Consolidated Energy to Report Second-Quarter Loss

Consol Energy Inc. on Monday warned it would report a loss for its second quarter, largely due to lower energy prices.

In addition, Consol—one of the country's biggest natural-gas producers—said it would record a "significant" write-down on its conventional shallow oil and gas assets on account of continued depressed NYMEX forward prices.

The Pennsylvania company didn't indicate how wide of a loss it expects to post. According to Thomson Reuters, analysts have expected the company to swing to a profit in the June quarter and report $10.4 million, or 10 cents a share.

In April, Consol projected second-quarter gas production of about 71 billion cubic feet and coal production of 7.1 million tons to 7.73 million tons. The company said Monday that it still expects to hit those targets.

Like many other energy companies grappling with sharply lower energy prices, Consol has this year trimmed its capital budget and it is in the midst of a restructuring program designed to help it scale back its exposure to coal. The company recently sold a stake in a new master limited partnership, CNX Coal Resources.

Shares in the company, down 43% over the past three months, were inactive premarket. Consol is slated to report second-quarter results next week.

Write to Lisa Beilfuss at [e-mail]

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