Strong quarter boosts Consol outlook

PRODUCER Consol Energy is citing a solid second quarter performance for its decision to increase its full year production guidance.
Strong quarter boosts Consol outlook Strong quarter boosts Consol outlook Strong quarter boosts Consol outlook Strong quarter boosts Consol outlook Strong quarter boosts Consol outlook

A Consol Energy longwall

Donna Schmidt

The company said on Thursday its total annual production outlook had increased from 60-62 million short tons to 62-63Mt.

Third quarter production is expected to be 14.4-14.8Mt.

As it prepares for its upcoming second quarter financial review, Consol confirmed that its coal division produced 15.4Mt during the period, including 1.4Mt from its Buchanan metallurgical mine in Virginia.

"Consol's mines ran very well during the quarter," chairman and chief executive officer Brett Harvey said.

"Buchanan mine ran especially well, considering that it made a longwall move during the quarter. Our Shoemaker mine also set daily and monthly production records."

The producer said its guidance reflected a normal seasonal production pattern of first and fourth quarters that are higher than the second and third. The third quarter is also the heaviest time for miner vacations.

On the metallurgical coal side, Consol now estimates annual production to be 5Mt this year. Its earlier guidance was 4.5Mt.

The company’s thermal inventories dropped 900,000t to 1.6Mt in the second quarter on higher than expected sales, and its low volume inventory from the Buchanan complex was steady, compared to the first quarter, at 200,000t.

Pennsylvania-based Consol will report its second quarter financials on July 28.

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