CNX 4Q17 Results: Drilled 4 New Wells, Completed 19 Wells

CNX Resources, the gas drilling part of what used to be CONSOL Energy (but now is it’s own separate company), issued their fourth quarter 2017 update earlier this week. What a difference a year can make, at least financially! In 4Q16 CNX lost $300 million. In 4Q17 CNX made a $282 million profit. That’s a swing of $582 million–over half a billion dollars. CNX used $103 million of that money to buy back some of the company’s outstanding shares of stock. CNX produced 118.9 billion cubic feet equivalent (Bcfe) of production during 4Q17, which translates to 1.32 Bcfe per day. That’s new record high production for CNX. Production costs fell to $2.17 per thousand cubic feet (Mcf). During most of 4Q17 CNX operated 2 horizontal shale drilling rigs, adding a third rig in late December. The company only drilled four new wells in 4Q17: one dry Utica Shale well in Monroe County, OH; one deep dry Utica Shale well in Greene County, PA; one deep dry Utica Shale well in Indiana County, PA; and one Marcellus Shale well in Greene County, PA. However, they kept the rigs busy by completing 19 wells–DUCs, or Drilled but UnCompleted wells, drilled prior to 4Q17. CNX proved they can walk and chew gum at the same time over the past three months. While they were drilling 4 new wells and completing another 19 wells, during that same time period they (a) split the company in two, separating the gas drilling business from the coal business, (b) bought and closed on Noble’s 50% share of what was CONE Midstream (now CNX Midstream Partners), and (c) bought back $103 million shares of the company’s common stock. Busy beavers! Here’s the full 4Q17 update from CNX Resources…

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