CONSOL Energy 2015: E&P Budget Cut 33%, Utica Expands

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CONSOL Energy released its fourth quarter 2014 and plans for 2015 today. Overall CONSOL's revenues were way down for 4Q14 over 4Q13--down 90%. But that was due to a number of coal operations they discontinued in 2014. The gas drilling division had another outstanding quarter--pumping 70.5 billion cubic feet of natural gas for the quarter, up 45% year over year. For 2015 CONSOL plans to spend $1 billion on their Marcellus drilling budget (down from $1.5 billion in 2014). Marcellus Shale costs for CONSOL were $2.83 per million cubic feet equivalent (Mcfe) in 4Q14, a $0.18 per Mcfe improvement from 4Q13 which saw costs of $3.01 per Mcfe. The company achieved "all-in cash costs" of only $1.71 per Mcfe in the Marcellus Shale. And no, we're not sure what the difference is between costs and "all-in cash costs." Perhaps one of our smart readers can enlighten us in the comments? The trend is obviously good--it's costing them less and less to produce more and more gas. CONSOL says in their update that the Utica Shale continues to grow in importance for the company...

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