CONSOL EnergyInc. reported a net loss of $468.6 million on July 26 even thoughthe company reported record quarterly natural gas production and decreasedoperating costs.
The results come the day after CONSOL announced it had soldits Miller Creek and Fola coal assets, both Central Appalachia mines with atotal of 114 million tons of coal reserves and a total of $103 million of mineclosing and reclamation obligations. Booth Energy Group will receive $44 million totake the mines andtheir liabilities from CONSOL.
After adjustment, CONSOL reported an adjusted net loss fromcontinuing operations in the second quarter of $49 million, or 21 cents perdiluted share. Including the loss from discontinued operations, net of $236million in tax, the company reported net loss of to shareholders of $470million, or $2.05 per share. The S&P Capital IQ consensus normalized EPS estimate for the recentquarter was a loss of 19 cents.
"Duringthe quarter, CONSOL drove down E&P unit costs by 18%, compared to theprior-year quarter, generated
He saidCONSOL exceeded its internal 18-month free cash flow and pushed its liquidityposition and net asset value, or NAV, per share higher in the quarter.
"Asa result, we have made the decision to employ a two-rig program in the secondhalf of 2016 since expected rates of return nicely exceed our cost of capital,while supporting our free cash flow plan and liquidity goals," DeIuliissaid. "Despite the decision to resume modest drilling activity, which willadd approximately
As of June 30, 2016,
"Whilewe have seen the industry issue equity to improve liquidity and manage leverageratios, CONSOL has focused on cutting costs, improving capital efficiencies,and monetizing assets," said
CONSOL'smaster limited partnership, CNXCoal Resources LP reported quarterly coal sales were at the highest levelsince early 2015.