Consol, CNX see declines in profits
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Consol Energy Inc., in the midst of its transition from coal company to diversified energy producer, posted first-quarter profits of $100.3 million, or 54 cents per diluted share, compared with $195.8 million, or $1.08 per diluted share, a year ago.
Excluding one-time expenses, the company's profits came in at $154 million, or 85 cents, beating analysts' estimates of 76 cents. Revenues were up, $1.24 billion vs. $1.22 billion a year ago.
One-time expenses included $47 million for fees related to its purchase of Richmond, Va.-based Dominion Resources' Appalachian natural gas business and non-cash charges totaling another $47 million.
The Dominion purchase, slated to close today, will add about 500,000 acres to Consol's footprint in the Marcellus Shale,.
Coal production for the quarter totaled 15.9 million tons, including 14.2 million tons of thermal coal, 900,000 tons of low-volatile metallurgical coal, and 800,00 tons of metallurgical coal.
Consol spinoff CNX Gas Corp. also saw a drop in first-quarter net income to $45.6 million, or 30 cents per diluted share, vs. $54.9 million, or 36 cents per diluted share last year. Revenues rose to $192.3 million from $178.4 million.
Production for the first quarter totaled 24 billion cubic feet, up from 22 billion cubic feet a year ago. The average realized price was $7.24 per thousand cubic feet (mcf), with margins of $3.49 per mcf, compared with $7.37 per thousand cubic feet and margins of $4.08 per mcf last year.
Consol, which owns approximately 83 percent of CNX Gas, has offered to buy the remaining shares at $38.25 a share. A vote on the offer, due to expire May 26, is not on the agenda for the CNX Gas annual shareholder meeting on May 4 although the company will issue a recommendation to shareholders.
Consol's shares closed Thursday at $44.96, up 86 cents. CNX Gas closed at $38.27, up 3 cents.
First Published April 30, 2010 12:00 am
