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CONSOL Energy Inc. (CNX)

  • Thu, Jan. 8, 2:33 PM
    • It’s time for investors to start looking for entry points in quality coal miners such as Consol Energy (CNX +1.5%), Cloud Peak Energy (CLD +4.1%) and Peabody Energy (BTU -0.2%), J.P. Morgan says in the hope that funding problems now confronting the U.S. shale revolution will lead to a more balanced U.S. gas market and better prospects for coal.
    • While the seaborne market is lackluster, JPM believes it sees a positive story emerging for the U.S. coal industry due to the changing landscape in U.S. E&P driven by falling oil prices, which should lead to a tighter natural gas market in late 2015 and beyond and spark positive movement in depressed coal names.
  • Dec. 22, 2014, 10:45 AM
    • Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
    • Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
    • Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
    • Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
  • Dec. 17, 2014, 2:20 PM
    • New York Gov. Cuomo's administration says it will ban fracking statewide, citing health concerns and what it considers as limited economic benefits to drilling.
    • NY's acting health commissioner said at a cabinet meeting in Albany today that studies on fracking’s effects on water, air and soil are inconsistent, incomplete and raise too many “red flags” for the state to allow it; the state Department of Environmental Conservation will now issue a legally-binding recommendation prohibiting fracking.
    • The state has had a de facto moratorium on fracking for more than six years, so nothing really changes with today's decision.
    • Parts of New York sit atop the gas-rich Marcellus shale formation, whose top producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN, AR.
  • Dec. 17, 2014, 12:26 PM
    • FBR Capital chooses Noble Energy (NBL +8.8%), Schlumberger (SLB +4.6%), Synergy Resources (SYRG +6%), Consol Energy (CNX +3.4%) and SunEdison (SUNE +0.7%) as its top energy and natural resources stocks for 2015.
    • FBR likes NBL's strong combination of shale assets that are still immature in their adoption and application of technology, which is scalable; a strong balance sheet; and a portfolio that offers abundant exploration risk/reward potential.
    • SLB is FBR's favorite energy stock among those whose secular earnings power is clearly the most likely to significantly expand over the next five years and/or is underestimated at current market multiples.
    • SYRG offers investors exposure to industry-leading production growth and a solid balance sheet, a unique combination for a small-cap equity, the firm says.
  • Dec. 15, 2014, 6:33 PM
    • Calpers and Calstrs, the two biggest pension funds in the U.S., would be required to divest its holdings in companies that produce coal under a bill to be introduced by Kevin de Leon, the new leader of the state Senate.
    • Calpers, with assets of $294B, had nearly $46M in coal and consumable fuels holdings as of Sept. 30, with its largest holdings in Consol Energy (NYSE:CNX), Peabody Energy (NYSE:BTU) and Alliance Resources Partners (NASDAQ:ARLP), according to Bloomberg data.
    • The measure, if passed by lawmakers and signed into law by Gov. Brown, would make Calpers the largest pension to end investment in coal.
  • Dec. 11, 2014, 3:36 PM
    • J.P. Morgan analysts think sliding oil prices could be good news for coal miners such as Arch Coal (NYSE:ACI) and Peabody Energy (NYSE:BTU), as the current problems in the E&P world appear to signal an inflection point for the shale oil and gas business, which has been a major thorn in coal’s side.
    • Gas supply should turn lower in 2016, JPM says, resulting in higher coal prices and a realization that coal must have a bigger role in U.S. power supply than was expected just a few weeks ago.
    • The firm likes the high yielding Illinois basin MLPs Foresight Energy (NYSE:FELP) and Alliance Resource Partners (NASDAQ:ARLP), but for more aggressive investors it thinks the other coal names with financial strength like Cloud Peak Energy (NYSE:CLD), Consol Energy (NYSE:CNX), and BTU should benefit more from the new paradigm by H2 2015.
  • Dec. 11, 2014, 11:19 AM
    • Consol Energy (CNX +2.3%) is higher after announcing late yesterday that it is preparing to spin off some of its coal operations, creating an MLP for its thermal coal business and approving a $250M stock buyback.
    • Sterne Agee says it would add to or introduce positions, citing CNX’s strong relative cash flow generation, overcapitalized balance sheet, and expected continued execution within its unconventional gas assets as allowing for valuation support and expansion.
    • FBR Capital believes the thermal coal MLP could potentially provide a material uplift of $3-$9 per share by pulling forward the value of the coal assets and providing growth capex for CNX's E&P business (
    • Citigroup’s Brian Yu, however, does not see how the MLP creates value for CNX; given the lack of growth in CNX’s coal assets, Yu thinks it would be tough to trade at the same valuation as Alliance Resource Partners (NASDAQ:ARLP) or Alliance Holdings (NASDAQ:AHGP).
