CONSOL Energy Reports First Quarter 2015 Results
CONSOL Energy Inc. (NYSE: CNX) reported net income of $79 million for the quarter, or $0.34 per diluted share. This compares to net income of $116 million, or $0.50 per diluted share from the year-earlier quarter, which included a loss from discontinued operations of $6 million.
After adjusting for certain one-time items, which are listed in the EBITDA reconciliation table, the company had adjusted net income1 in the 2015 first quarter of $85 million, or $0.37 per share. Adjusted EBITDA1 from continuing operations was$266 million for the 2015 first quarter, compared to $310 million in the year-earlier quarter. Cash flow from operations in the just-ended quarter was $228 million, as compared to $336 million in the year-earlier quarter.
CONSOL's E&P Division had another outstanding quarter by achieving record production of 71.6 Bcfe, or an increase of 48% from the 48.4 Bcfe produced in the year-earlier quarter. CONSOL Energy's annual gas production guidance remains at 30% growth for 2015 and 20% for 2016.
Marcellus Shale production volumes in the 2015 first quarter were 36.3 Bcfe, or 75% higher than the 20.7 Bcfe produced in the 2014 first quarter. Marcellus Shale costs were $2.62 per Mcfe in the just-ended quarter, which is a $0.56 per Mcfe improvement from the first quarter of 2014 costs of $3.18 per Mcfe. The company achieved all-in cash costs of only $1.67per Mcfe in the Marcellus Shale, which continues to be the growth engine of the company.
CONSOL Energy's Utica Shale production volumes in the 2015 first quarter were 9.5 Bcfe, up from 1.2 Bcfe in the year-earlier quarter. Utica Shale costs were $2.48 per Mcfe in the just-ended quarter, which is a substantial improvement from the first quarter 2014. Rapidly increasing volumes continued to contribute to lower unit costs. CONSOL expects its Utica Shale program to expand due to the additional activity currently underway in Greene and Westmoreland counties,Pennsylvania; Monroe County, Ohio; and Marshall County, West Virginia. These dry Utica wells are expected to come online in the second half of the year.
"Throughout the quarter we have continued to refine, and reduce, our 2015 E&P budget, while high-grading our development plan to maximize our rates of return in what continues to be a challenging commodity price environment," commented Nicholas J. DeIuliis, president and CEO. "We continue to focus on areas within our control: driving drilling and completion efficiencies to lower capital and operating costs, working with our service providers to better align terms with current market conditions, and prudently maintaining a strong balance sheet and liquidity position."Read the whole release here.
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