Consol Plans Asset Sales to Help Boost Natural Gas Output
Consol Energy Inc. (CNX), the third- largest U.S. coal miner by sales, plans to sell assets for $127 million to $312 million in 2013 as it ramps up production of natural gas.
Asset sales will help finance 2013 capital spending of $1.29 billion to $1.5 billion, most of of it on gas production, Consol, based in Canonsburg, Pennsylvania said today in a statement. Gas output will rise 8 percent to 15 percent above last year’s 156.3 billion cubic feet equivalent, it forecast.
The company sold $350 million of assets in 2012, according to the statement. The company forecast spending for 2012 at $1.5 billion on Oct. 25.
Consol plans to spend $835 million to $935 million to expand gas production this year, depending on prices for the heating and power plant fuel and liquids derived from it, according to the statement. Spending of about $190 million would be needed to maintain production.
Capital spending on coal mines will be $410 million to $520 million, according to the statement.
The announcement was made before regular trading began on U.S. markets. Consol fell 2.3 percent to 30.19 a share Jan. 11 in New York. As of Jan. 11, it had fallen 12 percent in the past year.
To contact the editor responsible for this story: Simon Casey at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.