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Consol Energy loses $600 million in second quarter

BECKLEY, W.Va. — After more than $600 million lost in the second fiscal quarter, Consol Energy announced it will halt new drilling until next year and delay a planned initial public offering of a unit holding its steel-making coal assets.

The company Tuesday reported a loss of $603 million, or $2.64 a share, for the quarter ending June 30. During the same quarter last year, the company reported a loss of 11 cents a share, or $25 million.

 The company hinted last week of massive loss due largely to declining energy costs. Consol announced it would record a “significant” write-down on its conventional shallow oil and gas assets. The “significant” turned out to be $829 million.

“Consol is focused on managing through what continues to be a very challenging commodity price environment,” commented Nicholas J. Deluliis, president and CEO.

Recently, to manage through the tough times, Consol slashed its capital budget for drilling another $800 million, or 20 percent. Earlier this month, it announced a reduction in force of more than 10 percent of its workers.

Consol’s coal operations continue to suffer because of a lack of demand and falling prices. Financials released Tuesday show steep declines. The company sold 5.7 million tons during the second quarter…

 

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