CONSOL Energy Lowers 2016 E&P Capital Budget, Coal Sales Volume Outlook

(RTTNews) - CONSOL Energy Inc. (CNX) announced today an updated 2016 capital expenditure and operational forecast for the E&P and Coal Divisions.

In 2016, the E&P Division expects capital expenditures of $205 million to $325 million, which is $185 million lower than the previous guidance of $400 million to $500 million, based on the midpoint of the guidance.

The company noted that the further reduction to 2016 E&P capital reflects continued benefits from drilling and completion efficiencies and the deferral of mainly wet gas completions into 2017.

Consol Energy said its 2016 Coal Division budget continues to reflect maintenance of production capital. Total coal division capital expenditures projected for the year is $170 million to $190 million.

In response to ongoing coal market uncertainty, Consol's total coal division is reducing 2016 expected sales to 27 million to 32 million tons, compared to previous guidance of 30.6 million to 33.4 million tons. The reduction reflects further coal market weakness due to unusually warm winter weather and low natural gas prices impacting customer's coal burn.