Consol Energy Q4 Profit From Cont. Opns Increases - Quick Facts

(RTTNews) - Consol Energy Inc. (CNX) reported that its fourth-quarter income from continuing operations increased to $146.60 million from last year's $107.58 million, with income from continuing operations improving to $0.64 from $0.47 in the prior year quarter.

Net income from continuing operations was $147 million as a result of an income tax benefit of $131 million arising out of a reversal of prior quarters' tax provisions.

When added to income from discontinued operations, net of tax, of $591 million, net income attributable to shareholders for the quarter significantly increased to $738.18 million from $149.90 million in the same quarter last year. Net income per share was $3.20, higher than $0.65 reported last year.

Total revenue and other income for the quarter slipped to $825.23 million from last year's $934.81 million.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share and revenues of $1.20 biillion. Analysts' estimates typically exclude special items.

"Looking to 2014, CONSOL is poised to increase its gas production by 30% and its coal production by 5 million tons, on an annual basis, when the BMX Mine in Southwestern Pennsylvania opens late in the first quarter," said J. Brett Harvey, chairman and CEO.

Consol said it continues to make progress in unlocking the value of its gas midstream assets. The two paths under consideration continue to be an MLP or sale. The company has been weighing the competing interests of valuation, liquidity, and maintenance of strategic control. The relative importance of these interests has changed recently. The sale of CONSOL's five West Virginia coal mines greatly improved the company's liquidity and significantly de-levered the balance sheet. Also, Marcellus Shale volumes are up 56%, quarter-over-quarter, and for 2014 are expected to be approximately 85% higher than 2013. Demonstrated natural gas production growth and an annual gas production target of 30% have de-risked future midstream growth and reduced the importance of minimum volume commitments to potential acquirers. It expect a NAV-accretive transaction in 2014, and will identify a path of sale or MLP in the first half of the year, the company said.

First quarter gas production, net to Consol, is expected to be approximately 47 - 49 Bcfe, while annual 2014 production is expected to be 215 - 235 Bcfe.

Consol Energy expects its 2015 and 2016 annual gas production to grow by 30%.