Along with a first quarter update, yesterday CONSOL Energy’s top management held a quarterly analyst conference call. The call was loaded (and we mean LOADED) with useful information. As soon as CONSOL CEO Nick DeIuliis started speaking and sharing his prepared remarks, he noted that CONSOL is now, officially, no longer a coal company–but instead is an exploration and production (E&P) company (i.e. natural gas driller) who happens to own one last coal mine. DeIuliis said the natgas division now provides 71% of CONSOL’s revenue, and that “CONSOL is now an E&P company with essentially one remaining coal complex.” Although they’re a Marcellus/Utica driller, CONSOL hasn’t been drilling since the middle of last year. When will they restart? The jury is still out. The company wants to wait another 3-6 months to see how the market shakes out. However, they know where they will restart drilling when it happens: Monroe County, OH and Westmoreland County, PA. Also discussed on the call: CONSOL believes the NEXUS pipeline will get built; details on CONSOL’s use of “plugless completions”; how much CONSOL pays to drill a Utica well now, and how much they predict it will drop in the next year or two; and CONSOL’s crystal ball with respect to an ethane cracker plant. Buckle up!…
Along with a first quarter update, yesterday CONSOL Energy’s top management held a quarterly analyst conference call. The call was loaded (and we mean LOADED) with useful information. As soon as CONSOL CEO Nick DeIuliis started speaking and sharing his prepared remarks, he noted that CONSOL is now, officially, no longer a coal company–but instead is an exploration and production (E&P) company (i.e. natural gas driller) who happens to own one last coal mine. DeIuliis said the natgas division now provides 71% of CONSOL’s revenue, and that “CONSOL is now an E&P company with essentially one remaining coal complex.” Although they’re a Marcellus/Utica driller, CONSOL hasn’t been drilling since the middle of last year. When will they restart? The jury is still out. The company wants to wait another 3-6 months to see how the market shakes out. However, they know where they will restart drilling when it happens: Monroe County, OH and Westmoreland County, PA. Also discussed on the call: CONSOL believes the NEXUS pipeline will get built; details on CONSOL’s use of “plugless completions”; how much CONSOL pays to drill a Utica well now, and how much they predict it will drop in the next year or two; and CONSOL’s crystal ball with respect to an ethane cracker plant. Buckle up!…