Consol Energy Inc. on Monday warned it would report a loss for
its second quarter, largely due to lower energy prices.
In addition, Consol—one of the country's biggest natural-gas
producers—said it would record a "significant" write-down on its
conventional shallow oil and gas assets on account of continued
depressed NYMEX forward prices.
The Pennsylvania company didn't indicate how wide of a loss it
expects to post. According to Thomson Reuters, analysts have
expected the company to swing to a profit in the June quarter and
report $10.4 million, or 10 cents a share.
In April, Consol projected second-quarter gas production of
about 71 billion cubic feet and coal production of 7.1 million tons
to 7.73 million tons. The company said Monday that it still expects
to hit those targets.
Like many other energy companies grappling with sharply lower
energy prices, Consol has this year trimmed its capital budget and
it is in the midst of a restructuring program designed to help it
scale back its exposure to coal. The company recently sold a stake
in a new master limited partnership, CNX Coal Resources.
Shares in the company, down 43% over the past three months, were
inactive premarket. Consol is slated to report second-quarter
results next week.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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