CNX Resources

CNX Resources | Commodity Price | CONSOL Energy | Energy Companies | Industrywide Issues

Where Do Drillers Like CONSOL Think Gas Prices are Heading?
December 14, 2015December 14, 2015

Where do Marcellus/Utica drillers believe the price of natural gas in the northeast is heading over the next few years? Wouldn’t you love to be a fly on the wall in boardroom meetings where gas price is discussed? We have the next best thing. It’s called hedging. Drillers (and others who buy and sell natural gas) often engage in a practice called hedging, which is, in a simplified explanation, a contract to sell (or buy) a commodity like natural gas at an agreed-on price at a future date. There is an element of risk in hedging. What if the price goes a lot higher? You have to sell at the lower price you agreed to. What if the price goes a lot lower? You’ve covered your derriere by locking in a higher price for the gas your produce. If you look at the hedging contracts gas companies strike, you get a sense for where they believe the price will go. We have an example from CONSOL Energy which has just released details of their hedging for the next few years. Where does CONSOL believe the price of natural gas is going from now until 2018? In a word, down…
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CNX Resources | CONSOL Energy | Energy Companies

CONSOL’s Bankers Say Company has $2B Worth of Gas in the Ground
November 24, 2015November 24, 2015

CONSOL Energy, one of the larger drillers in the Marcellus/Utica (based in Pittsburgh, a coal company transitioning to a gas company) issued an announcement yesterday that they’ve passed their twice-per-year test by their bankers and that once again their “borrowing base” is reaffirmed as being worth $2 billion. So what’s a borrowing base and why is it important?…
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Anti-Drilling/Fossil Fuel | CNX Resources | Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Regulation | Westmoreland County

3 Western PA Antis Weigh Appeal of Court Ruling in Zoning Case
November 12, 2015November 12, 2015

Three anti-drillers in Westmoreland County, PA are continuing their quest to deny their neighbors the right to allow natural gas drilling. You may recall one week ago we told you that a clear-thinking western PA county judge ruled that there are two sides to the Act 13 court case–local municipalities don’t always have to rule you *can’t* allow drilling in certain areas, sometimes the decision goes the other way *to* allow it (see PA County Court Rules Drilling OK in Ag/Residential District). In this particular case, three ladies–Dolores Frederick, Patricia Hagaman and Beverly Taylor–have their knickers in a twist that one of their neighbors, a farm owned by John and Anne Slike, wants to allow CNX Gas (i.e. CONSOL Energy) to drill on their property, some 1,200 feet away. The three ladies lost. But as with antis everywhere, the rule of law makes no difference. They (and their lawyer) are still agitating to try and prevent the Slikes from moving forward. They’re deciding whether or not to appeal the decision…
Read More “3 Western PA Antis Weigh Appeal of Court Ruling in Zoning Case”
CNX Resources | Crime | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

OH Man Steals $100K of Equipment from CNX Drill Pads in PA
October 12, 2015October 12, 2015

A Belmont, Ohio man is accused of stealing more than $100,000 worth of equipment from two CNX Marcellus well sites just across the border in Greene County, PA. Two thefts happened in mid-August, and a third one on Sept. 21. Matthew Bartimus, currently hailing from Bethesda, OH, is accused of stealing a flaring chimney, pipeline choking systems, shutoff values and numerous studs and bolts. Not stuff you just throw on eBay or peddle at the local flea market. But then nobody ever accused common criminals of actually having any brains. Apparently he had a market for his stolen goods from August because Bartimus showed up to steal again in September. This time, however, he was caught red handed by employees arriving for work who held Bartimus until the police arrived. In later questioning, Bartimus confessed to the thefts…
Read More “OH Man Steals $100K of Equipment from CNX Drill Pads in PA”
CNX Resources | CONSOL Energy | Energy Companies | Industrywide Issues | M&A

CONSOL’s #1 Stockholder Says Spin Off CNX Gas…or Sell It
July 22, 2015July 22, 2015

