Diversified fuel producer CONSOL Energy Inc. (CNX) revealed details about its reserves for 2010. The proved gas reserves of the company increased to 3.7 trillion cubic feet (Tcf) in 2010 from 1.9 Tcf at the end of 2009. Of the total reserves under the company 52% are proved developed and the remaining 48% are proved undeveloped.
Investments in drilling activities undertaken by CONSOL Energy during 2010 yielded positive results. The company pumped in $255.7 million to boost reserves by 621.3 billion cubic feet (Bcf), while revision, involving pricing and production, added another 380.0 Bcf to the reserve base.
The company will continue to invest in drilling projects and to that end plans to devote $475 million in 2011. The company has earmarked $225 million for development drilling, $215 million for delineation drilling and $35 million to conduct a six-well Utica Shale exploration program. In 2010, the company drilled 24 horizontal holes in Marcellus Shale and has plans to drill another 75 horizontal holes in Marcellus Shale in 2011.
Total proved, probable, and possible reserves of the company at the end of December 31, 2010 were 14.2 Tcf, growing an impressive 118% from 6.5 Tcf reported at year-end 2009.
CONSOL Energy’s operating earnings per share during the fourth quarter as well as the full year 2011 of 54 cents and $1.60 fell short of the corresponding Zacks Consensus Estimates. The Zacks Consensus Estimates for first quarter 2011, fiscal year 2011 and fiscal year 2012 currently stand at 72 cents per share, $2.83 per share and $4.45 per share, respectively.
CONSOL Energy at present retains a Zacks #3 Rank (short-term Hold rating). Among others, the company competes with Peabody Energy Corporation (BTU) and Massey Energy Co. (MEE).
Based in Canonsburg, Pennsylvania, CONSOL Energy is a multi-fuel energy producer as well as energy services provider, primarily catering to the U.S. power producers.
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