CNX

[BigSully1]

 

CONSOL Energy Inc.
Consol Plaza
1800 Washington Road
Pittsburgh, PA 15241
United States - Map
Phone: 412-831-4000
Fax: 412-831-4103
Web Site: http://www.consolenergy.com

DETAILS  
Index Membership: S&P 500
S&P 1500 Super Comp
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Full Time Employees: 7,253


BUSINESS SUMMARY  
CONSOL Energy, Inc. engages in the production of multi-fuel energy and provision of energy services primarily to electric power generation industry in the United States. It involves in the mining, preparation, marketing, and sale of steam coal, primarily to power generators, as well as metallurgical coal to metal and coke producers. The company produces and sells methane gas primarily to gas wholesalers. As of December 31, 2006, CONSOL Energy had total estimated proved developed and undeveloped reserves of approximately 1,263,293 million cubic feet of gas. The company was founded in 1991 and is based in Pittsburgh, Pennsylvania.

-------------------------------------------------------------------------------------------------------------

Attempting to breakout to new high

[422fwhp]

Nice.

FDG hit a new high, too.

[422fwhp]

Thanks for bringing this to my attention.  Did you see FDG?

[BigSully1]

Thanks for bringing this to my attention.  Did you see FDG?

Your welcome. I didn't notice FDG, so thanks for bringing it up, awesome breakout.

[BigSully1]

     

Indie Research
Consol a Popular Coal Producer Among Pro Investors
Friday February 1, 11:35 am ET
By the tickerspy.com Staff


Coal prices have caught fire as supply disruptions around the world have boosted the price of the fuel used to produce 40% of the world's electricity. China, a major coal user and producer, suspended exported shipments for February and March, while South Africa and India are cutting back shipments in favor of fulfilling domestic consumption needs. The end result has been a spike in Asian spot coal prices and in demand for coal that has already helped benefit producers in the United States.
ADVERTISEMENT


U.S. producers that are in a position to export, principally mine operators in the Appalachian region, benefit from the global disruptions because Europe gets much of its imported coal from South Africa and India. Eastern U.S.-based coal producers are now better positioned than in the past to supply Europe cost effectively, thanks in part to the depressed value of the dollar.

In light of these factors, it's worth looking at where Pro investors have been active in the sector. Of the firms that have disclosed their end-of-Q4 holdings to the SEC (more will be submitting filings in the coming weeks), insurance giant Prudential counted a pair of coal producers as its top-two U.S.-listed equity holdings. During the quarter, Prudential raised its stake in Peabody Energy (NYSE: BTU - News) and essentially held steady with its stake in Consol Energy (NYSE: CNX - News). A list of the other equities among Prudential's top holdings is available at tickerspy.com.

The most popular coal producer among the Pros is Consol, with 12 investment firms holding the stock according to recent filings. Among the stock's biggest institutional holders is Prudential with 4.8 million shares.

While the Pros like Consol, the favorite coal producer among tickerspy.com members is Peabody Energy. Investors who own Peabody also own shares of other coal producers like James River Coal (Nasdaq: JRCC - News), International Coal (NYSE: ICO - News), Arch Coal (NYSE: ACI - News), and Massey Energy (NYSE: MEE - News).

[BigSully1]

update

[setravis]

Time to Buy This Tasty Appalachian Combination?

"Hey, you got peanut butter on my chocolate!"

Just like the chocolate purist in those old ads who protested the delectable combination, coal investors protested CONSOL Energy's (NYSE: CNX - News) deeper dip into natural gas Monday with a 10% sell-off, dropping shares beneath $49 apiece. Although swallowing fossil fuels is never a good idea, investors may wish to "taste" this unique combination of fuels before protesting themselves.

With a landmark $3.48 billion deal to acquire natural gas assets from Dominion Resources (NYSE: D - News), CONSOL will transform itself from a strong coal company with a relatively small gas kicker into a unique new sort of energy company, boasting a nicely balanced portfolio of coal and natural gas.

Two great fuels that fuel earnings together
Surprisingly, though coal and gas resources routinely appear in tandem in Appalachia, CONSOL is the only major coal producer to offer investors significant exposure to both fossil fuels. As CEO J. Brett Harvey explains, CONSOL Energy has just increased its "opportunities to extract incremental value through stacked pay zones of surface assets, coal, coal bed methane, shale gas, and conventional gas assets."

Like peeling back the layers of an onion, natural gas offers an additional stratum of profitable energy trapped beneath many coal assets extracted by the region's miners. Rich potential synergies lie in leveraging both the methane resources frequently found beneath Appalachian coal deposits, and the relatable exploration expertise and highly prospective real estate of those deposits. If its rivals ever catch on to the benefits of its new approach, we may one day see CONSOL's groundbreaking energy mix as the tastiest combination of all.

As CONSOL's website states:

... the importance of having an operational footprint in place can't be over-emphasized. CNX Gas (NYSE: CXG - News) is drilling its Marcellus Shale acreage directly beneath where it's drilling for coalbed methane in southwestern Pennsylvania. The same people and infrastructure are being used for both.

With a 3-trillion-cubic-foot head start of proved reserves over coal competitors like Massey Energy (NYSE: MEE - News) and Patriot Coal (NYSE: PCX - News), CONSOL Energy now stands in a league of its own.

Through its 83% stake in subsidiary CNX Gas, CONSOL already enjoyed quality gas exposure before this deal, including prospective acreage in the coveted Marcellus shale. After a successful exploration program in 2009, CONSOL's subsidiary replaced 400% of production, raising proved reserves to 1.9 trillion cubic feet (Tcf). Adding some 9,000 producing wells with 41 Bcfe of estimated 2010 production, the Dominion assets are expected to raise CONSOL's proportion of revenue derived from natural gas from 15% in 2009 to 35%.

Both coal and natural gas have seen some noteworthy price swings over the past couple of years, including a difficult period in which utilities switched from burning coal to temporarily cheaper natural gas. Over the long run, CONSOL's dual exposure will smooth out the peaks and valleys of such price volatility. Toss in CONSOL's recent success in exporting coking coal directly to China, and it's easy to see why CONSOL retains this Fool's uninterrupted nod as the top name for coal in the Appalachian region. Sound off in the comments section below about this transformative deal.