CONSOL Energy Inc (CNX) Company Profile | Reuters.com
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Profile: CONSOL Energy Inc (CNX)

CNX on New York Consolidated

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1 Jul 2016
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CONSOL Energy Inc. (CONSOL Energy), incorporated on October 31, 199, is an integrated energy company that operates through two divisions: oil and gas exploration and production (E&P) and coal mining. The principal activity of the E&P division is to produce pipeline quality natural gas for sale primarily to natural gas wholesalers. The E&P division's segments are Marcellus, Utica, Coalbed Methane, and Other Gas. The Other Gas segment is primarily related to shallow oil and gas production, as well as Upper Devonian Shale, and includes the Company's purchased gas activities and general and administrative activities, as well as various other activities assigned to the E&P division but not allocated to each individual well type. The principal activities of the Coal division are mining, preparation and marketing of thermal coal, sold primarily to power generators, and metallurgical coal, sold to metal and coke producers. The Coal division's segments are Pennsylvania (PA) Operations, Virginia (VA) Operations, and Other Coal. Its E&P division focuses on Appalachian area natural gas and liquids activities, including production, gathering, processing and acquisition of natural gas properties in the Appalachian Basin. Its Coal division focuses on the extraction and preparation of coal in the Appalachian Basin. The Company also holds over two joint ventures, one with Noble Energy, Inc. (Noble) in the Marcellus Shale and one with a subsidiary of Hess Corporation (Hess) in the Utica Shale.

Oil and gas exploration and production (E&P)

The Company's gas operations are located throughout Appalachia. The Company has the rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 436,000 net Marcellus Shale acres. CONSOL Energy Inc. and Noble Energy, Inc., the Company's joint venture partner, drilled approximately 80 gross wells in the Marcellus Shale, which include over 20 wells in Southwestern Pennsylvania, over 10 wells in Central Pennsylvania, over seven wells in Northern West Virginia and approximately 40 wells drilled by Noble Energy, Inc. in the wet gas area of the play. The Company controls approximately 119,000 net acres of Utica Shale in eastern Ohio. Additionally, the Company controls approximately 113,000 net acres in southwestern Pennsylvania and northern West Virginia that contain the rights to the natural gas in the Utica Shale. The Company has over 31 gross wells drilled in the Utica Shale.

The Company has rights to extract CBM in Virginia from approximately 268,000 net CBM acres, which cover a portion of its coal reserves in Central Appalachia. The Company produces natural gas from the Pocahontas #3 seam, which is the coal seam mined by its Buchanan Mine. It also has the right to extract CBM in West Virginia, southwestern Pennsylvania and Ohio from approximately 928,000 net CBM acres. In Central Pennsylvania, the Company has the right to extract CBM from approximately 260,000 net CBM acres. In addition, it controls approximately 652,000 net CBM acres in Illinois, Kentucky, Indiana and Tennessee. It has the right to extract CBM on approximately 139,000 net acres in the San Juan Basin and approximately 20,000 net acres in the Powder River Basin. The Upper Devonian Shale formation includes both the Burkett Shale and Rhinestreet Shale, lying above the Marcellus Shale formation in southwestern Pennsylvania and northern West Virginia. CONSOL Energy Inc. and Noble Energy, Inc. joint venture drilled over eight wells in the Burkett Shale and one well in the Rhinestreet Shale. The Chattanooga Shale in Tennessee is a Devonian-age shale found at a depth of approximately 3,500 feet. The shale thickness is between 40-80 feet. The Company has approximately 116,000 net acres of Chattanooga Shale. The Company operates all of its horizontal Chattanooga Shale wells. The Company holds approximately 380,000 net acres of Huron Shale in Kentucky, West Virginia and Virginia.

The Company drilled over 132.8 net development wells, 189 gross development wells and 17.7 net development wells are still in process. The Company has an aggregate of over 2.5 net exploratory wells. The Company designs, builds and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points. The Company owns or operates approximately 5,000 miles of natural gas gathering pipelines.

Coal mining

The Company has over 3.0 billion tons of proven and probable coal reserves. The Company assigns coal reserves to each of its mining complexes. The Company's PA Operations coal segment is engaged in mining, preparation and marketing of thermal coal to power generators. Its PA Operations coal segment also includes general and administrative activities. Its PA Operations coal segment includes Bailey Mine, Enlow Fork Mine, Harvey Mine and corresponding preparation plant facilities. The Company's VA Operations coal segment is engaged in mining, preparation and marketing of low volatile metallurgical coal to metal and coke producers. Its VA Operations coal segment also includes general and administrative activities. Its VA Operations coal segment includes Buchanan Mine and corresponding preparation plant facilities. The Company's Other coal segment includes coal terminal operations, idle mine activities and purchased coal activities. Its Other coal segment also includes activities related to mining, preparation and marketing of thermal coal to power generators. Its Other coal segment includes Miller Creek Complex.

Company Address

CONSOL Energy Inc

1000 Consol Energy Dr
CANONSBURG   PA   15317-6506
P: +1724.4854000
F: +1302.6555049

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