Consol cuts capex over low gas prices

Pocketing the difference: Consol Energy hanging on to $200 million capital expenditure amid low gas prices

Scott Chan/freedigitalphotos.net

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Bill Lehane

, Bill Lehane

 26 January 2012 12:45 GMT

US coal and gas producer Consol Energy has reported record net income of $632 million in 2011, while also admitting it is cutting back on drilling in 2012 due to low gas prices.

The Pittsburgh-based, New York-listed player raised its annual profits to almost double 2010’s $347 million largely thanks to its shale assets.

The company garnered gross revenues of $841 million between its Marcellus Shale project with Noble Energy, its Utica Shale venture with Hess Corporation and its sale of assets equivalent to 6.5 billion cubic feet of natural gas during 2011 to Noble Energy and Antero.

In total, Consol Energy produced 153.5 billion cubic feet of gas during the year, a 20% rise on 2010.

However, Consol Energy said it was now…

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