Coal news and updates

Consol Energy, CNX Coal Cut Outlooks on Commodity Weakness

Consol Energy Inc. and affiliated company CNX Coal Resources LP on Wednesday cut their sales outlooks for the year, as commodity prices continue to slump.

Consol Energy cut both its capital spending plans and its coal production guidance. CNX Coal, a master-limited partnership formed by Consol to operate its Pennsylvania mines, reduced its coal sale expectations.

Both companies pointed to unusually warm winter weather and low natural gas prices, which are weighing on demand for coal. Coal has been in a steep downturn for a while amid competition from cheap natural gas, lower overseas demand and tougher environmental rules.

Consol is now expecting to sell 27 million to 32 million tons of coal in 2016, down from its previous guidance of 30.6 million to 33.4 million tons.

CNX Coal is forecasting 2016 coal sales of 4.4 million to 5.2 million tons, compared with its previous guidance of 5 million to 5.4 million tons.

Consol Energy is also a big producer of natural gas. Natural-gas prices have tumbled recently amid demand concerns.

For its exploration and production division, Consol said it is expecting $205 million to $325 million in capital spending, compared with its prior guidance for $400 million to $500 million in spending.

Consol cited greater efficiency and the deferral of some completions into 2017.

Shares of Consol slipped 5.6% in premarket trading, while CNX Coal was inactive.

Source: wsj.com