CONSOL Energy Sells Five More Vessels of High-Vol Coking Coal to China
January 28 2010 - 7:00AM
PR Newswire (US)
PITTSBURGH, Jan. 28 /PRNewswire-FirstCall/ -- CONSOL Energy Inc.
(NYSE: CNX), a producer of metallurgical coal, high-Btu thermal
coal, and natural gas, has concluded the sale of five more vessels
of high-vol coking coal from its Bailey and Blacksville mines in
Northern Appalachia destined for Asia. The sales were made by
Xcoal, and are the result of the Asian Marketing Initiative
announced last month by CONSOL. The sales for these 5 vessels total
approximately 410,000 short tons. The cargoes are destined for
integrated steel mills located in the Hebei and Shangdong provinces
of China. "CONSOL Energy established its arrangement with Xcoal
just in time to meet the strong demand for high-vol coking coal in
China," commented J. Brett Harvey, president and chief executive
officer. "When counting the earlier sale we announced two weeks ago
of 82,000 short tons, we have now sold nearly a half million tons
of Northern Appalachian coal to Asia in one month, and we've sold
it at a significant premium to our domestic thermal market. CONSOL
Energy, with our 100%-owned Baltimore Terminal, is in a unique
position to sell our Northern App coal into the Atlantic Basin,
Asia, or the domestic market." As previously announced, CONSOL
Energy is represented in Asia by Xcoal at offices in Beijing,
Seoul, Tokyo, and Singapore. CONSOL Energy also announces fourth
quarter and 2009 earnings this morning. J. Brett Harvey will host a
conference call this morning at 10:00 am ET to discuss earnings and
the 2010 outlook for CONSOL Energy. The call can be heard on the
investor relations portion of the company's web site, at
http://www.consolenergy.com/. CONSOL Energy Inc., a high-Btu
bituminous coal and natural gas company, is a member of the
Standard & Poor's 500 Equity Index and the Fortune 500. It has
11 bituminous coal mining complexes in six states and reports
proven and probable coal reserves of 4.5 billion tons. It is also a
majority owner of CNX Gas Corporation, a leading Appalachian gas
producer, with proved reserves of over 1.9 trillion cubic feet.
Additional information about CONSOL Energy can be found at its web
site: http://www.consolenergy.com/. Forward-Looking Statements
Various statements in this document, including those that express a
belief, expectation, or intention, as well as those that are not
statements of historical fact, are forward-looking statements (as
defined in Section 21E of the Securities Exchange Act of 1934 and
the Private Securities Litigation Reform Act of 1995). The
forward-looking statements may include projections and estimates
concerning the timing and success of specific projects, our future
production, revenues, income and capital spending. When we use the
words "believe," "intend," "expect," "may," "should," "anticipate,"
"could," "would," "will," "estimate," "plan," "predict," "project,"
or their negatives, or other similar expressions, the statements
which include those words are usually forward-looking statements.
When we describe strategy that involves risks or uncertainties, we
are making forward-looking statements. The forward-looking
statements in this document speak only as of the date of this
document; we disclaim any obligation to update these statements
unless required by securities law, and we caution you not to rely
on them unduly. We have based these forward-looking statements on
our current expectations and assumptions about future events. While
our management considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks, contingencies
and uncertainties, most of which are difficult to predict and many
of which are beyond our control. These risks, uncertainties and
contingencies include, but are not limited to: the deteriorating
economic conditions; an extended decline in prices we receive for
our coal and gas affecting our operating results and cash flows;
reliance on customers honoring existing contracts, extending
existing contracts or entering into new long-term contracts for
coal; reliance on major customers; our inability to collect
payments from customers if their creditworthiness declines; the
disruption of rail, barge and other systems that deliver our coal;
a loss of our competitive position because of the competitive
nature of the coal industry and the gas industry, or a loss of our
competitive position because of overcapacity in these industries
impairing our profitability; our inability to hire qualified people
to meet replacement or expansion needs; coal users switching to
other fuels in order to comply with various environmental standards
related to coal combustion; the inability to produce a sufficient
amount of coal to fulfill our customers' requirements which could
result in our customers initiating claims against us; foreign
currency fluctuations could adversely affect the competitiveness of
our coal abroad; the risks inherent in coal mining being subject to
unexpected disruptions, including geological conditions, equipment
failure, timing of completion of significant construction or repair
of equipment, fires, accidents and weather conditions which could
impact financial results; increases in the price of commodities
used in our mining operations could impact our cost of production;
obtaining, maintaining, and renewing governmental permits and
approvals for our operations; the effects of proposals to regulate
greenhouse gas emissions; the effects of government regulation; the
effects of stringent federal and state employee health and safety
regulations; the effects of mine closing, reclamation and certain
other liabilities; the effects of subsidence from longwall mining
operations on surface structures, water supplies, streams and
surface land; uncertainties in estimating our economically
recoverable coal and gas reserves; the outcomes of various legal
proceedings, which proceedings are more fully described in our
reports filed under the Securities Exchange Act of 1934; increased
exposure to employee related long-term liabilities; minimum funding
requirements by the Pension Protection Act of 2006 (the Pension
Act) coupled with the significant investment and plan asset losses
suffered during the current economic decline has exposed us to
making additional required cash contributions to fund the pension
benefit plans which we sponsor and the multi-employer pension
benefit plans in which we participate; lump sum payments made to
retiring salaried employees pursuant to our defined benefit pension
plan; our ability to comply with laws or regulations requiring that
we obtain surety bonds for workers' compensation and other
statutory requirements; acquisitions that we recently have made or
may make in the future including the accuracy of our assessment of
the acquired businesses and their risks, achieving any anticipated
synergies, integrating the acquisitions and unanticipated changes
that could affect assumptions we may have made; the anti-takeover
effects of our rights plan could prevent a change of control; risks
in exploring for and producing gas; new gas development projects
and exploration for gas in areas where we have little or no proven
gas reserves; the disruption of pipeline systems which deliver our
gas; the availability of field services, equipment and personnel
for drilling and producing gas; replacing our natural gas reserves
which if not replaced will cause our gas reserves and gas
production to decline; costs associated with perfecting title for
gas rights in some of our properties; location of a vast majority
of our gas producing properties in three counties in southwestern
Virginia, making us vulnerable to risks associated with having our
gas production concentrated in one area; other persons could have
ownership rights in our advanced gas extraction techniques which
could force us to cease using those techniques or pay royalties;
our ability to acquire water supplies needed for drilling, or our
ability to dispose of water used or removed from strata at a
reasonable cost and within applicable environmental rules; the
coalbeds and other strata from which we produce methane gas
frequently contain impurities that may hamper production; the
enactment of Pennsylvania severance tax on natural gas may impact
results of existing operations and impact the economic viability of
exploiting new gas drilling and production opportunities in
Pennsylvania; our hedging activities may prevent us from benefiting
from price increases and may expose us to other risks; and other
factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2008 under "Risk Factors," as updated by
any subsequent Form 10-Qs, which are on file at the Securities and
Exchange Commission. DATASOURCE: CONSOL Energy Inc. CONTACT: Dan
Zajdel of CONSOL Energy Inc., +1-724-485-4169 Web Site:
http://www.consolenergy.com/
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