Jul. 30--Consol Energy Inc. today reported a double-digit increase in second-quarter profit despite a similar percentage drop in overall revenues. It attributed the higher profit to higher coal prices and increased natural gas production.

The Cecil, Washington County-based energy company said profit for the three months ended June 30 was $113.3 million, or 62 cents a share, up from $101 million, or 54 cents a share in the April-June period of 2008.

Revenue dropped 11.6 percent, to nearly $1.1 billion, from $1.2 billion one year earlier.

"2009 continues to be a tactical year for the company," said CEO J. Brett Harvey, in a statement. "Consol is reacting to ensure that coal production is in line with demand in a weakened economy, As a result, we've lowered our 2009 coal production guidance to 58 million tons."

The lower coal production number is the second Consol has announced since the company released first-quarter results in late April and pegged annual production at 62 million tons. In early June, production for 2009 was lowered to 60 million tons.

Coal production for the quarter dropped to 13.4 million tons, from 17.5 million tons, but the average price per ton jumped 16.2 percent, to $56.36, from $48.50 one year ago. The higher price per ton primarily was due to contracts signed earlier in a stronger market, Consol said.

At CNX Gas Corp., of which Consol owns 83.3 percent, profit and revenue dropped signifcantly during the second quarter, even as natural gas production rose.

Profit fell nearly 49 percent, to $33 million, or 22 cents a share, from $64.3 million, or 42 cents a share one year ago. Revenue dropped to $161.5 million from $205.8 million.

The average sales price for the quarter dropped year-over-year by more than 30 percent, to $6.71 per thousand cubic feet of natural gas, from $9.63 per thousand cubic feet in the second quarter of 2008.

Quarterly natural gas production jumped nearly 20 percent, to 22.5 billion cubic feet, from 18.8 billion cubic feet. CNX raised its production estimate for the year by 2 billion cubic feet, to 89 billion cubic feet.

Harvey said that CNX continues to ramp up its Marcellus Shale activity, which includes operations in Washington and Greene counties, with eight wells now producing natural gas within the formation.

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

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