The plot thickens. Last week MDN was the first, and until now the only, source reporting on rumors that CONSOL Energy may sell it’s CNX Gas division (see Rumors Circulate that CONSOL May Sell Itself to Noble Energy). We were roundly criticized (privately) for our speculation and reportage of gossip heard round the water cooler–even though we made it clear it’s just rumor and speculation. We told you on Monday that rumors continue to persist (see CONSOL Energy/Noble Energy Rumors Continue to Swirl). Indeed, the rumors of a CNX sale DO continue to persist–but now it’s not just some obscure industry blog like MDN doing the speculating. Now it’s none other than CONSOL Energy’s #1 investor–corporate raider Mason Hawkins–the guy who owns 21% of CONSOL’s stock. Yes, the same Mason Hawkins who conspired with villainous corporate raider Carl Icahn to oust Aubrey McClendon from Chesapeake Energy and has since caused Chessy to sell off many of its assets. According to an SEC filing on July 20, Hawkins is actively talking to CONSOL and to potential buyers of the CNX Gas division. Hawkins is telling CONSOL to either spin off CNX Gas into its own company–or sell it…
Read More “CONSOL’s #1 Stockholder Says Spin Off CNX Gas…or Sell It”
Allegheny County | CNX Resources | CONSOL Energy | Energy Companies | Pennsylvania | Utica Shale

CONSOL Energy May Add More Utica Wells to Pitt. Airport Project
June 25, 2015June 26, 2015

Correction: The information MDN used for this post was derived from an inaccurate news account that misstated CONSOL received a permit to drill one Utica well at the Pittsburgh Airport. That was factually incorrect. CONSOL has received no permits for a Utica well–only permits for Marcellus and Upper Devonian wells. If they pursue drilling Utica wells at the airport, they will likely need a new environmental impact study done first. Our thanks to CONSOL for contacting us to clarify.

From the “Hmmm, that’s interesting” department: Speaking at yesterday’s Hart Energy DUG East conference in Pittsburgh, CONSOL Energy vice president Craig Neal said the company is considering requesting a change in its drilling plan at the Pittsburgh International Airport. CONSOL, as you may recall, is in the midst of a multi-year program to drill 45 Marcellus Shale wells and a handful of ~~Utica and~~ Upper Devonian wells at the Pittsburgh Airport (see Sky is the Limit: CONSOL Begins Drilling at Pittsburgh Airport). The permits and plan call for ~~a single~~ no Utica Shale wells, but yesterday Neal said the company is mulling over the possibility of swapping out some of the Upper Devonian wells they had planned to drill on some pads with deeper Utica wells instead…
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CNX Resources | CONSOL Energy | Energy Companies | Industrywide Issues | Jobs | Pennsylvania | Statewide PA | Statewide WV | West Virginia

CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA
April 10, 2015April 10, 2015

UPDATE 4PM 4/10/15: A highly placed source tells MDN that the number of total layoffs in the gas division is 170, many of which happened today. The total number is just shy of 5% of CONSOL’s total workforce. Our thoughts and prayers go to those affected.

It’s not often that MDN gets to break news–but from scouring available news sources, we believe this is one of those times. Yesterday a long-time MDN reader phoned MDN to report that CONSOL Energy has begun, and is in the process of, a large round of layoffs in its CNX Gas division. The layoffs include personnel cuts in the following CONSOL locations: In WV there have been cuts in the Jane Lew and Bluefield offices; and in PA, cuts have been made (or will be made) in the Waynesburg, Indiana, and Canonsburg offices. We must stress this is second-hand information. We believe our source, but we do not have confirmation of cuts in all of those locations. Our source told us he had once worked in the Jane Lew office when that operation was part of Dominion (prior to CONSOL taking it over) and that someone he once worked with in that office–a woman who’s worked in that office/operation for 28 years–was just given her pink slip. So our source has an inside track on the situation. However, it’s always best to get confirmation, so MDN contacted CONSOL via email to ask for confirmation (or denial) and this is what CONSOL said…
Read More “CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA”
Accidents | CNX Resources | CONSOL Energy | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

