Consolidated Energy 4th-Quarter Net Down 23% on Lower Coal Production

   By Ben Fox Rubin 
 

Consol Energy Inc.'s (CNX) fourth-quarter profit fell 23% as the energy company's revenue was hurt by lower coal production.

U.S. coal producers have battled major challenges as lower natural-gas prices sap demand for coal, leading coal miners to slash production and lay off workers.

Consol last month said it would lay off 147 workers as it completed the idling of its Fola mining operations in West Virginia. The company blamed a combination of increased federal environmental regulation and demand uncertainties for the move.

As the energy market shifts, Consol has been developing its natural-gas operations. In a partnership with Hess Corp. (HES), it is jointly developing its Utica Shale holdings in Ohio.

Consol posted a profit of $149.9 million, or 65 cents a share, down from $195.6 million, or 85 cents a share, a year earlier. The latest period included a charge of four cents related to a voluntary severance program and gains of 26 cents a share from asset sales.

Total revenue dropped 9.9% to $1.39 billion.

Analysts polled by Thomson Reuters expected income of 24 cents a share on $1.29 billion in revenue.

Gross margin narrowed to 40% from 42.9%, though input costs shrank 5.4%.

Earlier this month, Consol said gas production during the fourth quarter was up 5.3%, while coal production was 5.9% lower.

Shares closed Wednesday at $31.15 and were inactive premarket. The stock is down 11% over the past three months.

Write to Ben Fox Rubin at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires