CONSOL Energy 3Q17: NatGas & Coal Companies to Split Nov 28

Yesterday CONSOL Energy issued its third quarter 2017 update, along with a date for when the company will split in two–a coal company and a natural gas drilling company. The date is Nov. 28th. As of that date the CONSOL Energy name will belong to the coal company, and CNX Resources will be the new name of the natgas drilling company. According to Nick DeIuliis, CEO of CONSOL today and future CEO of CNX Resources, “Going into year-end, not only will our businesses be separated, but our E&P operations will be growing substantially.” One of the ways they intend to grow is by adding a third drilling rig to the two currently operating. Right now CONSOL is operating a rig in Greene County, PA and another in Monroe County, OH. The original plan was to add a third rig in 2018, but they are “moving it forward some” and will add it this year–somewhere in southwestern PA. During 3Q17 CONSOL drilled 10 wells–six of them in the Marcellus in southwest PA, and four in the Ohio Utica. The company continues to have a flirtation with the Utica–in PA. They have a program to drill dry Utica wells in both Indiana and Greene counties. The company said they plan to bring two Utica wells online in Westmoreland County by the end of the year–close to the first Utica well they drilled two years ago. Production was up slightly in 3Q17, to 101 billion cubic feet equivalent (Bcfe). By comparison, in 3Q16 CONSOL produced 96.4 Bcfe. Below is yesterday’s update, the current slide deck used on the analyst call, and excerpts from the analyst call…

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