Fire at CONSOL Well Pad Site in Greene County, PA
July 15, 2014July 15, 2014

CONSOL Energy experienced a small fire yesterday around 3:30 pm at their Green Hill 11 drill pad near Waynesburg (Greene County), PA. There are precious few details, but we know that no one was injured, and the fire was out and the fire department left the scene within two hours–meaning it was fairly minor…
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CNX Resources | CONSOL Energy | Energy Companies | Meetings | Range Resources Corp

DUG East Roundup from Day 1: Range, CONSOL, EIA, FERC
June 5, 2014June 5, 2014

Seems that the Developing Unconventional Gas (DUG) East Conference, hosted by Hart Energy this week in Pittsburgh, is generating a lot of news. Unfortunately MDN could not attend DUG East this year. We have, however, done a roundup of interesting and important news from speakers at DUG, including news from CONSOL Energy, Range Resources, the Energy Information Administration (EIA) and the Federal Energy Regulatory Commission (FERC)…
Read More “DUG East Roundup from Day 1: Range, CONSOL, EIA, FERC”
CNX Resources | Columbiana County | CONSOL Energy | Energy Companies | Ohio | Utica Shale

CONSOL Energy Pulls Out of Northeastern Ohio
June 2, 2014June 2, 2014

Yet more evidence that drillers are abandoning northern Ohio. CONSOL Energy has opted to not renew a lease at the Columbiana County Port Authority’s industrial park in Leetonia. CONSOL leased 10,000 square feet at the industrial park in March 2012 for $252,199 per year. That’s a half million bucks for two years. Now gone. Why? Leaky roof? Bad neighbors? Nope. CONSOL loved the facility. They said the decision to not renew was because…
Read More “CONSOL Energy Pulls Out of Northeastern Ohio”
Allegheny County | CNX Resources | CONSOL Energy | Energy Companies | Pennsylvania

CONSOL Gets FAA Clearance for Take Off with Pitt Airport Drilling
April 2, 2014April 2, 2014

Really good news for CONSOL Energy and their CNX Gas subsidiary: The Federal Aviation Administration (FAA) has given their blessing for CONSOL’s plan to drill at Pittsburgh International Airport. Not only has the FAA granted it’s approval, so too has the federal Environmental Protection Agency, the U.S. Fish & Wildlife Service, the Federal Highway Administration and the U.S. Army Corps of Engineers.

For more than a year CONSOL has been working on a plan that will please everyone so they can drill on Pittsburgh Airport property–a plan that the Airport hopes will ultimately net them $1 billion or more (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). Just about every letter in the alphabet soup of Washington, DC agencies has now reviewed and approved CONSOL’s plan to drill at the Pittsburgh Airport. So, can we get drilling already?!…
Read More “CONSOL Gets FAA Clearance for Take Off with Pitt Airport Drilling”
CNX Resources | CONSOL Energy | Energy Companies

CONSOL Getting New CEO, Old CEO Kicked Upstairs as Exec Chairman
March 25, 2014March 25, 2014

More change on the way at CONSOL Energy. Over the past several years CONSOL has been on a mission to transform itself from one of the country’s largest coal producers to one of the country’s biggest shale exploration and production companies. And they’re succeeding. Along the way, CONSOL’s shale drilling division, CNX Gas, was guided by the very capable hand of COO Randy Albert–until he announced his retirement late last year. In January, Randy’s replacement, Tim Dugan, took the reigns at CNX (see New CNX Gas COO Tim Dugan – Marcellus & Utica Experience).

