43
Consol Energy's gas production increases in 3Q
youngstown
Consol Energy said Tuesday that it produced 17 percent more natural gas in the third quarter of this year than it did during the same period in 2012.
Consol, which operates both a coal and gas division, said it produced 46.1 billion cubic feet equivalent — a measure used to describe the equivalent amount of energy released by the burning of natural gas versus crude oil — in the third quarter, up from 39.5 Bcfe in 2012.
Consol’s third-quarter production included 491 million cubic feet per day of natural gas, 397 barrels per day of oil and condensates and 1,340 barrels per day of natural-gas liquids across its acreage in the Marcellus and Utica Shale plays.
The information was provided in an operational update as the company prepares to report third- quarter earnings at the end of this month.
Consol’s third-quarter report also will come amid widespread news media reports that the Canonsburg, Pa.-based company is considering breaking up its coal and gas assets, as it focuses more intently on the latter. Last week, Consol issued a statement confirming that it was evaluating its corporate structure.
The company is one of the nation’s largest and oldest coal producers, generating nearly 80 percent of its revenue from coal last year. But as its operations in the Utica and Marcellus grow, analysts say Consol remains concerned that its oil and gas assets are undervalued in the broader market.
“Our gas-production growth is beginning to accelerate as we and our Marcellus Shale partner expand the rig count. We now have a record eight rigs drilling in the Marcellus Shale on [joint venture] acreage,” said Brett Harvey, chairman and chief executive officer, in a statement released Tuesday.
The company has joint ventures, or partnerships, with Noble Energy in Pennsylvania and Hess Corp. in Ohio.
During the third quarter, Consol drilled three wells in Noble County, while Hess drilled two wells in Guernsey County.
The company also entered into an agreement with Blue Racer Midstream to construct, own and operate gathering pipelines and facilities to support production efforts with Hess. Consol said the infrastructure would greatly help move its product from drilling sites in Noble County.
With its joint ventures, Consol has drilled more than 200 wells in the Utica and Marcellus shale formations, with most in Pennsylvania.