Consol holds first quarter losses to $100 million--places near head of the Class
Did anyone think they would live to see a day in the energy business when losing one hundred million dollars in a quarter would be good news--put you near the head of the class?
It's a Brave New World!
Consol (NYSE: CNX) lost $97.6 million, or 43 cents a share, in the first quarter ended March 31, compared with a profit of $79 million, or 34 cents a share, in the same period a year ago. The results included a $29.3 million loss on commodity derivative instruments, $12.6 million loss from the sale of a gathering pipeline, and $2.9 million in severance. Adjusted EBITDA — earnings before income taxes, depreciation and amortization — was $176 million, down from $242 million a year ago.
Revenue was $558.5 million in the first quarter, down from $792.6 million a year ago. Natural gas revenue dropped 19 percent to $181.2 million, while coal revenue fell 39.5 percent to $251.9 million. But Consol's liquidity was up to $1.3 billion, thanks in part to the recent sale of its Buchanan Mine in Virginia.
"The Buchanan sale is significant for a number of reasons," Consol President and CEO Nicholas J. DeIuliis said in a statement. "Not only does this divestiture support our corporate strategy, it also brought forward substantial value, at a premium multiple valuation. That said, this transaction was a win-win for both us and the buyer, who will benefit from this premier mine becoming their flagship operation. For Consol, the sale of Buchanan marks another large step toward executing our strategy of becoming a pure-play E&P company
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Replies to This Discussion
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Permalink Reply by Joseph-Ohio on -
Seems to me that alot of domestic E & Ps are in a real jam as others are merrily buying cheap production from OPEC / SA / ME producers.
Is this a strategy to eliminate competition / to take advantage of the economic oil pricing / on the account of the production war (for 'Market Share') / all of the above ? ?
Can it be that some are in a position to show a paper loss with the real profit being eliminating competition & the ability to ride out the storm ? ?
If that's so I'll say it must be nice to be able to afford such a strategy ! !
What say all of you Traders ? ?
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Permalink Reply by Paul Butler on
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Range Resources was the Shalers Reform School Valedictorian only losing 91 million dollars (US).
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Permalink Reply by Joseph-Ohio on
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Who is buying all the ME (Iran / Iraq / OPEC / etc.) production here in the USA I wonder ?
Have it that the USA imported 33% more oil from those birds in the 1st quarter of 2016 than in the 1st quarter of 2015.
Our domestic E & Ps have already laid off over 1 million folks and going bust to boot !
What's all that about ? ?
The rigged free market ? ?
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