CONSOL Energy Announces Revised 2015 E&P Capital Budget
PITTSBURGH, March 13, 2015 - Consol Energy Inc. (NYSE: CNX) announced today a revised 2015 E&P capital expenditure (CAPEX) forecast of $920 million, excluding business development, permitting, and land acquisitions, which is a decrease from the initial $1.0 billion E&P capital plan that was announced in January 2015. The revised budget reflects a continued focus to high-grade the development plan to further reduce capital in a lower commodity price environment, while maintaining the E&P production growth target of 30% in 2015. In addition to reducing capital, CONSOL also continues to make significant progress on driving operating costs lower through cutting costs and implementing efficiency improvements with the goal of keeping its year-end 2015 leverage ratio flat, when compared to 2014. Excluding Marcellus gathering capital of approximately $100 million, CONSOL expects to allocate approximately 52% of the remaining E&P capital budget towards dry-gas development. CONSOL is retaining the flexibility to increase activity levels in the second half of 2015 if the forward trend in gas prices justifies increasing production. Whether CONSOL increases its activity levels in 2015 will largely determine the production growth in 2016, which the company expects to exceed 20% over 2015 production levels. About CONSOL Energy
Consol Energy Inc. (NYSE: CNX) is a Pittsburgh-based producer of natural gas and coal. The company is one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin. CONSOL Energy deploys an organic growth strategy focused on rapidly developing its resource base. As of December 31, 2014, CONSOL Energy had 6.8 trillion cubic feet equivalent of proved natural gas reserves. The company's premium coals are sold to electricity generators and steel makers, both domestically and internationally. CONSOL Energy is a member of the Standard & Poor's 500 Equity Index and the Fortune 500. Additional information can be found at www.consolenergy.com.
Cautionary Statements:
Various statements in this release, including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Exchange Act) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release, if any, speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks, contingencies and uncertainties relate to, among other matters, the following with respect to our capital investment in 2015: deterioration in economic conditions in any of the industries in which our customers operate or a worldwide financial downturn; an extended decline in prices we receive for our coal, gas and natural gas liquids; the disruption of rail, barge, gathering, processing and transportation facilities and other systems that deliver our coal and gas to market; the impact of potential, as well as any adopted regulations relating to greenhouse gas emissions on the demand for coal and natural gas, as well as the impact of any adopted regulations on our coal mining operations due to the venting of coalbed methane which occurs during mining; the risks inherent in coal and gas operations being subject to unexpected disruptions, including geological conditions, equipment failure, timing of completion of significant construction or repair of equipment, fires, explosions, accidents and weather conditions; decreases in the availability of, or increases in, the price of commodities and services used in our mining and gas operations; obtaining and renewing governmental permits and approvals for our coal and gas operations; the effects of government regulation on the discharge into the water or air, and the disposal and clean-up of, hazardous substances and wastes generated during our coal and gas operations; the effects of stringent federal and state employee health and safety regulations, including the ability of regulators to shut down a mine or well; the outcomes of various legal proceedings, which are more fully described in our reports filed under the Securities Exchange Act of 1934; actions taken by our joint venture partners in existing joint ventures and acquisitions or joint ventures that we may enter into in the future; our ability to acquire water supplies needed for gas drilling, or our ability to dispose of water used or removed from strata in connection with our gas operations at a reasonable cost and within applicable environmental rules; provisions of our debt agreements; failure by Murray Energy Corporation to satisfy the liabilities it assumed from us as well as to perform its obligations under various agreements; and other factors discussed in the 2014 Form 10-K under "Risk Factors," as updated by any subsequent Form 10-Qs, which are on file at the Securities and Exchange Commission.
SOURCE Consol Energy Inc.
Contact
Investor Relations: Tyler Lewis, 724-485-3157; Media Relations: Kate O'Donovan, 724-485-3097; Brian Aiello, 724-485-3078