Now there’s change afoot in the top job at CNX’s parent CONSOL. J. Brett Harvey, Chairman and CEO, will become Executive Chairman of the company (they’re kicking Brett upstairs). In his place becoming CEO will be current CONSOL president Nicholas J. DeIuliis. Nick will add CEO to his business card and be put in charge of the day to day operations at the company. Nick is a youthful 45 years old, taking the reigns of a $9.3 billion company. Here’s the announcement about the coming promotions at CONSOL, from last Friday:
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CNX Resources | CONSOL Energy | Energy Companies

CONSOL Reports Record Gas Production in 4Q13, Bumps Up Guidance
February 4, 2014February 4, 2014

On Friday CONSOL Energy (and its CNX Gas division) issued an update on activity for the fourth quarter of 2013. The company reported net income of $738 million, but the majority of that ($591 million) came from “discontinued operations”–which means from the five WV coal mines they recently sold (see CONSOL Sells More Coal Mines, Investing $24B(!) in Shale Drilling). The gas division had a record 4Q13, producing 48.5 billion cubic feet of natural gas equivalent (Bcfe). Although it’s a 4Q13 update, CONSOL also hauls out the crystal ball and says that for 2014 the company estimates it will produce 215 – 235 Bcfe of natural gas. In addition, they’ve stuck their necks way out and say that for 2015 and 2016 those numbers will go up an average 30% each year.

And so, like a broken record, we once again repeat that CONSOL continues its transformation from coal energy producer to natural gas energy producer. Here’s the update from Friday:
Read More “CONSOL Reports Record Gas Production in 4Q13, Bumps Up Guidance”
Allegheny County | CNX Resources | CONSOL Energy | Energy Companies | Pennsylvania

CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport
December 19, 2013December 19, 2013

This is really cool. CONSOL Energy announced yesterday at their “second and final” public workshop on drilling at the Pittsburgh Airport that they will use electric motors to drill on airport property. This is the first time they’ve tried it. By using electric, CONSOL says it will “significantly reduce emissions and noise during development.”

CONSOL was the winning bidder to drill on (and under) airport property–drilling that will bring the airport as much as a half billion dollars in fees and royalty payments (way more than they’ll ever get from gate fees from airlines). CONSOL is slated to begin drilling in July 2014 with plans to drill a total of 45 Marcellus Shale wells. Here’s the details from yesterday’s meeting:
Read More “CONSOL to Use Electric Motors for Drilling at Pittsburgh Airport”
CNX Resources | CONSOL Energy | Energy Companies

CNX Gas Chief Randy Albert Retiring, Search On for Successor
November 19, 2013November 19, 2013

Oh no! Randy Albert, the Chief Operating Officer (COO) of CNX Gas–that is, the guy who runs the natural gas drilling division of CONSOL Energy–is retiring. CNX/CONSOL is a major Marcellus/Utica driller (347,000 acres in the Marcellus, 80,000 acres in the Utica). Randy is not only the guy who helped set CONSOL on the path to change from coal mining to natural gas production (having worked for CONSOL for 34 years), he’s also a founding board member of the Marcellus Shale Coalition (MSC) and most recently its chairman. MDN editor Jim Willis had the pleasure of meeting and speaking with Randy at the recent Shale Insight event in Philadelphia.

Randy is “good people” and he will be sorely missed–but we wish him well! He has some big shoes to fill. CONSOL is currently conducting a nationwide search for his successor. The announcement from CONSOL:
Read More “CNX Gas Chief Randy Albert Retiring, Search On for Successor”
CNX Resources | CONSOL Energy | Energy Companies

Water Cooler Talk: CONSOL Energy Splitting?
October 24, 2013

Is CONSOL Energy/CNX Gas getting ready to split? As in, spin-off the company into two pieces, one for its traditional coal business (CONSOL’s coal business has been around since the Civil War), and one for natural gas drilling? Apparently that’s the speculation “going around”–at least among energy industry analysts who seem to have ADHD when it comes to predicting mergers, acquisitions, takeovers and now–it seems–spin-offs.

An interesting (and balanced) article appears on yesterday’s Seeking Alpha investor’s website talking about the prospects of a CONSOL spin-off…
Read More “Water Cooler Talk: CONSOL Energy Splitting?”