CONSOL Energy Inc. Announces Expected Net Investment in 2013; Provides Production Guidance for the Year 2013
January 14, 2013 at 06:45 am EST
Share
CONSOL Energy Inc. expects to invest $835 - $865 million in its coal, gas, and water businesses in 2013, after adjusting for certain expected proceeds. Within the coal operations category for 2013, CONSOL anticipates investing $318 million for maintenance-of-production projects. Other major items include $166 million for the BMX Mine, as well as $80 million for the Enlow Fork overland belt project. The BMX Mine is scheduled for completion during the first quarter of 2014, when 5 million annual tons of high-quality Pittsburgh seam coal will be available to be sold in either the high-vol or thermal markets. The company is nearing the end of a process to fund this capital commitment in a $205 million operating lease in 2013. This amount has been netted from the expected coal operations capital expenditures. Within the gas operations category, CONSOL expects to invest about $835 - $935 million. An estimated $160 million of this is to maintain production. This figure is net of approximately $100 million in drilling carry from Hess Corporation for drilling in the Ohio Utica Shale and independent of commodity price levels. CONSOL plans to spend $600 million on continuing to develop its extensive Marcellus Shale assets, which includes drilling capital of $415 million. The budget anticipates that the CONSOL/Noble Energy joint venture will drill 126 (gross) horizontal Marcellus Shale wells, including 90 (gross) wells in the liquids-rich area of the play. The company will continue to evaluate the number of dry gas wells that it drills in light of the commodity price curve and exercise appropriate capital discipline. CONSOL expects to invest $74 million in related gathering and compression.
The company provided production guidance for the year 2013. As a result of the expected gas investment, CONSOL Energy projects its 2013 gas production to be between 170-180 Bcfe, of which 95% is expected to be dry gas. Within this range are included approximately 250 Mbbls of oil and 1,200 Mbbls of condensate/NGLs. The total production, if achieved, will be an increase of between 8 - 15%, as compared to actual 2012 production of 156.3 Bcfe.
CNX Resources Corporation is an independent low carbon intensity natural gas development, production, midstream and technology company centered in the Appalachian Basin. The majority of its operations are centered on unconventional shale formations, primarily the Marcellus Shale and Utica Shale, in Pennsylvania, Ohio and West Virginia. Additionally, it operates and develops Coalbed Methane (CBM) properties in Virginia. It has rights to extract natural gas from Shale formations in Pennsylvania, West Virginia, and Ohio from approximately 527,000 net Marcellus Shale acres and approximately 607,000 net Utica Shale acres. The Company holds approximately 53,000 acres of incremental Upper Devonian acres. It has rights to extract CBM in Virginia from approximately 278,000 net CBM acres. It extracts CBM natural gas primarily from the Pocahontas #3 seam. It has rights to extract natural gas from other Shale and shallow oil and gas formations, primarily in Illinois, Indiana, New York, and others.
CNX RESOURCES CORPORATION 