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  • Dec. 10, 2014, 4:43 PM
    • Consol Energy (NYSE:CNX) +3% AH after saying it plans to pursue the formation of an MLP for its thermal coal business to own interests in certain properties and related mining operations located in Pennsylvania, including its Bailey Mine, Enlow Fork Mine, Harvey Mine and the related preparation plant.
    • CNX says it would own the general partner of the MLP, any incentive distribution rights and a majority of the limited partner interests of the MLP; it expects to commence an IPO in mid-2015.
    • CNX also plans to pursue the formation of a subsidiary entity for the purpose of owning its metallurgical coal properties and related mining operations, with a view to conducting an IPO of up to 20% of the subsidiary's equity in H2 2015.
    • Says its board has approved a two-year share repurchase program of up to $250M.
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  • Dec. 2, 2014, 3:35 PM
    • Walter Energy (WLT -29.2%) sells off nearly 30% following a note from BB&T Capital predicting the coal company would fall into bankruptcy in 2015.
    • BB&T thinks WLT has enough cash to get through 2015 at the current met coal price of $119/metric ton, but believes WLT's board "will reach the conclusion before that point that the met market won't improve enough over the next couple of years to save the company from needing to restructure."
    • Most other coal names also are lower: ANR -2.3%, ACI -1.9%, CLD -3.1%, CLF -2.2%, CNX -0.7%, BTU +0.6%.
  • Dec. 1, 2014, 3:57 PM
    • Consol Energy (CNX -3.9%) is downgraded to Neutral from Buy with a $41 price target at Citi after the firm incorporates its new commodity price forecasts, which lowers its EPS estimates for CNX to $0.93 from $0.98 for 2014 and to $0.67 from $0.77 for 2015.
    • Citi models free cash flow of -$310M in 2014, -$15M in 2015 and $54M in 2016, with the negative near-term estimates driven by the high levels of capex needed to achieve the company's 30% natural gas volume growth targets for 2015 and 2016.
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  • Nov. 28, 2014, 10:25 AM
  • Nov. 21, 2014, 6:45 PM
  • Nov. 21, 2014, 10:28 AM
  • Nov. 14, 2014, 2:39 PM
    • Thermal coal and coal stocks are rallying after Glencore (OTCPK:GLCNF, OTCPK:GLNCY) said it would halt production at its Australian mines for three weeks to try to tackle a global supply glut.
    • Deutsche Bank says the move is an important signal from the world’s largest producer of seaborne thermal coal: “Taking 5M tonnes out of the 1.1B [a year] seaborne market is a relatively small starting point, but may mark the start of more to come."
    • But other analysts say it is no sure thing that Glencore’s move would be copied by others or lead to permanent mine closures; unlike some rivals, Glencore has less exposure to "take or pay” contacts which oblige miners to pay charges of up to $25/metric ton to use rail and port.
    • ACI +10.7%, ANR +10.1%, WLT +5.2%, BTU +4.3%, CLF +3.2%, CLD +2%, CNX +1.9%.
    • ETF: KOL
  • Nov. 6, 2014, 3:35 PM
    • “The fundamental case for coal is strengthening but requires several years of patience," and coal miners (NYSEARCA:KOL) still pose too much short-term risk for investors, J.P. Morgan analyst John Bridges says.
    • The coal sector is "very much a weather trade" which is sensitive to this winter’s temperatures, Bridges says, "consequently, without another particularly cold winter or a direct cyclonic hit on Australia’s coking coal mines, coal prices and thus the coal equities are likely to remain volatile through the 2014-15 winter."
    • In the sector, Bridges recommends Consol Energy (CNX +0.6%), Alliance Resource Partners (ARLP -0.4%) and Foresight Energy (FELP +1.7%), as only high-yielding coal MLPs are resonating with investors.
    • Most big coal names are adding to yesterday's gains, as the IEA predicts world coal demand to grow 2.3% in 2015, mostly undaunted by stricter clean air regulations and competition from cheap natural gas: ANR +5.1%, ACI +4.7%, BTU +0.5%, WLT -1.1%, CLD +0.9%.
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  • Nov. 5, 2014, 12:24 PM
    • Coal stocks (NYSEARCA:KOL) are rallying in the hope that the new balance of power in D.C. can at least halt what the companies view as an attack on their livelihood.
    • Strategas' Daniel Clifton thinks there’s a good chance the new Congress will “slow down EPA rules on coal” which have limited its use by utilities, and any approval for the Keystone XL pipeline would mean more rail transport for coal, a problem Peabody Energy (BTU +4.4%) has said was limiting its coal sales.
    • ANR +5.8%, CNX +3%, WLT +6.3%, CLD +4.5%, ACI -0.2%.
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Company Description
Consol Energy Inc is an energy company. The Company is engaged in oil & gas exploration & production and coal mining.