Consol Energy Inc.'s (CNX) first-quarter profit fell 49%, in
part on costs associated with acquisitions. Results at
majority-owned CNX Gas Corp. (CXG) also weakened.
But Consol shares rose 2.8% premarket to $45.35 as earnings
handily beat analysts' expectations. CNX was inactive.
Consol, like other coal and gas companies, has been hurt by low
prices and high inventories. However, demand is rising for the type
of coal used to make steel.
Meanwhile, Consol is diversifying away from coal, with plans to
buy the 17% of CNX it doesn't already own and acquire Dominion
Resources Inc.'s (D) natural-gas business.
Consol's profit was $100.3 million, or 54 cents a share, down
from $195.8 million, or $1.08 a share, a year earlier. Excluding
costs from the Dominion deal and other impacts, earnings were 85
cents.
Revenue rose 1.7% to $1.24 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of 75 cents on $1.22 billion in revenue.
At CNX, it had a profit of $45.6 million, or 30 cents a share,
down from $54.9 million, or 36 cents a share. Revenue increased
7.8% to $192.3 million. Analysts expected 33 cents and $189
million, respectively.
-By Matt Jarzemsky and Kevin Kingsbury; Dow Jones Newswires;
212-416-2240, matthew.jarzemsky@dowjones.com