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Consol Energy Inc. (CNX) Thursday said its fourth-quarter net income surged on higher coal prices and increased production, but added it plans to limit capital spending in the face of softening demand.

Consol posted net income of $176 million, or 97 cents a share, for the fourth quarter, up from $7 million, or 4 cents a share, a year earlier. Revenue grew 35% to $1.24 billion.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 63 cents on revenue of $1.24 billion.

The Pittsburgh coal-mining company expects production to remain flat this year at 65 million tons, while treating all capital expenditures on coal production as discretionary amid current economic conditions.

U.S. coal companies have been trimming production as demand from the steel and power sectors slows and U.S. coal exports decline. Spot coal prices have fallen sharply, with the New York Mercantile Exchange benchmark futures contract for Central Appalachian coal dropping nearly 60% since summer record highs.

Shares of Consol rose 2.8% to $29.75 early Thursday.

Consol benefited from a run-up in coal prices in the first half of last year, seeing its average realized price increase 28% to $51.88 per ton. Sales grew 8% to 17.3 million tons.

Consol has more than 95% of its planned production for the year priced 26% higher than last year, the company said.

Because of uncertainties in U.S. and global economies, Consol said it will take a cautious approach to cash management and capital spending in the coming year. The company didn't provide an annual capital budget, while its total liquidity was $380 million as of December.

CNX Gas Corp. (CXG), which of which Consol owns more than 80%, reported a more than 90% increase in net income for the fourth quarter, jumping to $58 million. Consol continues to purchase additional shares of the natural gas company, but doesn't plan to take it private.

-By Mark Peters, Dow Jones Newswires; 201-938-5400; mark.peters@dowjones.com

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