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
Wed, Nov. 16, 8:41 AM
- Cone Midstream Partners (NYSE:CNNX) agrees to acquire an additional 25% interest in Cone Midstream DevCo's pipeline systems, known as Anchor Systems, from joint owners Consol Energy (NYSE:CNX) and Noble Energy (NYSE:NBL) for $248M in cash and stock.
- Cone, an MLP formed by CNX, will own the entire group of assets after paying both CNX and NBL $70M in cash and 2.6M units.
- The assets include 125 miles of pipelines with 650M cf/day of capacity in the Marcellus Shale.
- CNNX expects the deal's anticipated increase in distributable cash flow will raise its future cash distribution coverage and enhance the ability to continue to grow quarterly cash distributions over time.
Wed, Nov. 9, 12:26 PM
- Coal stocks (KOL +2.5%) are surging, as Trump's election sparks hope that his administration can reverse the fuel’s long decline in the U.S.
- But analysts say the main culprit for coal’s decline is natural gas, which has flooded the market since the rise of fracking, which seems unlikely to change, as Trump also has promised to liberalize fracking; “cheap natural gas will continue to threaten the coal industry," says Andrew Moore of Platts Coal Trader.
- Analysts say it remains unclear whether Trump’s election is a signal to buy coal stocks, but at the least, “this is a sign that coal isn’t going away," Moore says.
- OTCPK:BTUUQ +43.2%, FELP +25.4%, OTCQB:RHNO +20.7%, CLD +16.7%, WLB +17.5%, WMLP +19.4%, ARCH +11.2%, CNX +6%, AHGP +5.8%, ARLP +4.1%.
Tue, Nov. 1, 6:55 AM
Mon, Oct. 31, 5:30 PM
- ADPT, AEP, AHH, ALLT, AME, AMRC, ANGI, APLP, ARRY, AUDC, AVA, AYR, BKD, BP, CIE, CMI, CNX, COH, CRCM, DHX, DIN, DISCA, DX, ECL, EGL, EIGI, EMR, ETN, EVHC, FCH, FDP, FIS, FSS, GHM, GK, GLT, GWR, HCP, HRS, HSKA, HW, HZO, ICE, IDXX, INCY, IRM, K, KEM, LXRX, LYB, MCRN, MDC, MLM, MOS, MSM, NI, NSP, OSK, OXY, PBI, PES, PFE, PPL, PRTS, RDC, RDS.A, RDWR, RHP, SAH, SALE, SCAI, SHOO, SHPG, SNE, SPR, SUI, TAP, TRI, WCG, WLB, WNR, WNRL, XYL
Mon, Oct. 31, 12:36 PM
- Noble Energy (NBL -0.7%) and Consol Energy (CNX +0.8%) say they are splitting up their CONE Midstream Partners (CNNX +1.2%) joint venture, in a move the companies call a “bittersweet” decision.
- The companies say all acreage operated by CNX and NBL in their respective operating areas will remain fully dedicated to CONE, but creates independent ownership interests in the acreage and production currently gathered by CONE; total flowing production to the JV was 1.07B cfe/day of natural gas.
- CNX and NBL say they remain as co-sponsors of CONE, retain their respective general partnership and limited partner ownership interests in CONE, and continue as shippers on CONE’s gathering systems.
- CONE says it anticipates continued growth following the separation of the JV.
- CONE was formed five years ago for the exploration, development and operation of their Marcellus Shale properties in Pennsylvania and West Virginia.
Fri, Oct. 28, 2:48 PM
- Cloud Peak Energy (CLD +12.1%) is surging after reporting a surprise Q3 profit, as shipments rose to average 5.7M tons/month, a big improvement over average H1 shipments of 4.1M tons/month.
- CLD also raises 2016 EBITDA guidance to $90M-$100M from its earlier outlook for $75M-$95M, and trims its 2016 capex guidance to $30M-$40M from $35M-$45M.
- While cautioning against premature excitement, analysts at BMO say Powder River Basin "fundamentals are improving (off a low base), demand is stabilizing, production remains low (for now), and inventories are declining (but still above normal)," and higher global thermal prices have brought CLD’s "historically high-margin exports back into the mix."
- Coal producing peers are higher: CNX +1.5%, WLB +2.9%, ARCH +1%.
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.