By Patty Tascarella
September 6, 2017 - CONSOL Energy Inc. on Tuesday said it plans to execute the separation of its coal and E&P businesses at the “earliest possible time,” expected to occur in the fourth quarter.
It was among several updates announced by CONSOL (NYSE: CNX), including restated guidances and the authorization of a $200 million share repurchase program, in advance of its participation in the Barclays CEO Energy-Power Conference in New York on Tuesday afternoon.
CONSOL is decreasing its 2017 E&P Division production guidance to about 405-415 Bcfe, compared to the previously stated guidance of 420-440 Bcfe. For the third quarter of 2017, the company expects production of about 100 Bcfe, implying higher growth in the fourth quarter, driven in part by the well turn-in-line schedule peaking in November. The company maintains previously announced 2017 total E&P capital expenditures guidance of about $620 million to $645 million, as well as the previously announced 2018 E&P Division production guidance of about 520-550 Bcfe, or about 30 percent growth compared to 2017.
The company now expects full year 2017 adjusted EBITDA guidance to be about $815 million, which is a decrease of $55 million from the previously stated guidance.
Finally, CONSOL has continued to sell noncore assets and, since Aug. 1, has closed on an additional $40 million, which includes the sale of noncore Marcellus Shale acres in Allegheny and Westmoreland counties for about $30 million.