Bloomberg News

Consol Plans Asset Sales to Help Boost Natural Gas Output

January 14, 2013

Consol Energy Inc. (CNX:US), the third- largest U.S. coal miner by sales, plans to sell assets for $127 million to $312 million in 2013 as it ramps up production of natural gas.

Asset sales will help finance 2013 capital spending of $1.29 billion to $1.5 billion, most of of it on gas production, Consol, based in Canonsburg, Pennsylvania said today in a statement. Gas output will rise 8 percent to 15 percent above last year’s 156.3 billion cubic feet equivalent, it forecast.

The company sold $350 million of assets in 2012, according to the statement. The company forecast (CNX:US) spending for 2012 at $1.5 billion on Oct. 25.

Consol plans to spend $835 million to $935 million to expand gas production this year, depending on prices for the heating and power plant fuel and liquids derived from it, according to the statement. Spending of about $190 million would be needed to maintain production.

Capital spending on coal mines will be $410 million to $520 million, according to the statement.

The announcement was made before regular trading began on U.S. markets. Consol fell 2.3 percent to 30.19 a share Jan. 11 in New York. As of Jan. 11, it had fallen 12 percent in the past year.

Peabody Energy Corp. (BTU:US), based in St. Louis, is the largest U.S. coal producer by sales, followed by Alpha Natural Resources Inc. (ANR:US), based in Bristol, Virginia.

To contact the reporters on this story: Sonja Elmquist in New York at selmquist1@bloomberg.net; Jim Polson in New York at jpolson@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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Companies Mentioned

  • CNX
    (CONSOL Energy Inc)
    • $38.01 USD
    • 0.03
    • 0.08%
  • BTU
    (Peabody Energy Corp)
    • $13.29 USD
    • -0.20
    • -1.5%
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