CONSOL Energy

CONSOL Energy | Energy Companies

CONSOL Energy 2Q14: Production Up, Margins Up, Costs Down
July 30, 2014July 30, 2014

CONSOL Energy issued their second quarter update yesterday. Although the company lost $25 million for the quarter due to accounting this and write-down that, the shale drilling division of the company performed like a star. Production was 51.9 billion cubic feet equivalent, up 34% over the same period a year ago. That converts to an average of 576 million cubic feet per day. Although the update contains a lot of information about the Marcellus/Utica, most of it relates to the financial aspects and not to operations. Here’s the brief couple of paragraphs of most interest to MDN:
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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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CONSOL Energy | Energy Companies | Utica Shale

CONSOL Update: Gas Production Up 34%, New Utica Wells Online
July 15, 2014July 15, 2014

CONSOL Energy reports today results for a number of their Utica wells in Noble County, OH. Their “much anticipated” 3-well NBL19 pad went online last week and initial production for each of the three wells averaged 23 million cubic feet per day or more–very impressive indeed! A CONSOL well near the NBL 19, the NBL16A, is averaging 12 million cubic feet of natural gas per day. However, the 16A is also producing 768 barrels of oil per day! CONSOL’s aggressive program has helped drive production up 34% in second quarter 2014 over 2Q13. Below is CONSOL’s operations update issued this morning…
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CONSOL Energy | Energy Companies | Industrywide Issues | Noble Energy | Pennsylvania | Pipelines | Statewide PA

CONSOL & Noble to Form New MLP Midstream Subsidiary
June 13, 2014June 13, 2014

In 2011 CONSOL Energy had amassed some 750,000 Marcellus Shale acres but didn’t have enough money to drill it all on their own. So they did what many energy companies do–they got a joint venture partner. CONSOL cut a deal with Noble Energy to split the proceeds 50/50, with CONSOL drilling in the dry gas areas and Noble drilling in the wet gas areas (see Noble Energy and CONSOL to Partner on Marcellus in $3.4B Deal). The two jv partners announced yesterday their intent to form a master limited partnership (MLP) that will form a new midstream company (pipelines) to service their vast drilling operations…
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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)…
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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…
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CONSOL Energy | Energy Companies | Energy Services | NiSource | Pennsylvania | Range Resources Corp | Rice Energy | Statewide PA | Sunoco Logistics | XTO

Rice Energy Big Winner of 2014 Energy Leadership Awards in Pitt
May 28, 2014May 28, 2014

Three people won the prize for Top Energy Executive of the year. All three have the same last name. All three work for the same company. And the company also has the same name as the three winners: Rice. Dan Rice IV, president and CEO, Toby Rice, COO, and Derek Rice, VP of exploration and geology won the Pittsburgh Business Times’ top honors at the 2014 Annual Energy Leadership Awards. A ceremony with over 400 people was held in Pittsburgh earlier this month where Derek was on hand to collect the prize for he and his brothers. In addition to big winner Rice Energy there were 20 other categories and award winners…
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CONSOL Energy | Energy Companies | Hess | Utica Shale

Hess Likes Early OH Utica Results, Drilling 35 Utica Wells in ’14
May 2, 2014May 2, 2014

With all of the lip-dragging this week over Williams canceling work on the Bluegrass ethane pipeline and BP quitting the Utica in Trumbull County, here’s a little happy news to brighten your Friday. Hess has 43,000 “core” net acres in a joint venture to drill in the Ohio Utica Shale. On an analyst call earlier this week, Hess’ top brass said they will continue to drill test wells this year and up to 35 full production wells, and then really ramp up the drilling program in the Ohio Utica in 2015. According to Hess, early results in the Ohio Utica are very good.

MDN has extracted out of the (long) analyst call those spots where the Utica was discussed, so you can read for yourself exactly what Hess’ top brass had to say…
Read More “Hess Likes Early OH Utica Results, Drilling 35 Utica Wells in ’14”
CONSOL Energy | Energy Companies

CONSOL 1Q14: Top Mgmt Changes, Change to Shale Driller Continues
April 30, 2014April 30, 2014

It’s hard to believe, but CONSOL Energy, originally a coal company, is 150 years old. The company was founded when Abe Lincoln was alive. As CONSOL’s current CEO Brett Harvey (retiring in May) says mentioning Abe and the age of CONSOL is relevant “because good assets, with the right strategy, are timeless.” CONSOL issued their first quarter operating and financial report yesterday (see it below). After experiencing a net loss last year at this time, CONSOL’s 1Q14 net income was a healthy $116 million on the black side of the ledger.

In the Marcellus Shale, CONSOL Energy and its joint venture partner drilled 35 wells, completed 23 wells, and had 11 wells turned in line. In the Utica Shale, CONSOL Energy and its joint venture partner drilled 7 wells, completed 3 wells, and had 10 wells turned in line. Below we have an overview of yesterday’s CONSOL 1Q14 report, the report itself, and a portion of an analyst call with top management…
Read More “CONSOL 1Q14: Top Mgmt Changes, Change to Shale Driller Continues”
Allegheny County | CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation

CONSOL to Begin Drilling at Pittsburgh Airport Next Week
April 25, 2014April 25, 2014

The last hurdle has been jumped for CONSOL Energy with their plan to begin drilling at Pittsburgh International Airport. MDN has extensively covered the plan put forward by CONSOL to drill 47 wells on airport property–a plan that will ultimately net the airport something like $1 billion in revenue (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). The last hurdle was zoning permit approval from Findlay Township, where the property is located. MDN pointed out more than a month ago that Findlay was holding things up (see Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport).

