Apr. 24--Consol Energy Inc. rode higher coal contract prices and increased natural gas production to record first-quarter results, the company said Thursday.

Profits surged 140 percent from a year ago while revenues increased nearly 19 percent, the Washington County-based company said.

"We're very pleased with our results for the quarter, particularly with the backdrop of the current economy," William Lyons, chief financial officer, told analysts.

The results pleased investors. The company's shares yesterday gained $3.28, or 12.7 percent, closing at $29.18.

"In the environment we've seen over the last six months from an energy standpoint, to see a company come in on the high side of expectations, that's a definite surprise," said James Rollyson, an analyst with Raymond James Financial Inc. in St. Petersburg, Fla.

For the three months ended March 31, Consol's net income totaled nearly $205 million, or $1.08 a share, compared to $84.2 million, or 41 cents a share a year ago.

Consol also credited higher gas production from CNX Gas Corp. for the increase in profits. Consol owns 83.3 percent of CNX.

Revenue for the three months jumped to more than $1.2 billion, from just over $1 billion for the first three months of 2008.

Rollyson expected Consol to report earnings of 96 cents a share. He noted Peabody Energy Corp. last week reported earnings per share of 63 cents, well below analyst estimates of 93 cents a share.

Consol and CNX CEO J. Brett Harvey said the company's strategy of being a low-cost producer in both coal and natural gas is sound.

"Our watchwords at this time are discipline in coal production and prudent natural gas growth," Harvey said.

The coal production forecast this year has been lowered to 62 million tons from an earlier forecast of 63 million tons.

"The whole industry has said there's a need to cut back production, but not a lot have actually done it," Rollyson said. "In this market, you have to cut back, and I think Brett's doing the right things."

In the first quarter, the company sold 15.4 million tons of coal to earn about $17.38 a ton. A year ago, the company sold 16 million tons of coal sold and earned $6.18 a ton.

Consol's results were favorable even though coal prices in the area where it's a dominant player, the Northern Appalachia Region, have dropped from around $130 a ton in October, to the low $50-a-ton range last week, the U.S. Energy Information Administration reported. Prices are on the spot market.

Natural gas production at CNX Gas increased more than 38 percent during the quarter, to 22 billion cubic feet, from 15.9 bcf a year ago.

Rick Stouffer can be reached via e-mail or at 412-320-7853.

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