Consol says 2013 coal output expected to be 55.5 mil st-57.5 mil st
Galax, Virginia (Platts)--18Jan2013/346 pm EST/2046 GMT
Diversified coal and natural gas producer Consol Energy on Friday said
its 2013 coal production would be between 55.5 million st and 57.5 million st.
That guidance includes 3.8 million to 4 million st from Consol's
mainstay low-vol Buchanan metallurgical coal mine in southwest Virginia,
which has in years past produced between 4 million st and 5 million st/year,
mainly for export markets.
Pittsburgh-based Consol expects its first-quarter 2013 coal production
to between 13.7 million st and 14.1 million st, with Buchanan expected to
supply just under 1 million st in Q1.
Consol produced 56 million st in 2012, down from 62 million st in 2011,
the company said.
"Most of the 2012 reduction in coal production was due to the company's
efforts to control inventory," Consol said. "Several mines were idled during
2012, as the company continually sought to match production and sales."
Consol produced 14.3 million st in Q4 2012, including 700,000 st of
Buchanan's low-vol coking coal. "This was lower than the 15.2 million [st],
including 1.4 million [st] from Buchanan, in the fourth quarter of 2011," the
In Q4, Consol's total coal inventory decreased by 300,000 st to 1.4
million st as of December 31. Its thermal coal inventory decreased to 1.1
million st during the quarter, as sales exceeded production. The firm's
low-vol coal inventory from Buchanan and its Amonate mine in West Virginia
decreased from 200,000 st on September 30 to 200,000 st on December 31.
As the company mentioned when laying details of its capital expenditure
on January 14, Consol expects its 2013 gas production at about 170-180 Bcf
On Friday, the company gave more of a breakdown, saying it expected its
Q1 2013 gas production to be 39-41 Bcf, or slightly lower than the 41.8 Bcfe
produced in Q4 2012 "as frac schedules and other seasonal factors are
expected to limit wells turned into line."
The company produced 41.8 Bcfe in Q4, or 5% more than the 39.7 Bcfe
produced in Q4 2011. Its total 2012 gas production was 156.3 Bcfe.
Consol will report full Q4 and year-end 2012 financial results before
markets open on January 31, it said.
--Steve Hooks, email@example.com
--Edited by Keiron Greenhalgh, firstname.lastname@example.org