Wednesday night, Findlay supervisors voted 2-1 to approve CONSOL’s permits to drill at the airport. But not without 23 “conditions” attached to their approval, including limits on noise, working hours, creation of a public complaint hotline and air monitoring throughout drilling operations. Still, CONSOL was happy with the end result and says they’re ready to begin, as early as next week, a drilling program that will be “a model for the entire nation”…
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CONSOL Energy | Energy Companies

CONSOL Energy Doubles Marcellus Production in 1Q14
April 9, 2014April 9, 2014

CONSOL Energy is early out of the chute with a heads up on their first quarter 2014 performance. The company says natural gas production for 1Q14 was 48.4 billion cubic feet equivalent (Bcfe), which is up 23% from 1Q13 (however Marcellus production doubled in the same period). CONSOL also said they are on track to produce 215 – 235 Bcfe by the end of this year.

A full operational report with all the details is coming April 29. In the meantime, here’s CONSOL’s short-and-sweet press release from Monday:
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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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Allegheny County | CONSOL Energy | Energy Companies | Industrywide Issues | Pennsylvania | Regulation

Local Town Slows CONSOL’s Plan to Drill at Pittsburgh Airport
March 13, 2014March 13, 2014

More than a year ago the Pittsburgh International Airport, located about 20 miles west of downtown Pittsburgh, elicited bids to have shale drilling done on 9,263 acres of airport-owned land. After some toing and froing, CONSOL Energy was awarded the contract. After some more toing and froing, CONSOL raised the lease signing bonus to 50 million smackeroos (see CONSOL Increases Bonus Offer to Pgh Airport by 2.4 Times to $50M). Then the real work began. CONSOL has put together a plan to drill 47 wells on 6 well pads, building three water impoundments (see CONSOL Energy Reveals Drilling Plan for Pittsburgh Airport). CONSOL is going to extraordinary lengths with the airport project, including the use of all-electric drilling rigs (a first in the Marcellus). Problem is, three people on the Findlay Township board have the power to approve, or not, the permits to drill. Findlay has CONSOL by the proverbial short hairs, especially since the right to zone oil & gas activities by local municipalities was upheld when the Act 13 law was trampled by seven PA towns that sued and won in state Supreme Court–a decision handed down just a few months ago.

Last night CONSOL presented their safety plan to the three Findlay board members and interested local residents who attended the board’s regular meeting. The bone of contention (for some local residents) is the location for one of the proposed drill pads–about a half mile from a populated neighborhood. When the hour plus presentation by CONSOL was over, and local residents had had their say, the Findlay board members decided to postpone a decision to approve CONSOL’s permits, yet again…
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CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | Pipelines | Statewide WV | West Virginia

CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends
February 24, 2014February 24, 2014

CONSOL Energy’s CEO Brett Harvey must be getting some heat over the company’s recent announcement that they have signed an agreement to export ethane from the Marcellus to Europe (see CONSOL to Begin Ethane Shipments Next Year–to Europe?!). Why would we say CONSOL is getting blowback? Because Harvey penned an op-ed that appears in The Intelligencer/Wheeling News-Register giving a spirited defense of their decision. The gist of Harvey’s points, if we might summarize, is this: CONSOL has deep roots and is committed to WV; there’s plenty of ethane to go around, including for exports (and exports bring money into WV); CONSOL is also going to sell ethane to the Odebrecht ethane cracker when/if it gets built; in the meantime, selling ethane to Europe means CONSOL will have more money to invest in WV.

Here’s Harvey’s “it’s OK” op-ed:
Read More “CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends”
CONSOL Energy | Energy Companies | Ethane | Exporting | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Statewide PA

CONSOL to Begin Ethane Shipments Next Year–to Europe?!
February 17, 2014February 17, 2014

CONSOL Energy is a big, important driller in the Marcellus and Utica Shale. Most of their operations are in “wet gas” areas–those locations that produce a lot of natural gas liquids (NGLs), like ethane, along with “dry gas” or methane. Although CONSOL has a lot of acreage in southwestern PA and in WV and eastern OH, the ethane they produce will not be going to a proposed new ethane cracker plant being built by Odebrecht in Parkersburg, WV. Instead, CONSOL is going to send their ethane by pipeline to an export facility in Philadelphia, and from there, on to Europe for processing and use in European petrochemical factories.

Why in the world ship ethane all the way to Europe for processing instead of selling it in your own back yard? Timing. CONSOL doesn’t want to wait the 4-5 years for an ethane cracker to be built (if it’s built at all). They’ve adopted a “bird in hand” strategy. They’d rather start shipping it next year, when Sunoco Logstics’ Mariner East pipeline is up and running, rather than wait. And so CONSOL, according to their announcement below, has locked in a deal with Ineos Europe AG. But don’t despair, CONSOL also previously signed an agreement with Shell to provide its cracker plant in Beaver County, PA with ethane–when and if that plant gets built…
Read More “CONSOL to Begin Ethane Shipments Next Year–to Europe?!”