the Pennsylvania Department of Environmental Protection.
- The lawsuit contended that two of the mine's water discharges exceeded daily pollution limits by 188x and the monthly limit by 170x from January 2006 through June 2015.
Tue, Jul. 26, 5:28 PM
- Consol Energy (NYSE:CNX) surged 7.1% in today's trade despite missing expectations for Q2 earnings, as it says it will resume drilling for gas in the Marcellus and Utica shales in August after putting the program on hold earlier this year.
- Even after posting a wider than expected loss and barely more than half as much revenue as the year-ago quarter, investors focused instead on the fact that CNX stuck by its projections for the year, suggesting a strong H2 rebound.
- CNX says it is putting two rigs back in operation next month in the Utica and the Marcellus shale plays, drilling eight wells in Ohio and two in Washington County, Pa., where the company is based.
Tue, Jul. 26, 6:56 AM
Mon, Jul. 25, 6:25 PM
- Consol Energy (NYSE:CNX) agrees to pay $44M to Southeastern Land to divest its Miller Creek and Fola thermal coal complexes in West Virginia, accelerating its transition from coal miner to natural gas producer; Southeastern will assume $103M in liabilities for the mines.
- Miller Creek consists of two surface mines, two underground mines and a preparation plant, and produced 2.1M tons of coal in 2015, while the Fola site is idled and last produced 1.3M tons in 2012.
- The deal marks CNX’s exit from central Appalachia, but the company is retaining its stake in three Pennsylvania coal mining sites that are operated by its CNX Coal Resources (NYSE:CNXC) MLP.
Mon, Jul. 25, 5:30 PM
- ABG, ACW, AHGP, AKS, ALLY, AOS, ARLP, ASTE, ATI, AUDC, AVY, AXE, AXTA, BAX, BEAV, BP, BPOP, CAT, CHKP, CIGI, CNC, CNHI, CNX, CPLA, CSL, CTG, CVLT, CYNO, DD, DTE, EEFT, EXAS, FBC, FCH, FCX, FELE, FIS, FMER, GPK, HOT, HUBB, HZO, ICLR, JBLU, JNS, KEY, KKR, LLY, LPT, MAS, MBLY, MCD, MDXG, MMM, NCI, NEO, NLSN, NORD, PCAR, PCH, RAI, RDWR, SAH, SIR, SIRI, ST, TGNA, TNC, TOWR, TROW, UA, USG, UTX, VLO, VZ, WAT, WDR, WWW, XRS
Mon, Jul. 18, 3:58 PM
- Pioneer Natural Resources (PXD +0.1%), EP Energy (EPE +0.9%), Carrizo Oil & Gas (CRZO +2.8%), Sanchez Energy (SN +2.5%) and Synergy Resources (SYRG -0.1%) are all upgraded to Buy at KLR Group in advance of Q2 earnings reports.
- At the same time, the firm downgrades Devon Energy (DVN -0.4%), Consol Energy (CNX -1.3%) and Continental Resources (CLR +0.4%) to Accumulate from Buy on valuation given their substantial share price appreciation over the past four months.
- KLR expects the U.S. E&P industry's cost intensity to decline another 10% this year as capital spending is rationalized another 45%, but it anticipates spending ultimately will increase ~70% "assuming a substantive recovery in commodity prices."
- The firm's new stock price targets are $218 for PXD, $6.50 for EPE, $49 for CRZO, $9 for SN, $9 for SYRG, $44 for DVN, $20 for CNX and $54 for CLR.
Tue, Jul. 5, 5:48 PM
- Consol Energy (NYSE:CNX) and its CNX Coal Resources (NYSE:CNXC) MLP stand to benefit if Murray Energy, the largest privately held coal miner in the U.S., follows through on its warning that it could lay off as many as 4,400 employees, or ~80% of its workforce, because of weak coal markets.
- FBR analyst Lucas Pipes says ongoing union negotiations are all the more challenging after union members soundly rejected the most recent tentative deal, meaning a higher chance of coal supply disruption and good news for CNX, which accounts for ~25% of Northern Appalachian thermal coal.
Tue, Jun. 28, 9:18 AM| Tue, Jun. 28, 9:18 AM | 1 Comment
Fri, Jun. 3, 6:25 PM
- Greenlight Capital, the hedge fund run by David Einhorn, reports the sale of 7M shares of Consol Energy (NYSE:CNX) at $15.01/share on June 1.
- The hedge fund owned 29.4M CNX shares as of May 12, making it the company’s third largest shareholder.
- CNX, whose shares have doubled in value YTD after plunging more than 75% in 2015, has spent recent years shifting its focus away from coal and toward natural gas.
Tue, Apr. 26, 6:48 AM
- CONSOL Energy (NYSE:CNX): Q1 EPS of -$0.07 beats by $0.02.
- Revenue of $558.51M (-29.5% Y/Y) misses by $116.63M.
Mon, Apr. 25, 5:30 PM
- ABG, ABX, AHGP, AIXG, AKS, ALLY, ARLP, ATI, AVX, AXE, BAX, BEAV, BLMN, BP, CNC, CNX, COH, CPLA, CRS, CTG, CYNO, DD, DFRG, DTE, ENTG, ETR, FBC, FCAU, FCH, FCX, FLIR, FLWS, FMER, GLPI, GLW, GPK, HSY, HUBB, HZO, ICLR, IIVI, IR, JBLU, JNS, LLY, LMT, LPT, MAS, MDXG, MHFI, MMM, NCI, ODP, PAG, PCAR, PCH, PG, PH, PNR, POL, R, RAI, SAH, SAVE, SCL, SIR, SPG, ST, SUI, SVU, TEN, TMUS, TRI, TROW, WAB, WAT, WDR, WHR, WYN
Tue, Mar. 22, 2:59 PM
- In a milestone marking the opening of a new market for U.S. energy producers trying to sell natural gas, Swiss petrochemicals company Ineos today accepts the first seaborne shipment of U.S. liquefied ethane to Europe, WSJ reports, in another sign of how the North American shale boom has transformed the global energy map.
- The ethane was extracted from the Marcellus shale in Pennsylvania, where companies have been looking to diversify their markets for their ethane because of pipeline and storage limitations; unlike crude oil and gas, ethane is not restricted for export from the U.S., but a lack of transportation options has limited exports.
- Ineos’ shipments from the U.S. are underpinned by a 15-year contract with Range Resources (RRC +0.2%) and Consol Energy (CNX +2.9%), both active drillers in the Marcellus Shale who are struggling as declining energy prices have cut their revenue and share prices in recent years.
Wed, Mar. 16, 11:57 AM
- The bad news coming from Peabody Energy and other coal companies could damage Joy Global (JOY -0.3%), as Axiom Capital analyst Gordon Johnson notes that 59% of JOY's 2015 revenues came from the sale of equipment to coal miners globally.
- "Along these lines, we feel the announcement by BTU today could have incrementally negative implications for JOY’s ability to achieve its FY 2016 guidance,” Johnson writes.
- According to Johnson, JOY’s OEM revenues historically have an 87% correlation to the mining capex of the big five U.S. coal miners: Peabody (BTU -43.6%), Arch Coal (ACI -3.4%), Consol Energy (CNX -1.4%), Alliance Resource Partners (ARLP -0.1%) and Cliff Natural Resources (CLF -8.4%).