Consolidated Energy, CNX Coal Cut Outlooks on Commodity Weakness
January 06 2016 - 9:00AM
Dow Jones News
Consol Energy Inc. and affiliated company CNX Coal Resources LP
on Wednesday cut their sales outlooks for the year, as commodity
prices continue to slump.
Consol Energy cut both its capital spending plans and its coal
production guidance. CNX Coal, a master-limited partnership formed
by Consol to operate its Pennsylvania mines, reduced its coal sale
expectations.
Both companies pointed to unusually warm winter weather and low
natural gas prices, which are weighing on demand for coal. Coal has
been in a steep downturn for a while amid competition from cheap
natural gas, lower overseas demand and tougher environmental
rules.
Consol is now expecting to sell 27 million to 32 million tons of
coal in 2016, down from its previous guidance of 30.6 million to
33.4 million tons.
CNX Coal is forecasting 2016 coal sales of 4.4 million to 5.2
million tons, compared with its previous guidance of 5 million to
5.4 million tons.
Consol Energy is also a big producer of natural gas. Natural-gas
prices have tumbled recently amid demand concerns.
For its exploration and production division, Consol said it is
expecting $205 million to $325 million in capital spending,
compared with its prior guidance for $400 million to $500 million
in spending.
Consol cited greater efficiency and the deferral of some
completions into 2017.
Shares of Consol slipped 5.6% in premarket trading, while CNX
Coal was inactive.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com and Chelsey
Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 06, 2016 08:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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